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Many states have their own estate tax laws that you need to worry about. With the current law phasing out the estate tax over the next few years, the state’s are beginning to feel the pinch of having less federal estate-tax revenue coming in.

Several states, especially those with budget issues, are levying some forms of estate and inheritance tax on their own.

Twenty-four states and Washington, D.C. now have an estate or inheritance tax. Some of these laws are new, some are not.

Although the current federal law exempts the first $2 million of an estate’s worth, the threshold in some states is much lower. With a home, a retirement account and other investments, many estates easily become taxed by the state.

For example, in New Jersey, estates worth over $675,000 are subject to some form of state inheritance or estate tax.

The threshold is $1 million in D.C., Kansas, Main, Maryland, Massachusetts, Minnesota, Nebraska, New York, Oklahoma and Oregon.

The maximum rate varies, but is usually around 16%. Federally, you can recieve a deduction on your federal estate-tax liability based on the amount of estate tax paid to the Read more…

Here are three property tax policy options for New Jersey citizens and government leader to consider. They are presented in an easy to read format; namely the statement of a problem that property taxpayer’s face in New Jersey, followed by a policy option and its principal pro and con argument.

PROBLEM: TAXPAYERS HAVE NO CONTROL OVER HIGH PROPERTY TAXES THAT CAN LEAD TO HOME FORECLOSURE AND THE NUMBER OF HOMES FORECLOSED DUE TO FAILURE TO PAY PROPERTY TAXES IS UNKNOWN.

POLICY OPTION: Introduce a bill directing the Superior Court to require that foreclosure complaints contain a statement as to whether the property subject to tax lien foreclosure was residential and if the property was owned by a senior citizen or permanently and totally disabled person.

Pro: The extent of the number of tax lien foreclosure collections on residential properties, particularly those of senior citizens and disabled, could be counted to promote the idea of a moritorium on homeowner property tax forelosures.

Con: Additional work would be required of municipal governments and third party tax lien holders in the filing of a foreclosure complaint statement.

PROBLEM: OFTEN PROPERTY TAXPAYERS ASSERT THAT THE LOCAL PROPERTY TAX SHOULD NOT BE USED TO FUND PUBLIC EDUCATION, WHILE ALSO BEING OPPOSED TO NEW STATE TAXES OR LOSS OF STATE SERVICES.

POLICY OPTION: Introduce a concurrent resolution proposing an amendment to Article VIII, Section I of the New Jersey State Constitution to permit, through a voter referendum process, the local voters of a school district, to replace real property taxes imposed for school purposes with a local tax on the income of individuals, estates, trusts, corporations and unincorporated businesses. The income tax rates permitted would be within the income tax limits established in the local referendum question and would be collected on behalf of school districts by the State. The authority to levy a tax on real property would be reserved solely for the purpose of providing security for any debt lawfully incurred, to protect the borrowing capability of the school district.

Pro: A tax on income rather than on real property eliminates the regressive nature of the incidence of the property tax for school purposes and establishes tax liabilities for school purposes not by real property values in the market place, but by money income — a truer measurement of wealth and ability to pay.

Con: This amendment represents a fundamental change in the measurement of wealth and the consequent assumed ability to pay taxes for public schools and as such could cause valuation disruption in the established real estate market. Also, such a tax system has the potential for wide fluctuations in the taxable income base (income is mobile and property is not) that could necessitate large cuts in school services or steep income tax rate increases.

PROBLEM: LOCAL PROPERTY TAXPAYERS HAVE Read more…

Many people looking to make money want the easy way out, and that just aren?t going to happen. There is no ?easy money? if there was trust me I would be doing it. Most people think it?s hard to make money when indeed it?s not that hard. Sure it will take time and work but so does everything else.

Investing is one of the biggest things that most young people fail to understand, and never do because they lack the knowledge of just how good it can pay off in the long run. If you where to invest $1,000 at the age of 21 you would make a lot more money then the person who invest $10,000 at the age of 35.

So how do you go about making money today for tomorrow? Simple invest your money into systems that allow it to compound, and make residual income off it. I am sure you herd of IRA?s or others investment programs.

I have been investing my money online with things like arbitrage trading and Forex trading. With arbitrage trading my investment is making 15% to 20% a month, and with the Forex trading system it has been making about 1% a day.

You might not see your money growing right before you eyes but given just a year you could easily turn a $1,000 investment into $5,000. Then turn that $5,000 into $10,000 and it just Read more…

Notary services are becoming more and more commonplace as businesses learn about them. They provide a convenient way for a loan seller to take their loans to the buyer. What usually happens is an agent with a notary service will get the paperwork together about a loan (as example). They will then take the paperwork to the buyer and make sure everything is in order and that all the papers get signed.

By using this service a buyer is getting the convenience of having the paperwork brought to them. The seller isn?t having to worry about the paperwork themselves and has time to focus on more important issues.

Notarization is used with a mortgage when you buy a house. It?s also used with the deeds of a house and general contracts relating to anything. A lot of businesses use them to make their transactions run smoother and keep things safe for both sides.

