Estate Planning

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Best Way to Give Money to Grandchildren for College

Best Ways to Give Money to Grandchildren for College

It’s no secret that college is often the biggest expense a student will ever encounter. For a recent high school grad, looking the potential heaps of college debt in the face probably feels pretty daunting, but many students are fortunate enough to have family to lean on. Many grandparents help to provide financial support for their grandchildren’s college expenses.

If you’re a grandparent finding yourself in just this kind of situation: bravo! It’s fantastic of you to offer help when you’re able, but did you know that some methods of financial assistance are actually better for everyone involved than others? Let’s look at the best way to give money to grandchildren for college.

Step Up in Basis

Do I Owe Tax on Gifted Assets? Carryover vs. Step Up in Basis

What happens when I’m gifted cash or another valuable asset? What about when I receive an inheritance of some kind? Carryover basis? Step up in basis? What does that even mean? These are questions that you may wind up asking one day, because our tax laws are often difficult to understand, and, quite frankly, pretty complex. But understanding the rules that affect you doesn’t have to be hard—that’s why we’re here to help!

How the New York Estate Tax Exemption May Have Backfired

How the New York Estate Tax Exemption May Have Backfired

We’ve already discussed how the New York estate tax exemption has changed from last year to this year, but we haven’t talked about why it’s changed. The new legislation regarding estate taxes was passed in an attempt to keep wealthy New Yorkers from leaving the state upon retiring, but whether that’s actually working is debatable.

What is the New Estate Tax

What is the New Estate Tax “Fiscal Cliff”?

In our last post, we started examining the changes being made to the New York estate tax exemption, as the limit was raised from $1,000,000 to $2,062,500 on April 1 of this year. Our initial overview discussed the effects of the previous exemption on New Yorkers. In this post, we’re going to look at how the previous exemption differs from the new exemption.

The New New York State Estate Tax Exemption

How the New New York State Estate Tax Exemption Works

It’s likely that you may not have heard much yet about the New New York estate tax exemption—the legislation seemed to have passed fairly quietly on March 31 of this year, going into effect on April 1. This is the beginning of a fairly long “phasing out” period, with plans for the New York state estate tax exemption to gradually increase to meet the federal estate tax exemption by 2019.

why is estate planning important

Why Is Estate Planning Important?

Estate Planning is one of the noblest things one can do for his or her family.  The purpose of estate planning is to ensure that your family will be taken care of properly in the event of your death.  It ensures that all of your assets and wealth will be distributed the way you wanted, to the people you love and care about.  Proper estate planning also allows for reductions in taxes, which will increase the monetary value of your heir’s inheritance.  There are a few main reasons for estate planning and each one answers the age old question – Why is estate planning important?

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