The Realized Team’s Picks
What Are the 7 Tax Brackets?
The IRS tax brackets divide income by taxable levels. Different tax rates are applied at each level. The more you make, the higher the tax rate. The tax system is also progressive. This means if you make $80,000 in a year, the entire amount is not taxed at 22%. It is divided into three tax brackets made up of 10%, 12%, and 22%.
What Is Transfer on Death and How Does it Work?
Planning for the orderly disposition of one's assets at the time of death is typically done through a will and possibly establishing a trust or trusts. A will is sometimes called a last testament and is a document that states how a person's assets are to be distributed after their demise. A will can also be used for other instructions and functions, such as naming a guardian for minor children. It's important to note that a will does not take effect until the death of the person who created it (they can change it as long as they are living and mentally competent to do so).
What Is Sponsor Risk in Real Estate?
Sponsors are the representatives of real estate deals for investors and developers. To maintain a good reputation and continued deal flow, sponsors need to provide high-quality service, which means a smooth deal transaction from beginning to end.
Who Pays for Estate Taxes and How Much Do They Pay?
Taxes owed on a family member's estate after the death can be very high. This tax is called an estate tax, inheritance tax, and death tax. Up to a certain amount (i.e., the estate's value), taxes are not owed. After that amount is surpassed, taxes are owed by those inheriting the estate. We'll go over the estate tax details in this article, who pays it, and how much they'll pay.
Cryptocurrencies as an Alternative Asset: What You Need to Know
Cryptocurrencies may seem mysterious, but they do have a pretty simple definition:
What Is Severing a Joint Tenancy?
Joint tenancy is the equal ownership of property by two or more people with the right of survivorship. Each owner has an equal, undivided share of the property, and if one owner dies, their portion is divided among the remaining owners. Joint tenancy is commonly used with two owners, but it can have more. Joint tenancy by a married couple owning a home is typical, but friends sharing a vacation home or investment property is also an appropriate use of the structure.
Are REITs Considered Fixed Income?
To explore whether Real Estate Investment Trusts (REITs) are fixed income investments, it will be helpful first to examine what a REIT is and what a fixed income investment includes.
Can Retirement Accounts End Up in Probate?
For some people, avoiding or minimizing probate is a key goal guiding their estate planning. Probate court is a proceeding to manage the distribution of a deceased person's assets when there is no will, or there is a will, but there is also a dispute or some lack of clarity regarding the disposition of assets. Probate can also handle conservatorships, guardianships, and involuntary commitments.
Private Equity as an Alternative Investment: What You Need to Know
Private equity is a way to invest in private companies outside of the public stock market. Private equity investing gives investors an ownership stake in private companies. There are three parties involved in private equity: the investors who provide the capital, the private equity firm that manages and invests the money via a private equity fund, and the companies the private equity firm invests in.
How Does Inheritance Tax Work?
When people use the term "inheritance tax," they generally refer to a levy against money or property that a person or entity inherits from someone who gives it to them in a will. However, there is sometimes confusion between an inheritance tax and the federal estate tax, which is different. In fact, there is no federal inheritance tax, although there is an estate tax. The IRS defines the estate tax as:
