Family Finance 101

After all the fun and games that come with the holidays, maybe your family is in need of some more enlightening gaming. Mogul, a new real estate board game invented by Joel Harden, CEO of HCFD Corporation, a real estate development company in Philadelphia, may be what you’re looking for.

Similar to Monopoly, Mogul has players buying properties and building on them. But the game takes the concept to the next level as it teaches players about mortgages, credit, interest rates, prenuptial agreements, taxes, due diligence, amortization, promissory notes, and title insurance. If players amass a real estate empire, they’ll also have to consider property maintenance and environmental concerns. Although the game is recommended for kids 15 and older, they’ll have to be moguls to afford it—it costs $100.

The estate tax exemption scheme set up for the next several years is anything but set in stone. The U.S. Senate and House are considering bills that could change the amount of tax your estate is subject to when you pass money on to your heirs. The federal estate tax exemption for 2008 was $2 million; for 2009, it’s $3.5 million; for 2010, there is no federal estate tax; and for 2011, it’s $1 million.

Catherine Walsh, a tax specialist with Wealth Enhancement Group in Plymouth, says, “If you had an estate of $5 million and wished to transfer it to your children, if you died on December 31, 2008, the estate tax would be $1.35 million. If, however, you died one day later on January 1, 2009, the estate tax liability would be $675,000. If you died one year later, on January 1, 2010, there would be no estate tax liability. If you died two years later on January 1, 2011, there would be a federal estate tax of over $2 million!” Talk about a rollercoaster ride.

In the spirit of the holiday season, some will write checks willy-nilly to any charity that comes knocking, sends a request in the mail, or is the pet cause of a coworker. While this is generous, how can you ensure that your money is going to a quality organization and benefiting its core cause?

The Charities Review Council, a St. Paul nonprofit dedicated to helping donors give to charities that are on the up and up, has a Web site chock full of tips and tools for educated giving (mysmartgiver.org).

The council reviews Minnesota charities and shows you whether they meet its standards for public disclosure of financial information, governance, and fundraising, among other key factors. The My Smart Giver tool lets you invite favorite charities to be publicly reviewed by the council, and track charities in specific categories, such as arts or animals. The site, also provides a guide to smart giving, information on charity standards, taxes and giving, and questions to ask before you donate to any organization.

—Katie Harholdt