Monday, July 12, 2010

Rumor Concerning The Future

So what I was told a couple of weeks ago was that the government was going to make some changes regarding inheritance benefits. Usually when dealing with investments the beneficiary will receive inheritance distributions based on the original account owner's tax association. This is usually measured in basis points, which directly effects how an investment is perceived on the market and how it is regulated and taxed. So the rumor is that next year the basis point will go up. What does this mean for the average Joe? Well consider all of the capital gains that the deceased has earned on the investment now taxable income. So that big chunk of money, the deceased earned over the lifetime of their investment, is now based on the value at death not inception. Yes this sucks big time for everyone who has loved one's leaving them alot of money in the future. The moral of the story? It does not pay to die. So live long and prosper.

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