First of all, Congratulations. Second, I don't want your money. But many other people will, including long lost relatives, the aging relative, every charity you can think of (and then some) and your friends. The purpose of this is to help you keep your money.
My research has revealed that people who suddenly come into wealth, such as in an inheritance or a lottery winning, - like you for example - often go through all they've received within 2 years. During these two years they are often subjected to an unusually high amount of stress and have friends and relatives they never knew they had come asking them for money.
Many people often feel guilty. "Why me?" "What do I do with this?" "Who do I turn to?" "Who do I trust?" Hopefully, you won't experience any of these feelings and everything will go smoothly for you. But if you find yourself feeling this way, you aren't alone.
To help, I've developed some simple rules or guidelines. Accept those which feel right to you or which seem to make sense. If it feels wrong or just doesn't make sense, don't do it.
1. Wait. This is already what most people do. Wait a few days until the excitement dies down before claiming your money. This gives you time to calm down and relax and look at the situation a little more rationally. Winning a large jackpot is a big responsibility and you need time to get yourself used to the idea.
2. While you're waiting those few days, find yourself a competent attorney and a good accountant, CPA or financial advisor. How do you find such people? Trust your friends. Yeah, the word may leak that you've won, but it is more important to get an attorney and financial advisor in place rather than not trust your friends and go to the lottery office without such a team behind you. Who would your friends recommend? Ask them, ask around. Maybe you could consult the mayor of your town - if its small, or ask your doctor, tax preparer or someone who owns a small business. You could also just go through the Yellow Pages and select a few financial service firms at random and then call them for an initial appointment. When you appear for the appointment, be honest, tell them you won the big jackpot and ask them what suggestions they have on how you should invest the money. Meet each of the advisors you select and then wait at least 24 hours after meeting with the last before deciding which one you'll be working with. Then call that one back and give them the good news. Trust me, they'll be very happy.
3. While you're waiting, you may want to change your phone number and/or get yourself a new mailing address - a post office box or a mail box at a nearby mailing service. Otherwise you'll be inundated with phone calls and proposals in the mail to help you part with your money.
So you go to the lottery office and collect the big check. You get your smiling face on all the local (and maybe national) media. So what's next?
4. Take 10% and blow it. Yeah, this may not seem like sound investment advice, but you've just won the lottery for pete's sake! Have fun! That's what winning is all about. Take that vacation you've always wanted. Get that sports car you've always dreamed of. Throw yourself the biggest party you can imagine. Rent out the nightclub or restaurant or theater for you and some of your best friends. Have a good time. Have fun. But don't forget:
5. Be yourself. Don't be someone you're not. Don't assume "airs" or a persona just because you're suddenly wealthy. Your friends will resent it and sooner or later, so will you. This really hasn't been much of a problem for most people and shouldn't be with you, so just keep it in mind.
6. If you don't go to church or believe in God or a Supreme Being of some kind, now may be a good time to reconsider your position. You're going to need all the advice, wisdom and support you can get. When friends and family you never knew you had suddenly begin calling you and showing up on your doorstep, you may start to wonder who you can trust. Who will you turn to? God is infinite love and wisdom and this may be just what you need right now.
7. Relax. Don't feel guilty. Praise God. This money is a gift. Lightning has to strike someone sometime. This time it just happend to be you. You may now have enough to retire. If so, go ahead and retire. Quit your job, or at the very least stay away for a few days. You'll probably be too excited to concentrate on your job anyway. So take a vacation and maybe it'll become permanent.
8. Be careful who you trust. All the people you knew and were friends with before you won are probably safe. Any "friends", "relatives" and others you may have encountered since you won may not be.
9. Talk to your family, lawyer and financial planner and set up an investment plan. Discuss what you would do with this money. Don't make any rash decisions. The longer you keep this money in a safe place - even if its just a regular bank account for now - the longer you'll be able to consider all your options, plan for the future, and dream of what could be. Consider capping your donations to church or charities at a maximum of 10%. If you're receiving your money in annual payments, keep your donations at 10% per year. After the first year you may want to increase this percentage, but for the first year, keep donations to a 10% maximum.
10. Don't give money away to just anyone or for any reason. People may start coming out of the woodwork with news of relatives needing lifesaving operations, to pay bills, to start a medical clinic, pay for an abortion, save the whales, feed the hungry, to pay the rent so they won't be evicted, to start a new business which is "guaranteed" to turn their life around, etc. Don't do it. Refer them all to your attorney. Even the United Way, Girl or Boy Scouts, your local church, Red Cross and even your favorite Uncle Billy. Ask them all to submit a written proposal to your attorney. And tell them he'll take it from there.
11. Take a vacation. Get out of the country. Or just get out of the area for a while. You may need a few days, you may need a few weeks. But now is the time to think and relax. You've been given a great gift. What are you going to do with it? To figure that out, take that vacation you've always wanted. Go away. Go someplace where no one knows you. Take your immediate family (or not) and bring along a trusted friend or friends or relative(s) if you wish. (Or not.) Go sailing. Go to Europe or Asia. Take that cruise. Go to Las Vegas (but be careful if you go there)(the casinos have many years experience of helping people part with their money), or Cancun or Fiji. Whatever vacation or place you've always wanted, now is the time to do it.
If you take your family, they may impose too greatly upon your conscience. You don't want that. You want to be able to rationally and logically figure out what to do with this great gift you've been given. Having your family around may not allow you to do this. Or it may. Only you can make that determination.
If they are not with you, call home. Call your family, pastor or a trusted friend. Talk. And make lists. This is number 12.
12. Make lists. What dreams did you always want to do or achieve? Who did you always want to be? Now may be the time to do that. Or maybe you'll too old. Or not. And don't be hasty. You've got all the time in the world. You can live anywhere you want. Do anything you want. Buy any car you've wanted. Get that big house in that luxury area.
Keep on making lists. Think about all the things you've written. Do you really want this or that? Do you really want to go here or there? Think about these things. It may take some time, or maybe it won't. Maybe you won't need to get away, maybe you've had all this planned out already, if not on paper then in your head. Enjoy yourself.
13. Move on. Your plans are in place. Your family has been taken care of. Perhaps you've bought that nice house or car you've always wanted. Now is the time to move on. Start living your life. Maybe you won't change anything, or maybe you will. Maybe you'll change everything. But life goes on, and so do you. You may be able to live at a higher level of affluence, you may be able to donate to those charities, you may be able to do some good things you never had the time or money to do before. Now you have both. So do them. You may even want to go back to school. You're never too old. Begin implementing the investment plan you worked out. Begin living that life you dreamed of while on vacation and while making lists. And that's it.
