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With the prevalence of litigation in the U.S., anyone with accumulated wealth in investment accounts, real estate, or business interests needs to consider a thoughtful strategy to protect assets from potential creditors. There is no “one size fits all” solution but rather a diverse array of tools and techniques which are legally available. Although some
A Senate proposal to eliminate the tax–exempt status of municipal bonds may change the municipal bond market after 2011 and is an important piece of legislation to follow in the coming months. The tax break for investors has been under pressure since Congress began focusing on strategies to cut back on government spending and reduce
Encourage clients to make the most of their payroll tax cut For 2011 only, new tax law imposes a historic reduction in Social Security (FICA) taxes, cutting by two percentage points the employee’s portion of the 6.2% tax. Savings per worker will vary with income, but could be as much as $2,136 for those earning
Financial advisors with books of business heavily concentrated with retirees face a significant risk of losing assets when the client passes away. One major reason is the failure or inability to make a personal connection with the next generation — the adult children. Often, the children may be working with another financial advisor or institution
The increase of the estate tax exemption amount to $5 million per individual will dramatically reduce the number of estates that will have to pay estate taxes. Does this mean that only families with significant wealth need to focus on estate planning? The reality is that proper estate planning extends well beyond minimizing or preparing
Government action on the nation’s deficit in the coming months may result in future tax increases, adding to the challenge of long-term planning. As a result, it makes sense for clients to focus on tax strategies now, and take advantage of the clarity in tax law that exists through 2012. The most recent debate on
Before 529 programs became prevalent as an attractive vehicle for funding college education, many families utilized traditional custodial accounts (UTMA or UGMA). A primary benefit of these accounts is that, up to certain limits, any income generated from these accounts is not taxed or only taxed at the child’s tax rate instead of the parent’s
With the estate tax reinstated by the 2010 federal tax law, now may be an opportune time to review estate tax strategies with clients. The current tax rate is in place only until the end of 2012, and after that, estate tax rates could rise. As Congress increasingly focuses on the national debt, rising income
If some of your clients are not among the 10 million 529 plan account holders nationally, it may be a good time to talk to them about changes to the program proposed in Washington, D.C., that could make these plans even more attractive. Clients who are already saving with a 529 plan will also be
If you have business owner clients that you believe could benefit from a Roth IRA conversion, a good first step may be to inquire about net operating losses (NOL). The income generated by a Roth IRA conversion may be offset by the NOL, and the business owner may not incur any additional tax liability. Additionally,