Posts

Three Reasons You Still Need a Will, Regardless of the Estate Tax

FamilyWe heard so much about the “Fiscal Cliff” a few months back, and after all that talk and all the headlines, for most people, the change in the Estate Tax didn’t really change a thing — you still need a Will. Here’s why.

1. The Estate Tax doesn’t decide who raises your children.
We hear it all the time: “I don’t have any assets so I don’t need a Will.” But you do have children, and the change in the Estate Tax isn’t going to name guardians to take care of them if something happens to you.

When both parents die, the Georgia Probate Court will look to see who the parents named as guardians for their children in their Wills. If there are no Wills, then the Probate Court decides who will raise them.

Even if you aren’t sure about the person you choose, you are going to make a better informed choice than a Judge who never met you, and won’t meet your children, your in-laws, siblings, and parents until the Probate Court hearing where they’ll be fighting it out. Read more

The Age of Tax Aquarius (This is the waning of . . . )

Peace and Love BusThese days are the tax equivalent of when the moon is in the Seventh House and Jupiter aligns with Mars. Congress and IRS have put two things in force which create an unusual tax-saving opportunity between now and year’s end. It is the 2012 equivalent of the days of Aquarius – at least between now and December 31.

The opportunity starts with the much-maligned Estate Tax Credit. Rail if you must, curse if you’d like. But its disappearance doesn’t appear on anybody’s agenda.

So you can presume that the Tax Credit is either going to (a) stay at $5.12 million; (b) shrink to $1 million; (c) end up somewhere in between; (d) head up GA Hwy. 372 towards Ballground, GA.

It doesn’t really matter. But what could make a big difference to you is if you’re holding on to assets which produce income that you’re not spending or using. Read more

Record Low Interest Rate from IRS!

IRS has set all-time low interest rates for loans made in August, 2012. If you loan money — even to a family member — you don’t have to charge an interest rate higher than 0.25% (!) for a loan of three years or less. For a loan that runs nine years, the minimum interest rate would be 0.88%. Read more