Category: Ask Garden State Trust

Dear Garden State Trust: The Federal Reserve cut interest rates by half a percentage point on March 3. What does that mean for my portfolio? —Skittish Investor Dear Skittish: Normally the Federal Reserve makes interest rate adjustments at its regularly scheduled policy meeting. The rate cut on March 3 was between meetings, which is the…

Dear Garden State Trust: My wife and I each have IRAs. I was born May 1, 1949, she was born September 1, 1949, so we will both be 71 this year. I’ve heard that required minimum distributions from IRAs are no longer required until age 72, is that right? —Confused Retiree Dear Confused: You are…

Dear Garden State Trust: When should I talk to my children about their inheritances? —Thoughtful Parent Dear Thoughtful: As a general rule, sooner is better than later. An inheritance should not come as a surprise; it is something that requires preparation and planning. In that way, an inheritance may prove to be more than a…

Dear Garden State Trust: My estate is about $10 million—do I have to worry about federal estate taxes? —Affluent, Not Rich Dear Affluent: You are close to the boundary for exposure to the federal estate tax. The exemption for 2020 has been increased to $11.58 million, which would seem to let you off the hook.…

Dear Garden State Trust: I’m intrigued by something I heard about recently, a “dynasty trust.” What is that, and how does it work? —Legacy Builder Dear Legacy: Traditionally trusts with private beneficiaries were not permitted to last forever, but had to have a determinable end date.  This policy was enforced by the “rule against perpetuities,”…

Dear Garden State Trust: The opioid crisis just hit a bit closer to home. Some friends of ours have a 20-something child who has an addiction problem. They are trying another round of rehab; maybe this time it will work. But they’ve confided in me that they don’t know what to do about an eventual…

Dear Garden State Trust: I’m financially secure, and have married for a third time. Lately my kids (from the first two marriages) have been asking about their inheritances. They seem to be concerned that my spouse — or perhaps a future spouse — might freeze them out. How might I allay their concerns? —Third Time’s…