The document discusses opportunities for lifetime gifts under the current $5 million gift and estate tax exemption. It recommends maximizing annual exclusion gifts and direct payments of tuition and medical expenses before making taxable gifts. For those with large estates, it suggests taking advantage of the $5 million exemption by making lifetime gifts this year and next to potentially remove substantial wealth from one's estate. Credit shelter trusts also remain beneficial despite the portability provision, as portability expires after 2012 and trusts can reduce estate taxes.
The document provides guidance on developing a personal budget and financial plan, emphasizing the importance of understanding your financial profile, setting goals, tracking spending versus budgets, saving for both short and long-term needs, and preparing for major purchases and future retirement needs. It also includes tips for reducing costs like eating out less and negotiating bills, as well as recommendations to invest savings and plan for a potentially long lifespan after retirement.
The document summarizes the rules for the first-time homebuyer tax credit for home purchases between April 2008 and November 2009. It notes that the credit was originally up to $7,500 but was expanded by new legislation to up to $8,000 for homes purchased between January and November 2009, with no requirement to pay the credit back as long as the home remains the primary residence for 36 months. It also provides a table comparing the credit rules based on purchase date.
This document provides information and advice about boosting retirement savings through various tax-effective strategies. It discusses salary sacrificing to superannuation to reduce tax, making use of the government co-contribution, being aware of the concessional contributions cap, utilizing the spouse super contribution tax offset, claiming deductions for expenses, and prepaying deductible expenses before June 30. It also stresses the importance of starting to save for retirement early, provides tips for doing so, and advises checking that retirement savings are on track to be sufficient.
The section of Solutions for America discusses the President's budget, the rise of welfare and the collapse of marriage, among other things. It offers several solutions for fixing these broken institutions.
This document provides an overview of estate planning and discusses various estate planning strategies. It begins by defining what an estate is and listing common asset types. It then discusses the importance of estate planning to control who receives assets after death and to plan for incapacity. Several common estate plans are described, including doing nothing, joint tenancy, giving assets away, beneficiary transfers, and revocable living trusts. Key details are provided on wills, powers of attorney, healthcare directives, and taxes. The document encourages reviewing one's situation and assets to determine the best estate planning strategy. It emphasizes acting before the end of the year to take advantage of higher gift and estate tax exemptions before they decrease in 2013.
A non-political, mathematical dive into the U.S. Budget gave me a clearer view of a key hidden cause, and the path toward a surprisingly easy fix. Here is what I found.
Carter Family Wealth Goal Achiever - InKnowVision Advanced Estate Planning InKnowVision
Jerry and Susan Carter are both 63. They own and operate a very profitable manufacturing business in a small town. Jerry and Susan spend about $650,000 a year, giving generously to family ($200,000/yr.) and their favorite charitable causes ($150,000/yr.). Although the business provides significant taxable income of over $5M a year, Jerry and Susan have been re-investing excess cash back into the business to keep it thriving through the latest recession. With assets totaling over $60M, a growing business and an income tax bill surpassing $2M/yr., their estate tax and income tax exposure is quickly increasing.
Learn more at www.inknowvision.com
The document discusses five hot topics for 2011, including reforms to strengthen the Social Security system, changes to the federal estate tax, new adoption tax credits and reimbursement amounts, buying a condo for a college student, and microlending. It provides background on each topic, noting that Social Security reform and the estate tax will be debated as the funding shortfalls approach. Advice from Bennett Gordon is also offered on whether buying a condo for a college student makes financial sense.
The document provides guidance on developing a personal budget and financial plan, emphasizing the importance of understanding your financial profile, setting goals, tracking spending versus budgets, saving for both short and long-term needs, and preparing for major purchases and future retirement needs. It also includes tips for reducing costs like eating out less and negotiating bills, as well as recommendations to invest savings and plan for a potentially long lifespan after retirement.
The document summarizes the rules for the first-time homebuyer tax credit for home purchases between April 2008 and November 2009. It notes that the credit was originally up to $7,500 but was expanded by new legislation to up to $8,000 for homes purchased between January and November 2009, with no requirement to pay the credit back as long as the home remains the primary residence for 36 months. It also provides a table comparing the credit rules based on purchase date.
This document provides information and advice about boosting retirement savings through various tax-effective strategies. It discusses salary sacrificing to superannuation to reduce tax, making use of the government co-contribution, being aware of the concessional contributions cap, utilizing the spouse super contribution tax offset, claiming deductions for expenses, and prepaying deductible expenses before June 30. It also stresses the importance of starting to save for retirement early, provides tips for doing so, and advises checking that retirement savings are on track to be sufficient.
The section of Solutions for America discusses the President's budget, the rise of welfare and the collapse of marriage, among other things. It offers several solutions for fixing these broken institutions.
This document provides an overview of estate planning and discusses various estate planning strategies. It begins by defining what an estate is and listing common asset types. It then discusses the importance of estate planning to control who receives assets after death and to plan for incapacity. Several common estate plans are described, including doing nothing, joint tenancy, giving assets away, beneficiary transfers, and revocable living trusts. Key details are provided on wills, powers of attorney, healthcare directives, and taxes. The document encourages reviewing one's situation and assets to determine the best estate planning strategy. It emphasizes acting before the end of the year to take advantage of higher gift and estate tax exemptions before they decrease in 2013.
