As important as estate planning is, it often gets neglected. A 2017 survey by Caring.com revealed that only 42% of U.S. adults have a will or a living trust in place. In part, it is an age thing, as the table here shows. Source: www.caring.com/articles/wills-survey-2017 When asked why they have not completed their estate planning, […]
Read MoreCategory: Thursday Thoughts
How to Avoid Early Withdrawal Penalties
To increase the likelihood that tax-preferred savings actually will be used for retirement, Congress included a 10% penalty tax on IRA and 401(k) distributions before the account owner reaches age 59½. The penalty applies in addition to the regular income tax on the distribution. For example, someone in the 15% tax bracket who takes a […]
Read MoreAsk a Trust Officer: Falling Interest Rates
Dear Trust Officer: When the Fed cut interest rates at the end of July, the stock indices fell. I thought lower interest rates were good for stock prices? What’s going on? Should I be worried about my portfolio? — WORRIED INVESTOR DEAR WORRIED INVESTOR: Two factors seem to have been at work to produce this […]
Read MoreSotheby’s Valuation of Two Paintings Not Good Enough
Jeffrey Hyland was the executor and residuary beneficiary of Eva Kollsman’s estate. At her death in August 2005, Eva owned two 17th century Old Masters paintings: Village Kermesse, Dance Around the Maypole by Pieter Brueghel the Younger and Orpheus Charming by Jan Brueghel the Elder. Soon after Eva’s death, Hyland was approached by George Wachter […]
Read MoreSocial Security Planning 101
It’s trickier than many realize Although Social Security benefits aren’t likely to make up a sizable part of your retirement income, your planning wouldn’t be complete without getting a good grasp on how much you’ll be receiving and, if you plan to work part-time after retirement, the impact of your earnings on your benefits. What […]
Read MoreSpotlight on Trust Taxes
Nearly 30 years ago, Joseph Rice created a trust in New York for his three children. A New York trustee was appointed, and the trust was to be governed by New York law. The trustee was given complete discretion over distributions to the trust beneficiaries. At the time that the trust was created, no beneficiary […]
Read MoreAsk a Trust Officer: Elderly Parents
Dear Trust Officer: My parents are retired, living in another state. They have a sizable investment portfolio and are financially comfortable. However, as they are getting older, they are having trouble keeping up with their paperwork. Last year they were late in making tax payments, very unlike them. I would help them, but I just […]
Read MoreAsk a Trust Officer: Saving for Retirement
Dear Trust Officer: How much of my salary do I need to save for retirement? — RESPONSIBLY PLANNING DEAR RESPONSIBILY PLANNING: The irreverent answer would be “all of it.” All kidding aside, there is no simple answer for everyone. The answer depends upon how many years until retirement, how much income will be required then, […]
Read MoreOpportunity Zones
According to the IRS: “An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his […]
Read MoreMinors and Estate Planning
Reportedly, only one-third of parents with a minor child have a will in place. One obstacle seems to be the naming of a guardian for the child if a parent dies while the child is a minor. Considerations One should start with the largest possible list of potential guardians. Relatives, friends, business partners, parents of […]
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