“All money is a matter of belief.” – Adam Smith We have lived through the rise of the personal computer, e-mail, smart phones, tablets, Tesla’s, GoogleGlass, and the like. What’s next? How about a digital currency? Odds are you’ve heard about it. It’s called Bitcoin. For those of you who aren’t quite certain about what… Read More
If you are in business, whether self-employed or running a company, you must send a 1099 form (with copies to the IRS) to anyone that you pay money to, unless they meet one or more of the following exceptions: The recipient is a corporation You included the payment in a W-2 form (to an employee)… Read More
Is a Divorce Agreement That Promises an Inheritance to Kids Enforceable? Let’s say you got a divorce. As part of the divorce agreement your ex agreed to leave half of his estate to your kids. He dies. He leaves a will that doesn’t comply with the agreement – leaving 90% of his estate to his… Read More
Suppose you inherit the family home from your parents. They took out a mortgage on it to pay for some wheelchair access ramps and stair lifts. Do you have to pay the mortgage? It depends. Mom has left a widow and when she passes away she leaves a will with a section devising the house… Read More
“Rent-to-own” is a way of acquiring an asset – most often a principal residence. Usually, a rent-to-own agreement is a lease with an attached option. The landlord sells the tenant an option to buy the property at a fixed price at some point in the future. There may be a small down payment of some… Read More
The reappearance of Brenda Heist last week after being declared legally dead has brought me all sorts of questions. The Pennsylvania Statute that governs the property of absentees and persons presumed dead is at 50 Pa. Cons. Stat. §§ 5701 through 5706. Generally, if a person disappears and is absent from his place of residence… Read More
The Bigger They Are . . . . . The Harder They Fall The IRS has hit the estate of former Detroit Pistons owner, William Davidson, with a $2 Billion tax bill. Yes, that’s a “B”, not an “M” — $2 Billion. William Morse “Bill” Davidson, who died in March 2009 at age 86, was… Read More
Domestic asset protection trusts are irrevocable trusts that a person creates to protect assets from future creditors. They are termed “domestic” to distinguish them from offshore trusts. Asset protection trusts do not offer income tax protection as all income of the trust is deemed income of the settlor. They are designed to protect the settlor… Read More
A Roth IRA is an individual retirement account named after the United States Congressman William Victor Roth Jr., who was the legislative sponsor of the bill creating this plan. When a traditional IRA is converted to a Roth, all before-tax contributions made to the IRA become taxable; and the income tax must be paid. But… Read More
Did you know that in President Obama’s budget proposal for fiscal 2014 released in April includes a tax increase for formerly tax-free municipal bond interest? First, some background: Municipal bonds (munis) are debt obligations issued by government entities. When you buy a municipal bond, you are loaning money to the issuer in exchange for a… Read More