A non-political, mathematical dive into the U.S. Budget gave me a clearer view of a key hidden cause, and the path toward a surprisingly easy fix. Here is what I found.
Carter Family Wealth Goal Achiever - InKnowVision Advanced Estate Planning InKnowVision
Jerry and Susan Carter are both 63. They own and operate a very profitable manufacturing business in a small town. Jerry and Susan spend about $650,000 a year, giving generously to family ($200,000/yr.) and their favorite charitable causes ($150,000/yr.). Although the business provides significant taxable income of over $5M a year, Jerry and Susan have been re-investing excess cash back into the business to keep it thriving through the latest recession. With assets totaling over $60M, a growing business and an income tax bill surpassing $2M/yr., their estate tax and income tax exposure is quickly increasing.
Learn more at www.inknowvision.com
The document discusses five hot topics for 2011, including reforms to strengthen the Social Security system, changes to the federal estate tax, new adoption tax credits and reimbursement amounts, buying a condo for a college student, and microlending. It provides background on each topic, noting that Social Security reform and the estate tax will be debated as the funding shortfalls approach. Advice from Bennett Gordon is also offered on whether buying a condo for a college student makes financial sense.
Status of Estate and Gift Tax Law as of Jan 2010; planning opportunities in 2010; cautions and traps if retroactive estate tax passed in 2010; planning for 2011.
This summary provides the key information from the document in 3 sentences:
The document discusses recent changes to estate planning laws, including the extension of certain expiring tax provisions and the new Achieving a Better Life Experience (ABLE) Act, which allows tax-free savings accounts to support disabled individuals. It outlines the key aspects of ABLE programs and accounts, including eligibility, contribution limits, tax treatment, and potential "clawback" of funds by states. The document also briefly summarizes two estate tax court cases related to reliance on an incompetent attorney and valuation of a partnership interest.
BancorpSouth presented an investor presentation in November 2011. The presentation provided an overview of BancorpSouth, including its $13.2 billion in assets and presence across an 8-state region. It also summarized recent operating results, showing stable pre-tax, pre-provision earnings. Furthermore, the presentation highlighted BancorpSouth's diversified revenue stream, with over 35% of revenue historically coming from noninterest sources such as insurance commissions, mortgage lending, and card/merchant fees.
Summary Of The American Recovery And Reinvestment Act Of 2009Charles Knox
The American Recovery and Reinvestment Act of 2009 provided $787 billion in tax breaks, investments in healthcare and energy, funding for infrastructure projects, and expanded unemployment benefits. Specifically, it offered individual tax relief through credits and deductions such as the Making Work Pay tax credit, increased earned income tax credit, and expanded first-time homebuyer tax credit. It also provided assistance to the unemployed through an extension of unemployment benefits and COBRA health insurance. The legislation aimed to stimulate the economy through these various tax cuts and spending measures.
This document provides tips for creating a budget and achieving financial freedom. It recommends making a list of all expenses, categorizing them as fixed, irregular or discretionary, and totaling expenses against income to identify areas to cut spending. It also advises setting up automatic savings transfers, waiting 24 hours before impulse purchases, paying off high-interest credit cards first by making larger payments on those while paying minimums on others, and applying the debt payments to monthly savings once cards are eliminated.
The document provides an update on estate planning topics including proposed changes to inheritance of retirement plan benefits, the Uniform Trust Code in Minnesota, portability, proposed federal legislation for fiscal year 2012, drafting for the qualified small business deduction, and planning for income tax basis step-up in bypass trusts. Key points covered include possible changes to required minimum distributions for inherited retirement plans, the requirements and advantages of portability, and new rules for the Minnesota qualified small business property deduction.
- Public contractors in New Jersey reported making $7.6 million in political contributions in 2012, a 23% drop from 2011. This is the second largest year-to-year decrease since records began being kept.
- Contributions to PACs dropped 41% from 2011 to 2012, likely due to increased scrutiny of PACs tied to party officials. Some contractors also stopped giving contributions entirely to avoid risks of violating pay-to-play rules.
- While contributions decreased, the total value of public contracts awarded increased 7% to $5.7 billion in 2012. However, the number of individual contracts awarded decreased 15% over the same period.
The document discusses how 2017 may bring significant changes to estate planning law due to potential tax law changes under the new Trump administration and Republican legislature. It suggests that changes like cancelling the federal estate tax and decreasing income and capital gains taxes are possible. This would likely lead to increased scrutiny of Medicaid planning transfers and changes to the stepped-up basis rule. The summary also notes that while trusts will still be important for protecting assets from creditors, divorces, and ensuring qualification for government assistance, estate attorneys will continue to have relevance beyond estate tax planning.
