NJ Estate Tax Repeal: How Does This Affect You?
It’s official. According to NJ.com, Governor Christopher Christie has signed a bill to repeal the New Jersey Estate Tax. The new law is part of a larger package deal that increases the gas tax, reduces the sales tax slightly, gives the working poor a larger tax credit, gives a tax cut on retirement income and gives a tax […]
The Biggest Danger of a Roth IRA Conversion
After speaking with a client who did a ROTH IRA conversion last year, I realized that there is a major danger to these conversions. You cannot assume that the financial institution will designate the same beneficiaries on the ROTH IRA as had been named under the traditional IRA. Many financial institutions will send out beneficiary […]
Understanding What “Per Stirpes” Means
Sometimes it’s easier not to reinvent the wheel. Back in 2006, Debra M. Simon, CPA wrote an excellent article about Understanding the Pitfalls of Beneficiary Designation Forms. Included in that article is a clear explanation what it means to name your issue, “per stirpes” compared to naming your issue, “per stirpes by representation” as beneficiaries […]
A Comparison of the Pennsylvania and New Jersey Inheritance Tax Laws
Some states, including New Jersey and Pennsylvania, have an inheritance tax. Other states, like Florida and New York, do not have an inheritance tax. An inheritance tax is a tax on the person who receives money from a decedent. The inheritance tax rate itself depends upon the relationship between the person receiving the money and […]
IRA Planning in Light of Robertson v. Deeb
In December of 2009, the Florida Court of Appeals concluded in Robertson v. Deeb, 16 So. 3d 936 (Fla. 2d DCA 2009), that the beneficial interest that a person owns in an inherited IRA may be subject to garnishment. In other words, an IRA that you inherit may be taken by your creditors. This is […]
‘Tis the Season to be a Snowbird
Ah, the weather outside is frightful.And Florida is so delightful.You’ve packed up your things to go…Let it snow, let it snow, let it snow. Seriously, weather aside, have you ever wondered why so many older wealthy people retire to Florida. Well, maybe this answer will help – a relatively affluent person can buy a second […]
What is a Stretch IRA Trust?
Trusts in General A trust is a legal relationship that exists when one person or an entity (the Trustee) holds title to money or property for the benefit of one or more people (the Beneficiaries). The terms of the relationship are decided by the person providing money to the trust (the Grantor), and are usually […]