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Named One of
America’s Top 25 Accounting Firms
by Inside Public Accounting
Follow the rules on
contingent charitable bequests
One note of caution about contingent charitable bequests — to obtain an
estate tax charitable deduction, the contingency must be fulfilled by
the time of your death because the amount passing to charity must be
fixed and determinable.
For example, let’s say your will provides that $40,000 will pass to your
sister on your death, but if your sister doesn’t survive you, the money
will go to charity. If at the time of your death your sister is still
living, an estate tax charitable deduction won’t be allowed. And even if
your will provides that the $40,000 be held in trust for her benefit and
any balance remaining upon her death go to charity, an estate tax
charitable deduction still won’t be allowed.
In either case, for your estate to get a charitable deduction, your
sister cannot survive you. (Note, however, that there are other
strategies that avoid this problem, such as a charitable remainder
trust.)
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Choosing when to start collecting Social Security
Although Social Security likely
won’t provide enough income for you to maintain your desired
lifestyle during retirement, the benefits can still be
significant. For example, someone earning $100,000 per year
can expect to receive annual benefits in the neighborhood of
$25,000. So, Social Security is an important factor to
consider in your retirement planning – especially when to
start collecting benefits. This article outlines how to
calculate your Social Security benefits and when to collect
them.
Read more
Tax tips
Greater longevity for 529 plan tax breaks
This section presents brief
notes on Section 529 plans, personal injury damage awards,
the long-distance excise tax refund and traditional IRA
distributions to charities.
Read more
Charitable bequests
Two goals, one strategy
Charitable bequests allow you
to combine estate planning with charitable giving, thus
accomplishing two goals at once. This article discusses the
many benefits of executing a charitable bequest, such as
reducing the value of your estate for federal estate tax
purposes, and it explains how you can customize the bequest
to suit your needs. An informative sidebar offers a word of
caution and helpful advice about one form of bequest: the
contingent charitable bequest.
Read more
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Making the grade
Assessing your retirement plan service providers
If your company sponsors a
retirement plan you have probably turned over plan
administration and investment management to outside
consultants. This article explains what services these
consultants should be providing your company and your
employees, and how to evaluate their performance. If
your service providers aren’t making the grade, you need
to make whatever changes are necessary to assure your
plan is operated in an efficient and professional
manner.
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