There's plenty of competent investment advice out there so I'm not going to offer any. Except for this. If you're going to buy that new house, pay cash. Buy it outright. Same for the car. Get out of debt. Now is not the time to be adding new debt. You're going to need time to learn how to invest wisely. Many people study for years and never get it right. But with the proper team around you, the love and support of family and friends and God on your side, you'll make the right decisions.
One more thing.
Congratulations!
Article Source: http://EzineArticles.com/?expert=Perry_Jones
http://www.pjpoliticsandpolicy.blogspot.com
http://www.resultsbyjpnelson.blogspot.com
P.S. I am still searching for quality products that will help you. But Ihave located these three below.
Invest in Apartment Buildings for Cash Flow
Investment Secrets of the World's Richest Man
Get Up to 25% with Tax Liens
Thursday, July 7, 2011
US Gambling Tax; A Myth To Be Discerned
by Shane W.
In United States, gambling is legal by law as it generates billions of dollars in the form of tax revenues. So its very to simple to infer that why every kind of winning including the basics like lotteries to more sophisticated gaming like craps, pokers, horse racing and sports betting are subject to tax liability.
Not only the cash winnings but also the non-cash winnings are also considered for US gambling tax, after all they are also a form of winning. These non-cash winnings such as vehicles or trips are also tax liable based on their current market value. If you are lucky enough to win a vehicle that would have a cost $30,000 at a dealer, that is the figure for calculation of US gambling tax to be opt upon you. Many people end up selling their non-cash winning items to pay the US gambling tax, yet they still end up with cash.
If you are a non-resident of United States, or a new in the field of gambling, you need to know the following US gambling tax implications:
Many states and IRS, both tax the gambling winnings.
Winnings from all forms of gambling are taxable and need to be declared as income on your U.S gambling tax return.
All losses from all forms of gambling deductible under itemized deductions for frivolous players confined to the amount of winnings declared.
Professional gamblers have with them filed as self-employed business using Schedule C.
The value of comps received is also considered as gaming winnings and must be included in your total winnings, as it enables you to deduct gaming losses to offset the income from the comps.
Losses and wins must be reported in the year they come about. Surplus losses cannot be carried back or forward to offset winnings in other years.
Married couples intending to file a joint return should combine their winnings and losses, and report only a single figure for each.
IRS has announced ‘Lumping’ deplorable. ‘Lumping’ refers to a practice of reporting one net win figure with no losses, or reporting nothing in case of net loss from gambling. Gamblers must report their winnings sessions separately from the total of their losing sessions.
IRS requires gamblers to maintain a diary stating accurately their wins and losses and must contain the following information:
Date and type of ante.
The name of gaming concern.
The address and location of the gaming concern.
The amount(s) won or lost.
Besides the above information, IRS also requires from gamblers to keep with them in their diary the following information”
W-2G’s.
Wagering tickets.
Canceled checks and bank withdrawals.
Credit card records.
Receipts (if any) provided by the gambling concerns.
Casinos and card rooms are objectionable under ‘money laundering laws’ and any cash transaction of @10,000 or more must be reported to IRS in any one day. To evade any deviousness, they can also make report for amounts as low as $2,000.
W2-Gs forms are not needed for winnings from table games like craps, pai gow, blackjack, roulette and baccarat regardless of the amount.
(ArticlesBase SC #1882210)
Shane W - About the Author:
“US gambling tax applies on all gambling winnings by IRS and international tax treaties. However non-US gamblers have rebate for these US gambling tax as it applies to US residents only”
Read more: http://www.articlesbase.com/business-articles/us-gambling-tax-a-myth-to-be-discerned-1882210.html#ixzz1RScZIRSO
Under Creative Commons License: Attribution No Derivatives
In United States, gambling is legal by law as it generates billions of dollars in the form of tax revenues. So its very to simple to infer that why every kind of winning including the basics like lotteries to more sophisticated gaming like craps, pokers, horse racing and sports betting are subject to tax liability.
Not only the cash winnings but also the non-cash winnings are also considered for US gambling tax, after all they are also a form of winning. These non-cash winnings such as vehicles or trips are also tax liable based on their current market value. If you are lucky enough to win a vehicle that would have a cost $30,000 at a dealer, that is the figure for calculation of US gambling tax to be opt upon you. Many people end up selling their non-cash winning items to pay the US gambling tax, yet they still end up with cash.
If you are a non-resident of United States, or a new in the field of gambling, you need to know the following US gambling tax implications:
Many states and IRS, both tax the gambling winnings.
Winnings from all forms of gambling are taxable and need to be declared as income on your U.S gambling tax return.
All losses from all forms of gambling deductible under itemized deductions for frivolous players confined to the amount of winnings declared.
Professional gamblers have with them filed as self-employed business using Schedule C.
The value of comps received is also considered as gaming winnings and must be included in your total winnings, as it enables you to deduct gaming losses to offset the income from the comps.
Losses and wins must be reported in the year they come about. Surplus losses cannot be carried back or forward to offset winnings in other years.
Married couples intending to file a joint return should combine their winnings and losses, and report only a single figure for each.
IRS has announced ‘Lumping’ deplorable. ‘Lumping’ refers to a practice of reporting one net win figure with no losses, or reporting nothing in case of net loss from gambling. Gamblers must report their winnings sessions separately from the total of their losing sessions.
IRS requires gamblers to maintain a diary stating accurately their wins and losses and must contain the following information:
Date and type of ante.
The name of gaming concern.
The address and location of the gaming concern.
The amount(s) won or lost.
Besides the above information, IRS also requires from gamblers to keep with them in their diary the following information”
W-2G’s.
Wagering tickets.
Canceled checks and bank withdrawals.
Credit card records.
Receipts (if any) provided by the gambling concerns.
Casinos and card rooms are objectionable under ‘money laundering laws’ and any cash transaction of @10,000 or more must be reported to IRS in any one day. To evade any deviousness, they can also make report for amounts as low as $2,000.
W2-Gs forms are not needed for winnings from table games like craps, pai gow, blackjack, roulette and baccarat regardless of the amount.