A notary must be commissioned by the State Treasurer and will keep their appointments for a five year time frame. After the five year period they can get their appointments renewed if they have done a good job. Some requirements for become a notary include:

- You cannot become a Read more…

One in five people in the UK who have unsecured debt of more than ?10,000 are reportedly considering insolvency. Indeed, a record 26,000 people in England and Wales became insolvent during the second quarter of 2006 and it appears that the UK is heading for an astonishing 100,000 personal insolvencies during 2006 as a whole. Perhaps it?s not surprising that many people are openly talking of a debt crisis in the UK.

Personal debt exceeded the psychologically important ?1 trillion barrier in 2004. Since then the level of personal insolvencies has been rising steadily, as consumers face what many have called the ?debt crunch?.

Personal debt rose dramatically during the boom years of the 90?s with easy credit and rampant spending. High levels of employment, low interest rates and booming prices were no doubt a contributory factor, but many argue that some credit lenders acted irresponsibly in fuelling the debt boom. The major banks are certainly paying for the UK?s unsecured debt problems, with five major high street banks announcing that their profits had been hit by bad debt.

Another factor in the record number of insolvencies is a change to the UK?s bankruptcy laws, and the growth in popularity of the IVA or Individual Voluntary Arrangement.

In April 2004, the Enterprise Act reduced the period of bankruptcy from three years to one. Although the stigma of bankruptcy is still strong for some, many people argue that bankruptcy has become too easy an option allowing people to simply walk away from their debt problems. This is especially the case, for people who don?t have to face the prospect of losing their homes, or who aren?t in a profession or career for which they could lose their job if they became bankrupt.

The rise in popularity of the IVA has also been cited as a factor in the high levels of insolvencies in the UK. In an IVA an insolvent person can avoid Read more…

Freddie Mac will begin providing monthly updates on loans used as collateral. The GSE is looking to attract investors for its mortgage backed securities.

Beginning in August, Freddie Mac will provide monthly disclosures on loan-levels for single-family, fixed-rate and adjustable-rate mortgage PC securities issued after December 1, 2005.

The company believes the increased reports will help investors determine how quickly bonds will be repaid. By increasing the level of information, Freddie is hoping to draw in investors.

“Today’s announcement illustrates our continued commitment to providing the market transparent disclosures on our mortgage-backed securities,” said Phil Guth, Freddie Mac vice president of mortgage securitization.

“We believe that providing investors timely, transparent mortgage securities disclosure promotes our mission to provide liquidity, stability and affordability to America’s home financing system.”

Freddie Mac currently has $1.4 trillion in mortgage bonds outstanding. The company is the second largest buyer of home loans in the nation. It has been struggling with a fairly recent accounting scandal, as it’s twin — Fannie Read more…

With heightened competition, market concentration and regulation, British Telecom (BT) has employed a number of tactics to maintain profitability, market share and overall financial performance. As leaders of info-communications and worldwide ventures, BT have been contracting part of their operations, services and transferring responsibility to specialist branches, thereby achieving economic efficiency.

Manoj Kumar, a supply chain consultant claimed, “Most of the outsourcing that’s happening has been triggered by cost, and if you want to minimize cost, it’s mainly going offshore” (www.industryweek.com). For example, in India the IT workforce is estimated to rise to 2.2 million worker by 2008 from a mere 280,000 today (McKinsey Report, Ethicalcorp Magazine, www.ethicalcorp.com). BT have been fortunate to benefit from economies of scale in terms of purchasing, financial, marketing, technical and managerial improvements.

Reducing costs simultaneously reduce risks helping to free financial resources. Instead of tying up resources in non-core areas they can be contracted at operational expenses. Contracting part of BTs services has been a viable choice rather than building functions from scratch. In doing so, BT have increased their customer base and re-attracted customers who left in the first place due to inherent inefficiencies. BT have benefited from 25% increase in its most recent financial quarter (www.cbronline.com/article_news).

Likewise, many banking services from Barclays to HSBC as well as I.T. companies including Microsoft have followed the same suit indicating a rising market trend. In 2005, BT derived 91% of its revenue in the UK by providing communication solutions for homes and business helped by rising demand for broadband internet services. Financial statistics Read more…

There are so many new ways to steal and defraud consumers out of their money. You should be aware of new identity theft scams. After all, knowledge is your best protection.

People will go through your dumpster, steal your mail, take your wallet, eavesdrop on your cell phone calls, intercept your faxes and hack into your computer. Email scams and internet scams abound. Twenty percent of all identity theft cases involve the telephone or internet. The other 80% are a little more personal.

Here are a few scams that you should be aware of:

The Credit Card Scam Alert

You get a phone call from a credit card company employee that tells you there may have been some fraudulent charges to your account. They ask for the code on the back of your card as a confirmation of your identity.

You should never give that number to anyone who calls you and asks for it. They may be very professional. They might even explain to you how a scam works. You should call your credit card company number listed on the back of your card and confirm that they made the call. Chances are that they didn’t.

Account Verification Emails

This scam is also known as phishing. You often receive an official looking email from your bank or ebay or paypal that asks you to verify your account information. You may even be asked for your credit card number or Social Security number. Don’t reply. Just delete the email and notify the company. Never give your account information to anyone who contacts you. Contact the company through its website or by telephone if you have questions.

