Estate Tax

Japanese Inheritance Tax vs. US Estate Tax

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BRIEF OVERVIEW OF JAPANESE INHERITANCE AND GIFT TAXES vs. AMERICAN ESTATE AND GIFT TAXES NOTE: This information has been updated. The new post can be found at: http://willstrustsestates.blogspot.com/2014/08/japanese-inheritance-tax-vs-us-estate.html I. Estate Taxes A. America 1. Citizens and Permanent Residents a. Tax on Worldwide property (credit for taxes paid to foreign countries) b. Exemption of $2,000,000 in […]

401(k)

SEP IRA is a protected asset in NJ

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I was asked earlier today whether a SEP IRA is protected against creditor lawsuits. Without doing a lot of in depth research, I have found that the answer is generally yes. The answer is not the same in all states as it is dependent upon state statute. New Jersey exempts the claims of creditors from […]

Estate Planning

Benefits of a Life Insurance Trust

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Benefits of a Life Insurance Trust

I. What is a Life Insurance Trust? Legal Relationship – A trust is a relationship that exists when one person or an entity (the Trustee) holds legal title to money or property for the benefit of one or more individuals or organizations (the Beneficiaries). The terms of the relationship are decided by the person providing […]

Diclaimer

Reasons for a Will

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Reasons for a Will

General Benefits Ensures a clear WRITTEN clear plan for the distribution of assets after your death. Provides proof of plan. You get to choose who serves as executor, trustee and guardian A clear plan can help avoid infighting amongst surviving family members Important means of ensuring that money will go to whom you wish it […]

IRA

The Pension Protection Act

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Pension Protection Act

THE PENSION PROTECTION ACT Overview In addition to requiring corporations to more fully fund their pension plans, the Pension Protection Act (“PPA”), which was passed on August 17, 2006, provides or extends numerous tax benefits that could affect you or your employer. The PPA recognizes the reality that the government and many companies are pushing […]

529 Plans

Kiddie Tax

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Kiddie Tax

Use of Educational Savings Accounts in Light of the Revised “Kiddie Tax” Overview The Tax Increase Prevention and Reconciliation Act of 2005 (P.L. 109-222) further restricted the ability of parents to shift their income tax burden to their minor children so that such money would be taxed at the child’s lower rates. This shifting tax […]

Elder Law

Get Thee a POA

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POA (Power of Attorney)

Don’t have a Power Of Attorney (“POA”) yet? You are not the only one. Millions of Americans find out too late that a POA is a very useful and inexpensive document to obtain. If you do not have a POA, in order for your spouse or loved ones to make financial and medical decisions for […]