Family

Buying your next car, Moving to a new home, Planning for college, Planning for retirement, Preparing your teenager for responsible driving Resources for Teachers Impact of Tax Relief Act 2001

Don’t dream about your next vacation, plan it! We offer discounts on cruises, hotels, car rentals, airline tickets and vacation packages. Start planning your next trip today!

 

Buying Your next Car
The Total Auto Solution: Let us help you solve these worries about buying your next car with these helpful services: (follow the links below)

Choosing the right car. 
Before you buy, take a look at our list of vehicles with better insurance values. (*use your back button to return)

Getting a great price.
With the Auto Buying Service. You can have pre-arranged pricing at more than 5,000 dealerships nationwide.

• Finding the Vehicle for You. The Auto Buying Service has access to tens of thousands of new and used cars and trucks through a huge dealer network. Representatives are in constant touch with dealerships to get the most up-to-date vehicle listings.
  
• Pricing a new or used vehicle. You can get a price on any new or used vehicle through pre-arranged pricing at more than 5,000 dealerships nationwide.
  
• Checking out a used car. For used cars and trucks, you can order a Vehicle History Report for a nominal fee that can help detect potential problems such as rebuilt cars or odometer fraud.

Preparing your Teenager for Responsible Driving

Driver education.
Are the new drivers in your house really knowledgeable about insurance and driving safety? We at Farmers feel that educating young drivers is part of our responsibility, too. That’s why we developed the Y.E.S. (You’re Essential to Safety) Program. This informative program can help improve a young person’s driving. In some states, young drivers who complete the program may qualify for a discount on their auto insurance.

Road Ready
When a newly licensed son or daughter gets a vehicle it can be a nerve-wracking experience for even the most patient adult.

So what’s a parent to do?

Choose the right vehicle.
The Insurance Institute for Highway Safety, which crash-tests dozens of vehicles each year, advises parents to choose a midsize vehicle with lots of safety features such as air bags and antilock brakes. Choose the newest model your budget can afford since most of today’s cars are better designed for crash protection than vehicles six to 10 years old. Before making a final choice on the vehicle your teenager will drive, check out the consumer information on car safety available from the U.S. Department of Transportation, the Insurance Information Institute, the Insurance Institute for Highway Safety and, of course, your Farmers agent.

Teenage drunk driving
Teenage drunk driving is a serious national problem:

• One out of ten children ages 12-13 uses alcohol at least once a month.
• In a single year, 522 children under 14 were arrested for driving while intoxicated. 113 of them were under 10 years old.
• 70% of all teenagers drink alcohol.
• 60% of all teen deaths in car accidents are alcohol-related.

Why do so many teenagers drink and drive? Maybe they just don’t understand how only one drink can affect their driving. Teenage boys with a blood alcohol level of .05-.10 (within the legal limit in most states) are 18 times more likely to become involved in a single-vehicle crash than non-drinking boys. Teenage girls at the same levels are 54 times more likely to crash.

 

Buying a Home
Buying a home is possibly the best investment you can make for you and your family. Now we can help solve your worries about buying a home with these helpful services:

How much home can you afford?
Calculate your budget here!
(*use your back button to return)

Do you need help with Real Estate and Mortgage Assistance?
Whether you’re moving across town or across the country, we can help you buy, sell, finance or refinance a home.

Call us at (310) 665-1162 to get started.

Buying or selling a home?
Our Real Estate and Mortgage Assistance Program offers you a personal real estate consultant who will help you evaluate your real estate needs and identify the top-rated real estate brokers in your area. If you’re moving to a new area, we can provide information about the new area, local schools and more.

Shopping for a home mortgage loan?
Our partner, PHH Mortgage Services, offers loans to our customers.* You may also be eligible to receive a cash bonus of $300 to $1,500, based on the purchase price of the home, when you buy or sell your home through the Real Estate and Mortgage Assistance Program.**

* Loans are offered and funded by PHH Mortgage Services. Farmers does not, directly or indirectly, make, negotiate or offer to make or negotiate the mortgage loans.
** May not be available in all states.

Shopping for a mortgage- Our solid financial partners can help finance your home.
 
PHH Mortgage Services
PHH Mortgage, can help you finance a new home or refinance your current home loan. PHH’s expert loan consultants can offer you competitive mortgage rates, low fees, easy pre-qualification and fast approval. There are more than 50 mortgage programs to choose from*. Visit PHH’s Mortgage Financing site to apply online. With the Real Estate and Mortgage Assistance Program, most fees normally associated with loan processing are eliminated, which can mean real savings. Farmers also offers affordable Mortgage Protection Life Insurance. Talk to your or call, (310) 665-1162 for more information.

