Clients routinely want a no-contest clause in their estate plan just in case someone wants to challenge the estate. However, in the state of California there is not going to be an exclusive bar to challenge and there are some instances where you need to keep the option open for your beneficiary; ...
This new type of currency or investment has added to the list of estate planning mistakes and is why it pays to hire professionals. This estate planning mistake is so costly and why we encourage our clients to make their passwords accessible (digitally in an online vault) to their Successor Trust...
Under previous law, a non-spouse beneficiary could take distributions from an inherited IRA over the beneficiary's life expectancy, resulting in advantageous income tax deferral (we called it the “stretch”). Under the SECURE Act, the “stretch” for most non-spouse beneficiaries has been reduced to...
A taxpayer may arrrange his business affairs in a way to minimize his taxes; and if such arrangements are not shams, the courts should be hesitant to disregard form and exalt substance. Haley v. United States, 400 F.Supp 111 (1975). Just as a taxpayer may structure his affairs to minimize ta...
The SECURE Act expands the definition of qualified higher education expenses to include student loan payments and costs of apprenticeship programs, leaving more options for families. The funds in a 529 can also be used to pay for room and board, books and supplies, special services, and computers...
As a senior you should plan to protect your health no matter where you might venture. If you currently have Medicare or a Medicare Advantage plan, you shouldn't have any problems getting the care you need anywhere in the US. It's when you decide to travel outside the US that you'll likely encount...
We are nearing the end of 2019 and the opportunity to give for this year. If a person has reached the age of 70.5 they can make cash donations to charities that are approved by the IRS that are outside of the scope of their IRA. These qualified charitable distributions will allow a person to red...
Holiday shopping is underway for many with “Black Friday” and “Cyber Monday” already behind us. One small question you might ask yourself is whether you should pay for your items with a credit or debit card. There's a lot of debate about whether you're better off using a credit or debit card b...
More often than not, whenever a presidential election year is underway, you will hear a lot of news anchors and financial analysts will talk about the economy and the stock market. There will often be self-proclaimed experts who have their theories about how a presidential candidate will affect t...
Overview of the U.S. – Malta Tax Treaty The U.S.-Malta Income Treaty was executed in 2008 and became effective in 2011. Article 4, paragraph 2 of the Treaty provides that a pension fund established in either the United States or Malta is a “resident” for purposes of the Treaty, allowing all o...
Would you like to file for bankruptcy ASAP, without paying a penny up front? You see, most bankruptcy attorneys require you to save up for months or years, so you can pay your attorney's fees up front before you file for bankruptcy...but who wants to endure the aggravation of harassing phone ca...
The 2020 contribution and benefit limits have been released by the IRS. The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased. The following limits are applicable to 401(k), 403(b), most 457 plans, an...
In most cases, the actions of the Federal Reserve lowering interest rates are a good thing because a lot of economic activity depends on the ability of businesses to borrow money. It is of course easier to borrow when interest rates are lower, but lowering interest rates too much could affect inv...
The IRS does a good job of providing the country's elder statesmen with ways to save for retirement. Some of the most popular investment vehicles the IRS provides access to for the benefit of US taxpayers include 401(k) accounts and a variety of IRAs. While both of these options provide a varie...
If you're approaching retirement or already retired, you may have a traditional IRA, SIMPLE IRA, or SEP. If you do, at a specific age you must take a minimum distribution. This minimum distribution is required by the government when you reach the age of 70 ½. It is not only done one time but this...
Under California law, declared homestead exemption and automatic homestead exemption are separate and distinct protections that operate differently. In re Mulch, Bkrtcy.N.D.Cal.1995, 182 B.R. 569. Under California law on homestead exemption, automatic homestead attaches to principal dwelling o...
U.S. immigration laws provide a multitude of options for Singaporean and U.S. companies and individuals to engage in trade and commerce. These options may also allow for individuals and employees of corporate entities to seek permanent residency in the United States. The corporate client may wi...
If you or a loved one turns out to need long-term care, you don’t want to see a big chunk of hard-earned savings go down the drain to pay for it, a long-term care (LTC) insurance policy can help and here are some thoughts on integrating it into your estate and financial plan.
The largest wealth transfer in the history of the world is currently in process. It's estimated that around $68 trillion will switch hands over the next 25 years. Baby Boomers are currently retiring, and many of them will pass of the scene within the next few years. Much of this wealth will be ti...
It's that time of year again for Medicare's Open Enrollment! Are you ready? If you are new to Medicare then it's important to know that Open Enrollment occurring in the Fall is only designated for changes to be made to current coverage. These changes include: • Changing from regular Medicare ...
Although we assume many of our readers know what a 401(k) and an IRA are, let's cover these quickly. What is a 401(k)? 401(k) retirement, savings, and investment accounts are places to store money in which your contributions are typically matched – a portion of those earnings, usually not all of...
The US Internal Revenue Service has announced an extension of the deadline for special voluntary disclosures by taxpayers with unreported income from offshore accounts. The extension, announced by the IRS on September 21, gives taxpayers until October 15, 2009, to make a disclosure. Under special...
As the author of “The 3 Secret Pillars of Wealth” I have identified what I think are seven to eight steps all Americans need to respond to and become accountable to right now. Accountability is when you're going to get serious about what you're doing and where you're going. Jeff Combs, a great co...
Due to the rise in our deficit (paying $1 trillion per year on interest only) we are headed for higher tax brackets. The only way you'll NOT run out of money is if you have some tax free strategies in your retirement plan. As you can see from the graph, sometimes tax-free is actually more when yo...
The IRD or Income Respective of Decedent: When we pass away and leave a sizable IRA or other deferred asset our heirs will have to pay the income tax on it personally. This often times increases the heirs own tax bracket causing terrible tax consequences when this can be diffused so easily. This ...