(ArticlesBase SC #1882210)
Shane W - About the Author:
“US gambling tax applies on all gambling winnings by IRS and international tax treaties. However non-US gamblers have rebate for these US gambling tax as it applies to US residents only”
Read more: http://www.articlesbase.com/business-articles/us-gambling-tax-a-myth-to-be-discerned-1882210.html#ixzz1RScZIRSO
Under Creative Commons License: Attribution No Derivatives
How to Use Gambling Losses as a Tax Deduction
by an eHow contributor
You may use gambling losses as a tax deduction up to the amount of your gambling winnings within the same calendar year. In order to claim gambling losses, you must itemize your deductions on Schedule A and file your federal income tax return on Form 1040. You then would make two separate entries, with winnings on Form 1040 and losses on Schedule A.
Difficulty: Moderate
Instructions
Things You'll Need
IRS Form 1040
Form W-2G, if applicable
IRS Schedule A
1
Plan ahead by keeping an accurate gambling journal of your winnings and losses. Good records will reduce your tax bite if you have a large win.
2
In your journal, register the amount you won or lost, the date, the name and address or website address of the gambling establishment. Include the type of wager and be specific. For example, "Lost $10 on Rising Son in the 4th race at Hialeah."
3
Declare all of your gambling winnings on line 21 of IRS Form 1040. Include any winnings reported to you on Form W-2G, which is also supplied to the IRS by the gambling establishment that sends it to you.
4
Include any amount that was withheld for taxes by the gambling establishment in the total amount you enter for line 64, "Federal income tax withheld from Forms W-2 and 1099," on IRS Form 1040.
5
Verify your gambling losses with documents such as originals or copies of lottery and KENO tickets purchased, racing and other wagering tickets, credit card records, canceled checks, bank withdrawal records, records of casino slot machine numbers and table numbers where you gambled. Including any statements of winnings and payments made to you by gambling establishments.
6
Declare all of your gambling losses under "Other Miscellaneous Deductions" on line 27 of IRS Schedule A (Form 1040). This amount may not exceed your declared gambling winnings on line 21 of IRS Form 1040.
7
Use IRS Form 5754, "Statement by Person(s) Receiving Gambling Winnings," if the tax liability for your gambling winnings is shared by others.
Tips & Warnings
Some activities that are widely considered to be gambling, such as stock market day trading or buying raffle tickets from a charity's fundraiser, fall under IRS rules not specifically related to gambling. For example, equity traders should read Schedule D instructions regarding deduction of investment losses. Information concerning charitable contributions is found in the Schedule A instructions.
Under the IRS self-disclosure policy regarding gambling winnings and losses, you are responsible for declaring all gambling winnings as income on IRS Form 1040. You are not allowed to use just enough of your gambling winnings to cover your losses.
Read more: How to Use Gambling Losses as a Tax Deduction | eHow.com http://www.ehow.com/how_2080750_use-gambling-losses-as-tax.html#ixzz1RSayEddH
You may use gambling losses as a tax deduction up to the amount of your gambling winnings within the same calendar year. In order to claim gambling losses, you must itemize your deductions on Schedule A and file your federal income tax return on Form 1040. You then would make two separate entries, with winnings on Form 1040 and losses on Schedule A.
Difficulty: Moderate
Instructions
Things You'll Need
IRS Form 1040
Form W-2G, if applicable
IRS Schedule A
1
Plan ahead by keeping an accurate gambling journal of your winnings and losses. Good records will reduce your tax bite if you have a large win.
2
In your journal, register the amount you won or lost, the date, the name and address or website address of the gambling establishment. Include the type of wager and be specific. For example, "Lost $10 on Rising Son in the 4th race at Hialeah."
3
Declare all of your gambling winnings on line 21 of IRS Form 1040. Include any winnings reported to you on Form W-2G, which is also supplied to the IRS by the gambling establishment that sends it to you.
4
Include any amount that was withheld for taxes by the gambling establishment in the total amount you enter for line 64, "Federal income tax withheld from Forms W-2 and 1099," on IRS Form 1040.
5
Verify your gambling losses with documents such as originals or copies of lottery and KENO tickets purchased, racing and other wagering tickets, credit card records, canceled checks, bank withdrawal records, records of casino slot machine numbers and table numbers where you gambled. Including any statements of winnings and payments made to you by gambling establishments.
6
Declare all of your gambling losses under "Other Miscellaneous Deductions" on line 27 of IRS Schedule A (Form 1040). This amount may not exceed your declared gambling winnings on line 21 of IRS Form 1040.
7
Use IRS Form 5754, "Statement by Person(s) Receiving Gambling Winnings," if the tax liability for your gambling winnings is shared by others.
Tips & Warnings
Some activities that are widely considered to be gambling, such as stock market day trading or buying raffle tickets from a charity's fundraiser, fall under IRS rules not specifically related to gambling. For example, equity traders should read Schedule D instructions regarding deduction of investment losses. Information concerning charitable contributions is found in the Schedule A instructions.
Under the IRS self-disclosure policy regarding gambling winnings and losses, you are responsible for declaring all gambling winnings as income on IRS Form 1040. You are not allowed to use just enough of your gambling winnings to cover your losses.
Read more: How to Use Gambling Losses as a Tax Deduction | eHow.com http://www.ehow.com/how_2080750_use-gambling-losses-as-tax.html#ixzz1RSayEddH
Inheritance Cash - Should Heirs Borrow Against Their Inheritance?
by Simon Volkov
Inheritance cash programs provide funds to heirs entitled to inheritance held in probate. Probate is the legal process used to validate a decedent's Last Will and Testament and ensure assets are distributed according to probate law.
Inheritance cash advances are not loans. Instead, they are cash advances which are repaid to the funding source when probate settles. The probate process can take several months or even years to settle. Instead of waiting for inheritance proceeds to be distributed, entitled heirs can sell a portion of their pending assets in exchange for a lump sum cash payment.
Beneficiaries can use inheritance cash advances to pay off financial obligations or personal debts. Funds can be used for personal expenses including vacations, investment opportunities, or college tuition.
Before obtaining inheritance cash advances it is important to realize the lending source generally charges an upfront fee. Additionally, cash for inheritance funds typically cannot exceed 30-percent of the anticipated inheritance value. For example, if an heir is entitled to $100,000 of inheritance monies, the cash advance would be limited to $30,000.