*disclaimer – Copyright 1999 PHH Mortgage Services. All rights reserved. PHH Mortgage Services Corporation, 3000 Leadenhall Rd., Mt. Laurel, NJ 08054. Arizona Residential Mortgage Licensee #BK BR 0016981; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act, Georgia Residential Mortgage Licensee; Illinois Residential Mortgage License #5089, 310 South Michigan Ave., Suite 2130, Chicago, IL 60604, 312-793-1409; Massachusetts Licensed Lender #ML0060; Licensed Mortgage Banker – N.J. Department of Banking; Licensed Mortgage Banker – NYS Banking Department; Rhode Island Licensed Lender; Minnesota – This is not an offer to enter an interest rate lock-in agreement. Licensed First Mortgage Banker and Secondary Mortgage Lender by Pennsylvania Department of Banking. PHH Mortgage Services is an equal opportunity lender.

Do you know the coverage you need to rebuild your home, replace your belongings, and protect your assets?
Types of coverage:
Whether you own a house or condo, or you rent, your agent has an insurance program to protect you, your home, and your belongings.

Please contact us for more information.

• For Your Home
  What kind of insurance policy do I need to protect my home?
  That depends, are you buying a house, condo or townhouse?
  Or do you rent?
  How can I make my home safer and possibly save money?
  Do I need mortgage protection insurance?
  How much would it cost to rebuild my home at today’s prices?
• For Your Personal Belongings
  What would it cost to replace the contents or personal belongings of my home?
  Is there coverage to repair and/or replace the appliances in my home?
  Do I need to take an inventory and photographs of my belongings?
  How do I protect my identity?
• For You and Your Guests
  What kind of protection do I need against liability claims?
  Will my guest’s medical expenses be covered if they’re accidentally injured on my property?
• For Your Coverages 
  Do I need earthquake insurance?
  Should I get Flood insurance?
  Do I need Personal Liability Umbrella coverage?
  How can I make sure there is adequate coverage for my valuables (jewelry, silverware, furs)?
  How much should my deductible be?
  Will I be reimbursed for additional living expenses if I cannot live in my home due to a covered loss?

Please contact us for more information. We are happy to answer any of your questions.

If you live anywhere near a flood zone, you need extra protection! Find out about flood insurance here!
We offer a wide range of flood coverages to address your insurance needs, regardless of whether you own or rent a home, mobile home, condominium, townhouse or apartment.

Basic flood information

• Everyone lives in a flood zone. You don’t need to live near water to be flooded. Floods are caused by storms, melting snow, hurricanes, and water backup due to inadequate or overloaded drainage systems. 
• Flood damage is not covered by homeowners policies. You can protect your home, business, and belongings with flood insurance from Farmers — up to $250,000 for the building and $100,000 for contents. 
• You can buy flood insurance no matter what your flood risk is. You can buy flood insurance as long as your community participates in the National Flood Insurance Program. Flood insurance is a good buy even in low or moderate risk areas. Almost 25 percent of all flood insurance claims come from low- to moderate-risk areas.

What does flood insurance cover?
Flood insurance policies come in three different forms, depending on what type of building you’re insuring. 

• Single-family and two- to four-family homes fall under the Dwelling policy. 
• Apartments and businesses fall under the General Property policy. 
• Condominiums fall under the “Residential Condominium Building Association Policy or RCBAP.

All three of these policies cover flooding caused by any of the following: Overflow of inland or tidal waters Unusual and rapid accumulation or runoff of surface waters from any source, such as heavy rainfall Rivers of mud caused by flooding

Buying flood insurance:
To buy a flood insurance policy, call your agent. Your agent has the professional expertise you need to get the best coverage combinations to fit your lifestyle and budget.

When you buy flood insurance from your agent, it’s a good idea to have the same agent write your homeowners, auto or other insurance policies. In the event you have a claim, you will deal directly with one company and one agent.

Please contact us for more information. We are happy to answer any of your questions.

 

If something were to happen to you, how would the mortgage be paid?
Mortgage Life Insurance
Obviously, for you and your family, no amount of money could possibly replace you. However, consider the financial implications if something were to happen to you. Our Mortgage Life Insurance is life insurance designed to assure that, in the event of your death, your family can remain in the house they love.

Our Insurance offers two basic types of Mortgage Life Insurance.

