Ironwood Daily Globe from Ironwood, Michigan on September 2, 1998 · Page 10
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Ironwood Daily Globe from Ironwood, Michigan · Page 10

Ironwood, Michigan
Issue Date:
Wednesday, September 2, 1998
Page 10
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Page 10 article text (OCR)

THE DAILY GLOBE, Ironwood, Ml — Wednesday. Sept. 2.1998 Gifting limitations often misunderstood Page 4 Question: la my annual gifting limited to $10,000? Answer: The rules on annual gifting is one of the most often misunderstood areas of estate planning. For individuals with estates under $625,000 (to increase to $1,000,000 by 2006), there is no estate tax liability or annual gift limitation. For estates over the applicable maximum estate value free from estate taxation, each individual is allowed to gift to another 'individual $10,000 per year. (This figure will increase slightly in 1999 and thereafter with cost of living adjustment). For gifts in excess of $10,000 per year, the excess gift must be reported on an annual estate tax return filed by the donor. No tax is immediately due. Instead, the excess gift is taken as a credit against the remaining unified credit or sheltered estate value of the donor. Once their unified credit or sheltered estate assets is expended, any later excess gifts would give rise to an estate tax upon the death of the donor (and spouse). The gift recipient is never taxed on the gift. Instead, the recipient is taxed on any later income or capital gain he or she may later receive from the gifted asset. Individuals with significant estates have a very effective tool available to them fur purposes of reducing or avoiding estate taxation when they routinely take benefit of the annual gifting opportunities. Chemist and inventor BIRMINGHAM, England (AP) — Alexander Parkes (1813-1890) was a British chemist and inventor. He developed various industrial processes in metallurgy and other fields. In 1850 he demonstrated the Parkes process, which extracted silver from lead ore. He also introduced phosphorus into metal alloys to enhance their strength. In 1841 Parkes discovered the cold vulcanization process of waterproofing fabrics with a solution of rubber and carbon disulfide. In 1855 he produced a material called Parkesine, using chloroform and castor oil, that led to the development of the first plastic— celluloid. Time is money But it only takes an instant to call a classified salesperson and got your merchandise moving. Daily Globe Classified 932-2211 Dave McDonald Jr. .Before this girling can be undertaken, the donor must properly understand the true value of their estate and consider to what extent their assets are sufficient to allow for gifting. In addition, the donor must understand the tax issues involved and potential savings in comparison to the loss of the gifted asset from their portfolio. The donor must also remember that the gift will no longer be available for their use at a later date as it will become the property of the recipient. Many families fail to undertake needed yearly gifting because they do not understand the applicable limitations. While these limitations often do not apply, families mistakenly limit their gifting based on a misunderstanding of the annual gifting limits imposed on them. Other families misunderstand the nature of their assets being part of their estate and fail to consider the significant estate tax liability that will be present at their death in comparison to very significant options available to lessen the estate tax liability. Take the time to become familiar with the annual gifting rules and how they may be used to your benefit when undertaking your individual estate planning with a qualified professional. Editor's note: McDonald is a shareholder with Jacobs, McDonald, Silc & and Fauerbach, Attorneys at Law, of Ironwood and Ashland, Wis. If you have a question you would like addressed in this column, send it to 319 E. Aurora St. P.O. Box 725, Ironwood, MI 49938. Police academy puts seniors on offensive against criminals By MELANIE BURNEY Associated Press Writer WESTAMPTON, N.J. (AP) — It happened almost 20 years ago, but Margaret Showell vividly remembers the day an assailant greeted her as she parked her car in her apartment complex. "As soon as I opened the door, I heard, 'Drop the bag, lady, or HI kill you,'" she recalled. "There was a man right beside my car with a gun to my head." Showell, now 74 and retired, gave up her purse on that frightening day in 1979. She was not injured. Her assailant was never caught. These days, Showell is a lot more cautious, especially after completing a 10-week course designed to put seniors on the offensive against criminals. "Seniors are very vulnerable to crime," Showell said. "We have to do all we • can to protect our• selves." ._, About 35 people graduated in April from the second Citizens Police Academy class for seniors. They got lessons in home and car safety, elder abuse, consumer fraud and the criminal and juvenile justice systems. Each Monday afternoon, the seniors reported to class, usually early. They listened intently to the lecturers, took notes and asked lots of questions. "The seniors are good students. These are people who are really motivated," said Burlington County Sheriff Gary L. Daniels. They want to learn." Daniels, a former prosecutor, launched the free program last fall, hoping to attract about 50 people after advertising the class in the local newspaper. Twice as many signed up for the first class. The class has been so successful that Daniels plans to offer it quarterly. Neighboring counties are using Burlington County's program as a model. The class was more than just a classroom lecture about crime. The seniors met local legislators Need A Lawyer? Call Us First! :DONALD •lAUERBACH First in the Law • Accident Cases • Divorce &c Family Law • Criminal Defense • Estate Planning Our 8 attorneys are ready to serve you in either o( our convenient offices: 906/932-0400 715/882-9151 319 E«rt Aurora •Ironwood, MUM3* 200 Ctappto Awnu»>fehtand, Wl 54*06 No Fees Unless We Win Your Accident Case! . Since 1938 • Workers' Comp • Real Estate • Business Law • General Practice and law enforcement officials, toured a jail and the police academy and saw a SWAT demonstration. Class members also received pamphlets on a medical information program to help personnel responding to an emergency. Stickers placed in the window alert rescuers to look in the refrigerator for information on the senior citizens' health problems and any medication used. Police pulled no punches, exposing the seniors to the criminal element and thugs who prey upon the elderly. Their message: never let your guard down. "It's a generational thing. You guys are really trusting," said Cinnaminson police Sgt. James Pereda. "You've got to start thinking differently, become more suspicious." Betty Parker, 65, a retired administrator, was able to identify crack viala she swept up outside her home after attending a lecture on drug awareness. "There are a lot of things you wouldn't think of. I would never have been able to identify that," MB. Parker said. This course is terrific. It helps keep you abreast." Drug paraphernalia was put on display for the class. A German shepherd and a golden Labrador from the narcotics unit sniffed out packets of drugs hidden in the classroom. The class members, all retirees, came from around sprawling Burlington County in southern New Jersey. At least eight said they had been victims of crime. Some were recent widows living alone for the first time. The class toured the Burlington County Jail in Mount Holly, which can hold nearly 300 inmates and is usually near capacity. The jail tour was an eye-opener for some, especially those who thought the system was soft on criminals. They peered inside dingy cells and narrow showers used by the inmates. "I don't think you have any idea what it's like until you've been," said Sylvia Rosenberg, 65, a retired teacher's assistant. "It's not any place I want to be." Medicare Patients WE BILL MEDICARE for Covered Prescriptions and Diabetic & Medical Supplies. Now you can save postage, photocopying 'and most of all... Your Time! WE DO IT ALL FOR YOU! No charge for this service! No more receipts that are lost or forgotten! No more costly claim form mistakes! Covered Items Include ...But are not limited to: • Insulin Dependent Diabetic Supplies • Osiomy Supplies • Inhalation Therapy Drugs • Immunosuppressant Drugs • Durable Medical Equipment Ask Us About This Service! Wakefield Pharmacy 408 Sunday Lake St., Wakefleld, MI Stop By or Call Today Wakefleld Pharmacy 906.229-5966 or Ewcn Clinic 906-988-2355 1-800-803-9148 •WntEKEErlNC • AMERICA HEAUHr

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