If your spouse or loved one has passed away without updating his or his plan and you find yourself now the trustee or beneficiary of a trust that is not needed, there are ways that you may terminate the trust and end the costs and hassles of trust administration. Now, not only is the exemption… Read More
Teddy Roosevelt used to be called the Trust Buster because he forced the great railroad combination in the Northwest to break apart. He was the avowed foe of all sorts of trusts and monopolies. Now the term ”Trust Buster” may have a new meaning. Lots of folks find themselves with trusts set up for estate… Read More
If your annuity is in an IRA you must begin withdrawing the minimum required distribution at age 70-1/2 regardless of any surrender charge that may be imposed on the withdrawals. As always, each investor must weigh the cost-benefit of investment alternatives, including annuities. The question always is, are the features worth the fees? You can… Read More
Ten Stupid Things People Do to Mess Up Their IRA’s, brought in some inquiries. Number 8 on the list of stupid things was “don’t buy an annuity in your IRA.” The IRA is already tax-deferred, you don’t need to buy a product for tax-deferral — the IRA already gives you a tax deferral. Some e-mails were in support… Read More
There are other options to the safe in the spare bedroom or den. Keeping your will in your safe deposit box at your bank is the option I usually recommend, so long as no one has access to the box who could benefit by a destruction of the will. I recommend that you drive immediately… Read More
Please don’t keep your will at home. A couple of recent cases have prompted me to revisit the answer to the question of where you should keep your will. A client died unexpectedly, only a few months after making his will. He had gone to great pains to make a will to protect his only… Read More
Taxation of Joint Accounts Jointly held property is very common, but its taxation is commonly misunderstood. On any joint account, the owner of the funds in the account is responsible for paying income tax on the account’s earnings. Which of the joint owners receives the 1099 from the payer is not dispositive of who should… Read More
Joint tenancy is a type of co-ownership under which if one co-owner dies, the surviving co-owner becomes the owner of the property at the moment of death. The property does not pass under the decedent’s will and does not pass through probate. But joint property can create many problems. If you take my advice, you’ll… Read More
How much the taxable wage base rises each year depends on cost projections made by the Social Security Administration. They make three forecasts, one each for low, medium and high costs. The medium cost is forecasted to rise every year for almost the next decade. There are long term forecasts, but they are subject to… Read More
“Our society must make it right and possible for old people not to fear the young or be deserted by them, for the test of a civilization is the way that it cares for its helpless members.” Pearl S. Buck Everyone who works for a living knows about the Social Security tax. It’s a big… Read More