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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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How High And Low Interest Rates Can Impact Wealth Transfers
Current global conditions have contributed to a spike in inflation which was already on the rise. It is expected that the Federal Reserve will respond by raising interest rates by as high as 2% in the next 18 months. These changing rates impact estate planning and generate important wealth transfer considerations and conversations. There is no one size fits all strategy for either a low rate or a high rate environment.
Instead, it is important to have an established relationship with an estate planning professional who can help guide you through this process and answer many of the most common questions that you have about the process.
The support of an attorney can be instrumental in identifying adaptations to your state plan that you should implement as quickly as possible and finding the right support for this kind of task is very important. When the Fed raises rates, work with your estate planning attorney to implement strategies that work best when interest rates are higher. Likewise, do the reverse when interest rates are lower. Typically, the rate that applies to a specific strategy you’ve used is the rate in effect on the date the strategy was implemented, this calls on you to take proper action.
Right now, in a low interest rate environment, lending strategies that take advantage of these low interest rates can help you transfer wealth to other people with no gift tax or very little gift tax. For more information, make sure that you set aside the time to speak with a dedicated lawyer.
Our estate planning law firm regularly works with people to make sure they’re getting the most out of every aspect of estate planning. We know it can be hard to adjust in a shifting environment, but it’s our goal to be there by your side with your estate planning.