Beware of the "kiddie tax"—which applies to unearned income (including distributions from traditional IRAs)—when making grandchildren beneficiaries of your retirement plan.
Crafting an estate plan involves a series of steps, some of which you’ve probably already undertaken and are probably going to need to revisit as your life unfolds. As you do tackle your estate plan, here are the key jobs to check off your list.
Because retirement plan beneficiary designations don't pop up on our screens when we check up on our portfolios or receive statements, we may not revisit them for years. That can be a big mistake. Marriages and divorces, births and deaths, relationships improved or turned sour may be leaving your current designations out of date.
Smart idea: housing all your important documents & financial info in one spot for loved ones to find/use in an unfortunate event!
Why would we ever give them our money? A couple of friends asked this question in horror — figuring we could use the funds, or it would be better to wait until after my wife and I die...My answer is threefold.
Research shows that 68% of young people expect an inheritance. The problem is that only 40% of their parents plan to leave one.
A strong estate plan can help reduce taxes, leaving more to your heirs.
While many people rail against estate taxes, extremely few people ever have to pay them. Why? They are only directed at the most affluent people, with the most valuable estates.