Funding sources assume considerable risk when providing inheritance cash loans. Not only do they have to wait for probate to settle, there is also the potential for the estate to end up with insufficient funds. If the recipient provides truthful information when applying for an inheritance cash advance, the funding source cannot initiate legal proceedings if the estate is unable to repay the loan. Therefore, the funding source requires considerable information regarding the estate and the beneficiary requesting the advance.
Heirs who wish to obtain a cash advance will be required to provide a copy of the decedent's Will and death certificate. The funding source will require contact information for the Estate Administrator. Heirs will be subject to a credit report to ensure no outstanding liens or judgments exist. If heirs owe back taxes or child support, most funding sources will reject the application.
As a general rule, funding sources provide inheritance cash advances when beneficiaries are entitled to $15,000 or more. The process generally takes five to ten business days to complete. Heirs must assign their inheritance rights to the funding source in exchange for the inheritance cash advance.
Traditional lenders typically do not provide inheritance cash advances because they are too risky of an investment. Instead, beneficiaries will need to work with inheritance cash advance companies or private investors.
Keep in mind companies and investors who provide inheritance cash advances charge a fee of 10- to 40-percent of the loan. Before entering into this type of financial agreement, it is important to make a list of the pros and cons to determine if there is a better way to obtain the necessary funds.
Simon Volkov is a private note investor who specializes in helping individuals quickly liquidate their assets. From forthcoming inheritance cash to Probate, Simon Volkov offers a host of solutions for those in need of cash advances. Learn more about probate, real estate and investment opportunities by visiting www.SimonVolkov.com.
Article Source: http://EzineArticles.com/?expert=Simon_Volkov
Article Source: http://EzineArticles.com/1769750
Inheritance cash programs provide funds to heirs entitled to inheritance held in probate. Probate is the legal process used to validate a decedent's Last Will and Testament and ensure assets are distributed according to probate law.
Inheritance cash advances are not loans. Instead, they are cash advances which are repaid to the funding source when probate settles. The probate process can take several months or even years to settle. Instead of waiting for inheritance proceeds to be distributed, entitled heirs can sell a portion of their pending assets in exchange for a lump sum cash payment.
Beneficiaries can use inheritance cash advances to pay off financial obligations or personal debts. Funds can be used for personal expenses including vacations, investment opportunities, or college tuition.
Before obtaining inheritance cash advances it is important to realize the lending source generally charges an upfront fee. Additionally, cash for inheritance funds typically cannot exceed 30-percent of the anticipated inheritance value. For example, if an heir is entitled to $100,000 of inheritance monies, the cash advance would be limited to $30,000.
Funding sources assume considerable risk when providing inheritance cash loans. Not only do they have to wait for probate to settle, there is also the potential for the estate to end up with insufficient funds. If the recipient provides truthful information when applying for an inheritance cash advance, the funding source cannot initiate legal proceedings if the estate is unable to repay the loan. Therefore, the funding source requires considerable information regarding the estate and the beneficiary requesting the advance.
Heirs who wish to obtain a cash advance will be required to provide a copy of the decedent's Will and death certificate. The funding source will require contact information for the Estate Administrator. Heirs will be subject to a credit report to ensure no outstanding liens or judgments exist. If heirs owe back taxes or child support, most funding sources will reject the application.
As a general rule, funding sources provide inheritance cash advances when beneficiaries are entitled to $15,000 or more. The process generally takes five to ten business days to complete. Heirs must assign their inheritance rights to the funding source in exchange for the inheritance cash advance.
Traditional lenders typically do not provide inheritance cash advances because they are too risky of an investment. Instead, beneficiaries will need to work with inheritance cash advance companies or private investors.
Keep in mind companies and investors who provide inheritance cash advances charge a fee of 10- to 40-percent of the loan. Before entering into this type of financial agreement, it is important to make a list of the pros and cons to determine if there is a better way to obtain the necessary funds.
Simon Volkov is a private note investor who specializes in helping individuals quickly liquidate their assets. From forthcoming inheritance cash to Probate, Simon Volkov offers a host of solutions for those in need of cash advances. Learn more about probate, real estate and investment opportunities by visiting www.SimonVolkov.com.
Article Source: http://EzineArticles.com/?expert=Simon_Volkov
Article Source: http://EzineArticles.com/1769750
A Brief Explanation of Inheritance Tax
By Simon P Jennings
Many people are familiar with taxes like, property levy, wealth tax, income tax, sales tax etc, but a very few know about the inheritance tax, which is a kind of levy collected from a person who gets an inheritance. Inheritance tax is also known as Estate tax or Death tax. There is no way to escape from this tax, if you have inherited a property. The inherited property makes a person able to generate income, and levy is mandatory on every source of income.
Inheritance tax is also commonly known by the term estate levy, but the fact is that these two taxes have many differences. Nonetheless, these two terms also have many similarities. You may also find resemblances as well as dissimilarities in the procedure of paying these two taxes.
The base of the inheritance tax is exemption in many cases. Both, inheritance tax and estate tax are forced in the similar way, although the rate and circumstances in which they are charged are fairly dissimilar. Inheritance levy is directly proportional to worth of the property; the more the property is, the more tax rate would you have to pay.
Cost of the property is the factor on which inheritance levy significantly depends; however, there are lots of other factors that determine the inheritance levy, and among them the most crucial factor is appraised value of inheritance. This is the first considerable factor before you determine anything. This levy is put into practice on the possessions of the deceased person. Debts of the deceased person are not incorporated in it. This law is enforced after the full modification of all the outstanding loans from these possessions.
Many people do not have good concept of inheritance levy and confuse it with the estate tax. In simple words, the difference between inheritance tax and estate tax is that inheritance tax involves the estate beneficiaries, while the estate levy speaks about land or possessions of the dead person. Both taxes are levied by different institutions; estate tax is levied by Federal Government, while inheritance tax is levied by the State.
Internet is the best source to get any kind of assistance and information. If you are not sure about inheritance levy, there are several websites serving to such issues. These websites offer a form, which is to be filled to advise you on how you should proceed. You will come to know about the rules and regulations of the inheritance law. These rules should be known to everyone as it is a complete guide for you to tackle all the issues related to inheritance tax trust. Rules may change anytime, so it is advisable to check out these websites time by time. You can
In addition, you can also take guidance of an expert who is proficient in dealing levy cases, especially of inheritance levy. The expert consultants deal many cases on daily basis, and their advice is more than any information on the internet. By their practical experience, you would be able to highlight your points in the court and save yourself from a lot of hassle.