"The American Taxpayer Relief Act of 2012 - A Result of the 'Fiscal Cliff,'...Dinsmore & Shohl LLP
The document summarizes key provisions of the American Taxpayer Relief Act of 2012 related to income tax. It discusses changes to individual income tax rates, capital gains rates, the alternative minimum tax exemption amounts, and other individual tax provisions. For businesses, it outlines changes to Section 179 expensing limits, bonus depreciation, and other deductions. The summary also notes some provisions that were not extended, such as the phase-out of certain itemized deductions.
The National Association of Realtors (NAR) provides comments in response to the Department of Energy's (DOE) proposed National Energy Rating Program for Homes. NAR supports providing homeowners with information to improve energy efficiency but has several concerns. NAR is concerned that the proposal did not address using home sales to mandate energy labeling, which NAR opposes. NAR also questions the reliability and accuracy of home energy rating systems. NAR believes the most effective approach is providing financial incentives to encourage voluntary energy improvements rather than mandatory labeling.
The document discusses the costs and benefits of different types of health insurance plans. It notes that in 2011, average family health insurance premiums exceeded $15,000 while out-of-pocket medical expenses averaged only $2,500. This makes premiums much higher than actual benefits used. The document then compares plans with low versus high deductibles and notes that high-deductible plans have lower premiums but greater potential costs if an expensive medical event occurs. It suggests pairing a major medical plan with additional accident and critical illness coverage to provide benefits and reduce costs.
The client wishes to convert $10 million in business assets into an income-producing plan that provides for family and charity after their death while avoiding taxes. The assistant recommends establishing a Charitable Remainder Trust (CRT) and private foundation to generate income and pass assets down according to the client's wishes, as well as an Irrevocable Life Insurance Trust (ILIT) to avoid estate taxes and ensure a tax-free inheritance for heirs.
The document provides an overview of tax rates, rules, and strategies for the 2009 tax year. Some key points:
1) Tax rates for ordinary income range from 10-35% based on income levels. However, additional hidden taxes can drive effective rates higher.
2) Personal exemptions and many itemized deductions phase out for higher income individuals, increasing their tax burden.
3) The document outlines several tax law changes from stimulus bills passed in 2009, including enhanced education credits, home improvement credits, and sales tax deductions for car purchases.
4) It also notes suspension of required minimum distributions from retirement accounts for 2009 due to market losses and options for business owners from net operating loss carrybacks.
The document summarizes updates related to Florida's affordable housing programs in the first quarter of 2015. It discusses the expansion of eligibility criteria for the Florida Hardest Hit Fund unemployment programs to help more homeowners receive financial assistance. It also provides details on groundbreakings for new affordable housing developments in Florida and training events for realtors on Florida Housing's homeownership programs. Program updates are given for the rental, State Housing Initiatives Partnership, and Foreclosure Counseling programs.
This document provides information about developing financial skills. It discusses creating a budget to identify income and expenses. Key parts of a budget include fixed expenses, variable expenses, and paying yourself first by including savings as an expense. The document also discusses the power of compound interest in savings and how small increases in savings amounts or interest rates can significantly impact the total savings over time.
The document provides 30 key points summarizing changes to the new US tax law. Some major changes include doubling the standard deduction, increasing the child tax credit, capping the state and local tax deduction at $10,000, lowering the corporate tax rate to 21%, and eliminating some itemized deductions for moving expenses, tax preparation, and alimony payments. The new law also expands tax breaks for education expenses and increases exemption amounts for the alternative minimum tax and estate tax.
Estate management is about preserving the assets you’ve spent a lifetime building. It’s about protecting your spouse, children, or other heirs, and ensuring that your assets are distributed how and when you want them to be. Finally, estate management is about managing the amount of estate taxes that may be due after your death. There are some fundamental estate management principles that can enable you to manage your financial and personal affairs during your lifetime and distribute your wealth after death.
This document is from Mike Adams, an attorney at Williams, McDaniel, Wolfe, and Womack law firm in Memphis, TN. It discusses estate planning strategies like wills, trusts, life insurance beneficiary designations, and asset protection. It notes that estate taxes can be avoided by proper planning and coordinating assets between a will and other documents. The document also highlights changes to Tennessee and federal estate tax laws and how to modify plans accordingly.
This document is a newsletter from Cedar Point Financial Services that discusses estate planning and retirement planning topics. It provides key retirement and tax numbers for 2019 that were adjusted for inflation. It also discusses famous celebrities like Aretha Franklin, Prince, Pablo Picasso, and Howard Hughes who died without wills or estate plans, leading to lengthy and costly legal battles over their estates. The newsletter recommends taking the time to create an estate plan to avoid similar issues and outlines some tips for planning a career change, including doing research, protecting retirement savings, getting advice, and considering additional education.
This document summarizes a presentation on estate planning for farm families given at a women managing the farm conference. It discusses how estate planning laws and strategies have changed significantly in recent years due to increases in the federal estate and gift tax exemption thresholds. Specifically, it notes that with the current thresholds, over 99% of Americans do not need to worry about estate or gift taxes. As a result, the focus of estate planning has shifted from tax avoidance to non-tax related goals like retirement planning, incapacity planning, and facilitating intergenerational transfer of assets. It also discusses strategies for addressing income tax issues like capital gains tax on assets with low cost basis.
