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Heirs routinely lose a large percentage of inherited IRAs to unnecessary taxes. The rules are simple, but they aren't obvious and most heirs don't know about them or to ask about them. If you don't want a large portion or your hard-earned wealth and careful plans wasted, be sure your heirs...
Posted to
Retirement Watch
by
Bob Carlson
on
11-12-2009
Filed under:
Filed under: Estate Planning, IRA Benefits, Traditional IRA, estates, Estate tax, Carlson, Bob Carlson, iras, ira distributions, estate taxes, small business
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Most estate plans are missing a key ingredient. Many estate planners don’t recommend it, and it isn't even mentioned in many estate planning discussions. One reason might be that, despite its importance, the document is not legally binding on anyone. This document can clear up a lot of issues...
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Readers with homes or other property in more than one state need to give special attention to their estate plans. Each state has different rules and requirements, and your estate might have to run probate proceedings in each state. There is more work involved for either you or your executor or both....
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In this post we discuss two key issues that don’t draw much attention but are keys to the success or failure of your wealth transfer plans. They probably are not what you’d expect. Meeting a plan’s goals often does not hinge on the “headline issues” of trusts, family limited...
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Most of the time it’s not a good idea to combine an IRA with an annuity. The IRA already has tax deferral, so why take on the costs and limitations of an annuity? But there are a couple of times when it may make sense to mix an annuities with an IRA. We take a look at two such situations. Managing...
Posted to
Retirement Watch
by
Bob Carlson
on
10-02-2009
Filed under:
Filed under: Estate Planning, IRA Benefits, Traditional IRA, Carlson, Bob Carlson, income taxes, iras, ira distributions, estate taxes, retirement plans, annuities
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One of the most important decisions about an IRA is naming the beneficiary or beneficiaries. There are many candidates for the biggest mistake made by IRA owners, and a leading contender is the failure to name a beneficiary or naming the wrong beneficiary. If no beneficiary is named, the estate is the...
Posted to
Retirement Watch
by
Bob Carlson
on
09-24-2009
Filed under:
Filed under: Estate Planning, IRA Benefits, Traditional IRA, Roth IRA, estates, Estate tax, Carlson, Bob Carlson, wills, iras, ira distributions, estate taxes, grandkids, grandchildren, retirement plan
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The success or failure of an estate plan often depends on small details. Amid all the big picture issues (taxes, trusts, gifts, business interests), these matters may seem too small to deserve much time. Don’t have that attitude. It could cost you and your heirs. Don’t make these very common...
Posted to
Retirement Watch
by
Bob Carlson
on
09-17-2009
Filed under:
Filed under: Estate Planning, estates, Estate tax, Carlson, Bob Carlson, wills, iras, trusts, estate taxes, retirement plan, retirement, retirement plans
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Home prices are down, and inventories of unsold homes are high in many areas. These are buyer’s markets. That makes this an ideal time to buy a home, or to help a grandchild buy that first home or move up to a larger home. Even better, there is a tax incentive that leverages the help you provide...
Posted to
Retirement Watch
by
Bob Carlson
on
09-10-2009
Filed under:
Filed under: Estate Planning, tax-free gifts, taxable gifts, gifts, Carlson, Bob Carlson, homes, grandkids, annual exclusion, grandchildren, mortgages
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The debate over health care reform has brought an important issue into the headlines. The public debate is not very enlightening, but it serves a good purpose if it causes more people to include one or more important health care documents in their estate plans. Everyone needs one or more of these documents...
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Perhaps one of the worst effects of high estate taxes is the way tax planning diverts attention from other important estate planning issues. For many years, I have stressed that estate planning is about much more than taxes, but most people believe estate planning and estate tax planning were the same...
Posted to
Retirement Watch
by
Bob Carlson
on
08-13-2009
Filed under:
Filed under: Estate Planning, estates, Estate tax, gifts, Carlson, Bob Carlson, wills, income taxes, trusts, estate taxes, grandkids, grandchildren, creditor protection, small business, family limited partnerships
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Gift giving is the surest way to help loved ones of all ages, establish a legacy, and reduce estate taxes when the estate is large enough. Yet, many people are hesitant to make significant gifts to loved ones, because of the potential pitfalls. Those pitfalls, however, can be avoided with some shrewd...
Posted to
Retirement Watch
by
Bob Carlson
on
07-10-2009
Filed under:
Filed under: Estate Planning, estates, Estate tax, tax-free gifts, taxable gifts, gifts, Carlson, Bob Carlson, trusts, estate taxes, grandkids, annual exclusion, grandchildren, creditor protection, asset protection
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The pattern for family wealth seems fixed. Different times and different cultures display the same pattern. The first generation builds wealth, and the second generation shepherds or preserves it. The third and succeeding generations spend until it is dissipated. There are a few examples of families...
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ways to efficiently distribute the residuary estate while reducing the probability of a will fight or family dispute. The appropriate method for your estate depends on family dynamics and your understanding of them. Here are some strategies to consider. You have to decide which works best for your family...
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The unfortunate fate of many IRAs shows why everyone needs an estate plan, even when the value of the estate is far below the taxable level. Few people are aware of what could happen to their IRAs when the next generation inherits them. Most people, and discussions of IRAs, focus on building the balance...
Posted to
Retirement Watch
by
Bob Carlson
on
05-29-2009
Filed under:
Filed under: Estate Planning, IRA Benefits, Traditional IRA, Roth IRA, estates, Estate tax, Carlson, Bob Carlson, wills, income taxes, iras, trusts, ira distributions, estate taxes, retirement plan, retirement, retirement plans
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Trusts are fairly simple. Lawyers and estate planners make them seem more complicated than they are. That’s too bad, because to ensure they have effective estate plans nonlawyers need to understand the different types of trusts and how they work. Trusts used to be for only the very wealthy or for...