Simon P Jennings is a personal insurance consultant. To make guaranteed Inheritance Tax Trust you may contact him today at the recommended.
Article Source: http://EzineArticles.com/?expert=Simon_P_Jennings
Article Source: http://EzineArticles.com/3417967
Many people are familiar with taxes like, property levy, wealth tax, income tax, sales tax etc, but a very few know about the inheritance tax, which is a kind of levy collected from a person who gets an inheritance. Inheritance tax is also known as Estate tax or Death tax. There is no way to escape from this tax, if you have inherited a property. The inherited property makes a person able to generate income, and levy is mandatory on every source of income.
Inheritance tax is also commonly known by the term estate levy, but the fact is that these two taxes have many differences. Nonetheless, these two terms also have many similarities. You may also find resemblances as well as dissimilarities in the procedure of paying these two taxes.
The base of the inheritance tax is exemption in many cases. Both, inheritance tax and estate tax are forced in the similar way, although the rate and circumstances in which they are charged are fairly dissimilar. Inheritance levy is directly proportional to worth of the property; the more the property is, the more tax rate would you have to pay.
Cost of the property is the factor on which inheritance levy significantly depends; however, there are lots of other factors that determine the inheritance levy, and among them the most crucial factor is appraised value of inheritance. This is the first considerable factor before you determine anything. This levy is put into practice on the possessions of the deceased person. Debts of the deceased person are not incorporated in it. This law is enforced after the full modification of all the outstanding loans from these possessions.
Many people do not have good concept of inheritance levy and confuse it with the estate tax. In simple words, the difference between inheritance tax and estate tax is that inheritance tax involves the estate beneficiaries, while the estate levy speaks about land or possessions of the dead person. Both taxes are levied by different institutions; estate tax is levied by Federal Government, while inheritance tax is levied by the State.
Internet is the best source to get any kind of assistance and information. If you are not sure about inheritance levy, there are several websites serving to such issues. These websites offer a form, which is to be filled to advise you on how you should proceed. You will come to know about the rules and regulations of the inheritance law. These rules should be known to everyone as it is a complete guide for you to tackle all the issues related to inheritance tax trust. Rules may change anytime, so it is advisable to check out these websites time by time. You can
In addition, you can also take guidance of an expert who is proficient in dealing levy cases, especially of inheritance levy. The expert consultants deal many cases on daily basis, and their advice is more than any information on the internet. By their practical experience, you would be able to highlight your points in the court and save yourself from a lot of hassle.
Simon P Jennings is a personal insurance consultant. To make guaranteed Inheritance Tax Trust you may contact him today at the recommended.
Article Source: http://EzineArticles.com/?expert=Simon_P_Jennings
Article Source: http://EzineArticles.com/3417967
Obtaining Cash For Inheritance Funding For Probated Assets
by Simon Kolkov
Cash for inheritance is an option available to heirs who wish to sell inheritance assets bequeathed to them through a Will or trust. When assets are held in probate it can take several months or years before final distribution occurs. If heirs do not want to wait for estate settlement, they can assign inheritance rights to a funding source in exchange for a lump sum cash payment.
Cash for inheritance can provide quick cash which heirs can use in any manner they desire. When a person dies their estate must undergo the process of probate, unless protected by a trust. Probate protects decedent's assets to ensure inheritance is distributed according to their last will. If no will exists, probate is required to determine rightful heirs and settle the estate according to probate laws.
Beneficiaries who obtain cash for inheritance advances are not responsible for repaying the funding source. Instead, the estate executor includes the assignment of inheritance rights into estate settlement. The funding source is the last person to be paid during estate settlement.
Traditional lending institutions generally do not provide loans to beneficiaries using inheritance assets as collateral because it is too high-risk. While there are a few inheritance funding companies, the most common place to obtain probate advance is through a private investor.
Heirs are required to provide financial records, current credit report, background check, and estate information. The funding source must verify the applicant is entitled to inheritance and conducts a background check to ensure the probate advance recipient does not have outstanding liens or judgments that could interfere with repayment.
Inheritance loan funding sources assume considerable risk. Not only do they have to wait for probate to settle, they also run the risk of the estate being financially unable to repay the cash advance. For this reason, funding sources do not provide inheritance advances for the full value of assets. Instead, investors charge an upfront fee ranging between 25- to 40-percent.
Cash for inheritance loans are generally reserved for heirs entitled to $15,000 or more. Funding sources are more apt to provide probate funds when inheritance is backed by collateral such as real estate or financial portfolios.
The process for obtaining inheritance funding typically takes two to three weeks. Once the funds are distributed, heirs can use funds to pay off credit cards and outstanding debts, for investment purposes, or for anything they desire.
Spending inheritance money frivolously is counterproductive. Remember, loved ones worked hard to obtain the assets they are passing along to family members. They are giving away their accrued property in hopes of improving the lives of designated beneficiaries. It is senseless to waste inheritance money on material things. Instead, use the funds to invest in your future.
The laws surrounding probate estates and inheritance property are complex. Prior to seeking out cash for inheritance funding it is recommended to consult with a probate lawyer. Heirs can locate attorneys who are well-versed in inheritance law by visiting the American Bar Association website at FindLegalHelp.org.
Simon Volkov is a real estate investor who specializes in probate liquidation and cash for inheritance advances. Currently, Simon is buying probate real estate located in Orange County, California, Arizona, Washington and Nevada. Estate executors who need help selling probated inheritance assets can obtain a complimentary consultation by visiting http://www.SimonVolkov.com.
Article Source: http://EzineArticles.com/?expert=Simon_Volkov
Article Source: http://EzineArticles.com/3892023
Cash for inheritance is an option available to heirs who wish to sell inheritance assets bequeathed to them through a Will or trust. When assets are held in probate it can take several months or years before final distribution occurs. If heirs do not want to wait for estate settlement, they can assign inheritance rights to a funding source in exchange for a lump sum cash payment.
Cash for inheritance can provide quick cash which heirs can use in any manner they desire. When a person dies their estate must undergo the process of probate, unless protected by a trust. Probate protects decedent's assets to ensure inheritance is distributed according to their last will. If no will exists, probate is required to determine rightful heirs and settle the estate according to probate laws.
Beneficiaries who obtain cash for inheritance advances are not responsible for repaying the funding source. Instead, the estate executor includes the assignment of inheritance rights into estate settlement. The funding source is the last person to be paid during estate settlement.
