Posts by SmartAsset Team
Medicaid & Long-Term Care
What Is a Miller Trust and How Does It Work?
For individuals who require long-term care but earn too much income to qualify for Medicaid, a type of trust called a Miller Trust can help bridge the gap. Sometimes called a qualified income trust (QIT), this type of trust allows individuals to meet Medicaid’s income requirements while still using their funds to cover care-related expenses.… read more…
Income Investing
How Much Could a $3 Million Trust Generate Monthly?
A $3 million trust can generate substantial monthly income, but exactly how much depends on the structure and investments. Some types of trusts prioritize capital preservation, while others aim for long-term growth with periodic distributions. Trusts can serve a wide range of financial and estate planning goals for beneficiaries from living expenses to education. In… read more…
Portfolio Management
What It Takes to Manage a Cross-Border Investment Portfolio
Managing a cross-border investment portfolio means dealing with more than just market performance. Investors must account for foreign tax laws, currency risk and regulatory differences that can affect both returns and reporting. Whether you’re a U.S. investor in international markets or a non-resident holding U.S. assets, cross-border investing adds layers of complexity that require careful… read more…
Advisor Basics
Guide to Cross-Border Investment Advisors
A cross-border investment advisor helps clients manage assets across multiple countries while addressing tax rules, reporting requirements and currency exposure. These professionals often work with individuals who live abroad, hold dual citizenship or invest internationally. Their expertise often includes U.S. tax compliance for foreign accounts, treaty-based planning and portfolio strategies suited to global markets. If… read more…
Legislation & Policy
Is Trump Going to Raise the Retirement Age?
While President Donald Trump has consistently pledged not to raise the retirement age, several influential Republican factions have promoted adjustments that would shift that timeline. And it’s not entirely up to the president. Even if Trump sticks by his prior commitments, a higher retirement age remains a possibility. Any change could have sizable effects on… read more…
Tax Planning
Guide to U.K-U.S. Cross-Border Tax Planning
U.K.-U.S. tax planning involves understanding how income, residency and asset ownership are taxed under both British and American law. Dual residents, expatriates and cross-border investors often face parallel filing obligations, with each country maintaining its own system for taxing worldwide income. While a bilateral tax treaty exists to help reduce the chance of double taxation,… read more…
Roth & Traditional IRAs
How to Convert a 529 Plan to a Roth IRA
A new opportunity has emerged for families with leftover college savings: converting 529 plan funds to a Roth IRA. Previously, withdrawing 529 funds for non-educational expenses meant facing income tax and a 10% penalty on earnings, creating a dilemma for families whose children received scholarships or chose not to attend college. But thanks to the… read more…
Financial Planning
How Do Couples Split Their Finances and Financial Plans?
When two people build a life together, deciding how to split finances becomes a central element of the partnership. There’s no one-size-fits-all approach; every couple has different incomes, values and spending habits. While some prefer the simplicity of merged finances, others value independence and choose to keep things separate. The key is to find a… read more…
Real Estate
Is It a Real Estate Buyer’s or Seller’s Market? Key Indicators
Whether it’s a buyer’s or seller’s market can affect pricing and negotiation. A seller’s market means demand is high and inventory is low, often leading to higher prices and multiple offers. A buyer’s market means more homes are available than buyers, leading to longer sale times and lower prices. Market signals include inventory levels, days… read more…
Real Estate
Should I Sell My House or Rent It Out in 2025?
Mortgage rates are still high and home prices remain steady in many areas. At the same time, rental demand is strong, especially in places with limited housing. Whether to sell or rent depends on more than the market—it’s a personal financial choice based on your cash needs, long-term goals and comfort with managing property. A… read more…
Tax Planning
How to Calculate Your Taxable Income: Step-by-Step Guide
Knowing your taxable income helps you make smarter choices about deductions, retirement contributions and how much tax to withhold. It can also prevent surprises at tax time. If your finances are more complex—like having multiple income sources or major life changes—a financial advisor can help you lower your taxes while following IRS rules. How to… read more…
Financial Advisor
How to Protect a Trust Fund in a Divorce
When significant assets like a trust fund are involved in a divorce, couples may wonder whether it will be considered marital property and how the court might divide it in a settlement. The type of trust, how the funds are managed and when it was established can all influence the outcome of a divorce. Additionally,… read more…
Business Structure
Can a Trust Own an LLC?
