Archive for July 12th, 2007

Nobody likes to pay taxes. If done incorrectly, though, the way you inherit an asset can result in you needlessly paying tens of thousands of dollars in taxes. Knowing some simple rules will reduce your tax bill and allow you to keep more of what you inherit. And it will also keep you from creating tax headaches for loved ones to whom you wish to gift assets.

Whenever an asset is sold, Uncle Sam wants to collect capital gains tax. And that tax is figured using cost basis. (more…)

Although it sounds smart and reasonable to make a Who Gets What List regarding furniture and personal items as part of an estate plan, such action could cause problems rather than solve them. One of the most common stories Ive heard is how a parent would attempt to prevent heirs from fighting over an estate by predetermining who gets what or by going ahead and giving things away in advance without all heirs present at the time.

To begin with, actually doing this can be a (more…)