Traditional lending institutions generally do not provide loans to beneficiaries using inheritance assets as collateral because it is too high-risk. While there are a few inheritance funding companies, the most common place to obtain probate advance is through a private investor.
Heirs are required to provide financial records, current credit report, background check, and estate information. The funding source must verify the applicant is entitled to inheritance and conducts a background check to ensure the probate advance recipient does not have outstanding liens or judgments that could interfere with repayment.
Inheritance loan funding sources assume considerable risk. Not only do they have to wait for probate to settle, they also run the risk of the estate being financially unable to repay the cash advance. For this reason, funding sources do not provide inheritance advances for the full value of assets. Instead, investors charge an upfront fee ranging between 25- to 40-percent.
Cash for inheritance loans are generally reserved for heirs entitled to $15,000 or more. Funding sources are more apt to provide probate funds when inheritance is backed by collateral such as real estate or financial portfolios.
The process for obtaining inheritance funding typically takes two to three weeks. Once the funds are distributed, heirs can use funds to pay off credit cards and outstanding debts, for investment purposes, or for anything they desire.
Spending inheritance money frivolously is counterproductive. Remember, loved ones worked hard to obtain the assets they are passing along to family members. They are giving away their accrued property in hopes of improving the lives of designated beneficiaries. It is senseless to waste inheritance money on material things. Instead, use the funds to invest in your future.
The laws surrounding probate estates and inheritance property are complex. Prior to seeking out cash for inheritance funding it is recommended to consult with a probate lawyer. Heirs can locate attorneys who are well-versed in inheritance law by visiting the American Bar Association website at FindLegalHelp.org.
Simon Volkov is a real estate investor who specializes in probate liquidation and cash for inheritance advances. Currently, Simon is buying probate real estate located in Orange County, California, Arizona, Washington and Nevada. Estate executors who need help selling probated inheritance assets can obtain a complimentary consultation by visiting http://www.SimonVolkov.com.
Article Source: http://EzineArticles.com/?expert=Simon_Volkov
Article Source: http://EzineArticles.com/3892023
Inheritance Tax vs Estate Tax, Inheritance Tax Exemptions
by Rocco Beatrice
What is the inheritance tax rate? There is no such thing as a federal inheritance tax rate. The inheritance tax is imposed on a state level, and not all states have one. For example, Texas does not impose an inheritance tax, and some states refer to an estate tax and an inheritance tax as the same thing even though they are technically very different. Other terms you may hear used in place of inheritance tax are "death duty" in the United Kingdom, "estate duty" in Hong Kong, or "stamp duty" in Bermuda. Some places such as Australia and the British Virgin Islands do not currently have an inheritance tax nor have they ever had one.
DIFFERENCE OF AN ESTATE TAX AND INHERITANCE TAX
The difference between the estate tax and the inheritance tax lies with who is actually responsible for paying the taxes owed.
WHO PAYS THE ESTATE TAX?
With an estate tax it is the responsibility of the Administrator, or Executor, of the estate to pay the taxes. The taxes are calculated based on the entire value of the estate, and if the Administrator cannot pay the taxes out of the estate's value then it becomes the responsibility of the heirs to pay the taxes. The federal government will impose this tax according to established guidelines which include the value of the estate.
WHO PAYS THE INHERITANCE TAX?
An inheritance tax is the individual responsibility of each heir. Determining the financial responsibility of the heirs for the inheritance tax is based on several key factors.
WHAT IS THE INHERITANCE TAX RATE? IT DEPENDS...
The inheritance tax rate varies depending on the relationship of the heir to the deceased (decedent). Each state may determine this rate, and if the heir is a distant relative or friend the inheritance tax rate will be much higher than if the heir is a spouse or child of the decedent.
A child may be entitled to an exemption of the first $3000 of their inheritance and be responsible for only a 7.5% tax on inheritance valued over $100,000. In contrast, a friend of the decedent may be taxed as much as thirty percent and only receive a tax exemption on the first hundred dollars.
Another consideration state government will make when determining the inheritance tax rate will be the fair market value of the property being transferred. Fair market value is not what it would cost to replace the property, but what you would be able to sell the property for if needed.
WHAT ARE THE INHERITANCE TAX EXEMPTIONS?
Your heirs may receive tax exemptions for taxes that have already been paid on the property and it is important to have all documents in a readily accessible location to prove that little or no debt is owed upon your death. If any of the inheritance has been designated for charitable organizations your heirs will not be held accountable for paying an inheritance tax on this portion of the estate.
FRAUDULENT INCOME TAX RETURNS TO AVOID THE INHERITANCE TAX
Opponents of the inheritance tax feel that in addition to an estate tax, the inheritance tax is harmful to families who may need the money immediately and cannot afford to pay harsh taxes imposed on them during an already emotionally difficult time. Critics also feel that taxes such as these encourage individuals to file fraudulent income tax returns by placing their money into annuities both on and offshore, and to establish trusts for their heirs to remove large amounts of property from their listed estate.
Call a professional estate planner such as Estate Street Partners if you wish to know more about how to reduce your estate tax, eliminate your inheritance tax, possibly eliminate some of your income tax and learn how to strategize your money and assets to be in compliance with the IRS and federal and state-specific regulations. Estate planning can be complex and taking the route of doing it yourself can lead to severe financial penalties.
SEEK KNOWLEDGEABLE AND PROFESSIONAL ESTATE PLANNING ADVICE
Inheritance tax information can be obtained by seeking the services of a knowledgeable estate planner. Since each state differs in the amount taxed to heirs, an estate planner will be able to provide accurate information involving up-to-date tax laws and ways to protect assets.
One of the more common means of protecting inheritance from taxes is to place money into trusts and elect a trustee to transfer the property to your beneficiaries upon your death. Once money has been allocated into a trust it is removed from you listed estate and upon your death it will be distributed to your heirs free from estate and inheritance taxes.
