With the federal estate tax now back in effect – and the possibility that it will apply to estates as small as $1 million at some point in the next few years – many people need to take a second look at their life insurance policies. Life insurance proceeds are not subject to income tax. But what many people don’t realize is that if you own your life insurance policy, then the proceeds will be considered
The federal estate tax is back in effect as of January 1, 2011. As a result of a last-minute compromise in Congress, the estate tax will be temporarily reduced for two years. In 2011 and 2012, the tax will apply to estates over $5 million, at a rate of 35%. However, unless Congress changes the law again, after 2012 the tax will apply to any estate over $1 million, at a rate of 55%. As a
More than a million people suffer a slip-and-fall injury each year, and some 16,000 die as a result. Slip-and-fall injuries often lead to significant legal awards against property owners and landlords, so it’s wise to take precautions. A recent study by the insurance company CNA makes the following recommendations for commercial property owners: Putting carpet runners and mats at an entrance-way can reduce falls, but make sure mats are not more than a half-inch higher than
It’s not for everyone, but certain people can save a lot of taxes by making large gifts to family members or others before the end of 2010, and paying a gift tax on the transfer. In general, you can give up to $13,000 to as many people as you like each year without having to pay gift tax. Also, you can give up to $1 million above that limit over the course of your lifetime, and
There are many reasons you might want to leave more assets to one child than to another in your will. One child might have a greater need, or have been more loyal over the years, or have gone out of his or her way to be a caretaker.
A lot of people are converting their regular IRA or old 401(k) plan into a Roth IRA in 2010. That’s because Congress lifted a number of restrictions on these conversions this year. It also gave people who convert in 2010 a special one-time benefit: Rather than reporting the resulting income on their 2010 tax return, they can choose to report nothing for 2010, and then report half the income on their 2011 return and half on
Many older people would like to make significant gifts to their grandchildren, in order to help them and in order to reduce the size of their own estate for tax purposes. But they also worry that the grandchildren won’t be able to handle large sums of money. The good news is that you can give each of your grandchildren up to $13,000 a year without incurring any gift tax. If you’re married, your spouse can also
A new U.S. government report warns that a number of “continuing care retirement communities” are facing financial problems, while regulation of these facilities is spotty. Continuing-care communities offer an entire continuum of care – from independent housing to assisted living to round-the-clock nursing services – in a single facility, with the goal of allowing residents to age in place.
Moving can be stressful for anyone, but it’s particularly stressful for seniors. On top of hiring movers, packing, and setting up a new home, there is the emotional toll of leaving a house the senior may have lived in for decades. If a move seems overwhelming, a “senior move manager” may be able to help.
Have you considered your pets when planning your estate? If not, you should, according to the Humane Society of the United States, the nation’s largest animal protection organization. “Since pets have shorter life spans, people don’t think to include them in their estate plans,” says Anne Culver, Director of Disaster Services for the Society. “But animals left homeless when an owner has failed to make adequate provisions for their care are distressingly common in animal shelters
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