An estate plan isn't a static document. As the years roll on after you initial draft your plan, you need to update it as needed. The primary reason for updates is experiencing major life changes such as a marriage, divorce, second marriage or the birth of a child.

A will is a key element of an estate plan. Most people have already drafted their wills, but have you considered adding a letter of instructions? The letter, unlike a valid will, isn't legally binding, but can help your surviving family members follow your intentions. This article explains what a letter of instruction should cover and why it can be a valuable addition to your estate plan.

Many U.S. businesses filed for bankruptcy last year. Through the end of the third quarter of 2024 (the latest available statistics at this writing), formal bankruptcy filings were on track to exceed the 2023 mark and the watershed year of 2020. Here's a look at what's driving the increase and how the process works, including revised rules for small businesses that went into effect in 2022.

The Tax Cuts and Jobs Act (TCJA) significantly increased the unified federal estate and gift tax exemption through the end of 2025. However, for 2026, it's currently scheduled to revert back to the pre-TCJA level with a cumulative inflation adjustment for 2018 through 2025. If it reverts back to previous levels, it's estimated to be roughly $8 million.

Recent years have witnessed the mainstreaming of alternative investments for certain accredited investors. In fact, one study found that alternative investments have grown to make up about 25% of state and locally run public pension fund investments.

The COVID pandemic prompted numerous temporary changes to the tax laws for 2020 and 2021. From Economic Impact Payments, penalty-free IRA distributions and the expanded child tax credit to Employee Retention Credits and credits for paid leave, taxpayers had ample areas to make mistakes when completing their tax returns — on top of the usual annual tripwires.

The IRS recently announced it will be increasing the standard mileage rate for qualified business drivers for the second half of 2022. The adjustment reflects rising costs at the gas pumps this year.

The market value of your home will be an important consideration in several decisions you might make, including refinancing, borrowing against the home's accumulated equity, putting the home up for sale, estimating homeowner's insurance, estimating annual property taxes, estimating the return from remodeling jobs, estate planning, and so forth. Remember, how much was paid for the home when it was first purchased is irrelevant to its current market value.

Let's say you have an unincorporated sideline activity that you think of as a business, including an activity involving horses. If you have a net loss (deductible expenses exceed revenue) on that activity and you think you can deduct that loss on your personal federal income tax return, think again!

Before President Trump signed the latest economic stimulus law, several temporary COVID-19-related federal tax relief measures were set to expire on December 31, 2020. This article explains the current status of eight important temporary relief measures and whether the Consolidated Appropriations Act (CAA) extended them.

The CARESAct created the Paycheck Protection Program (PPP) to issue loans to help small businesses that were adversely affected by the COVID-19 pandemic. The original program expired on August 8, 2020. Now it's been retroactively reinstated, liberalized, and expanded by the new Consolidated Appropriations Act. Here are some key details for small business owners, including clarification about the tax treatment of forgiven PPP loans.

SELECTED IMPORTANT 2020 TAX ITEMS:

• Casualty Loss: Effective beginning in 2018, this deduction has been eliminated, with the exception of casualty losses suffered in a federal disaster area. A taxpayer who suffers a personal casualty loss from a disaster declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act will still be able to claim a personal casualty loss as an itemized deduction, subject to the $100-per-casualty and 10%-of-Adjusted Gross Income limitations.

Value Versus Growth Investing

Value investors look for bargains. In other words, they attempt to find stocks that are trading below the value of the companies they represent. In contrast, growth investors are using today's information to identify tomorrow's strongest stocks. Read on to learn more about the strategies that value investors and growth investors use.
Copyright © 2020

Tips to Prevent the Number One Cause of Marital Rift

One surveyfound financial matters is "the most common source of discord among American couples." Further, the survey concluded, arguments over money predominantly involve a differing opinion of "needs" versus "wants," unexpected expenses and insufficient savings. Fortunately, couples may be able to head off many of the problems in a marriage that money can cause. Here are ten tips.
Copyright © 2020

FAQs About Tax-Free Disaster Relief Payments During the COVID-19 Crisis

The COVID-19pandemic has caused many forms of financial distress. If you've been adversely affected by this federally declared disaster, you may be eligible for federal-income-tax-free qualified disaster relief and disaster mitigation payments paid by some employers. Here are some frequently asked questions about these payments, including those made by employers and charities.

Copyright © 2020

The Equal Opportunity Employment Commission is capping off a busy year of discrimination cases. With the Biden Administration making plans to take the reins in the White House, what can employers expect going forward? This article looks at possibilities and focuses on several enforcement actions that made news in 2020. Read on for more.

Copyright © 2020

Additional Federally Funded Benefits Supplemental Federal Pandemic Unemployment Compensation. Through July 31, 2020, the federal government would provide a temporary Federal Pandemic Unemployment Compensation (FPUC) of $600 a week for any worker eligible for state or federal unemployment compensation (UC) benefits.

The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.

Social Security and SSI recipients are eligible for the rebate payments. (See here for Ways and Means FAQs on the rebates in general.)