Some people also choose to give their money in the form of gifts to organizations and establish a charitable gift annuity. Receiving money from an annuity protects your heirs from paying any inheritance tax, although they may still be responsible for an early withdrawal penalty from the IRS. Failure to consult with an advisor could result in unnecessarily high taxes for your heirs. Please seek professional advice on these important financial matters.
author bio - Rocco Beatrice, CPA, MST, MBA
award-winning estate planning, trust expert
MS - Taxation, Master of Science Taxation
MBA - Management / Taxation
BSBA - Management / Accounting
CPA - Certified Public Accountant
-----
Irrevocable Trust Asset Protection, Estate Planning
Frivolous Lawsuits
Original article posted here: Inheritance Tax
71 Commercial Street #150, Boston, MA 02109
tel: 1.508.429.0011 fax: 1.508.429.3034
Article Source: http://EzineArticles.com/?expert=Rocco_Beatrice
Article Source: http://EzineArticles.com/536645
What is the inheritance tax rate? There is no such thing as a federal inheritance tax rate. The inheritance tax is imposed on a state level, and not all states have one. For example, Texas does not impose an inheritance tax, and some states refer to an estate tax and an inheritance tax as the same thing even though they are technically very different. Other terms you may hear used in place of inheritance tax are "death duty" in the United Kingdom, "estate duty" in Hong Kong, or "stamp duty" in Bermuda. Some places such as Australia and the British Virgin Islands do not currently have an inheritance tax nor have they ever had one.
DIFFERENCE OF AN ESTATE TAX AND INHERITANCE TAX
The difference between the estate tax and the inheritance tax lies with who is actually responsible for paying the taxes owed.
WHO PAYS THE ESTATE TAX?
With an estate tax it is the responsibility of the Administrator, or Executor, of the estate to pay the taxes. The taxes are calculated based on the entire value of the estate, and if the Administrator cannot pay the taxes out of the estate's value then it becomes the responsibility of the heirs to pay the taxes. The federal government will impose this tax according to established guidelines which include the value of the estate.
WHO PAYS THE INHERITANCE TAX?
An inheritance tax is the individual responsibility of each heir. Determining the financial responsibility of the heirs for the inheritance tax is based on several key factors.
WHAT IS THE INHERITANCE TAX RATE? IT DEPENDS...
The inheritance tax rate varies depending on the relationship of the heir to the deceased (decedent). Each state may determine this rate, and if the heir is a distant relative or friend the inheritance tax rate will be much higher than if the heir is a spouse or child of the decedent.
A child may be entitled to an exemption of the first $3000 of their inheritance and be responsible for only a 7.5% tax on inheritance valued over $100,000. In contrast, a friend of the decedent may be taxed as much as thirty percent and only receive a tax exemption on the first hundred dollars.
Another consideration state government will make when determining the inheritance tax rate will be the fair market value of the property being transferred. Fair market value is not what it would cost to replace the property, but what you would be able to sell the property for if needed.
WHAT ARE THE INHERITANCE TAX EXEMPTIONS?
Your heirs may receive tax exemptions for taxes that have already been paid on the property and it is important to have all documents in a readily accessible location to prove that little or no debt is owed upon your death. If any of the inheritance has been designated for charitable organizations your heirs will not be held accountable for paying an inheritance tax on this portion of the estate.
FRAUDULENT INCOME TAX RETURNS TO AVOID THE INHERITANCE TAX
Opponents of the inheritance tax feel that in addition to an estate tax, the inheritance tax is harmful to families who may need the money immediately and cannot afford to pay harsh taxes imposed on them during an already emotionally difficult time. Critics also feel that taxes such as these encourage individuals to file fraudulent income tax returns by placing their money into annuities both on and offshore, and to establish trusts for their heirs to remove large amounts of property from their listed estate.
Call a professional estate planner such as Estate Street Partners if you wish to know more about how to reduce your estate tax, eliminate your inheritance tax, possibly eliminate some of your income tax and learn how to strategize your money and assets to be in compliance with the IRS and federal and state-specific regulations. Estate planning can be complex and taking the route of doing it yourself can lead to severe financial penalties.
SEEK KNOWLEDGEABLE AND PROFESSIONAL ESTATE PLANNING ADVICE
Inheritance tax information can be obtained by seeking the services of a knowledgeable estate planner. Since each state differs in the amount taxed to heirs, an estate planner will be able to provide accurate information involving up-to-date tax laws and ways to protect assets.
One of the more common means of protecting inheritance from taxes is to place money into trusts and elect a trustee to transfer the property to your beneficiaries upon your death. Once money has been allocated into a trust it is removed from you listed estate and upon your death it will be distributed to your heirs free from estate and inheritance taxes.
Some people also choose to give their money in the form of gifts to organizations and establish a charitable gift annuity. Receiving money from an annuity protects your heirs from paying any inheritance tax, although they may still be responsible for an early withdrawal penalty from the IRS. Failure to consult with an advisor could result in unnecessarily high taxes for your heirs. Please seek professional advice on these important financial matters.
author bio - Rocco Beatrice, CPA, MST, MBA
award-winning estate planning, trust expert
MS - Taxation, Master of Science Taxation
MBA - Management / Taxation
BSBA - Management / Accounting
CPA - Certified Public Accountant
-----
Irrevocable Trust Asset Protection, Estate Planning
Frivolous Lawsuits
Original article posted here: Inheritance Tax
71 Commercial Street #150, Boston, MA 02109
tel: 1.508.429.0011 fax: 1.508.429.3034
Article Source: http://EzineArticles.com/?expert=Rocco_Beatrice
Article Source: http://EzineArticles.com/536645
Concepts for Avoiding Tax on Inheritance
by Lisa Dixon
This is not construed as legal advice - we recommend that you consult an attorney.
Taxes that are levied on the property and assets of a deceased person are sometimes called an estate tax or inheritance tax. In the United States, these taxes are paid to the federal government and state government. The tax on inheritance is usually based on a specific dollar amount set by the state and the federal government. Unfortunately, inheritance taxes can be a burden on loved ones, but tax on inheritance can be avoided with proper estate planning and distribution of assets by the beneficiaries of the estate.
For Those Planning Their Estate
Usually, US federal tax on inheritance are paid out of the estate or the sale of the estate. If you live in the US and you are looking to avoid paying inheritance tax on the assets that you leave to your loved ones, there are a few things you can do yourself as you make your will.
Leave Everything to Your Spouse
Taxes are less for spouses who inherit assets, and you can take advantage of this by turning your entire estate over to your spouse upon your death. If your spouse is in good health and capable of dividing assets among family members, this can be an excellent plan to avoid high tax on inheritance. However, if you think your spouse might not be capable or willing to be executor and divide your assets equally, there are other strategies for avoiding paying high estate taxes.
