Ways to Save Money
In these hard times, money is hard to come by so you should know how to save it until things get better. Since it is a balancing act that is somewhat challenging, here are a few ways that can teach you how to save money. If you don’t want to lose your home like a lot of Americans have over the past year, you have to kill your debt first. You do that by calculating how much money you spend in a month and then see where the budgets can be made so there is money you can use to pay ...
Five Practical Ways to Save Money for Students
It can be hard to think of ways to save money especially for students since they don’t have their own money yet. This is because at times, for all the expenses while on campus, there is barely left to save. Although it is hard, it doesn’t mean that it is impossible for students to save money while studying. All they need is to develop good time management skills, strict budgeting, and practicality. If you are one of those who are thinking of ways to save money while on campus or even before you enter one, here are some of the ...
Six Simple Ways to Save Money
No matter where you look at it, there will be always ways to save money if the person has the will do so. If you are one of those who are trying to come up with ways to save money in this unstable economy, it is best to start with developing a simple lifestyle. When you are able to do this, the rest will follow. But, if you are one of those who are not sure where to start, here are some eight simple ways to save money. 1. Cut down on grocery or shopping sprees. Although buying groceries is a ...
Save Money Without Feeling Poor
Yes. You are feeling the economic crunch. Times are hard and you are finding it hard to even make both ends meet with the rising costs of basic necessities and the fact that you lost one of the part-time jobs that you are holding. This is the common scenario that people, not only in the US, is feeling. They may not have lost their jobs but they have certainly found it hard to earn extra. Can you blame them then if they look for ways to cut costs and save money? Although it looks like a pretty daunting task, it’s not ...
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How To Avoid Tax On Debts
February 20, 2010 by Best Ways To Save Money
Filed under Personal Finance
Estate planning is tricky under the best of circumstances, and even under normal circumstances it can be downright difficult to do correctly. One thing that often slips through our fingers and we fail to spend an adequate amount of attention on is the effect of debt on estate planning.
Most people think, "I'll be dead, why would I care about the debt that remains!" Well that's a valid point I guess, but if the people that come after you will have to deal with this then so should you have to deal with it too, in fact what's the point of planning for anything in that case!
Consider this hypothetical situation; imagine that you have loaned your son $50,000 to start a business. Now imagine that you die. Not a lot of fun - sure - but roll with it here! What happens to that $50,000?
You're going to be tempted to simply forget about it and let it go way, unfortunately you can't and here's why. If you forget about that $50,000 then what you have effectively done is forgive the debt. Just because you will never collect that $50,000, doesn't mean that it's not an asset to your estate. In fact the IRS considers exactly that it is an asset even if you never collect it; therefore your estate will be taxed on that asset.
What's a better way to do it? Well here's one suggestion... be sure to consult with a licensed tax advisor and maybe possibly even an estate attorney or somebody else who specializes in this exact area.
Basically what you want to do is spell out the fact that your sons payment obligation will cease in the case of your death. Put that right into the loan documents when you first issue the loan to your son. That means of course that you will have to create loan documents but that is not a problem as you can draw anything up on your computer and call it "loan documents". Make sure to do this right away when you first issue the loan. If you do it afterwards it will not work.
What's the result of all this? Well when you do die then your estate doesn't have an inherent repayment right therefore the asset no longer exists to the estate and is therefore no longer taxed.
Of course now your son may have tax issues of his own because he has been giving something for free which may trigger gift taxes or any number of other taxes. So be sure to check with a tax lawyer or certified public accountant before hand.
Nobody likes the idea of dying and planning for your death is not especially pleasant... but taking the time to set your house in order is an important part of living and an important part of having a family and therefore an important part of your life.
Jason Markum has been an article writer online for the last 14 years. When he's not writing about investing, he has fun running a lighted cosmetic mirror web site where he reviews the perfect lighted wall mirror for your bathroom.
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