The charge-out rate is and expression of fee earnings in terms of Rand per R1000. of average total package earned, calculated as follows: charge-out rate = [overhead factor x mark-up / utilisation rate] / [available hours / 1000] A summary of the hourly fee rates for consultants is set out in Annex One.
For example, someone collecting from a deceased personâs 401(k) or traditional IRA would have a deduction of the federal estate tax on that portion of the decedentâs assets, recovered over time in the year the income was received.
Estate taxes are different from and in addition to probate expenses, which can be avoided with a revocable living trust, and final income taxes, which must be paid on income you receive in the year you die. Federal estate taxes are expensive (historically, 45%-55%) and they must be paid in cash, usually within nine months after you die. Because few estates have the cash, it has often been necessary to liquidate assets to pay these taxes. But, if you plan ahead, you can reduce and even eliminate estate taxes.