• Level Term 2000* provides life insurance coverage that remains level. Depending on your need, we may guarantee the premium to remain the same for as long as you need the coverage. What’s more, this plan is very affordable.
• Decreasing Term Life Insurance* a low cost, traditional decreasing term life insurance plan to cover your mortgage. Farmers offers several types to accommodate your specific needs.

A Deposit Fund** is an optional side fund that can be added to either of these plans to build an additional cash reserve for the future. Payments into the fund can be made at any time. These payments, or even withdrawals from the fund, will not affect the basic policy’s death benefit. Interest is earned at a competitive rate, and is compounded annually. The interest rate that this fund earns will never be less than the stated guaranteed minimum.

Please contact us for more information. We are happy to answer any of your questions.

Tips for estimating your home’s value:
Your home is probably the single largest investment you’ll ever make. By adequately insuring your home, you are protecting your investment and your equity. You will also be sure that your family is protected in the event of a disaster.

Estimating your home value will help make sure you have enough insurance. The primary factors that will determine the cost to rebuild your home include:

• Local construction costs and the square footage of the structure
• The type of exterior wall construction — frame, masonry (brick or stone) or veneer — and the type of roof
• The style of the house (ranch, colonial)
• The number of bathrooms and other rooms
• Attached garages, fireplaces, exterior trim and other special features like arched windows.

Here are some tips to help you estimate the value of your home:

Every year, take the time to check the value of your insurance policy against rising local building costs. Your Farmers agent is available to review your coverage and ensure adequate protection is in place.

Check the latest building codes in your community. If your home is severely damaged, you might have to rebuild it to comply with the new standards requiring a change in design or building materials.

Do not insure your home for the market value. The cost of rebuilding your house may be higher (or lower) than the price you paid for it or the price you could sell it for today.

Some banks require you to buy homeowners insurance to cover the amount of your mortgage. Make sure it’s also enough to cover the cost of rebuilding.

Increase the limit of your policy if you make improvements or additions to your house. You may upgrade features in your home to fit your tastes and lifestyle. These enhancements can significantly increase the replacement cost of your home. Your Farmers agent will be available to help in determining if additional coverage is needed.

Please contact us for more information. We are happy to answer any of your questions.

Looking for ways to prevent accidents and make your home safer?
Accidents can often be prevented with the right preparation. This section provides you with tips to help you keep your home as safe as possible.

• Preventing accidents at home. 
  A few simple precautions can help prevent many common household accidents. Start today making your home safe using these tips:

   

  Make sure stairs are clearly lit. Install light switches at the top and bottom of stairways. Keep exits and passageways free of boxes, furniture and other tripping hazards. Regularly clear the floor of toys, games,  magazines and other obstructions. Make sure you can see over the top of what you’re carrying to avoid tripping

   

• Childproofing your home.
  Every year, thousands of children are injured needlessly in preventable home accidents. You can make your home a safer place by following these simple steps:

   

  If your child is under age three, turn a yardstick on end to create an imaginary line around your house, yard and garage; everything below the yard mark should be child-safe. Purchase plastic safety plugs to reduce shock hazard of electrical outlets. Store all household chemicals out of the reach of children. This includes detergents, cleaning products and cosmetics, as well as commonly recognized hazards such as medicines, pest killers and liquid fuel. Keep household chemicals, including cleaning products, in their original packages. Don’t store them in cups, soft-drink bottles, cans or bowls that children associate with eating and drinking. To protect your child from scalds, reduce the temperature of your hot water to between 120 and 130 degrees Fahrenheit by turning down the control of your water heater. Always turn pot handles away from the edge of the range. Install nylon netting across deck, porch and balcony railings to prevent kids from squeezing through or getting trapped. Since windows may be opened or merely screened, install steel window guards inside the frames to prevent falls. Keep adult sporting goods, such as archery sets, dart sets and hunting knives, in locked cabinets. Store guns unloaded and locked up, out of reach. Store ammunition in a separate locked location. Install bump guards on furniture and appliances that have sharp edges. Check to see if your household and garden plants are poisonous. Ask your physician or poison control center.

   

• Backyard safety.
  Your backyard should be a place where you and your family can relax and have fun. A few simple precautions can keep backyard hazards to a minimum:

   

  Put garden tools and game equipment back in place after you use them. They can cause a fall if they are left lying around. Keep your walkways and driveway in good condition. Make repairs before an accident happens. Securely anchor children’s outdoor play equipment, such as slides and swings. Make sure they are in good repair and check regularly for worn or broken parts.  Keep children and pets a safe distance away when you operate a mower or other power equipment.