The document summarizes key changes to estate planning under the American Taxpayer Relief Act of 2012, including an increased estate tax rate of 40% and applicable exclusion amount of $5,250,000. It warns that while fewer estates will face federal taxes, state estate taxes may still apply without planning. Portability allows spouses to maximize exclusions without trusts but has limitations. Income and capital gains tax planning is also important for trusts given higher tax rates. Charitable remainder trusts can help mitigate these taxes.
Status of Estate and Gift Tax Law as of Jan 2010; planning opportunities in 2010; cautions and traps if retroactive estate tax passed in 2010; planning for 2011.
This summary provides the key information from the document in 3 sentences:
The document discusses recent changes to estate planning laws, including the extension of certain expiring tax provisions and the new Achieving a Better Life Experience (ABLE) Act, which allows tax-free savings accounts to support disabled individuals. It outlines the key aspects of ABLE programs and accounts, including eligibility, contribution limits, tax treatment, and potential "clawback" of funds by states. The document also briefly summarizes two estate tax court cases related to reliance on an incompetent attorney and valuation of a partnership interest.
BancorpSouth presented an investor presentation in November 2011. The presentation provided an overview of BancorpSouth, including its $13.2 billion in assets and presence across an 8-state region. It also summarized recent operating results, showing stable pre-tax, pre-provision earnings. Furthermore, the presentation highlighted BancorpSouth's diversified revenue stream, with over 35% of revenue historically coming from noninterest sources such as insurance commissions, mortgage lending, and card/merchant fees.
Summary Of The American Recovery And Reinvestment Act Of 2009Charles Knox
The American Recovery and Reinvestment Act of 2009 provided $787 billion in tax breaks, investments in healthcare and energy, funding for infrastructure projects, and expanded unemployment benefits. Specifically, it offered individual tax relief through credits and deductions such as the Making Work Pay tax credit, increased earned income tax credit, and expanded first-time homebuyer tax credit. It also provided assistance to the unemployed through an extension of unemployment benefits and COBRA health insurance. The legislation aimed to stimulate the economy through these various tax cuts and spending measures.
This document provides tips for creating a budget and achieving financial freedom. It recommends making a list of all expenses, categorizing them as fixed, irregular or discretionary, and totaling expenses against income to identify areas to cut spending. It also advises setting up automatic savings transfers, waiting 24 hours before impulse purchases, paying off high-interest credit cards first by making larger payments on those while paying minimums on others, and applying the debt payments to monthly savings once cards are eliminated.
The document provides an update on estate planning topics including proposed changes to inheritance of retirement plan benefits, the Uniform Trust Code in Minnesota, portability, proposed federal legislation for fiscal year 2012, drafting for the qualified small business deduction, and planning for income tax basis step-up in bypass trusts. Key points covered include possible changes to required minimum distributions for inherited retirement plans, the requirements and advantages of portability, and new rules for the Minnesota qualified small business property deduction.
- Public contractors in New Jersey reported making $7.6 million in political contributions in 2012, a 23% drop from 2011. This is the second largest year-to-year decrease since records began being kept.
- Contributions to PACs dropped 41% from 2011 to 2012, likely due to increased scrutiny of PACs tied to party officials. Some contractors also stopped giving contributions entirely to avoid risks of violating pay-to-play rules.
- While contributions decreased, the total value of public contracts awarded increased 7% to $5.7 billion in 2012. However, the number of individual contracts awarded decreased 15% over the same period.
The document discusses how 2017 may bring significant changes to estate planning law due to potential tax law changes under the new Trump administration and Republican legislature. It suggests that changes like cancelling the federal estate tax and decreasing income and capital gains taxes are possible. This would likely lead to increased scrutiny of Medicaid planning transfers and changes to the stepped-up basis rule. The summary also notes that while trusts will still be important for protecting assets from creditors, divorces, and ensuring qualification for government assistance, estate attorneys will continue to have relevance beyond estate tax planning.
"The American Taxpayer Relief Act of 2012 - A Result of the 'Fiscal Cliff,'...Dinsmore & Shohl LLP
The document summarizes key provisions of the American Taxpayer Relief Act of 2012 related to income tax. It discusses changes to individual income tax rates, capital gains rates, the alternative minimum tax exemption amounts, and other individual tax provisions. For businesses, it outlines changes to Section 179 expensing limits, bonus depreciation, and other deductions. The summary also notes some provisions that were not extended, such as the phase-out of certain itemized deductions.
The National Association of Realtors (NAR) provides comments in response to the Department of Energy's (DOE) proposed National Energy Rating Program for Homes. NAR supports providing homeowners with information to improve energy efficiency but has several concerns. NAR is concerned that the proposal did not address using home sales to mandate energy labeling, which NAR opposes. NAR also questions the reliability and accuracy of home energy rating systems. NAR believes the most effective approach is providing financial incentives to encourage voluntary energy improvements rather than mandatory labeling.