When structuring your assets and business interests, understanding the relationship between different legal entities becomes crucial. One question that often arises is whether a trust can own an LLC. The short answer is yes—a trust can indeed own an LLC. This ownership arrangement can offer enhanced privacy, simplify succession planning, and add layers of legal… read more…
Social Security
Can You Stop Social Security Benefits and Restart Later?
Deciding whether to stop Social Security and restart it later depends on your age and how long you have been receiving benefits. If you have been on Social Security for less than 12 months, you can apply to withdraw your application. This will essentially erase the claim. For those who have reached full retirement age… read more…
Retirement Planning
What’s the Ideal Age to Retire for Longevity?
Retirement is a major life decision and the timing can affect more than just your finances. While having enough money is important, other factors—like your health, mental well-being, social life and the type of work you do—also matter. Some research shows that when you retire may impact how long you live as well as your… read more…
Tax Filing
Who’s Entitled to the Tax Refund of a Deceased Person?
If the deceased was due to receive a tax refund, determining who is entitled to the money is a key issue for the surviving spouse, family members and estate representatives. In most cases, the IRS allows those legally responsible for the estate to claim the refund. The process depends on several factors, including the deceased’s… read more…
Tax Policy
De Minimis: 2025 Trump Changes and Effects on Consumer Costs
The term de minimis refers to a U.S. customs rule that exempts low-value imports—typically under $800—from tariffs. In 2025, the Trump administration eliminated this exemption for goods from China and Hong Kong. Shipments of up to $800 in goods from these regions now face a 54% tariff or a $100 flat fee. This policy change… read more…
Retirement Planning
401(k) Millionaires by Age Group
Becoming a 401(k) millionaire represents a significant milestone in retirement planning. According to recent data, the average age at which individuals attain this status is 59 years old, typically after 26 years of consistent contributions to their retirement plans. The length of time typically required to become a 401(k) millionaire underscores the importance of long-term… read more…
Financial Planning
How to Find a Financial Advisor as a High-Net-Worth Individual
A high-net-worth financial advisor specializes in serving individuals with substantial assets, typically offering personalized wealth management, including advanced planning strategies and more types of investments. These advisors may provide services such as tax optimization, estate planning, philanthropic structuring and access to alternative assets. Unlike general financial advisors who serve a broad array of investors, they… read more…
Investment Taxes
How Is Rental Income Taxed When You Have a Mortgage?
Rental income is taxable, but having a mortgage on the property can lower what you owe. You must report all rental income, but you can deduct expenses like mortgage interest, property taxes, insurance, maintenance and depreciation. These deductions can reduce your taxable income from the rental. A financial advisor could help you track these deductions… read more…
Tax Policy
Trump’s Tax Plan for Capital Gains Taxes
The 2025 tax law signed by President Trump—formally known as the One Big Beautiful Bill Act—preserves the existing capital gains tax structure, keeping long-term rates at 0%, 15%, and 20%. While it does not alter capital gains brackets, the law introduces the Trump account, a new savings vehicle for children that applies capital gains treatment… read more…
Tax Policy
What Is Trump’s Plan for Taxes on Overtime?
President Trump officially signed the landmark One Big Beautiful Bill Act into law on July 4, 2025, marking a significant shift in tax policy. Among its provisions are temporary federal deductions for qualified overtime and cash tips (through 2028), with caps of $12,500 ($25,000 joint filers) for overtime and $25,000 for tips, both phasing out at… read more…
Tax Policy
Trump Tax Plan: Homeschool Tax Credit
The “One Big Beautiful Bill Act,” signed by President Trump on July 4, 2025, brings significant changes to federal education-related tax rules, especially those affecting homeschooling families. While it doesn’t introduce a direct homeschooling tax credit, it expands financial tools available to families, such as new scholarship donation credits and more flexible 529 plan options.… read more…
Tax Policy
Trump Tax Plan: Stay-at-Home Mom Tax Credit
The new Trump tax plan could significantly reshape how families are taxed, especially with the Tax Cuts and Jobs Act (TCJA) set to expire at the end of 2025. On May 22, 2025, House Republicans passed a major Trump-backed bill, officially titled the “One Big Beautiful Bill Act,” by a vote of 215-214. While the… read more…
Tax Policy
Trump Tax Plan: Will Social Security Taxes Get Cut?
President Donald Trump advocated for the elimination of federal income taxes on Social Security benefits during his 2024 campaign. However, the tax legislation recently passed by the House—known as the “One Big Beautiful Bill“—does not include this provision. The exclusion stems from Senate rules governing the budget reconciliation process, which restrict changes to Social Security… read more…