2010 is the end of an epoch when it comes to estate planning. If you have the same estate plan at this time in 2011 that you have now, you have a big problem. To cut to the chase, your family and heirs could lose massive amounts of your estate if you don’t take action. What is all the ruckus about? The estate tax.
President Bush left us with many things. You might think them good or you might think them no so good depending on your political bent. One of the factual items was known as the “Bush tax cuts”. A key part of these taxes was the slow elimination of the estate tax. It was whittled down year after year until the tax rate actually became zero percent this year.
As you might guess, it is easy to put together an estate plan when the tax rate is zero percent. Alas, things become much more complex at the end of 2010. The Bush tax cuts will expire. There is political pressure to continue most of them given the Great Recession, but the estate tax is not included in this debate.
So, what will happen in 2011? It appears as though the estate tax will return to the rate it was at before the Bush tax cuts. What was that rate? Make sure you are sitting down. It was 55 percent. Keep in mind, this is only the federal tax rate. It does not include the state tax rate and any capital gains or income tax issues that arise with things like retirement accounts.
2010 is the proverbial Holy Grail year when it comes to estate planning. Alas, 2011 is shaping up to be the other side of coin. Make sure you don’t get caught out when the tax changes come – see your financial advisor today.
Article Source: http://EzineArticles.com/?expert=Barry_Milton
Among the most common methods to attain one’s very own property is through getting a loan also known as loan financing. This process means that the funds the prospective property customer will pay via an institution like a bank or a financial company. The company or the bank will be referred to as the lender. Any quantity given by the institution to assist in purchasing real estate will then be given back in a length of time agreed upon between the lender and the buyer who will then be referred to as the borrower.
It is clear that, financial jargon are not the simple to understand. Because of such causes miscommunications between lenders and debtors often times happen. Here are some confusing yet common jargon which can aid in making a financial process easier for both parties.
From the term itself, it points that making the payment for what’s due on a date prior to the set time is not allowed. For residential real estate funding this is at times allowed. However, for commercial property financing this could constitute a loss of revenue for the lender. Thus, it is not permitted and is sternly implemented. Should the client is insistent on making the payment beforehand, the only option is defeasance. This is alternating another value and payment for the ones the borrower is giving. The most common one is the treasury collateral.
Bond Financing Read the rest of this entry »
The one thing that has had little coverage is that real estate interest rates have not gone up but have gone down, a little at a time, over the last few months. There will be no rate changes one way or the other until after the first of 2007, and maybe not even then.
A fixed conventional interest rate for a 30 year period is still really good. There are lenders offering 30 year fixed rate loans but are giving what is called 40 or 50 year amortization due in 30 years.
This makes it easier for buyers to qualify for home loans as a 40 or 50 year amortization lowers the monthly payment, but the loan is still not due for 30 years.
There are also 40 and 50 year amortization loans available as a first trust deed at 80% and a second trust deed, with a good interest rate, at 20%, giving a buyer the ability to finance the entire purchase price of a home and pay only for closing costs.
This type of loan will still lower the monthly payment and give the buyer an opportunity to purchase a home for a slightly higher price and get a home in a better area or maybe a larger home.
If you have good credit scores, you can also qualify for the option arm loans, which could reduce your interest rate significantly, however, these types of loans are really great for the short term, about a maximum of 5 years. Read the rest of this entry »