The document discusses the costs and benefits of different types of health insurance plans. It notes that in 2011, average family health insurance premiums exceeded $15,000 while out-of-pocket medical expenses averaged only $2,500. This makes premiums much higher than actual benefits used. The document then compares plans with low versus high deductibles and notes that high-deductible plans have lower premiums but greater potential costs if an expensive medical event occurs. It suggests pairing a major medical plan with additional accident and critical illness coverage to provide benefits and reduce costs.
The client wishes to convert $10 million in business assets into an income-producing plan that provides for family and charity after their death while avoiding taxes. The assistant recommends establishing a Charitable Remainder Trust (CRT) and private foundation to generate income and pass assets down according to the client's wishes, as well as an Irrevocable Life Insurance Trust (ILIT) to avoid estate taxes and ensure a tax-free inheritance for heirs.
The document provides an overview of tax rates, rules, and strategies for the 2009 tax year. Some key points:
1) Tax rates for ordinary income range from 10-35% based on income levels. However, additional hidden taxes can drive effective rates higher.
2) Personal exemptions and many itemized deductions phase out for higher income individuals, increasing their tax burden.
3) The document outlines several tax law changes from stimulus bills passed in 2009, including enhanced education credits, home improvement credits, and sales tax deductions for car purchases.
4) It also notes suspension of required minimum distributions from retirement accounts for 2009 due to market losses and options for business owners from net operating loss carrybacks.
The document summarizes updates related to Florida's affordable housing programs in the first quarter of 2015. It discusses the expansion of eligibility criteria for the Florida Hardest Hit Fund unemployment programs to help more homeowners receive financial assistance. It also provides details on groundbreakings for new affordable housing developments in Florida and training events for realtors on Florida Housing's homeownership programs. Program updates are given for the rental, State Housing Initiatives Partnership, and Foreclosure Counseling programs.
This document provides information about developing financial skills. It discusses creating a budget to identify income and expenses. Key parts of a budget include fixed expenses, variable expenses, and paying yourself first by including savings as an expense. The document also discusses the power of compound interest in savings and how small increases in savings amounts or interest rates can significantly impact the total savings over time.
The document provides 30 key points summarizing changes to the new US tax law. Some major changes include doubling the standard deduction, increasing the child tax credit, capping the state and local tax deduction at $10,000, lowering the corporate tax rate to 21%, and eliminating some itemized deductions for moving expenses, tax preparation, and alimony payments. The new law also expands tax breaks for education expenses and increases exemption amounts for the alternative minimum tax and estate tax.
Estate management is about preserving the assets you’ve spent a lifetime building. It’s about protecting your spouse, children, or other heirs, and ensuring that your assets are distributed how and when you want them to be. Finally, estate management is about managing the amount of estate taxes that may be due after your death. There are some fundamental estate management principles that can enable you to manage your financial and personal affairs during your lifetime and distribute your wealth after death.
This document is from Mike Adams, an attorney at Williams, McDaniel, Wolfe, and Womack law firm in Memphis, TN. It discusses estate planning strategies like wills, trusts, life insurance beneficiary designations, and asset protection. It notes that estate taxes can be avoided by proper planning and coordinating assets between a will and other documents. The document also highlights changes to Tennessee and federal estate tax laws and how to modify plans accordingly.
This document is a newsletter from Cedar Point Financial Services that discusses estate planning and retirement planning topics. It provides key retirement and tax numbers for 2019 that were adjusted for inflation. It also discusses famous celebrities like Aretha Franklin, Prince, Pablo Picasso, and Howard Hughes who died without wills or estate plans, leading to lengthy and costly legal battles over their estates. The newsletter recommends taking the time to create an estate plan to avoid similar issues and outlines some tips for planning a career change, including doing research, protecting retirement savings, getting advice, and considering additional education.
This document summarizes a presentation on estate planning for farm families given at a women managing the farm conference. It discusses how estate planning laws and strategies have changed significantly in recent years due to increases in the federal estate and gift tax exemption thresholds. Specifically, it notes that with the current thresholds, over 99% of Americans do not need to worry about estate or gift taxes. As a result, the focus of estate planning has shifted from tax avoidance to non-tax related goals like retirement planning, incapacity planning, and facilitating intergenerational transfer of assets. It also discusses strategies for addressing income tax issues like capital gains tax on assets with low cost basis.
The document summarizes key changes to estate planning under the American Taxpayer Relief Act of 2012, including an increased estate tax rate of 40% and applicable exclusion amount of $5,250,000. It warns that while fewer estates will face federal taxes, state estate taxes may still apply without planning. Portability allows spouses to maximize exclusions without trusts but has limitations. Income and capital gains tax planning is also important for trusts given higher tax rates. Charitable remainder trusts can help mitigate these taxes.
Helping You Avoid IRA Distribution Mistakesfreddysaamy
http://ekinsurance.com/financial/what-are-ira-distributions/
You own two pots of money: The money that has already been taxed (let's call it "regular money") and the money that has not been taxed (let's call this "retirement money" such as IRA, 401k, 403b, etc.).
