Where you die matters. While you’ll pay the same federal estate tax no matter where you die, 1/3 of the states have a separate estate or inheritance tax. The most populous state, California, is the latest state to consider adding a state estate tax. Read on to learn more. When and Where You Die Matters … [Read more...]
New Estate Tax Proposal
A new estate tax proposal would lower the amount passing free from tax to $3.5 million and increase the rates of taxation. It would also eliminate some tried and true strategies for reducing estate taxation. Read on to learn more about this proposal and its prospects. New Estate Tax Proposal … [Read more...]
Grantor Trusts Provide Flexibility and Ease
A trust may be taxed as either a grantor trust or a nongrantor trust. Each type of trust has advantages and disadvantages. This article examines a grantor trust and situations in which it might be useful. Grantor Trusts Provide Flexibility and Ease … [Read more...]
Estate Planning: It’s Not Just About the Estate Taxes
The recent tax law temporarily doubled the estate tax exemption. That doesn’t mean there’s no need for estate planning. Estate plans consider many important aspects, not just estate taxes. This article examines some of the many considerations besides estate taxes. Estate Planning: It’s Not Just About the Estate Taxes … [Read more...]
Planning for the International Client
Estate planning for the international client can be tricky. This article looks at the estate tax treatment of U.S. citizens and non-resident aliens. The article then looks at an example of someone who lived in the U.S. and then departed. Planning for the International Client … [Read more...]
Tax Reform and the Estate Tax
There’s a Republican blueprint for tax reform. Learn the general provisions of the plan and the uncertainties in it. Read on to learn more. … [Read more...]
How Tax Reform Could Impact Various Families
Learn how the Republican blueprint for tax reform would impact different families from an estate planning perspective. Read on to learn more. … [Read more...]
Identify the Right Charity
When you are planning your estate you may be interested in charitable giving. This can help you to create a lasting legacy as you continue to make a difference even after you are gone in some cases. And of course, there can be tax advantages that go along with philanthropic acts as well. There are a few different ways that you can give to charities. Of course you can simply give direct gifts to charities, but this can be rather inefficient. You would be dealing with a number of different … [Read more...]
Providing for a Troubled Heir
We do not all have perfect family members with no flaws. Otherwise good people can sometimes have weaknesses that can be a source of concern when you are planning your estate. Giving someone who has a drug or alcohol problem or a demonstrated inability to handle funds a large direct inheritance could be a recipe for disaster. For a person with a substance abuse problem the inheritance could support an ongoing pattern of self destructive actions. An individual who cannot manage financial … [Read more...]
A Look at Intentionally Defective Trusts
The federal estate tax looms large for people who have been successful throughout their lives. At the current time the maximum rate of the estate tax is 40%, and the lifetime exclusion is $5.25 million. There are various different recommendations that astute estate planning lawyers can make for people who are faced with the prospect of paying the estate tax. Some types of trusts will provide tax advantages, and one of them is the intentionally defective trust. Of course the first thing that is … [Read more...]
