Preservation | Family Wealth Protection & Planning

The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for November 2022. AFRs are published monthly and represent the minimum interest rates that should be charged for family loans to avoid tax complications.

Missouri Gov. Mike Parson recently signed into law legislation that reduces the state's individual income tax rate.

The law, signed on Oct. 5, 2022, and effective for the 2023 calendar year, reduces the top individual income tax rate from 5.2 percent to 4.95 percent. It also eliminates the bottom income tax bracket, allowing Missourians to earn their first $1,000 tax-free. In addition, the law allows for an additional 0.15 percent top income tax rate reduction to 4.8 percent when Missouri’s net general revenues increase by $175 million and another 0.1 percent top income tax rate reduction in future years when net general revenue of the state increases by $200 million. If Missouri’s revenue increases as stated above and the corresponding rate reductions take effect, the new legislation will reduce the top income tax rate in Missouri to 4.5 percent.  

Many reconnect with their family during their vacations. Your family may own a home on the beach, in the mountains, or in the country where multiple generations gather each year. The home may have been in your family for generations, or it may be newly purchased. Regardless, the family vacation home is a unique asset that symbolizes important memories and family connections. For this reason, you should specifically address the vacation home in your estate plan to avoid hard feelings and even disputes.