Loan to family business could trigger higher estate tax

From 1997 to 2003, a family could take an estate tax deduction of up to $675,000 if more than half of the estate property consisted of interest in a family business.  This law is scheduled to go back into effect in 2010, so it’s wise to be aware of it. In particular, you should be […]

Children who inherit a 401 (k) can roll it over into a Roth IRA

The IRS has given families a little more flexibility in handling a 401 (K) and pension plans.  According to an IRS announcement, children who inherit a 401 (k) or pension plan can now roll it over directly into a Roth IRA. Before, a spouse who inherited a 401 (k) or pension plan could roll it […]

Low Interest Rates create golden estate planning opportunity

The recent dip in interest rates has created a golden opportunity to save taxes while giving income-producing assets to your heirs.  You can do this with a “grantor retained annuity trust,” or GRAT.  It allows you to continue receiving income from the property for a number of years, and you can then give it to […]

Glitches on credit card receipts are getting companies in trouble

A new federal “identity theft” law prohibits merchants from printing more than the last five digits of a credit or debit card number on a customer’s receipt. The law is triggering a lot of class-action lawsuits against companies that haven’t updated their receipt systems. For instance, many companies still print credit card expiration dates on […]

Good news for shareholders in closely-held corporations

Shareholders in closely-held corporations have won an important estate tax battle with the Internal Revenue Service. The issue is how to place a value on a corporation that has a lot of “built-in” capital gains-meaning that if the company’s assets were liquidated, it would owe a hefty capital gains tax.  In this case, a man […]

Six Ways to accidentally disinherit your children

It’s hard to imagine that someone could accidentally disinherit their own children, but it happens all the time to people who don’t regularly update their estate plan. It’s important to update your estate plan with a professional every few years, or whenever there is a significant change in your circumstances or in the tax laws. […]

Does your college student need a will?

When you send your son or daughter off to college, the last thing you’ll probably think of getting for him or her is a will.  But there are a few simple legal documents that any young adult should have.  Getting them takes a short time, and is definitely worth the effort.  One such document is […]

‘Identity Theft’ a growing problem after someone dies

The latest wrinkle in “identity theft” involves criminals opening accounts in the name of people who are recently deceased.  If a relative has recently died, you might want to take steps to avoid this problem.  For instance, you should immediately notify the Social Security Administration of the death, to prevent someone from using the deceased’s […]

Is it time to review your ‘power of attorney’?

A “power of attorney” is an important part of almost any estate plan.  This document allows someone else to take over your day-to-day financial affairs if you become incapacitated but like any element of an estate plan; a power of attorney needs to be reviewed occasionally to see if it still meets your needs.  If […]

Do you need more than one trustee?

In the old days, trusts tended to be pretty simple.  Typically, a trustee was expected to invest the funds conservatively and pay interest to a beneficiary at regular intervals.  That was about it. Today, however, trustees are often expected to invest aggressively and successfully in a much more complex market.  They may be subject to […]