Charitable remainder trusts can increase your income, avoid capital gains taxes, lower or eliminate estate taxes, serve as another type of retirement plan, serve humanity and put a warm feeling in your heart. Here is an example that applies to anyone contemplating selling a highly appreciated asset.
Why plan? Well, even if you’re just leaving behind the $10 bill in your wallet, who will inherit it? Do you have a spouse? Children? Is it theirs? Should it go to just one of them, or be split between them? This (quite simply) is what eldercare planning is all about. Estate planning determines how your money and assets (property – both real and personal) will be distributed after your lifetime.
Your home will fluctuate in value depending on interest rates and the economy in your area. There are some months and years your home will actually lose money, but that doesn’t mean a home is not a good investment because, generally, real estate will appreciate in value over a period of 5 or 10 years.
Unemployment in the US has risen to over six and a half million (10 per cent), and in the UK to nearly 3 million, making it difficult if not impossible for vast numbers of people to continue paying their mortgages. And, as we’ve said, the properties they have been occupying, taken as security for the loans, have fallen significantly in value. It’s a vicious circle.
Here’s a typical situation – a family meets with their estate trusts and wills. The mom and dad are in their 90’s. The only planning they have ever done was a will purchased from an office supply store and cobbled together with pieces of paper containing notes, items that had been marked out and pages that were missing – about 15 years old. Anything amiss here?
Reciprocation – Give them information about the financial industry that can make their job easier. Not product information but how different tax laws are affecting investments, easier ways to get 1099’s at the end of the year, resources they may not have heard about. Give them heads up about financial scams to look for, etc. Give them success stories about happy clients. And give them referrals.
The business of buying and renting properties is a fairly simple process, but it is important that you know what you are doing, because if you make an incorrect purchase the results can be fairly catastrophic and difficult to sell off. This is why it is essential to study these notes very thoroughly and stay within the framework of these recommendations.