Reverse mortgages can be a big help to seniors who need extra cash, but they can become a big headache for the person’s family members after they pass away or move to a nursing facility. Family members need to be aware of their rights and obligations, because they usually have to make decisions quickly after a person dies or moves. Reverse mortgages allow homeowners who are at least 62 years old to borrow money on their house.
Some people try to save money by writing their own will using a pre-printed form or an online program, without consulting a qualified attorney. We often advise people that this is a mistake, and that the potential unfortunate consequences of using a homemade will can be far worse than the cost of doing it the right way in the first place. A recent case from Florida provides yet another example of why this is true. A
Many people today keep working beyond age 65 – the age when most people become eligible for Medicare. If you’re still working and your employer offers health coverage, do you need to enroll in Medicare? Should you do so? The answers can be complicated – and there may be different answers for the different “parts” of Medicare. Here’s a closer look: Medicare Part A. Part A of Medicare covers hospital visits and nursing home stays, as
It’s tax return filing season once again. Among the tax deadlines you may be required to meet in the next few months are the following: January 15 – Due date for the fourth quarterly installment of 2014 estimated taxes for individuals, unless you file your tax return and pay any taxes due by February 2. February 2 – Employers must furnish 2014 W-2 statements to employees. Payers must furnish payees with Form 1099s for various payments
A good domestic worker can help take care of your children, assist an elderly parent, or keep your household running smoothly. Unfortunately, domestic workers can also make your tax situation more complicated. Domestic workers of all types generally fall under the “nanny tax” rules. First, you must determine whether your household helper is an “employee” or an “independent contractor.” If you provide the place and tools for work and you also control how the work is
The IRS has announced the mileage rates that are to be used for business, medical, moving, and charitable driving in 2015. The rate for business driving increases from last year’s 56 cents a mile to 57.5 cents a mile. The rate for medical and moving mileage decreases from the prior year’s 23.5 cents a mile to 23 cents a mile. The general rate for charitable driving remains at 14 cents a mile.
In its final session of the year, Congress extended a long list of tax breaks that had expired, retroactive to the beginning of 2014. But the reprieve is only temporary. The extensions granted in the Tax Increase Prevention Act of 2014 remain in effect through December 31, 2014. For these tax breaks to survive beyond that point, they must be renewed by Congress in 2015, setting up another lengthy debate. Although certain extended tax breaks are
In the past, many people’s wills included a sizable donation to charity. Because the federal estate tax was so burdensome, including charitable bequests in a will was a good idea since it reduced the amount of tax the estate had to pay. Now, however, the federal estate tax applies only to estates of well over $5 million. As a result, for a great many people, leaving money to charity in a will no longer provides any
Some taxpayers with large state income tax bills have been trying to avoid them through the use of out-of-state trusts. These trusts have been created in three states that have no or minimal state income tax – Wyoming, Nevada and Delaware. The idea is that people in high-tax states can set up trusts in these low-or-no-tax states to hold the investments that produce the income. The trusts are called “incomplete non-grantor gift trusts.” A Wyoming incomplete
Eight states are reducing their estate tax burden in 2015, which is good news for anyone who lives or owns property in those states. New York and Maryland are increasing their exemption amounts (the amount of assets an estate can have before any tax is due). For 2015, the New York limit goes from $1 million to just over $2 million, and the Maryland limit goes from $1 million to $1.5 million. Both states plan to
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