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Important IRS Update: Significant Interest Penalty Increase for Tax Underpayments
The Internal Revenue Service (IRS) has recently announced a critical change that could significantly impact taxpayers who underpay their taxes. This update is particularly relevant as we approach the next tax filing season. Previously, the IRS charged a 3% interest penalty on estimated tax underpayments. However, this rate has now been increased to a substantial
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Will Inflation Hurt Stock Returns? Not Necessarily
Investors may wonder whether stock returns will suffer if inflation keeps rising. Here’s some good news: Inflation isn’t necessarily bad news for stocks. A look at equity performance in the past three decades does not show any reliable connection between periods of high (or low) inflation and US stock returns. Since 1993, one-year returns on
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Maximize Your Charitable Impact with These Four Strategies
As the year draws to a close, it’s a perfect opportunity to rethink how you give to charity. This is important for managing how much tax you pay and how much help reaches those in need. Here are four effective strategies: Need Guidance? Reach Out to Us! These strategies are just a starting point. There
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Avoiding Estate Planning Mistakes: Unfunded Living Trusts
When used properly, living trusts can be valuable tools for passing on assets. When planned for early on, you can really maximize what a beneficiary gets out of a living trust. Unfortunately, individuals don’t always plan correctly with the living trust. If you forget to put any assets into the trust, for example, you’ll miss out on the opportunity for assets to be passed to heirs outside of the probate process. After the trust is set up, you’ll need to retitle assets into the trust’s name.
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Simply listing the assets you plan to transfer with a schedule attached to the trust may not be enough. The schedule is more like a notification of the assets you do plan to transfer, but it doesn’t necessarily mean that you’ve actually transferred those assets. Real property is going to require a deed and bank and stock accounts will need to be retitled by financial institutions. You can speak with a professional estate planner to learn more about the steps to follow after establishing a living trust.
There are numerous trust possibilities that can help maximize asset value and minimize the influence of taxes, but you have to follow through on setting them up properly. To learn more about living trusts as an estate planning tool, email info@lawesq.net or reach out at 732-521-9455.