When choosing a beneficiary for a retirement plan, it’s important to understand how your spouse will be treated under the plan. The rules are different for 401(k)s and IRAs. With a 401(k) plan, a surviving spouse is the automatic beneficiary of the plan. If you want to name someone other than your spouse as a beneficiary, your spouse must agree to this in writing. There are some exceptions; for example, the rule might not apply if
In a recent case, a Texas man inherited $400,000 in cash from his aunt. The man’s ex-wife went to court and claimed that as a result, his child support payments should be increased. The Texas Court of Appeals agreed with the ex-wife. It said that even though the $400,000 wasn’t wages or earnings, it was still a “resource” that had to be considered in determining how much the father had to pay for his two children.
The new tax law, which temporarily raises the estate and gift tax exemptions to $5 million, has many important implications. Almost everyone should have their estate plan reviewed in light of this significant change. Here are just a few of the other important consequences: Many wills that were drafted years ago need to be revised right away. Frequently, these wills were set up to avoid taxes by giving children an amount of property equal to the
Congress has created a temporary “window” – between now and the end of 2012 – in which many people can save a lot of money in estate and gift taxes. You might be able to take advantage of this opportunity by transferring significant assets to a trust. But as they say on TV, hurry – this is a limited-time offer from the federal government. During 2011 and 2012, the federal estate tax exemption will be $5
The U.S. Department of Housing and Urban Development has proposed regulations that would ban discrimination against gay people in federally-assisted housing programs. The new rules would prohibit lenders from discriminating based on sexual orientation in offering FHA-insured mortgages. They would also prohibit discrimination in HUD programs including public housing, Section 8 vouchers, and multi-family housing assisted through HUD funding. Currently, the Fair Housing Act prohibits discrimination in renting, selling and mortgage lending on the basis of
A new type of reverse mortgage that could benefit some senior citizens has been approved by the Federal Housing Administration. In a traditional mortgage, you borrow money against your house and pay it back in monthly installments over time. With a reverse mortgage, you borrow money against your house, but you don’t have to pay it back until you die, sell the house, or move – which means you don’t owe anything as long as you
The Federal Housing Administration has extended a program designed to make it easier for investors to “flip” foreclosed and other depressed properties by buying them, rehabbing them, and quickly selling them to homebuyers. Ordinarily, investors who buy a property with an FHA-insured loan are not allowed to sell the property until at least 90 days after the purchase. However, the FHA now says it won’t enforce this rule until at least the end of 2011. The
The average office rent in the U.S. edged slightly higher at the end of 2010 – to an average of $22.09 per square foot. That’s an increase of only 0.2 percent, but it’s the first increase in almost three years, which suggests that the long slump in rental rates may be coming to an end as the economy slowly improves. Back in early 2008, the national average was above $25 per square foot. The total amount
There’s been a spike in interest recently in 15-year mortgages, particularly for people who are refinancing. In general, the recent financial crisis has made people more wary of debt and more eager to pay it off. Back before the crisis, many people were happy to take on more debt and pay it off over a longer period of time. But today, a lot of people want to get rid of debt as quickly as possible, even
As a general rule, borrowers have to obtain private mortgage insurance if their down payment is less than 20% of the value of the home. But what many people don’t realize is that there are a number of different options for the way this insurance, called PMI, is handled. Some of these could reduce your monthly payment or save you money in the long term. PMI is a bigger issue than it used to be. For
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