There is a federal tax on estates and gifts. Some states also have taxes. Before 2003 Illinois taxed estates only if there was a federal tax. The Illinois tax was the amount of the federal credit for state taxes so there was no increase over the federal tax without a state tax. However, the federal [...]
Read MoreThis allows the deductible gift to the surviving spouse to be made in trust so a trustee can manage the investments. The tax law provides that the gift, while not absolute, still qualifies for the marital deduction if the spouse must get all the income and has the power to say who gets the money [...]
Read MoreOver the centuries, the human life expectancy has increased substantially. During the Roman Empire, the average life expectancy was 22 to 25. By 1900, it had increased to 30; by 1985, it had increased to 62. Today it is approximately 77. Some people, however, live to be 100. Known as centenarians, they are not as [...]
Read MoreFederal legislation passed in 2006 has turned many former procrastinators into pre-planners. The Deficit Reduction Act, signed into law by President Bush in February 2006, extends Medicaid’s "look-back" period from three years to five. "Look-back" is the term for the period of time during which financial transactions of a Medicaid applicant/recipient are subject to review [...]
Read MoreThis is also referred to as a life interest. Someone with a life estate has a right to the use of the asset in which she or he has a life estate for her or his life. The right can also exist for the life of someone else. The right extends to the use of [...]
Read MoreWomen have three major worries when they think about retirement: inflation, health and longevity, according to a study released yesterday by The Hartford (Conn.) Financial Services Group Inc. These worries keep women up at night more so than men, according to the study, which was conducted in collaboration with the Massachusetts Institute of Technology AgeLab [...]
Read MoreAs a buyer you should find out all you can about the type of business you are interested in. The more you know the better able you will be to evaluate the particular business you are thinking of buying. One of the best sources of information is to get a job in the field for [...]
Read MoreThis refers to preventing creditors from getting your assets. There are no magic techniques. A variety of techniques are used which may include: 1. Transferring your assets to your spouse – or someone else who is cooperative. There is an unlimited gift tax exemption for transfers to a spouse. 2. Tenancy [...]
Read MoreThese are often used in estate planning when businesses or farms are involved, especially if there are other owners. All the owners agree to buy out the interest of any owner who dies. This provides cash to the estate of the dead owner for what might otherwise be an unsalable asset and protects the other [...]
Read MoreCarol Wiley, 70, of Madison, Miss., got a late start on retirement saving. A divorced mother of three daughters, she wasn’t able to save much until her youngest finished college. By then, she was 60 years old. Wiley is working hard to catch up. She’s paid off her home and is contributing the maximum to [...]
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