The Nigerian 419 Scam

This is an email from the representative of a foreign government, often Nigeria, that asks you to help move money from one account to another. An estimated $100 million a year is lost to this scam. This Nigerian scam makes up 12% of all scam offers, according to a recent National Consumers League poll. It can be in many variations, including a dying woman, a soldier and other countries.

The Canadian Lottery

You cannot win the lottery without first buying a ticket. If someone tells you otherwise, it is a scam. This scam can cost Read more…

Graduation has come and gone. Now that college is over, it is time to start making wise decisions about your future.

There are several roads you can choose to take now. After all, the world is wide open. But chances are that you have already made some money decisions that you will now have to pay for.

What are the best financial decisions you can make?

1. Find a good job.

So many graduates don’t really know what they want to do. They float around or simply take the first job that pops up. Try to hold out as long as you can for a good job. You don’t want to have a work history that shows you only remain at a job for less than a year. Accept a job in the field you want to work in, no matter the wage. After all, money can’t buy happiness.

2. Pay off that debt.

You should immediately start looking for ways to pay off your credit card debt. Think of it as a bill for a time you are past. Do you really want to pay for those drinks at the pub for the next 20 years? Then pay it off. The sooner you pay it off, the more money you will be able to devote to owning your own home or working towards early retirement.

In addition to credit card debt, chances are that you have student loan debt as well. If you are thinking about consolidating, hop to it. Don’t waste any time in getting the best rate you can. Read up on your options and do your research, you are often only allowed to consolidate federal debt once. So make sure you get it right.

3. Don’t move in with the ‘rents.

Moving back in with your parents will save you money. Maybe. Many new graduates move home and live it up. They don’t have to pay rent, but they aren’t saving it either. Do you really want to be a 30-year-old living at home? Then don’t go Read more…

In a significant move the Centre has decided to come up with a greater Capital Account Convertibility (CAS) of the Indian currency in a few days. The central bank has also appointed a six-person committee to produce a “road map” toward that goal by July 31.

What is Capital Account Convertibility ?

The Capital Account Convertibility, (CAS) of the Indian Currency means, removal of restrictions on cross border movement of capital, no matter whether from India to rest of the world or the vise-versa. The formal regime of capital account convertibility, when in place , will allow all residents, including companies or individuals or other entities, to invest , divest or transect in any property or asserts/liability of any country. One could convert one currency to another or move funds anywhere in the world, according to one?s personal choice, which will be unrestricted by law of the land.

Pre Conditions for Capital Account Convertibility

The RBI had appointed the Tarapore committee to make recommendations on making the rupee fully convertible. The panel had submitted its report in 1997. The panel had recommended a three year time frame for complete convertibility by 1999-2000 subject to satisfying certain conditions These pre conditions includes

(1) Bringing down gross fiscal deficit to GDP ratio to 3.5% in 1999-2000,
(2) The inflation rate should remain at average 3-5% for the above three year period.
(3) Designing external sector policies to increase current receipt to GDP ratio and bringing down the debt servicing ratio from 25% to 20%.
(4) The gross NPAs of the public sector banking system needs to be brought down to 5% by 2000 and the CRR to brought down to 3%.

The Present scenario

The economic conditions stands now are, the gross fiscal deficit is 4.1% and estimated to come down to 3.8% of GDP in the next fiscal. The WPI- based inflation rates hanging over 4% so far in this fiscal. The current account deficit is below 3% and foreign debt is lower by $1, 61, 030 million (foreign debt was $124,326 million on Sept 2005 QE) than the country?s $1,40,429 million (as on Feb 10 2006) Forex reserves which could cover all most 13 months? imports. The gross NPA in the banking system is hinges on 5.2 % where as the CRR is 5% currently.

Whether A Boon or A Bane

At present, the Indian rupees is fully convertible on the current account for free trade in goods and services and transfer of remittances. Indian companies? borrowing abroad, investments in abroad, individuals? ability to invest in stocks and property abroad, these are restricted by lack of convertibility. The gross domestic product GDP has registered a robust 7% to 8% growth in the last few years, along with inflation moderating to 4%.The economic fundamentals are strong , the air of optimisim is thick in the air, as the foreign investors investing their money on the Bombay Stock Exchange, BSE. The BSE sensex has already crossed11000 points. The Capital convertibility will give companies the much needed flexibility and negotiating power to raise capital in any currencies at finer rates to acquire foreign assets with foreign capital, full convertibility seems the way to go now. The Removal of these restrictions will help Indian economic agents exploit the opportunities around the world.

Risk of Foreign portfolio Capital

However the full convertibility poses major challenges as well. The flow of capital into India are generally of three types, VIZ, portfolio equity, direct investment and loan capital (both long term and short term).These different type of foreign capital flow have varying impact on balance of payment, capital market and the financial sector of our country .The port folio capital which is coming in to our country by the way of investments in equities and bonds floats in the stock market. Portfolio capital flows could increase to more significant levels in the future as India?s financial market would integrated globally in convertibility regime.

Foreign portfolio Read more…