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Monday, December 23, 2019

Intentionally Defective Grantor Trust


IDGT: This trust is supposed to “fail”

Trusts come in all shapes and sizes. However, from an income tax perspective, there are basically two types of trusts that are funded with assets: grantor trusts and nongrantor trusts. As the name implies, the earnings of a grantor trust are taxed directly to the grantor — the person establishing the trust — while a nongrantor trust entity pays the tax owed on the trust’s earnings.

So you might be surprised to learn about a variation that’s purposely designed to fail the grantor trust rules and result in income being taxed to the grantor. Appropriately enough, it’s called the “intentionally defective grantor trust” (IDGT).
Read more . . .


Monday, December 23, 2019

You Haven't Addressed Pets in your Estate Plan???


275 words

Estate Planning Pitfall

You haven’t addressed pets in your estate plan.....
Read more . . .


Monday, December 23, 2019

7 Deadly Estate Planning Sins


7 Deadly Estate Planning Sins

According to literature, the "seven deadly sins" are lust, gluttony, greed, laziness, wrath, envy and pride. Although individuals may be guilty of these from time to time, other types of “sins” can be fatal to an estate plan if you’re not careful. Here are seven transgressions to avoid.

Sin #1: You don’t create an estate plan. The first estate planning sin is the most basic.
Read more . . .


Monday, September 9, 2019

WHAT'S NEW WITH THE KIDDIE TAX?


WHAT'S NEW WITH THE KIDDIE TAX?

One of the outcomes of the Tax Cuts and Jobs Act is that children with unearned income may find themselves in a higher tax bracket than their parents. Under the “kiddie tax,” as it’s sometimes referred to, a child’s unearned income is taxed according to the tax brackets for trusts and estates, under which the highest tax rates kick in at far lower income levels. The result is children may now be subject to higher tax rates than their parents. The good news is that there are strategies that allow for family income shifting.

Origins of the kiddie tax

Transferring investments and other income-producing assets to your children can be an effective estate-planning technique.
Read more . . .


Monday, September 9, 2019

PUT PEN TO PAPER


PUT PEN TO PAPER

How a letter of instruction can benefit family harmony

Your will is the centerpiece of your estate plan. Typically, it’s the most important document used in estate planning and is created before any other. In addition, you should have your will periodically reviewed and updated as needed. But you can still rely on other documents to complement your will. For example, if you haven’t already done so, consider writing a “letter of instructions” to accompany your will.
Read more . . .


Monday, September 9, 2019

ESTATE PLANNING WITH A FOREIGN TWIST!


ESTATE PLANNING WITH A FOREIGN TWIST!

George is an American citizen and his wife, Sofia, is a citizen of Columbia. George and Sofia, who have two adult children and five grandchildren, need estate planning guidance. Are there any special considerations?

The short answer is “yes.” But the long view is that the couple may still be able to meet their main estate planning objectives.    

When both spouses are U.
Read more . . .


Thursday, May 16, 2019

Estate Planning Pitfall!


ESTATE PLANNING PITTFALL

The 60-day IRA rollover deadline has passed

Obviously, qualified retirement plans such as 401(k) plans and IRAs are meant to provide retirement savings. However, if you’re fortunate and don’t have to draw heavily on plan and IRA assets, if at all, you can preserve a tidy nest egg for your heirs.

In fact, if handled correctly, distributions can be stretched over the lifetimes of several generations. Thus, these vehicles become estate planning tools, as well as retirement planning tools.

As part of your planning efforts, you may transfer funds between accounts, depending on your needs and other factors.


Read more . . .


Thursday, May 16, 2019

A Crummey Trust May Sound Pretty Good!


A CRUMMEY TRUST MAY SOUND PRETTY GOOD

The Tax Cuts and Jobs Act (TCJA) has reduced estate tax concerns for many families, but estate tax liability remains a concern for some. Notably, you may implement strategies in the wake of the TCJA that are designed to reduce future exposure to federal and state estate taxes.

One such option, a Crummey trust, remains a viable option. Despite its odd-sounding name, derived from the landmark case authorizing its use, the results are anything but crummy.

“Present interest” vs.
Read more . . .


Thursday, May 16, 2019

A Second Walk Down the Aisle


A SECOND WALK DOWN THE AISLE CAN COMPLICATE ESTATE PLANNING

An estate planning rule of thumb is to review (and, if necessary, revise) your estate plan in light of major life events. Such events include a marriage, birth of a child and a divorce. A second marriage also calls for an estate plan review. You’ll want to provide for your current spouse but not inadvertently benefit your former spouse. And if you have children from each marriage, juggling their interests can be a challenge.
Read more . . .


Sunday, February 17, 2019

Estate Planning Through The Years


Estate planning through the years

Virtually everyone needs an estate plan, but this isn’t a one-size-fits-all proposition. Even though each person’s situation is unique, general guidelines can be drawn depending on the stage of life you’re currently in.

The early years

If you’ve recently embarked on a career, got married or both, now is the time to build the foundation for your estate plan. Estate planning is even more critical if you’re already married and you and your spouse have started raising a family.

Your will is at the forefront.
Read more . . .


Sunday, February 17, 2019

Estate Tax Laws Continue to Change, So Should Your Plan


   

Estate tax laws continue to change, so should your plan

The Tax Cuts and Jobs Act (TCA) doubled the federal gift and estate tax exemption amount from $5 million to $10 million, adjusted annually for inflation. Combined with the unlimited marital deduction and other estate tax provisions, including portability of the exemption, a married couple can easily shelter more than $20 million from federal estate tax.

As a result, the need to incorporate estate tax planning strategies into an overall estate plan has been eliminated for everyone other than Hollywood celebrities, professional athletes and Fortune 500 CEOs … right? Wrong. Your plan should address estate tax concerns for both today and the future.

Evolution of estate tax laws

The estate tax system has undergone a radical transformation since the turn of the century.
Read more . . .


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