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Gift giving is the surest way to reduce estate taxes, help loved ones of all ages, and establish a legacy. Yet, many people are hesitant to make significant gifts to loved ones, because of some potential pitfalls. Those pitfalls, however, can be avoided with some shrewd and creative giving strategies...
Posted to
Retirement Watch
by
Bob Carlson
on
04-24-2009
Filed under:
Filed under: Bob Carson, Estate Planning, estates, Estate tax, tax-free gifts, taxable gifts, gifts, Carlson, Bob Carlson, wills, trusts, estate taxes, grandkids, annual exclusion, grandchildren
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One point I try to emphasize regularly in my newsletter and web site is the importance of the beneficiary designation form for IRAs, pensions, annuities, and a few other assets. Yes, a will or living trust are very important to your estate plan. They do not, however, control the disposition of all your...
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Retirement Watch
by
Bob Carlson
on
04-10-2009
Filed under:
Filed under: Bob Carson, Estate Planning, IRA Benefits, Traditional IRA, Roth IRA, estates, Estate tax, Carlson, Bob Carlson, wills, iras, estate taxes, retirement plan, retirement plans, insurance
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Conventional investment advice has been turned on its head by changes in the fundamentals of the economy and markets. Now, fundamental changes in the government, demographics, and the economy are forcing changes in tax policy and tax planning advice. The age-old advice is to defer taxes whenever possible...
Posted to
Retirement Watch
by
Bob Carlson
on
03-19-2009
Filed under:
Filed under: Bob Carson, Estate Planning, IRA Benefits, Traditional IRA, Roth IRA, estates, Estate tax, Carlson, Bob Carlson, income taxes, iras, ira distributions, estate taxes, retirement plan, retirement, retiree health care, retirement plans, stock, stocks, stock market, portfolios, income investing
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Last week we discussed how today’s economic distress creates estate planning opportunities. Because of today’s reduced asset values, estate owners can shift assets out of their estates tax at much lower tax cost than they could have a year or two ago. We went over basic strategies for taking...
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Retirement Watch
by
Bob Carlson
on
02-20-2009
Filed under:
Filed under: Bob Carson, Estate Planning, estates, Estate tax, tax-free gifts, taxable gifts, gifts, Carlson, Bob Carlson, wills, income taxes, trusts, homes, estate taxes, grandkids, annual exclusion, grandchildren, financial crisis, investments, portfolios
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For the two lowest tax brackets, the tax rate in 2008 through 2010 is 0% for qualified dividends and long-term capital gains. This compares to the 15% top rate others will pay on those types of income. Single taxpayers with taxable income up to around $33,000 and married couples filing jointly with taxable...
Posted to
Retirement Watch
by
Bob Carlson
on
01-30-2009
Filed under:
Filed under: Bob Carson, Estate Planning, estates, Estate tax, tax-free gifts, taxable gifts, gifts, Carlson, Bob Carlson, income taxes, trusts, estate taxes, grandkids, grandchildren, retirement, stock, stocks, investments, portfolios
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Many estate plans ultimately fail. The problems are not with the plans. The owners spent a fair amount of time and money preparing and executing the plans. They are sound plans that, if properly executed, would meet the goals. The problems with many estate plans tend to occur in the final stage. One...
Posted to
Retirement Watch
by
Bob Carlson
on
01-23-2009
Filed under:
Filed under: Bob Carson, Estate Planning, IRA Benefits, estates, Estate tax, gifts, Carlson, Bob Carlson, wills, iras, trusts, ira distributions, estate taxes, grandkids, grandchildren, retirement plan, retirement, retirement plans, selling a business
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Trusts are part of more and more estate plans. Often trusts are used to hold and manage assets for younger generations. Sometimes the beneficiaries are too young or inexperienced to manage the assets. Other times the older generation is afraid the younger generation might not resist temptations to spend...
Posted to
Retirement Watch
by
Bob Carlson
on
01-16-2009
Filed under:
Filed under: Bob Carson, Estate Planning, estates, Estate tax, tax-free gifts, taxable gifts, gifts, Carlson, Bob Carlson, wills, trusts, estate taxes, grandkids, grandchildren, creditor protection, asset protection, investments
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Converting a traditional IRA to a Roth IRA has been a valuable tool to consider since the Roth was created in 1997. There are two reasons why a conversion is worth far more consideration now than in the past . First, a brief review of the basics. A Roth IRA has "back-ended tax benefits." There...