   

• Emergency phone list.
  The best way to handle an emergency is to be prepared with an emergency phone list. Print and complete this list, then post it by your telephone. 
   

   

  Contact Phone Number Police department Fire department Ambulance Hospital Doctor Pharmacist Poison control center Farmers agent Neighbors Neighbors Neighbors Gas company Electric company (Click here for a Printable version)

   

   

  Planning For College
  Click HERE for complete College information.

 

Planning For Retirement
Your agent offers a variety of retirement options to meet your needs, including long-term care, IRAs and nonqualified annuities. Individual Retirement Accounts (IRAs) will help you maximize retirement savings without compromising safety.*

There is a heavy price to pay for waiting too long to establish a well-considered retirement program. Now is the time to discuss your retirement goals.

• The difference between Traditional IRAs and Roth IRAs:
  For the Traditional IRA, yearly contributions are tax-deductible, but income is taxed. For the Roth IRA, yearly contributions are not deductible from income, but earnings on the Roth IRA can be tax-free.

  Subject to certain limitations, you can transfer funds from an existing IRA into a Roth IRA without the 10 percent penalty tax. However, the IRS will treat this transaction as an income-taxable event.

  If you are considering an IRA, we can help you calculate what’s best for you. We also strongly recommend that you consult your tax adviser before making a decision.
  

• Roth IRAs:
  Are you satisfied with your retirement plan? Will you have the resources you need for a comfortable life?Our Roth IRA allows you to buy an Individual Retirement Annuity with after-tax dollars now and withdraw principal and earnings tax-free after five years. You can withdraw funds after age 59 1/2, or sooner to pay for qualified educational expenses or the purchase of a new home.Broader eligibility requirements
  There is no age limit for making contributions to a Roth IRA. You must have earned income equal to the amount of your contribution, up to $3,000 annually for an individual or a combined $6,000 for a couple. Contact your local Farmers agent for more details.Limits on contributions
  If your adjusted gross income exceeds $150,000 and you file jointly ($95,000 for single filers), the amount you may contribute is gradually reduced and phased out. The combined total of IRA and Roth IRA accounts cannot exceed the maximum annual contribution of $3,000 per individual. The Roth IRA must be kept in a separate account
• Qualified distribution
  Under certain conditions, you can withdraw from your Roth IRA without paying taxes or penalties. First, you must wait five years after the first tax year in which you made contributions. Second, you must have reached the age of 59 ½ or the withdrawals must be due to:Disability
  First home purchase
  Death

  Non-qualified distribution of earnings is taxable income and can be subject to a 10 percent Internal Revenue Service penalty tax.

  All products and features are not available in all states and may vary by state.
  

• Traditional IRAs
  Will you be able to retire comfortably?
  Thanks to the Taxpayer Relief Act of 1997, IRAs today are more flexible, and more people have access to their tax advantages. And, IRAs aren’t just for retirement, either. You can withdraw funds from your IRA without tax penalties for qualified educational expenses or to buy your first home.A Traditional IRA offers great tax benefits. Your contributions today are tax-deductible and taxes on earnings are deferred until withdrawal. With a Farmers Traditional IRA, you get a competitive interest rate and you can convert it to an annuity at retirement to provide a lifetime income.Can you qualify for a Farmers Traditional IRA?
  If you’re under 70 1/2, you may be able to contribute up to $3,000 a year if single, or $6,000 if married. If neither you nor your spouse participate in a retirement plan, each of you can deduct the full $3000 IRA contribution for a total of $6,000 a year.If one spouse participates in an employer plan, there are income limits restricting deductibility of IRAs. These adjusted gross income limits, which gradually phase out tax-deductible contributions, will increase from $40,000 to $80,000 for joint filers by the year 2007 (and from $25,000 to $50,000 by the year 2005 for a single taxpayer). A non-working spouse can take the full $3,000 tax deduction if the other spouse participates in a retirement plan, but that is phased out beginning at $150,000 joint adjusted gross income.To find out if you qualify, contact your Farmers agent.Flexible withdrawal options
  Withdrawals from Farmers Traditional IRAs are taxable in the year they are taken.

  Withdrawals before age 59 1/2 are subject to a 10 percent penalty tax unless withdrawn for:

   

  First home purchase (limited to $10,000) Qualified higher education expenses Death or disability Certain medical or health insurance expenses

   

All products and features are not available in all states and may vary by state.

