Why is the preparation of financial statements important during the divorce process? Before a reasonable property settlement can be negotiated, it’s important for both spouses in a divorce to disclose all assets, liabilities, sources of income, and expenses. By arranging this information in standard financial statements and by analyzing these statements, a financial planner…
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the 2010 Tax Act) included new gift, estate, and generation-skipping transfer (GST) tax provisions. The 2010 Tax Act provided that in 2011 and 2012, the gift and estate tax basic exclusion amount was $5 million…
When your child first started school, you doled out the change for milk and a snack on a daily basis. But now that your kindergartner has grown up, it’s time for you to make sure that your child has enough financial knowledge to manage money at college.
Many parents pay for college with a combination of current income, savings, and financial aid. By learning the basics of financial aid, you’ll be able to understand how the aid process works and compare the aid awards your child receives.
Estate Planning – There are five estate planning documents you may need, regardless of your age, health, or wealth: Durable power of attorney, Advance medical directives, Will, Letter of instruction, Living trust. The last document, a living trust, isn’t always necessary, but it’s included here because it’s a vital component of many estate plans.
We’ve covered some of the characteristics of cryptos before, but with the ongoing spike in investor interest, the topic is worth revisiting. With any newer and harder-to-understand product, it’s important to take a step back and not lose sight of the forest for the trees.
An ILIT is a trust primarily set up to hold one or more life insurance policies. The main purpose of an ILIT is to avoid federal estate tax. If the trust is drafted and funded properly, your loved ones should receive all of your life insurance proceeds, undiminished by estate tax.
In a perfect world, both halves of a couple share the same investment goals and agree on the best way to try to reach them. It doesn’t always work that way, though; disagreements about money are often a source of friction between couples.
Two emergency relief bills passed in 2020 in response to the COVID-19 pandemic will make this an unusual tax season for many taxpayers. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed in March, and a second relief package was attached to the Consolidated Appropriations Act, 2021, in December.
There’s no doubt about it — last year was tumultuous. The coronavirus pandemic, a contentious election, and widespread protests were just some of the events that impacted our nation in 2020. Fortunately, the arrival of new vaccines has brought hope for a brighter 2021. If you are looking forward to a fresh start this year, why not begin with your personal finances? Here are some tips to help you get started.