
In August, President Bush signed the Pension Protection Act of 2006 into law. While much of the news coverage has focused on provisions of the Act that shore up the nation's pension system, the Act includes many other important provisions you should know about.
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Several pieces of legislation have modestly reshaped the 2006 tax landscape. New tax credits, AMT exemption amounts, and "kiddie tax" rules are among the provisions that present both a challenge and an opportunity for 2006 tax planning. Don't be caught off guard--set aside some time now to evaluate your tax situation while you can still affect your bottom line for the 2006 tax year.
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Today, a legal will is typically written to be a clear, concise disposition, precise in structure and language--dry, bland, and stone cold. This is unsatisfactory for many people who believe that leaving a legacy should mean more than just doling out goods to John Jr. and Aunt Sally. Perhaps that is the reason for the recent reemergence of another ancient document--the ethical will.
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An UGMA/UTMA custodial account is a special type of account that allows a minor child to legally hold money or other property, such as stock or real estate, that the child would not otherwise be able to hold in his or her own name. It's governed by a particular state's Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA).
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Both an UGMA/UTMA custodial account and a 529 plan can be used to save for college. But after comparing a few key features, the 529 plan probably comes out ahead.
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