ACP Member Blogs

ACP Member Blogs

  • The problem most people have when it comes to saving — aside from how boring the whole idea sounds — is having too many big goals. Everybody wants everything. Check Our Interview On The Financial Challenges of Millennials. http://masteringyourmoney.com/
  • When you need extra money to pay some bills, make home improvements or buy a new car, a 401k loan may seem like the perfect solution. At first glance, it seems like a great idea to borrow money from your 401k account and pay interest back to yourself. However, in reality taking a loan against your 401k can put a
  • You could create unwitting problems for yourself and your adult child by adding his or her name to your bank account. My colleague, **Attorney Danielle Van Ess, of DGVE Law in Hingham sums it up well: While most parents who add their adult children do so out of trust and with love and gratitude in their hearts, there are many negative, unintended consequences that are all avoidable with some well-counseled financial and legal estate planning. Lets look at some potential consequences: Estate Implication: Upon your death, jointly held accounts pass 100% to the joint account holder. If you have other children, they will not receive any portion of it. This may not be your intent. It does not matter what your will or trust says titling of the account supersedes any will or trust provisions. I repeat: It does not matter what your will or trust says. Legal judgements against your child:If your child is involved in a car accident or other mishap and becomes involved in a lawsuit, subsequent monetary claims and judgements include the money in this account as part of the childs assets. The entire amount could go to the wronged party. Shared Liability:If your child has any issues with a creditor and a judgement is levied against him, the entire bank account could be garnished, even though the parent is not involved in any way. Divorce:If your child divorces, the ex-spouse may be entitled to a portion of this jointly held account when the assets are divided. Gift tax: Placing someone who is not your spouse as a co-owner on a bank account, in the eyes of the IRS, is a gift of half to that person. If the amount is over $14,000 you are required to file a gift tax return. Trust and responsibility could go wrong: Your child can withdraw the entire amount at any time, use for any purpose, and is not required to pay it back. Even though your situation may seem simple, it pays to consult with a qualified estate attorney/financial planner. **My colleague, Attorney Danielle G. Van Ess, is hosting a free, interactive workshop on Tuesday, October 17, 2017 10-11am at her office at 61 South Street right in downtown Hingham Square. The topic is: Peace of Mind Estate Planning for Parents: What you need to know to protect your family, yourself, and your stuff. To reserve your space, just call or email DGVE law at (781) 740-0848 or info@dgvelaw.com & tell them I sent you!
  • Last month a client told me her young adult daughter was having trouble getting a credit card. Her daughter is a full-time student and has very little income, but does have some savings and good credit. The only reason she wanted a credit card is because there are some car rental companies that will not allow you to rent a car without one. I told her to look into getting a secured credit card. With a secured credit card you make a cash deposit that the credit card company holds as collateral. There are secured cards with no annual fee. These cards can be a good option for someone with poor or no credit as well. Of course it is crucial that any charges be paid off in full monthly to avoid high interest rates!