The document discusses the 2010 Tax Relief Act and its implications for estate planning. It provides a brief history of estate tax laws and exemptions. Under the 2010 Act, the estate tax rate is 35% and the exemption is $5 million for 2010-2012. For those who died in 2010, their estate can elect to avoid estate tax and use carryover basis instead. The Act also introduces portability of the estate tax exemption between spouses for 2011-2012. Given the uncertainty beyond 2012, estate plans may need revising to address changing tax laws.
This document summarizes a presentation on gift, estate, and trust (GET) planning products and services. It outlines the objectives of an effective GET plan, which are to allow control of assets while alive, provide care for loved ones, and distribute assets to beneficiaries as desired. It also discusses the basic components of a plan, including trusts, wills, and powers of attorney. Additionally, it covers estate tax exemptions and rates over time, strategies for effective use of exemptions, and reasons why plans need to be reviewed in light of changing laws. The overall message is that proper planning is important for peace of mind and tax savings.
This document discusses planning for health care costs in retirement. It outlines that retirees need significant savings to cover health care expenses - $116,000 for men and $131,000 for women is recommended. Health care costs can be divided into recurring costs like doctor visits and prescription drugs, which average $1,885 annually, and non-recurring costs like hospital stays that increase with age. Proper retirement planning requires considering total expected costs like health premiums, taxes, and debt payments in addition to direct health care expenses.
Tax-Free Charitable Contributions from IRAs Extendedhenryliao83
This document summarizes rules for tax-free charitable contributions from IRAs (QCDs) for 2011. Key points:
- Taxpayers age 701⁄2 or older can exclude up to $100,000 of distributions made directly from their IRA to qualified charities.
- These QCDs count toward required minimum distributions for the year but distributions later donated do not qualify.
- QCDs allow taxpayers to transfer wealth to charity in a tax-efficient manner without itemizing deductions.
This document discusses estate planning and inheritance tax. It provides information on:
1) Estate planning can help family receive more of an estate by reducing inheritance tax liability, which requires careful planning.
2) Key considerations for estate planning include deciding who will benefit from the estate, if children will share equally, and if trusts or other arrangements are needed.
3) The document reviews various exemptions and reliefs from inheritance tax, such as the nil-rate band and transfers between spouses. Professional advice is recommended for complex situations.
Plummer Parsons Chartered Accountants Series 16 Safeguarding Your Estatenevillebeckhurst
The document provides information about estate planning and minimizing inheritance tax liability. It discusses:
1) Estate planning ensures family receives more of the estate by reducing estate taxes. Careful planning is needed due to tax implications.
2) Key exemptions and reliefs include the nil-rate band, annual gift exemption, gifts between spouses, gifts to charities, and agricultural/business property relief.
3) Estate planning questions to consider include ensuring plans reflect wishes, locating records, assessing financial objectives, and addressing business succession planning.
This newsletter from Cedar Point Financial Services provides information on estate planning, retirement strategies, taxes, and disability insurance. The main article discusses the various purposes that wills can serve, such as distributing property after death, nominating guardians for minor children, nominating an executor, specifying how to pay taxes and expenses, and creating trusts. Other sections provide tips for year-end tax planning, summarize myths about group disability insurance, and ask how much should be borrowed for college.
- The document discusses key considerations for income tax planning in 2011. Tax rates and brackets will remain the same as 2010 through 2012. The alternative minimum tax exemption amounts are known for 2011 but uncertain for 2012.
- There is a temporary 2% reduction in Social Security payroll taxes for employees and self-employed individuals in 2011 only.
- 2011 is the last year individuals over 70.5 can exclude qualified charitable distributions from IRAs from income. Bonus depreciation and Section 179 expensing amounts phase down after 2011.
Gregory McCracken provides a 3-page document about avoiding mistakes with IRA distributions. It discusses spending regular, non-retirement money first to benefit from tax deferral of retirement accounts. It provides a hypothetical example showing you would have $150,000 more after 20 years by spending regular money first. It also discusses risks of beneficiaries withdrawing lump sums and losing tax benefits, and using trusts or wills to ensure wishes are followed.
Top 10 charitable planning strategies for financial advisorsRussell James
1. Donating appreciated assets like stock instead of cash to charity allows donors to avoid capital gains taxes while still receiving a charitable deduction for the full fair market value.
2. Taking required minimum distributions from retirement accounts after age 70 1/2 and donating them to charity provides tax benefits as the distributions are not considered taxable income.
3. Creating charitable remainder trusts allows donors to receive an immediate income tax deduction today based on the future value of the charitable gift, even though the charity does not receive the assets until later.
This document discusses opportunities for gift and estate planning in 2012 given that beneficial estate and gift tax provisions are set to expire on January 1, 2013. It notes that the lifetime gift/estate and GST tax exemptions will decrease substantially, as will the tax rate, unless action is taken. It recommends making gifts now to take advantage of the higher $5.12M exemptions and lower 35% tax rate before they expire. Specific techniques discussed include outright gifts, trusts, GRATs, QPRTs, life insurance trusts, and sales to intentionally defective grantor trusts.
