What is an Emergency Power of Attorney?
Conferring a power of attorney (POA) can be a legal event but doesn’t usually involve a lawyer. Instead, designating a power of attorney gives the named person the authority to make decisions on behalf of the person who made the designation.
Are Dividends Taxed as Ordinary Income?
Dividends are payments that a corporation distributes to the shareholders, often quarterly but at least annually. Not all public companies pay dividends, but some pay them reliably. Some examples include Exxon Mobil, Verizon, Enbridge, VF Corp, Unilever, and 3M. In addition, some companies have a long history of paying dividends, including DuPont, Edison, General Mills, Eli Lilly, and Stanley Black & Decker. Dividend-oriented investors may rely on these payments, and some companies have encountered an investor backlash when they have reduced or dropped their dividends (often due to financial hardship).
What Is A Grantor Retained Annuity Trust (GRAT)?
A Grantor Retained Annuity Trust (GRAT) is when a grantor wants to transfer the appreciation of an asset to an heir(s) while also reducing the value of the asset that might be subject to estate or gift taxes. It is generally used by individuals as a possible tax shelter for a high-value asset(s) they want to pass to a beneficiary.
Are Opportunity Zones Publicly Traded?
In October 2021, private equity firm and family office Belpointe Capital launched the first (and to date, only) publicly traded Qualified Opportunity Fund (QOF). Operating under the NYSE stock name of OZ, Belpointe OZ, to date, has raised more than $345 million of equity capital and has more than 2,500 units in its development pipeline.
What is the Estate Tax Exemption?
In certain instances – especially if you have amassed an extremely large estate – you’ll have to pay an estate tax when you transfer real property or other monetary assets to your heirs when you die.
What are the Advantages of Financial Planning?
Financial planning is imperative to make sure your finances are in order while you are alive, and also to convey your wishes for assets after your death. However, a 2022 study showed that only 29% of surveyed Americans have a written financial plan. With the uncertainties in life, if you don’t have a plan, now is the time to get started.
What Does a Qualified Investment Mean?
Are you contributing to a retirement plan with your employer? If so, then you are likely utilizing a qualified investment. Qualified investments include 401(k), 403(b), 457(b), SEP-IRA, and SIMPLE IRA plans. These plans follow IRS rules and restrictions. They also have tax benefits. Keep reading to see what these plans are all about.
What is a Credit Shelter Trust?
Affluent couples with large estates may choose to set up credit shelter trusts in an attempt to preserve generational wealth and pass high-net-worth assets onto their heirs without having to pay estate taxes.
Can Selling a Conservation Easement Count for a 1031 Exchange?
A conservation easement is an agreement between the landowner and another entity (usually a government agency but potentially a nonprofit organization) that limits specified development activity on the property. Typically, the purpose is to protect some aspect of the land, possibly recreational or scenic attributes, historical value, or geologic or ecological sensitivity. Often the easement allows the owner to continue living on or using the land while ensuring long-term protection from prohibited uses like development.
What States Have Both Inheritance and Estate Tax?
Estate planning is essential to protect the value of your estate and create the lowest possible amount of taxation when assets are transferred to your heirs. Estate planning is especially important for larger estates. The IRS estate tax exemption of $12.06 million excludes many estates from federal taxation, and that exclusion amount is doubled for married couples. However, some states impose estate taxes while others impose inheritance taxes – and one state imposes both.
