Category: Ask Garden State Trust

Dear Garden State Trust: Now that the federal estate tax exemption is over $11 million, do I still need a marital deduction trust in my will for my wife? —Concerned Husband Dear Concerned: Most likely, yes. If your current will includes a trust for a surviving spouse, you probably will want to keep it. A…

Dear Garden State Trust: What are the chances that we will see tax reform soon? —Rate Worrier Dear Rate: Based upon past experience, I would say that the odds are somewhat against tax reform this year. Usually tax reform legislation has had a lengthy and public process as it moves from broad goals to specific,…

Dear Garden State Trust: I’ve read that when interest rates go up, bond prices go down. Why should this be so? It seems a bit irrational to me. —Cynical Investor Dear Cynical: It’s not irrational. It’s not emotional at all; it’s just math. Here’s a simplified example. You have a bond with a face value…

Dear Garden State Trust: My brother and I are trust beneficiaries. The trust was established more than ten years ago, when our father died, so we’ve been told it’s irrevocable, it can’t be changed. But we need a change, this trust structure isn’t working out for us. Is there some way that we could at…

Dear Garden State Trust: I see that President Biden has proposed bringing back the 39.6% income tax rate early, before its already scheduled return in 2026. Why is that tax rate a fraction, instead of a whole percentage rate as all the other tax rates are? Where did that extra 0.6% come from? Wouldn’t it…

Dear Garden State Trust: I’ve been working from home during the pandemic, and my employer has indicated that will probably continue for me at least part time this year as well. Can I take a tax deduction for my home office? —Former Commuter Dear Former: You are most likely not eligible to take a deduction…

Dear Garden State Trust: Have you read this year’s Berkshire Hathaway shareholder letter from Warren Buffett? What did you think? —Fan of the Oracle of Omaha Dear Fan: I read the letter, as I do every year, and I loved it. Mr. Buffett has a remarkable talent for communicating complicated financial ideas in language that…