Posts by Inez Bowie, CPA, CSEP:
Just when you think your estate plan is complete, is it really? Your will gives your personal property to your daughter, Suzie. Great, Suzie gets your laptop and your smartphone. But what happens to your online accounts, emails, Facebook account, iTunes account, that special digital crown won in an online game, and digital pictures stored in the “cloud”? Does Suzie know where to find your usernames or passwords? Even if she does, does she have a right to access the accounts? Read the rest of this entry “
If you deal with trusts, you may soon feel the effects of new higher tax rates and the Medicare surtax. Unfortunately, the fiscal cliff deal was not kind to trusts, trustees or trust beneficiaries. For 2013, a trust will pay income tax at the highest individual tax rate of 39.6 percent when taxable income is more than $11,950. An individual would not pay at this highest tax rate until taxable income exceeds $400,000. In addition, the new 3.8 percent Medicare surtax on net investment income applies to trusts if taxable income exceeds $11,950. Read the rest of this entry “
Recently, Ohio eliminated the Ohio estate tax. The estates of individuals who die after January 1, 2013 will not be subject to the Ohio estate tax. Read the rest of this entry “
As we approach the end of 2012, there is much uncertainty regarding tax legislation. Tax rates, exemptions, credits and deductions are likely to change for both businesses and individuals, but no one yet knows which of the predicted changes will really come to pass. How do you prepare for this uncertain future? Take advantage of the 2012 rates while you still can and plan for contingencies in 2013 and beyond. Read the rest of this entry “
Recently, a reader shared with us that she inherited property in both Ohio and Florida. She had a pretty specific question related to the value of the Ohio property. That question made me think there may be more people who don’t know how to handle newly inherited property for estate tax purposes. Hence, I’m going to provide some general estate information I hope will help.
According to Ohio law, “the value of any property included in the gross estate shall be the price at which such property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.”
Now, let me put that in simpler terms. If there is real estate in an estate, then you need to claim its fair value. That value is the amount the property would sell for assuming both the buyer and seller know about the property and neither was pressured to either buy or sell. Read the rest of this entry “
It may not be the most romantic Valentine’s Day conversation, but financial planning is an important part of starting your marriage on solid financial footing. After all, married couples fight over personal finances more than they fight over anything else. Read the rest of this entry “
If you’ve been considering making a monetary gift to your children or other relatives, you may want to make your gift well before December 31. And better yet, if you haven’t made any previous gifts in 2011, you can gift up to $13,000 in 2011 and follow up with a gift of up to $13,000 in early 2012. Read the rest of this entry “
Dear Cousin Lauren is in a tough spot and she asked you for money. Again. Granted, she’s family and you want to help, but maybe she hasn’t made the best financial decisions in the past. What should you do?
It’s tempting to loan money to a friend or family member when times are tough. But whether Cousin Lauren asks you to float some cash “just this once,” or needs ongoing help that may impact your comprehensive estate plan, consider the following before you commit to an intra-family loan. Read the rest of this entry “