 

• Qualified Pension Plan Annuities for your Employees 
  
  Advantages of Qualified Pension Plan Annuities:

   

  Increased financial security for employees at retirement Incentive to attract and retain employees Contributions are tax-deductible by employer, not currently taxable to employee Plan earnings are tax-deferred

   

Eligibility
Annuities can fund a Qualified Pension Plan, which is adopted by sole proprietorships, partnerships, or corporations. Employees having attained age 21 and having one year of service (1,000 hours in a 12-month period) for the employer must be covered. Those plans that provide that employees’ benefits are non-forfeitable after no more than two years of service may also require employees to reach age 21 and complete two years’ service, whichever is later, in order to be covered. More liberal provisions can be adopted if exercised uniformly and in a nondiscriminatory manner.

Employees covered under a collective bargaining agreement retirement plan and certain non-resident aliens may be excluded. Special note: William Go group of companies does not determine eligibility.

Contributions
Contributions are based on a uniform percentage of each participating employee’s compensation. This percentage should remain fixed from year to year. Compensation in excess of $200,000 may not be taken into consideration. This $200,000 limit will be adjusted annually by the Secretary of the Treasury to reflect cost-of-living increases.

Contributions are limited to $30,000 or 25 percent of annual compensation, whichever is less.

All products and features are not available in all states and may vary by state.

• Tax-Sheltered Annuity
  A Tax-Sheltered Annuity is a contract used to fund special retirement benefits for employees of public educational organizations and certain tax-exempt organizations. Tax-Sheltered Annuities offered by Farmers New World Life Company qualify under section 403(b) of the Internal Revenue Code.

  Eligibility
  Employees of these organizations are eligible to establish a Tax-Sheltered Annuity:

   

  Public schools, state colleges and universities State departments of education Qualifying non-profit, tax-exempt hospitals and medical schools Parochial schools Religious organizations Private college Foundations and charitable institutionss and universities

   

(The above is not intended as a comprehensive listing of eligible employees. William Go GOC does not determine eligibility.)

Distributions
Distributions from a tax-sheltered annuity must commence no later than April 1 on:

 

The calendar year in which the employee attains age 70 1/2 The calendar year of retirement (Not applicable with regard to contributions and earnings which accrued in a Tax-Sheltered Annuity prior to January 1, 1987.)

 

Employer contributions, as a general rule, are not included in the employee’s gross income, so distributions from a tax-sheltered annuity will be included in the employee’s gross income for tax purposes. Early distributions (prior to employee’s attaining age 59 1/2) are subject to a 10 percent premature distribution penalty unless a statutory exemption applies (such as the employee’s death or qualifying disability or taking a lifetime annuity income).

All products and features are not available in all states and may vary by state.

• Long Term Care plans
  Advances in medicine and technology have changed and improved care for millions of Americans. But, costs have skyrocketed. Average annual costs for nursing home care total $30,000 to $50,000. Out-of-pocket expenditures can devastate a family’s financial plans. Long Term Care (LTC) plans provide coverage in case you need expensive Long Term Care.

  Types of LTC Coverage
  LTC plans let you determine exactly how much coverage you need.

  Premier Long Term Care (LTC)
  With Premier LTC, you enjoy the following benefits:

   

  Bed reservation Waiver of premium Home medical technology  Informal caregiver training  Independent caregiver certification  Weekly home and community-based care  Facility care  Respite care  Flexible home care  Alternate plan of care

   

Long Term Care benefits
Long Term Care provides a broad range of benefits:

 

Daily home and community-based care Respite care  Informal caregiver training Medical help Facility care Alternate care facility (including care in assisted living facilities) Alternate plan of care  Bed reservation  Waiver of premium

 

Who pays for long-term care now?

• The cost for long-term care and nursing homes was $91 billion in 1995. The elderly and their families paid almost 40 percent of that out of their pockets.
  
• 22 million families — nearly one in four — are providing some form of assistance to an older relative or friend.

Medicare will pay only for skilled care in a nursing home and only after three days in the hospital. Medicaid will pay for care, but only if you meet income qualification levels. In effect, you must prove that you are impoverished. Many experts believe that a gap in long-term care coverage poses the most immediate and devastating threat to the financial security of older Americans and their families.

LTC is not available in every state. Options and benefit vary from state to state. For more information about LTC, please check with your agent.

 

The Tax Relief Act of 2001
You’ll soon have more income, with new tax incentives, to save for your retirement, your children’s education, and your estate!

