LLG Blog

Thursday, May 16, 2019

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!


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


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 . . .

Wednesday, December 12, 2018

Estate Planning Red Flag

Estate Planning Red Flag

You’re using an online form to draft your will

These days, you can do practically anything online that used to require a face-to-face contact. For example, you can buy clothing, do your banking and even download a form to write your own will. But a “do-it-yourself” will” is a risky proposition, especially if you have considerable wealth.

Even in days of yore, some people famously drafted their own wills, often with disastrous results. A will that isn’t executed properly under state law isn’t legally binding.
Read more . . .

Wednesday, December 12, 2018

Basis Consistency Rules May Come Into Play When Inheriting Property


If you’re in line to inherit property from a parent or other loved one, it’s critical to understand the basis consistency rule. The tax law provides that the income tax basis of property received from a deceased person cannot exceed the property’s fair market value (FMV) as finally determined for estate tax purposes.

Current law

The current tax law regarding the basis consistency rule, passed in 2015, prohibits beneficiaries from arguing, as they did with some success in the past, that the estate undervalued the property and, therefore, they’re entitled to claim a higher basis for income tax purposes. The higher the basis, the lower the gain on any subsequent sale of the property.

The law also requires estates to furnish information about the value of such property to the IRS and the person who inherits it.

Read more . . .

Wednesday, September 19, 2018

Securities Laws Can Derail Your Estate Plan

Securities Laws Can Derail Your Estate Plan

It’s not uncommon for high-net-worth individuals to hold their assets in trusts, family limited partnerships or charitable foundation. If the assets held in this manner include interests in hedge funds or other “unregistered” securities, it’s important to ensure that the entity is qualified to hold such investments. Exemptions under federal securities laws require that investors in private funds and other unregistered securities qualify as “accredited investors” or “qualified purchasers.”

Learn the exemptions

Generally, companies or funds that offer securities for sale are subject to burdensome (and costly) registration and reporting requirements under the Securities Act of 1933, unless they fall within one of several exemptions. Perhaps the most common exemption is Rule 506(b) of Regulation D, which exempts sales of securities to an unlimited number of accredited investors plus up to 35 nonaccredited, “sophisticated” investors.
Read more . . .

Thursday, August 16, 2018

Understanding the Tax Angles of Self-Settled Trusts



NINGs, DINGs and WINGs may sound like characters in a new Pixar animated film. In reality, they’re the names bestowed on certain self-settled trusts (sometimes referred to as nongrantor trusts) in states providing a favorable tax environment for these trusts. The acronyms stand for Nevada Incomplete-gift Nongrantor Gift (NING) trusts, Delaware Incomplete-gift Nongrantor Gift (DING) trusts and Wyoming Incomplete-gift Nongrantor Gift (WING) trusts, respectively

If you’re noticing a trend — none of these three states impose an income tax on its residents — it’s no coincidence. The use of NINGs, WINGs and DINGs is tied directly to tax savings on the state level for high-income individuals.

Current tax landscape

Despite tax cuts implemented by the Tax Cuts and Jobs Act (TCJA), effective for 2018 through 2025, high wage earners can still face a hefty income tax bill.
Read more . . .

Thursday, August 16, 2018

Who Needs an Estate Plan?


Quick answer: everyone

Despite what you might think, estate planning isn’t limited to only the rich and famous. In fact, your family is likely to benefit from a comprehensive plan that divides your wealth, protects your well-being and provides a compass for your family’s future.

Previously, avoiding or minimizing federal estate tax liability was a primary motivation for creating an estate plan. This isn’t as critical for most people now that the Tax Cuts and Jobs Act (TCJA) has doubled the federal gift and estate exemption from $5 million to $10 million, and the inflation adjusted amount for 2018 is $11.18 million.
Read more . . .

← Newer12 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Older →

Archived Posts


Littorno Law Group assists clients throughout Contra Costa County from our offices in Pittsburg, Pleasant Hill and Rancho Bernardo, California, including Antioch, Brentwood, Clayton, Concord, Lafayette, Moraga, Martinez, Danville, San Ramon, Pleasanton, Livermore, Fremont, Oakland, Piedmont, San Diego, Escondido, San Marcos, Vista, Oceanside, Carlsbad, Fallbrook, Bonsall, Encinitas, La Jolla, Poway, Rancho Bernardo, Del Mar, and the surrounding areas and suburbs.

© 2019 Littorno Law Group | Disclaimer
PITTSBURG OFFICE/MAILING: 2211 Railroad Ave, Pittsburg, CA 94565
| Phone: 800.689.4211 | 925.432.4211
PLEASANT HILL OFFICE: 3478 Buskirk Avenue, #1000, Pleasant Hill, CA 94523
| Phone: 800.689.4211 | 925.937.4211
RANCHO BERNARDO OFFICE: 16935 West Bernardo Drive, Rancho Bernardo Courtyard, #229, San Diego, CA 92127
| Phone: 800.689.4211 | 760.525.3140

Estate Planning with Revocable Living Trusts | Probate Estate Administration | Elder Law and Medi-Cal Planning | Veteran's Benefits | Prepaid Legal Plans | Advanced Estate Planning | Planning for Children | Estate Litigation | IRA Beneficiary Trusts | Littorno Law Trust Maintenance Program | Estate Tax Planning | Pet Trusts | Estate Planning/Non-Traditional Families | | Staff | Library

FacebookTwitterLinked-In Company

Attorney Website Design by
Amicus Creative

Make a Payment