The document summarizes changes to itemized deductions for 2018, including:
- The medical expense deduction threshold decreased to 7.5% of AGI from 10%
- State/local income tax deductions are now capped at $10,000
- Mortgage interest deductions are capped at interest from loans of up to $750,000
It then provides suggestions for taxpayers to potentially make up for lost deductions, such as increasing medical premiums, using a health savings account, taking a portion of mortgage interest as a home office deduction, and itemizing every other year by pushing expenses between years.
Time Running Out for Large Gifts in 2012Jeff Green
Currently, the exemptions for federal gift tax, estate tax, and generation-skipping transfer (GST) tax are at historic highs, and the gift, estate, and GST tax rates are at historic lows. But, in 2013, the exemptions are scheduled to substantially decrease, and the tax rates are scheduled to substantially increase. This raises the question of whether 2012 might be a good time to make large gifts that take advantage of the current large exemptions while they are still available.
Estate Planning For The Business Owner Updated 1 5 2011 For 2010 Tax ActDeborahPechetQuinan
1) The document provides an overview of estate planning strategies for business owners, including minimizing estate taxes through techniques like valuation discounts, grantor retained annuity trusts, and generation-skipping trusts.
2) It discusses how these strategies can help business owners transfer their business interests to future generations while reducing tax liability.
3) Examples are given showing how techniques like valuation discounts and GRATs allow business interests to be transferred to children at discounted values, reducing total estate taxes.
This document provides an overview of inheritance tax planning in the UK. It discusses how inheritance tax affects not just the very rich but also moderate wealth families due to rising property prices. Effective estate planning balances access to assets while alive with tax savings after death using structures like trusts. Tools for reducing a potential inheritance tax bill include making a will, making annual exempt gifts, giving larger gifts like help with property purchases, and putting assets in trusts. The document provides guidance on inheritance tax obligations based on marital status and outlines some key trust solutions.
Capital gains and losses refer to profits and losses from the sale of capital assets like stocks, bonds, property. When capital assets are sold, the difference between the purchase and selling price is the capital gain or loss. These gains and losses affect income taxes, with long term capital gains taxed at lower rates than ordinary income. There are several ways to reduce capital gains taxes, such as purchasing another home within two years of selling an existing one, or deducting capital losses from income up to $3,000 per year. Inherited or gifted property can also result in capital gains or losses depending on value changes. Due to complexity, consulting an accountant is recommended to understand personal capital gains and losses situations.
Without clients, the firm would not exist. The firm focuses on understanding and meeting each client's unique needs and business objectives to ensure their success in the courtroom or marketplace. The firm provides services across multiple industries to help clients achieve their goals.
The document summarizes several estate planning techniques and strategies:
1) It discusses the use of self-canceling installment notes (SCINs) to transfer property to family members in exchange for an installment note that is canceled if the owner dies before full payment. SCINs can transfer future appreciation tax-free if structured properly.
2) It describes how conservation easements can provide estate tax benefits while allowing continued property ownership, but warns they require careful drafting to avoid IRS challenges.
3) It cautions that fraudulent transfer laws allow creditors to challenge gifts, trusts and other strategies if used to hinder creditors, requiring analysis of one's solvency before substantial transfers.
This document summarizes recent court rulings related to Chapter 15 of the U.S. Bankruptcy Code, which governs international insolvency proceedings. The rulings indicate that foreign debtors filing for Chapter 15 can now pursue legal actions against U.S. companies. Specifically, the Condor Insurance ruling determined that foreign debtors could use avoidance laws from their home jurisdiction to recover transferred assets in a U.S. Chapter 15 case. Additionally, the Fairfield Sentry ruling established that Chapter 15 provides foreign debtors a two-year extension to investigate and file claims, like what is available to domestic debtors under Chapter 11. As a result of these rulings, foreign companies facing insolvency are able to more
American Airlines filed for Chapter 11 bankruptcy protection in November 2011 in order to reduce its operating costs by $2 billion per year, primarily by terminating its underfunded pension plans. However, the Pension Benefit Guaranty Corporation opposes the pension termination and will backstop the plans, increasing its own $23 billion deficit. Creditors now want American Airlines to explore a merger, though no ideal partners have emerged. The outcome of American Airlines' bankruptcy and whether it remains independent or consolidates will be determined in bankruptcy court over the next year and have significant impacts on the airline industry.
Shumaker provides legal services for international corporate and commercial matters. It has experience advising clients on global mergers and acquisitions, securities offerings, corporate governance and international trade. The firm also assists with international tax planning, anti-trust issues, intellectual property protection and dispute resolution, offering multi-jurisdictional expertise on international litigation and arbitration. Shumaker aims to understand its clients' businesses and goals in order to effectively structure cross-border transactions and address legal needs globally.
