Could it make the world a better place? Could it make sense, financially? A gift to charity may also help to improve your tax or financial situation.Here’s a brief look at some popular options for charitable gifting, with potentially significant tax advantages. Charitable Remainder Trusts (CRTs).Taxpayers with highly appreciated assets, such as stock portfolios or real estate holdings, are often hesitant to sell those assets and reinvest the proceeds because of the capital gains taxes linked to the sale. A CRT may give them a solution to this problem. In exchange for transferring highly appreciated assets into a CRT, you may get: a) income payments from the CRT for a period of years or the r
What can you do to lessen its impact for your heirs? Probate subtly reduces the value of many estates.It can take more than a year in some cases, and attorney’s fees, appraiser’s fees, and court costs may eat up as much as 5% of a decedent’s assets. Probating a “routine” estate valued at $400,000 could cost as much as $20,000.1 What do those fees pay for? In many instances, routine clerical work. Few estates require more than that. Heirs of small, five-figure estates may be allowed to claim property through affidavit, but this convenience isn’t extended for larger estates. So, how canyou exempt more of your assets from probate and its costs? Here are some ideas. Joint accounts.Married couple
For millennials, today is the right time. If you are under 30, you have likely heard that now is the ideal time to save and invest.You know that the power of compound interest is on your side; you recognize the potential advantages of an early start. There is only one problem: you do not earn enough money to invest.You are barely getting by as it is. Regardless, the saving and investing effort can still be made. Even a minimal effort could have a meaningful impact later. Can you invest $20 a week?There are 52 weeks in a year. What would saving and investing $1,040 a year do for you at age 25? Suppose the invested assets earn 7% a year, an assumption that is not unreasonable. (The average yea
Now is the time to explore the possibilities. Grandparents Day provides a reminder of the bond between grandparents and grandchildren and the importance of family legacies. A family legacy can have multiple aspects.It can include much more than heirlooms and appreciated assets. It may also include guidance, even instructions, about what to do with the gifts that are given. It should reflect the values of the giver. What are your legacy assets?Financially speaking, a legacy asset is something that will outlast you, something capable of producing income or wealth for your descendants. A legacy asset might be a company you have built. It might be a trust that you create. It might be a form of i