http://www.dreamstime.com/-image12941296

What Is The Marital Deduction?

The marital deduction (I.R.C. Sections 2056 and 2523) eliminates both the federal estate and gift tax on transfers of property between spouses, in effect treating them as one economic unit.  The amount of property that can be transferred between them is unlimited, meaning that a spouse can transfer all of his or her property to…
Read More

Savers Prison

Taxable VS. Tax Deferred Investments

How much would you have to earn each year from a taxable investment in order to equal earnings on a tax-deferred investment? This chart illustrates the potential benefits of a tax-deferred investment vs. a taxable investment. Annual Tax-Deferred Yield Federal Income Tax Bracket: 10% 15% 25% 28% 33% 35% Annual Taxable Equivalent Yield 3% 3.33% 3.53%…
Read More

hummingbird

What Are The Implications Of Dying Without A Will?

People who die without a valid will, die intestate. In this event, the state in which they resided effectively provides a will through the state’s intestacy law. This means that the state dictates who will receive the estate owner’s property and in what proportion. While state intestacy laws do attempt to provide for a “fair”…
Read More

Dog Ready to Read

What Is A Power Of Attorney?

Durable Power of Attorney What Is It? A power of attorney is a written document in which one person — the principal — authorizes another person — the attorney-in-fact — to act on the principal’s behalf. What Authority Is Granted by a Power of Attorney? The authority granted by a power of attorney depends on…
Read More

money stream

Another Role For Life Insurance

Another Role for Life Insurance… The Wealth Replacement Trust The Problem: There can be significant tax advantages in giving appreciated assets to a charity. Examples include real estate and securities. If you were to sell an appreciated asset, the gain would be subject to capital gains tax. By donating the appreciated asset to a charity,…
Read More