Personal Financial Planning

Topics

July 1, 2008

Guiding Clients Through the Transfer-for-Value Maze

Editor: Michael David Schulman, CPA/PFS One of the most attractive aspects of life insurance as an estate and financial planning tool is the tax treatment of the death proceeds. Generally, the proceeds of a life insurance policy received by a beneficiary are entirely free from income tax (Sec. 101(a)(1)). However,

May 1, 2008

CPAs Can Take the Lead in Boomer Financial Planning

Baby boomers will need a wide range of financial planning services and have the money to pay for them.

April 1, 2008

What Is Long-Term Care and Who Is Responsible for Its Cost?

Long-term care is defined in the Code as “necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and maintenance or personal care services” for a chronically ill individual.

January 1, 2008

Baby Boomers Brace for Longevity Risk with Guaranteed Annuities

How can baby boomers continue to increase and protect their lump-sum nest eggs throughout their retirement years without the fear of running out of money?

December 1, 2007

Private Annuities Can Still Save Estate Taxes

Editor: Michael D. Koppel, CPA, PFS In October 2006, the IRS issued Prop. Regs. Secs. 1.72-6(e) and 1.1001-1(j), which propose to substantially reduce the income tax benefits of private annuities (REG-141901-05). Basically, the proposed regulations require the annuitant (the person transferring the property) to recognize the entire gain or loss

November 1, 2007

Gifting of a Remainder Interest in a Home

Editor: Kevin F. Reilly, J.D., CPA One of the first decisions taxpayers must make when planning their estates is what to do with the principal home. With the changing and sometimes downtrodden real estate market, this can be a difficult and time-consuming task for heirs, particularly if they do not

November 1, 2007

Tax Planning for the Use of TIPS at Retirement

For some retirees, Treasury inflation-protected securities may be a valuable source of retirement income.

October 1, 2007

The Growing Epidemic of Financial Elder Abuse (and What CPAs Can Do About It)

The incidence of financial abuse perpetrated against the elderly in the United States is growing to epidemic proportions. Because the elderly are the fastest-growing segment of our population, more and more victims and their families are beginning to report its occurrence. Most alarming, according to the National Center on Elder

August 1, 2007

Divorce and Gain Exclusion

For most couples contemplating divorce, the largest single asset at issue is their personal residence. In most situations, one spouse moves out of the residence during the separation and divorce proceedings. Tax consequences are often ignored, as the primary concern is the division of marital assets. However, focus normally returns

July 1, 2007

The Power of Gifting

Editor: John L. Miller, CPA Prospects for repeal of the estate tax became less likely after the November 2006 elections; as a result, gifting continues to be a powerful estate planning tool. Maximizing use of the annual gift tax exclusion, using the $1 million lifetime gift tax exemption and gift-splitting

July 1, 2007

When to Begin Receiving Social Security Benefits

Editor: Michael David Schulman, CPA/PFS Social Security Administration (SSA) statistics indicate that a majority of U.S. citizens elect to begin receiving Social Security benefits at age 62; see Song and Manchester, “New Evidence on Earnings and Benefit Claims Following Changes in the Retirement Earnings Test in 2000” (July 2006), available