Posted to
Retirement Watch
by
Bob Carlson
on
01-09-2009
Filed under:
Filed under: Bob Carson, Estate Planning, IRA Benefits, Traditional IRA, Roth IRA, estates, Carlson, Bob Carlson, income taxes, iras, ira distributions, retirement plan, retirement, financial crisis, retirement plans, stocks, portfolios
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Estate planning and tax reduction will be returning to the front burner for many people. Congress was unable to pass a permanent estate tax reduction in recent years, but a permanent law is likely in 2009 or 2010.Changes in Washington made permanent repeal of the estate tax unlikely, but something similar...
Posted to
Retirement Watch
by
Bob Carlson
on
12-19-2008
Filed under:
Filed under: Bob Carson, Estate Planning, estates, Estate tax, tax-free gifts, taxable gifts, gifts, Carlson, Bob Carlson, wills, trusts, estate taxes, grandkids, grandchildren
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Update Dec. 19: On Dec. 11 Congress passed legislation that suspended the required minimum distribution requirement for 2009. But it did not change the requirement for 2008. the IRS was asked by members of Congress to suspend the requirement for 2008. But on Dec. 17 it sent a letter to key members of...
Posted to
Retirement Watch
by
Bob Carlson
on
12-05-2008
Filed under:
Filed under: Bob Carson, Estate Planning, IRA Benefits, Traditional IRA, Roth IRA, Carlson, Bob Carlson, income taxes, iras, ira distributions, retirement plan, retirement, financial crisis, retirement plans, stock, stocks, stock market, investments, portfolios, market timing
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Come January, Democrats will be in charge all over Washington. They campaigned on a theme of change, and we should expect major changes. The questions are which changes and how will they affect your retirement finances? I will focus on the changes I think are most likely to occur. When evaluating the...
Posted to
Retirement Watch
by
Bob Carlson
on
11-07-2008
Filed under:
Filed under: Bob Carson, Estate Planning, IRA Benefits, Traditional IRA, Roth IRA, estates, Estate tax, taxable gifts, gifts, Carlson, Bob Carlson, wills, income taxes, iras, ira distributions, estate taxes, retirement plan, retirement, financial crisis, retirement plans, stock, stocks, stock market, investments, portfolios, market timing, market indicators
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Family limited partnerships have been a key element in many estate plans for decades. The FLP provides an array of benefits to the estate owner, not the least of which are tax reduction plus continuing control of the assets. Those benefits and the popularity of FLPs are why the IRS has been fighting...
Posted to
Retirement Watch
by
Bob Carlson
on
09-26-2008
Filed under:
Filed under: Bob Carson, Estate Planning, estates, Estate tax, tax-free gifts, taxable gifts, gifts, Carlson, Bob Carlson, wills, trusts, homes, estate taxes, grandkids, real estate, grandchildren, retirement, retirement plans, creditor protection, asset protection, business sales, selling a business, family limited partnerships, partnerships
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IRAs are supposed to be simple, but when it comes to inheritance IRAs are more complicated than most people realize. It is not unusual for IRA heirs to misunderstand some key rules. A wrong move or two triggers high taxes, often causing most of the IRA to end up with the IRS . Income taxes can take 35...
Posted to
Retirement Watch
by
Bob Carlson
on
09-19-2008
Filed under:
Filed under: Bob Carson, Estate Planning, IRA Benefits, Traditional IRA, Roth IRA, estates, Estate tax, Carlson, Bob Carlson, wills, iras, trusts, ira distributions, estate taxes, grandkids, grandchildren, retirement plan, retirement, retirement plans, stock
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Many people own shares of employer stock through 401(k) or other retirement plans. Few of these workers, or many of their financial advisers, know the tax break that is available slash the tax burden from selling those shares. With a little planning and by following a few steps, workers can substantially...
Posted to
Retirement Watch
by
Bob Carlson
on
08-14-2008
Filed under:
Filed under: Bob Carson, Estate Planning, IRA Benefits, estates, Carlson, Bob Carlson, iras, ira distributions, retirement plan, retirement, retirement plans, employer stock, nua, stock
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Most people are busy accumulating large balances in their IRAs and 401(k)s and managing the accounts. They forget that the IRS holds a mortgage on those accounts. You put mostly pre-tax dollars in the accounts and let income and gains compound tax deferred. But that balance in the IRA is not all yours...
Posted to
Retirement Watch
by
Bob Carlson
on
08-07-2008
Filed under:
Filed under: Bob Carson, Estate Planning, IRA Benefits, Traditional IRA, Roth IRA, estates, Estate tax, Carlson, Bob Carlson, income taxes, iras, ira distributions, estate taxes, retirement plan, retirement, retirement plans, annuities