Yours, Mine and Ours: How Spouses Share and Transfer Property

February 8, 2012

Most couples tend to overlook important consequences and planning opportunities when deciding how to take or maintain title to property.

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Understanding Investor Biases

October 10, 2011

Emotions and money each cloud judgment. Together, they create a perfect storm that threatens to wreak havoc on investors’ portfolios. One of the biggest risks to investors’ wealth is their own behavior. Most people, including investment professionals, are prone to emotional and cognitive biases that lead to less-than-ideal financial decisions. By identifying subconscious biases and understanding how they can hurt a portfolio’s return, investors can develop long-term financial plans to …

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Capital Gains Planning Strategies

October 10, 2011

Capital gains tax rates are at historic lows, but they are in the political crosshairs. It’s a good idea to take advantage of planning strategies now. Capital gains contribute to a taxpayer’s adjusted gross income. An investor realizes capital gains when he sells investments for more than he paid for them; capital losses are the opposite. All of an investor’s capital gains and capital losses are first combined to create …

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Avoiding The Partnership Technical Termination Trap

October 10, 2011

Some families have been pleased about using partnership interests for wealth transfer during the recent market lows. Unfortunately, a few have been met with unwelcome surprises — five-figure bills penalizing the partnerships for filing late tax returns. When a partnership is terminated, its final income tax return is due three and a half months from the date of termination. Unless the partnership happened to cease doing business on Dec. 31, …

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Do Incentive Trusts Encourage Responsibility?

June 17, 2011

Wealth is difficult to amass but easy to squander. This worries some affluent parents, so they are transferring assets to their heirs with strings attached. With a $5 million lifetime gift tax exemption in place for 2011 and 2012, parents are transferring significant amounts to their children and grandchildren now instead of leaving it to them at death. However, parents realize that putting such wealth in the hands of their …

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How To Prepare For A State Default

January 18, 2011

Editor’s Note: This article is the second in a two-part series. Read part one. So you’re a current or retired state employee. Or perhaps you have a state contract, or you own your state’s municipal bonds for the tax-free income. Though your payments have come on time thus far, you’re worried that the state may default. What should you do? Bondholders have a very easy option: Sell your individual municipal …

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Crumbling Economics Undermine Long-Term Care Offerings

January 18, 2011

Editor’s Note: This article originally appeared online in December on our website’s Current Commentary blog. All publicity may not be good publicity after all, the long-term care (LTC) insurance industry discovered recently. The industry had named November “National Long-Term Care Insurance Month,” hoping to raise awareness of the “need” for the product. However, the bulk of the month’s press focused on the woes of two key insurers, MetLife and John …

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Planning For A Child With Special Needs

October 7, 2010

Many people have put their estate planning on hold until Congress decides the fate of the federal estate tax. For a family with a special needs child, this could prove costly. Lack of planning can jeopardize a special needs child’s eligibility to receive means-tested government disability and health benefits. The federal government provides Supplemental Security Income (SSI) to people who are 65 or older, or who are blind or disabled, …

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Protecting Your Most Valuable Asset: You!

Protecting Your Most Valuable Asset: You! July 21, 2010

Although young professionals starting their careers may feel they do not have any assets to protect, they are prone to overlook their most precious financial resource — their ability to earn an income. After graduation, most people are simply satisfied to obtain employment to help manage their newfound responsibilities. Worrying about protecting the few assets they have doesn’t seem as important. However, a good defense is often the best offense. …

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Does That Pricey College Pay Off?

April 5, 2010

Investing in a college education pays big lifetime dividends, with college graduates generally earning far more than high school graduates. And some studies find that, after factoring in potentially higher costs, diplomas from the most prestigious institutions may be worth even more. Mark Schneider, a visiting scholar at the American Enterprise Institute for Public Policy Research and a political science professor at SUNY Stony Brook, compares lifetime earnings of college …

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