Ziese & Associates, Ltd.

Robert J. Ziese, Esq.

Kathryn G. Ziese Financial Services

Client Newsletter - Oct. - Dec. 2000

Have a Happy Holiday and a Wonderful New Year!!

Call us for real estate, wills & trusts, tax & bankruptcy issues, business startup & litigation, matrimonial, and non-profit organization matters


Tax Rates- Good News/ Bad News

Try The New NJ DMV Site For Automobile Registration

Upcoming Rate Cuts On Personal Tax Returns

Grandma Sentenced To Quilting

Parents Should Encourage Roth IRAs For Their Children

Child Support - Tightening the Noose

Automobile Insurance - Defining the Terms


Try The New NJ DMV Site For Automobile Registration

The New Jersey Division of Motor Vehicles has always been portrayed as an example of state government bureaucracy and inefficiency at its worst. Often, the criticism was well deserved. However, NJ DMV has a new Web site which allows you to renew your car, boat, trailer, or motorcycle registration online. the site is http://www.accessdmv.com and is available 24x7.

The site is one of the best I have seen to date. Built by IBM, the site is user friendly, secure, and fast. I have already registered two vehicles using the site. Give it a try.

8% Maximum Tax on Capital Gains: Starting 1/1/2001 any gains on the sale of property, i.e. stock sales, held for more than 5 years that would have been taxed at the 10% rate will be taxed at the 8% rate regardless of when the holding period began. This will not apply to sales of collectibles and certain other types of gains.

18% Maximum Tax on Capital Gains: Gain from the sale of property held for more than 5 years that would have been taxed at 20% will be taxed at 18%. However the catch here is that the holding period for this rate will begin 1/1/2001 no matter when purchased. The first year this rate will be available will be 2006.

    Grandma Sentenced to Quilting  

When we picture a kidnapper on the lam with victim in tow, how many of us conjure up an image of a 74-year-old grandmother and her 4-year-old grandson?

Mrs. Richmond of Dodgeville, Wis. took her grandson on a "trip" without telling his parents. She claimed they were doing a poor job of raising him. Grandma was the target of a nationwide search, getting to Atlanta before she finally turned herself and the boy in to authorities.

At her trial, Grandma fainted when she was told her sentence would include 23 days in the county jail. Judge William Dyke reconsidered when informed of her quilting skills. Grandma was given one year to produce a quilt featuring children at play, which would be auctioned off to benefit a children's charity. Is this considered patchwork parole?


The long-term benefits of tax-free accumulation provided by Roth IRAs are hard to ignore. Parents can do their children a real service by encouraging them to establish a Roth IRA at the first opportunity. A Roth IRA, left untouched until retirement, will ensure that your child has a substantial nest egg.

Take for example a youngster, age 17, who contributes $2,000 to a Roth IRA and allows that single deposit to accumulate untouched until retirement at age 65. At a conservative 8% annual growth, the Roth IRA will have grown to $80,421.

Consider what the result would be if that same young person continued to deposit $2,000 a year to their Roth IRA. Assuming an 8% annual growth, the Roth IRA will grow to $980,264 by the time they reach retirement age of 65.

But keep in mind that children, like adults, must have "earned income" to establish a Roth IRA. Generally, earned income is income from working, not from investments. Earned income can include income from a part-time job, summer employment, baby-sitting, yard work, etc. The amount that can be contributed to either a traditional or a Roth IRA is limited to the lesser of earned income or $2,000.

   Child Support - Tightening the Noose

Over $ 300 million in child support payments go unpaid every year in New Jersey, and over 500,000 NJ children are affected.

A new law creates a lien in favor of unpaid child support against the "proceeds of any settlement, civil judgment, arbitration award, inheritance, or workers' compensation award" if the proceeds exceed $ 2,000.

 The attorney, insurance company, or agent is required to have a child support judgment search run against the party being paid to ensure that no child support is due. If unpaid support is owed, it must be paid from the proceeds.

Automobile Insurance - Defining the Terms

Bodily Injury Liability Coverage protects you when you're at-fault for injury or death of others in a car accident, including legal and court costs. The limits of this coverage refer to the maximum amount the insurance company will pay in the event of a claim. For example, a $100,000/$300,000 limit means the company will pay as much as $100,000 to each injured person, but not more than a total of $300,000 per accident.

Property Damage Liability Coverage pays to repair or replace another person's property when you're responsible for the damages while driving your insured vehicle. For example, it covers damage to another car, a garage door, lamp post, etc.

Medical Payments Coverage pays doctor's bills, hospital bills and other related costs for you, your family and other passengers in your car - regardless of who is at-fault in an accident.

Personal Injury Protection Coverage protects you, your family and passengers in your car for medical expenses, lost wages and pays for services which their injuries prevent them from performing.

Uninsured Motorists Coverage protects you, your family and passengers if you're injured by a driver with no liability insurance or by a hit-and-run driver who is held legally responsible for your injuries.

Underinsured Motorists Coverage pays for your damages after the other at-fault driver's coverage has been exhausted. It is protection against drivers who don't have enough liability insurance to cover your claim.

Collision Coverage pays to fix your car if it is involved in a collision with another vehicle or object.



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