Posted On: September 21st 2017
For many people today, income tax planning offers far greater tax-saving opportunities than gift and estate tax planning. A record-high gift and estate tax exemption — currently $5.49 million ($10.98 million for married couples) — means that fewer people are subject to those taxes. If gift and estate taxes aren’t a concern for your family, it can…
Learn MorePosted On: September 19th 2017
If a substantial portion of your wealth is tied up in a family or closely held business, you may be concerned that your estate will lack sufficient liquid assets to pay federal estate taxes. If that’s the case, your heirs may be forced to borrow funds or, in a worst-case scenario, sell the business in…
Learn MorePosted On: September 4th 2017
If your estate plan includes a revocable trust — also known as a “living” trust — it’s critical to ensure that the trust is properly funded. Revocable trusts offer significant benefits, including asset management (in the event you become incapacitated) and probate avoidance. However, these benefits aren’t available if you don’t fund the trust.…
Learn MorePosted On: September 1st 2017
Generally, trusts must have one or more human beneficiaries, but there’s an exception for certain “purpose” trusts. One type of purpose trust that you may be familiar with is the charitable trust. However, don’t overlook the noncharitable purpose (NCP) trust as a potential tool for achieving your estate planning goals. What is an NCP…
Learn MorePosted On: August 29th 2017
As you plan your estate, don’t overlook the generation-skipping transfer (GST) tax. Despite a generous $5.49 million GST tax exemption, complexities surrounding its allocation can create several tax traps for the unwary. GST Basics The GST tax is a flat, 40% tax on transfers to “skip persons,” including grandchildren, other family members more than a…
Learn MorePosted On: August 16th 2017
As the new school year approaches and many of our 18-year-olds are preparing for their freshman year at college, there is more to be concerned about than the perfect roommate and what backpack is in style. Consideration should be given to the Health Insurance Portability and Accountability Act (HIPAA), which states that once a child…
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Posted On: July 30th 2017
If you expect your estate to have a significant estate tax liability at your death, be sure to include a well-thought-out tax apportionment clause in your will or revocable trust. An apportionment clause specifies how the estate tax burden will be allocated among your beneficiaries. Omission of this clause, or failure to word it carefully,…
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Posted On: July 28th 2017
The IRA’s value as a retirement planning tool is well known: IRA assets compound on a tax-deferred (or, in the case of a Roth IRA, tax-free) basis, which can help build a more substantial nest egg. But if you don’t need an IRA to fund your retirement, you can use it as an estate planning…
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Posted On: July 27th 2017
For families with disabled loved ones who are potentially eligible for means-tested government benefits such as Medicaid or Supplemental Security Income (SSI), estate planning can be a challenge. On the one hand, you want to provide the most comfortable life possible for your family member. On the other hand, you don’t want to jeopardize his…
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Posted On: July 13th 2017
Last month, the IRS issued a Revenue Procedure that allows certain estates to make a late portability election without first filing a ruling request. Portability is a tax law provision that permits a surviving spouse to take advantage of the deceased spouse’s unused combined gift and estate tax exemption (currently $5.49 million). However, portability isn’t…
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