Financial Trend Blog

Most of us have heard that financial stress and incompatibility are responsible for a large percentage of divorces or unhappy marriages. People have a lot of stories about how it all went wrong but what is important is to know how to make it right.

Financial stress shows up in a relationship when couples spend too much, are heavily in debt, don’t feel secure about their financial future or are not working together. Time and teamwork are the best ally for your finances.

Have you ever received a $320,000 payment? Chances are you have but never knew it.

Trusts come in many different shapes and forms. A living trust is one type of trusts. That’s right, there are many different types of trusts. Living trusts are ones created during lifetime. They are also called “inter-vivos”, a Latin term meaning “among or between the living”

The phrase “revocable trust” does not refer to any one specific arrangement. It involves a range of various trusts. Each of them can be used to accomplish different objectives.

Such trusts can be revoked. In other words, they can be amended or terminated altogether. The ownership of property contributed to revocable trusts changes on paper. But, you are still in full control. You can continue to manage and enjoy such property same as before.

Nobody likes to pay taxes. If done incorrectly, though, the way you inherit an asset can result in you needlessly paying tens of thousands of dollars in taxes. Knowing some simple rules will reduce your tax bill and allow you to keep more of what you inherit. And it will also keep you from creating tax headaches for loved ones to whom you wish to gift assets.

Whenever an asset is sold, Uncle Sam wants to collect capital gains tax. And that tax is figured using cost basis. Cost basis refers to how much money you invested in a given asset. When sold, the cost basis is subtracted from the amount received to determine the gain or loss. Your amount of gain or loss then determines how much you will pay in capital gains tax.