There are two general kinds of property, called “real property” and “personal property.” Real property consists of land and the permanent improvements on it. Personal property includes movable items. Personal property may include tangible objects such as livestock, machinery, and household goods or intangibles such as bank accounts, bonds, stocks, and negotiable notes. The law makes a distinction between real and personal property in matters of inheritance, sale, and mortgage. Also, tax laws and assessments are applied differently to each of these two kinds of property.
May 22nd, 2009 in
Kinds of Property | tags:
Kinds of Property |
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Objectives in estate planning will vary from family to family, due to differences in resources, number of children, and value judgments. Clarifying the objectives is one of the first steps in logical, systematic estate planning. Objectives often listed by families may include one or more of the following:
• To provide sufficient income to the parents for the rest of their lives.
• To reduce state and federal estate and gift taxes.
• To reduce lawyers’ fees, probate costs, and other fees.
• To reduce income taxes.
• To minimize disruption during estate settlement.
• To treat all children equitably, not necessarily equally.
• To keep the farm in the family.
• To help one or more of the children to start farming.
• To maintain and continue an efficient operating unit.
• To reward certain children for specific contributions they have made to the parents or to the estate.
• To provide for special needs of some heirs.
• To inform heirs what to expect, so they can make plans accordingly.
The fact that two or more objectives conflict should not deter families from making plans. It is in such cases that planning is most needed. Usually some compromises among the conflicting or competing objectives will have to be made, and it may be impossible to develop fully satisfactory plans. But the results of good planning will be far superior to unplanned property transfers.
The purpose of all trend identification methods is to see past the underlying noise in the market, those erratic moves that seem to be meaningless, and find the current direction of prices. Because there may be more than one trend at any one time, caused by short-term events and long-term policy, it is possible to search for th e strongest, or most dominant trend, or a minor trend that corresponds to your expected time frame. The technique that is used to uncover the right trend depends upon whether any of the trend characteristics are known. Does it have a seasonal or cyclic component. is it based on long-term monetary policy, or is it an overnight effect? The more you know about the reasons why prices trend, the better you will be able to find the most reliable calculation for separating the price direction from market noise.
Once you know that there is a fundamental relationship between data, based on measuring the properties of dependence and correlation. a formula can be found that expresses one price movement in terms of the other prices and data. The predictive qualities of these methods are best when applied to data that has been seen before. that is, prices that are within the range of historic data. Forecasting reliability decreases sharply when values are based on extrapolation outside the previous occurrences. This phenomenon will also be true of other trending methods. Because of the way we test and define the final trend calculation, it is based on the movement of historical data: when prices move to new levels, the results of the model will often deteriorate.
April 20th, 2009 in
Investment,
Regression | tags:
Finance,
Market |
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