Divide Assets Among Close Family Members
Since most state and federal inheritance taxes are based on a specific dollar amount, you can split up your assets into portions that are smaller than this dollar amount to avoid paying tax on inheritance for a large lump sum. This will divide up the value of your estate and keep it under the minimum for state inheritance tax. Often, taxes are lower for inheritance given to close family members like spouses and children, rather than extended family members, so you should divide your estate between close family members and give instructions as to how they might give to extended family.
Give Gifts Instead of Inheritance
Many gifts are not subject to taxes, such as wedding gifts, gifts under a certain dollar amount or charitable contributions. You can keep your loved ones from paying exorbitant taxes by giving gifts of assets or cash during holidays or special family events such as weddings or giving to your favorite charities. Check with an attorney or tax professional about what kinds of gifts are subject to the least amount of taxes.
Avoid Tax on Inherited Stocks
If you own stocks, your beneficiaries will have to pay an inheritance tax on those stocks when they transfer them. One way to avoid this tax is to get an inheritance tax waiver. This form allows the stocks to be transferred without inheritance tax being taken out of the value of the stocks.
For Those Who Have Inheritance
If you have inherited assets from a deceased family member, you may think you are exempt from taxes on your inheritance, but you may still have to pay taxes on any accounts you have inherited. Often, state tax on inheritance will be paid by the beneficiaries of the estate, rather than out of the estate itself.
How to Delay Taxes on an Inherited IRA
If you have inherited an IRA, some or all of the money in the IRA will be subject to income taxes, depending on what you do with the account. If you are the spouse of the deceased, there are less penalties and taxes that are applied to your inherited IRA. As a spousal beneficiary, you can roll your IRA over into your own account or keep the account as a beneficiary. Rolling over your account will help you avoid paying a large amount of taxes.
If you have an inherited IRA as a beneficiary who is not the spouse of the original account holder (sometimes called a non-spouse beneficiary), your inherited IRA works much like a typical IRA. Distributions from the account can be subject to income tax, and you will be required to take out distributions from the account once per year. These are called Required Minimum Distributions, and they are usually based on the life expectancy of the beneficiary. Taking out only these Required Minimum Distributions will keep you from paying a large lump sum in income taxes. After five years have passed, you may be able to take larger distributions without penalty or additional taxes, but you should check with your IRA holder.
Oxford Investment Partners is a comprehensive financial services firm committed to helping you to improve your inheritance tax threshold. Inherited IRA programs are designed to grow, protect, and conserve your wealth by delivering an unprecedented level of personalized service and tax on inheritance.
Article Source: http://EzineArticles.com/?expert=Lisa_N_Dixon
Article Source: http://EzineArticles.com/5900752
This is not construed as legal advice - we recommend that you consult an attorney.
Taxes that are levied on the property and assets of a deceased person are sometimes called an estate tax or inheritance tax. In the United States, these taxes are paid to the federal government and state government. The tax on inheritance is usually based on a specific dollar amount set by the state and the federal government. Unfortunately, inheritance taxes can be a burden on loved ones, but tax on inheritance can be avoided with proper estate planning and distribution of assets by the beneficiaries of the estate.
For Those Planning Their Estate
Usually, US federal tax on inheritance are paid out of the estate or the sale of the estate. If you live in the US and you are looking to avoid paying inheritance tax on the assets that you leave to your loved ones, there are a few things you can do yourself as you make your will.
Leave Everything to Your Spouse
Taxes are less for spouses who inherit assets, and you can take advantage of this by turning your entire estate over to your spouse upon your death. If your spouse is in good health and capable of dividing assets among family members, this can be an excellent plan to avoid high tax on inheritance. However, if you think your spouse might not be capable or willing to be executor and divide your assets equally, there are other strategies for avoiding paying high estate taxes.
Divide Assets Among Close Family Members
Since most state and federal inheritance taxes are based on a specific dollar amount, you can split up your assets into portions that are smaller than this dollar amount to avoid paying tax on inheritance for a large lump sum. This will divide up the value of your estate and keep it under the minimum for state inheritance tax. Often, taxes are lower for inheritance given to close family members like spouses and children, rather than extended family members, so you should divide your estate between close family members and give instructions as to how they might give to extended family.
Give Gifts Instead of Inheritance
Many gifts are not subject to taxes, such as wedding gifts, gifts under a certain dollar amount or charitable contributions. You can keep your loved ones from paying exorbitant taxes by giving gifts of assets or cash during holidays or special family events such as weddings or giving to your favorite charities. Check with an attorney or tax professional about what kinds of gifts are subject to the least amount of taxes.
Avoid Tax on Inherited Stocks
If you own stocks, your beneficiaries will have to pay an inheritance tax on those stocks when they transfer them. One way to avoid this tax is to get an inheritance tax waiver. This form allows the stocks to be transferred without inheritance tax being taken out of the value of the stocks.
For Those Who Have Inheritance
If you have inherited assets from a deceased family member, you may think you are exempt from taxes on your inheritance, but you may still have to pay taxes on any accounts you have inherited. Often, state tax on inheritance will be paid by the beneficiaries of the estate, rather than out of the estate itself.
How to Delay Taxes on an Inherited IRA
If you have inherited an IRA, some or all of the money in the IRA will be subject to income taxes, depending on what you do with the account. If you are the spouse of the deceased, there are less penalties and taxes that are applied to your inherited IRA. As a spousal beneficiary, you can roll your IRA over into your own account or keep the account as a beneficiary. Rolling over your account will help you avoid paying a large amount of taxes.
If you have an inherited IRA as a beneficiary who is not the spouse of the original account holder (sometimes called a non-spouse beneficiary), your inherited IRA works much like a typical IRA. Distributions from the account can be subject to income tax, and you will be required to take out distributions from the account once per year. These are called Required Minimum Distributions, and they are usually based on the life expectancy of the beneficiary. Taking out only these Required Minimum Distributions will keep you from paying a large lump sum in income taxes. After five years have passed, you may be able to take larger distributions without penalty or additional taxes, but you should check with your IRA holder.
Oxford Investment Partners is a comprehensive financial services firm committed to helping you to improve your inheritance tax threshold. Inherited IRA programs are designed to grow, protect, and conserve your wealth by delivering an unprecedented level of personalized service and tax on inheritance.
Article Source: http://EzineArticles.com/?expert=Lisa_N_Dixon
Article Source: http://EzineArticles.com/5900752
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