I got $10,000 for my college graduation. Do I have to tell the IRS?
On the Word on Wealth Radio show tonight (www.KPRZ.com and 1210AM San Diego, CA) The Retirement Professor (Marty Schneider) and I discussed the question – If I got $10,000 for my college graduation. Do I have to tell the IRS? The answer may surprise you: NO. Gifts under $14,000 per year do not get reported to the IRS or the state of California. They are not taxable. That’s right – not taxable. Do these gifts need to be in cash? No. Gifts that are excluded from reporting and from tax can be any type of gift valued @ $14,000 or less. The gift can be a partial interest in a...
Read MoreWhat’s so bad about Probate?
What’s so bad about Probate? The following questions were posed to me on my radio show today: What’s so bad about Probate? and What is it and why do we want to avoid it? First, what is Probate? Probate is a court proceeding used when estate planning is done wrong or not at all. Second, what’s so bad about it? Here’s why you want to AVOID Probate. 1 – Probate is very slow (1 to 3 years) to get money to the beneficiaries. 2 – Expensive – 6% of gross estate. Six percent is a huge chunk of change for anyone to have to pay. 3 – The...
Read MoreThree Common Trust & Estate Planning Mistakes
Three Common Trust & Estate Planning Mistakes Today on our radio show we listed out three common trust & estate planning mistakes people make. Read on to review our list and see if you’ve made any of the common mistakes. On the radio with Gary Quackenbush and Marty Schneider, the Retirement Professor. K-PRAISE 1210am: Three Common Trust & Estate Planning Mistakes 1 – Funding not done or not done right. To be done correctly, the house must be deeded to the Trustee of the Trust. All personal property needs to be assigned to the Trustee. Bank accounts should be in...
Read MoreTop Five Problems with Trusts & Wills
Top Five Problems with Trusts & Wills Today on my weekly radio show with Marty Schneider, “The Retirement Professor”, I answered questions about California estate planning and Living Trusts. Marty asked me what were the most common problems I see with estate planning. I answered him with my list of the top five problems with Trusts & Wills. I see too many people who do not have proper documents when they become disabled or die. They may have some documents like a Will or Trust, but here are the top five problems with trusts and wills: Trust Problem #1...
Read MoreEstate Planning Fatigue
Estate Planning Fatigue According to a recent survey conducted by CNBC.com, more than one-third of high-net-worth families have not set up a basic estate plan to protect and provide for their loved ones when they die. The survey found that 38 percent of millionaires with investable assets of $1 million or more have not established an estate plan with the help of a financial expert. Millionaires with $5 million or more were more likely to have an established estate plan with 68 percent having one. The survey also found that Republicans were more likely to use a financial advisor to set up an...
Read MoreNo Kids? Get an Estate Plan!
No Kids? Get an Estate Plan! A recent US News article recently reiterated one of our GQ Law mottos- Everyone Needs an Estate Plan! This particular article targets those who do NOT have children. Often times, people get an Estate Plan to protect their minor children, make sure their kids get their assets after they die, etc. Having children creates an urgency about Estate Planning. So, what about those without kids? Do they still need an estate plan? YES! Heirs or not, you cannot take your assets with you and if you have an opinion about who gets your stuff, you need to have an Estate Plan....
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