Dealing with Taxes
August 14th, 2009 | Posted By Jay R. McGrath
With the current administration’s new tax laws in place, or getting in place, it is important to realize what differences there may be. The services of a Philadelphia financial planner, Philadelphia wealth management group, or Philadelphia private wealth management firm all will suffice in giving information on the tax laws in place. Other groups like New Jersey financial planners and Certified financial planners in NJ also can help.
“Concerned with the current economy and your estate?
You’re not the only one.
The bottom line is either you’ve prepared your assets and investments for after you’ve died or you have not. There is no grey area. But careful, even those who may think they’re prepared are greatly misled. Why? Because they filled out their estate planning documentation and Will once and left it alone. No, a prepared individual should plan, review, and revise the documentation and Will at least once a year.
As your children grow and grandchildren appear in the picture, the way you want to allocate those assets may change vastly. This is why it’s important to stay on top of the documentation.
Remember that an “I love you Will” (will that gives all assets to the surviving spouse) is a popular way to avoid any taxation from the state or federal levels. Also certain gift tax exclusions exist such as an unlimited exemption dedicated to education and medical expenses. While the current hold on gift tax exclusions is $13,000, the education and medical expense write-offs are unlimited and do not put a hold on the amount given to the beneficiary.
President Obama’s proposed budget for 2010-11 desires to keep the exemption set at $3.5 million.
Because of the uncertainty with taxes, the answer for everyone is not clear. There is no simple answer for everybody. No strict rules to play by. There are a lot of factors that go into accounts as to who may want to defer and who may not. That is why it’s important to review your documentation with your financial advisor.
Yes, the current “Robin Hood effect” is taking place in Congress and shared by President Obama. The deduction caps and a lower taxation exemption could hurt the wealthy in the near future and the assets left behind after they pass.
Protect yourself and your family any way possible.”
Protecting yourself is very important, and with financial planning help in the form of a financial planning guide or trying to find a financial advisor, you will be protected.