For example, a 50 year old dual income couple each making $50,000 per year, with three children, who maximize their retirement savings, could save nearly $10,000 over the next five years!

What’s in it for you?

• How much am I going to get? Use this special Quicken calculator to estimate how much you can expect to get in 2002 or over the next 10 years.
• When do I get my tax refund? Refunds will be distributed based on the last two digits of your Social Security Number. For couples filing jointly, the first number on the return is used.The checks will be sent automatically without taxpayers having to request them or submitting additional forms. Use the table below to determine when your check will arrive.
  

  If the last two digits of your Social Security number are: You should receive your refund the week of:
  00 – 09	July 23
  10 – 19	July 30
  20 – 29	August 6
  30 – 39	August 13
  40 – 49	August 20
  50 – 59	August 27
  60 – 69	September 3
  70 – 79	September 10
  80 – 89	September 17
  90 – 99	September 24

  Source: http://www.irs.gov

• How can I make the most of my refund? The primary benefits are saving for retirement and saving for education / college.
• How does the new law affect my estate plan? What do I need to know for future planning?

   

  Estate Planning – Impact of the Tax Relief Act of 2001 Estate planning is more urgent than ever due to the uncertainty and complexity created by attempts to improve Estate taxation. Instead of repealing the estate tax under the new law, it will be phased out over the next nine years, be repealed in 2010 and automatically reinstated in 2011. The unified credit effective exemption amount for both estate and gift tax purposes is currently $1 million in 2002. The exemption from generation skipping transfer (GST) taxes is currently $1,060,000. The estate and GST tax exemptions will gradually rise to $3.5 million by 2009. The gift tax exemption remains constant at $1 million. In 2010, the estate and generation skipping transfer taxes are repealed. What you can do: Review estate plans, including your life insurance. A Universal Life policy* may provide an ideal means of coping with the uncertainty associated with estate planning under this law.

   

• Highlights of the Tax Relief Act of 2001

   

  Overview: The Tax Relief Act of 2001 represents the largest tax cut package in the last 20 years. It will reduce marginal federal tax brackets over time to 10%, 15%, 25%, 28%, 33%, and 35% respectively. Beginning in 2005, the standard deduction for married couples will gradually increase to twice that of a single taxpayer. The child tax credit will gradually double to $1,000 per child over ten years and apply it against the alternative minimum tax credit. It will reduce the marriage penalty by changing the standard deduction and marginal rate brackets. It will affect almost every taxpayer starting with the upcoming refund check of 2001. Retirement Benefits: IRA contribution for both Traditional and Roth are increased from the current $2,000 per person to $3,000 starting in 2002, $4,000 in 2005 and 5,000 in 2008. Individuals over age 50 will be allowed to make “catch-up” contributions to their IRAs and other retirement plans that permit employee salary deferrals (e.g. 403(b)s, 457s). Retirement preparation has been made easier by allowing greater pension portability. It will be easier to transfer or roll money over from one retirement plan to another, as well as between IRAs and employer-sponsored retirement plans. The annual retirement plan (e.q., 401K) increase by $1,000 each year until it reaches $15,000 in 2006. The annual retirement plan (e.g., 401 K) employee salary deferral limit is raised from the current $10,5000 to $11,000 in 2002, and will increase by $1,000 each year until it reaches $15,000 in 2006. Education Benefits: The annual limit for contributions to Education IRA has been increased from $500 to $2,000, starting in 2002 and contributions are allowable to both an Education IRA and 529 plan for the same beneficiary in the same year. Distributions from qualified tuition plans made after December 31, 2001 and used to pay for qualified higher education expenses will no longer be subject to federal income tax. Deductibility for student loan interest is simplified and expanded. A new above the line deduction has been made available for the costs of higher education. Estate Planning Information: Instead of repealing the estate tax under the new law, it will be phased out over the next nine years, be repealed in 2010 and automatically reinstated in 2011. The unified credit effective exemption amount for both estate and gift tax purposes is currently $1 million for 2002. The exemption from generation skipping transfer (GST) taxes is currently $1,060,000. The estate and GST tax exemptions will gradually rise to $3.5 million by 2009. The gift tax exemption remains constant at $1 million. In 2010, the estate and generation skipping transfer taxes are repealed.

   

  William Go Insurance Agency Locations:
  William Lee Go
  8616 La Tijera Blvd, Suite 317
  Los Angeles, CA 90045
  Phone: 310-665-1162, 626-399-1004
  License No. 0C70895