They call it the American Taxpayer Relief Act. Funny, that. Overall it produces tax increases – that’s relief? Early January 1, 2013, the Senate, by a vote of 89-8, passed the “American Taxpayer Relief Act”. Late on that same day- after the government had technically gone over the “fiscal cliff” – the House of Representatives,… Read More
Many folks wait until the end of the year to make their gifts – both gifts to charities and gifts to individuals. This year the annual exclusion from the gift tax is $13,000. (On January 1, 2013 it rises to $14,000.) A person may give up to $13,000 to as many recipients as he or… Read More
The ability to make a will is a right given by state statute. If you don’t make a will, the state law of intestacy determines who gets your property. If you do make a will and things in your life change, sometimes state law causes a change in your will. This is called “modification by… Read More
As the life expectancy of people in the United States increases, there are more second and third marriages. Widows and widowers are increasingly likely to meet and decide that another marriage is a wonderful way to spend their remaining years. It is often a surprise to the children that Mom and Dad have lives of… Read More
By law, a number of tax provisions must be adjusted annually to keep pace with inflation. Before these numbers were adjusted for inflation, taxpayers automatically fell into higher tax brackets as their income rose with the cost of living. This was a stealth tax increase. Those taxpayers were paying more tax on the same “purchasing… Read More
In 1934, the government enacted the National Firearms Act (NFA) as an effort to stop gangster activity. In particular, the government used its taxing arm to arrest gangsters for being in possession of improperly registered or transferred weapons. The NFA was designed to govern the transfer of permissible weapons, to bar certain persons from possessing… Read More
The 2010 Tax Act created significant but temporary reductions in estate and gift taxes. The estate and gift tax exemption amount of $5.12 million plus lower tax rates have created opportunities for individuals to transfer wealth and save thousands or even millions of dollars in taxes – but only through December 31, 2012. By its… Read More
Social Security not only provides us with retirement income if we work in a job that requires payment of Social Security tax (being self-employed or working for a company, but not working for the government), but it also provides our surviving spouse and minor or disabled children with an annuity. The public policy is that… Read More
Here is an excellent post by Lancaster lawyer Shawn Pierson, Esq. Mistakes of an Executor
The central struggle of parenthood is to let our hopes for our children outweigh our fears. Ellen Goodman, American Journalist Tax legislation is often paternalistic. An example of this is the favorable treatment of single parent families by the income tax code. No politician wants to see a newly widowed or divorced constituent on… Read More