Tax help > Estate Planning and Insurance Concerns When You Divorce

Estate Planning and Insurance Concerns When You Divorce

If you are getting a divorce from your spouse, you have a lot of planning to do.
You will need to name your own beneficiaries, organize your divided assets, and
set up your individual estate. It is important that you meet with a qualified attorney to discuss the specifics
of planning your estate to ensure that your wishes are carried out as you desire. You need to be well versed in the most strategic methods of dividing your joint estate so that you do not end up paying all of the taxes while he or she enjoys the benefits of your assets. I have outlined some important information for you to be aware of when planning
your estate after your divorce.

Please keep in mind that divorces lend themselves
to new structures for individuals. You will want to meet with a qualified attorney
to discuss how to best protect your new estate. Assigning Your Beneficiary
During your marriage, chances are your spouse was the sole or major beneficiary of your estate. After your divorce, it is important that you designate a new beneficiary on all of your documents and for all of your accounts. The federal law called ERISA pre-empts state laws that automatically remove an ex-spouse as the beneficiary of retirement plans.

Therefore, its important that you remove the ex-spouse as the beneficiary unless you wish for him or her to remain as your designated beneficiary. Please note: Once you re-name your beneficiary, it is possible that your ex-spouse will still retain the rights to part of your retirement benefits that you accrued during the time of your marriage. I recommend consulting with a qualified estate planning attorney to determine just how much of your benefits and estate will be designated to your ex-spouse after your divorce. Dividing Your Assets
During the course of your divorce, you and your ex-spouse determine how your joint estate will be divided. Take a minute to review a few assets that you will need to divide:

appreciated assets, such as mutual funds, and stocks;
real estate, including investments, repairs, insurances and mortgages;
personal property, such as jewelry, artwork and clothes;
retirement plans, such as qualified plans and IRAs; and
your home, which can be divided in different ways to meet both parties financial needs.

Establishing a TrustMany people will create a Trust to ensure that a designated Trustee will have control over funds after death. There are three Trusts that you can explore when planning your estate:

The Revocable Living Trust helps you avoid probate by allowing your Trustee to distribute your assets according to the instructions that you have outlined.
The Childrens Trust allows you to designate funds that your child will use later in his life to pay for his education, home, etc.
The Irrevocable Life Insurance Trust, otherwise known as ILIT, allows you to distribute the death benefit estate tax-free when and how you want, even long after youre gone.

Divorce is never easy. Its typically a very long and arduous process as both parties work to get their portions of the shared assets. If youre going through a divorce it is important to speak with a qualified attorney who can walk you through all of the tax and asset considerations that you need to be aware of to ensure that you receive the best possible settlement.
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Thomas McNally is the staff writer at the National Directory of Estate Planning, Probate & Elder Law Attorneys. McNally stresses the importance of finding a qualified estate planning attorney to ensure that your estate passes to whom you want, when you want, and is carried out in the manner you've chosen.

Car Donation Made Simple

(ContentDesk) May 23, 2006 -- Donating a car to charity benefits all parties involved. Those donating get a tax break and the charity they choose can use the donation to raise money to fund their ongoing programs that benefit the wider community. But it can be confusing knowing how it all works, so confusing many people decide not to bother.
A new portal has been setup to address the issues faced by prospective donors.
Common questions that people have about car donation like how does the charity value a car and how is the tax break calculated are answered in a clear and simple manner, like having a friend guiding you through the process.

Used Car Donation Tips (www.usedcardonationtips.com) is the friend prospective car donation participants never had one who can provide the inside story on car donations,
together with useful tips and the latest news.
John Brennan, founder of Used Car Donation Tips puts it like this: Donating your car...

Car Donation Made Simple

Tax help > Car Donation Made Simple

Cyprus is Hotter Than Ever

(ContentDesk) October 26, 2005 -- Stuart Law, Managing Director of Assetz International, comments: "High standards and low costs of living along with virtually non-existent crime rates and numerous tax advantages make Cyprus an attractive option for UK investors."Prices are still considerably lower than in France or Spain - a three-bedroom detached villa with a private pool would currently set you back around ?250,000 in a quality location, which would probably only stretch to a large two-bedroom apartment in the South of France. Capital growth is expected to continue at a high level for the foreseeable future due to interest from buyers all over Europe and an undersupply of property."British nationals living in Cyprus account for 1.5% of the total population, with British retirees benefiting from being able to draw their pension without paying UK withholding tax, at a flat rate of 5%. The most popular destination for tourists and homebuyers is Paphos, say Assetz, which offers stunning...

Cyprus is Hotter Than Ever

Tax help > Cyprus is Hotter Than Ever

Cyprus is Hotter Than Ever

Cyprus is Hotter Than Ever

Tax help > Cyprus is Hotter Than Ever

What is a Reverse Mortgage?

Simply stated, a reverse mortgage is a loan that enables homeowners (age 62 and older) to convert part of the equity in their home into a tax-free income without having to sell the home, give up the title, or take on a new monthly mortgage payment.
More and more homeowners are using this to supplement their retirement income, pay for health care, modify their home, or just get some cash for emergencies.
Since this is a new product, some people have misconceptions of what a reverse mortgage is.
The bank doesn't give you money and take your house.
Let's look at some of the most common questions.Are reverse mortgages for desperate people?
No.

It is an excellent financial planning tool used from people of all walks of life.
How do I qualify?
You must be 62 or if both parties are on the mortgage, then you both must be at least 62.
And, you must have equity in your home.What if I still owe on my home?
What is a Reverse Mortgage?
Tax help > What is a Reverse Mortgage?

Top 5 Overlooked Tax Deductions

Copyright 2006 Kristine McKinley

How many times have you done your taxes, and a week or a month later realized you forgot a deduction?
The tax law is very complicated, so it's easy to miss a deduction or two.
In my experience, these are the top 5 missed deductions.

1. Non-Cash Donations

Did you clean out your closets this year?
Chances are you donated those items to Goodwill or a similar non-profit organization.
The value of donated items (clothing, furniture, etc.) is deductible.
You will need to get a written receipt and assign a value to these items, but the tax savings are worth the effort.

2.

Points on Refinancing

With interest rates so low the past few years, there have been a record-number of houses refinanced.
If you refinanced, you may have paid points to get a lower interest rate.
These points are deductible over the life of the new loan. ...

Top 5 Overlooked Tax Deductions

Tax help > Top 5 Overlooked Tax Deductions