The document discusses the legal theory of "deepening insolvency" which allows creditors to sue a company's officers and directors when their actions prolong the insolvency and increase debt. It summarizes a recent court case, In re Lemington Home for the Aged, where the Third Circuit Court of Appeals recognized "deepening insolvency" as a valid legal claim under Pennsylvania law. The court found that the officers and directors of Lemington Home failed to act with reasonable care and diligence, deepening the insolvency, and allowed the creditors' claims against them to proceed to trial. The ruling provides an opportunity for creditors to recover from officers and directors when their actions expand debt and prolong the insolvency
Five partners from the law firm Shumaker, Loop & Kendrick, LLP were named 2012 North Carolina Super Lawyers for their expertise in various legal fields including bankruptcy, business litigation, personal injury defense, employment law, and construction litigation. The Super Lawyers selection process involves peer nominations, research, and review to identify the top 5% of lawyers in North Carolina. Three additional partners from the firm were also recognized as North Carolina Rising Stars for their work in construction litigation, business law, and personal injury defense.
The document discusses an environmental enforcement case before the Supreme Court of Ohio regarding whether a single failed emissions test establishes a presumption of continuing violations. It argues that (1) the state bears the initial burden of proving each violation, including proving that a violation continued beyond the initial failed test; (2) a failed test only satisfies the first part of proving an initial violation, and the state must provide additional evidence that the violation likely continued; and (3) if a failed test alone established a presumption of continuing violations, it would improperly relieve the state of fully proving its case and subject defendants to excessive penalties without sufficient evidence.
This document discusses current topics in mergers and acquisitions (M&A). It notes that while M&A activity has increased since 2009, significant financial uncertainties remain. As a result, M&A deals face risks related to financing, economic downturns, buyer's remorse, and undisclosed issues. The document highlights five topics for buyers and sellers to consider: the importance of confidentiality agreements; bridging differences between purchase price and company value through earnouts; hedging deals through holdbacks; employment issues during acquisitions; and compliance with foreign anti-bribery laws.
Ethics and Professionalism: How Do We Know?mcarruthers
This document discusses factors for plan sponsors to consider when assembling and monitoring an investment team for a qualified retirement plan. It notes that while licenses and designations can provide some assurance, the key question is whether the advisor operates under a fiduciary standard, legally obligating them to act in the best interests of the plan and participants. The document outlines some common licenses and designations in the financial industry and notes that obtaining ASPPA's Qualified Plan Financial Consultant credential indicates expertise in qualified retirement plans specifically.
This document is from a law firm promoting their services across various practice areas such as bankruptcy, mergers and acquisitions, construction law, corporate law, financial services, global transactions, energy and environmental law, health law, intellectual property, business litigation, and estate planning. It states that success in business relationships is all about chemistry, and the firm realizes the importance of building chemistry with their clients to best serve their legal needs.
This document summarizes the importance of trademark protection and registration. It notes that intellectual property theft costs businesses $250 billion annually. While some protection comes from using a mark, registering it federally or at the state level provides broader legal protection. To protect a mark, businesses should monitor for improper uses, pursue true infringers, and maintain registration through continued use and renewal filings every 5-10 years. As a business and its marks evolve, new registrations may be needed to protect modified versions. Proper trademark protection and enforcement helps preserve a business's identity and assets.
The document discusses strategies for leveraging the generation-skipping transfer (GST) tax exemption to maximize wealth transfer to future generations. It explains that the current GST exemption is $5 million per person but will drop to $1 million in 2013 unless legislation is passed. Examples are given showing how allocating the exemption to direct skips and trusts can shield transfers from GST tax. Careful allocation of the exemption is advised to produce the greatest tax savings.
The document discusses estate planning strategies for leveraging the current $5 million generation-skipping transfer (GST) tax exemption. It explains how allocating the exemption to trusts can shield future growth from GST taxes. It also emphasizes that estate planning involves more than just taxes, as critical non-tax issues include appointing guardians, avoiding probate, protecting assets, and planning for incapacity. Spendthrift provisions are recommended to safeguard inheritances from creditors.
July 2011 Health Newsletter Summer Healthmcarruthers
This article provides tips for staying healthy and safe when exercising or spending time outdoors in the summer heat. It discusses recognizing and preventing heat-related illnesses like heat exhaustion and heat stroke. Key points include drinking plenty of water, wearing loose fitting lightweight clothes, limiting time in the sun between 10am-4pm, and knowing the signs of heat illness like dizziness and nausea. It also provides guidance for protecting children from sun exposure and heat, like keeping infants covered and in shade, having kids drink water regularly during play, and watching for dehydration.
The document summarizes a 2011 bankruptcy court ruling regarding whether a private stock sale transaction could be avoided under bankruptcy code. The court ruled that Section 546(e) protections for stock transactions did not apply to private sales. This contrasts with a 2008 Delaware ruling that did apply the protections to a private sale. The outcome creates uncertainty and incentives for forum shopping in similar future cases.
May 2011 Newsletter Mexican Companies Cross The U S Bordermcarruthers
Two Mexican companies, Vitro SAB and Satmex, used U.S. bankruptcy laws to restructure their debts. Vitro filed for bankruptcy in Mexico and then filed for Chapter 15 bankruptcy in the U.S. to stay litigation. Satmex filed two Chapter 11 bankruptcies in the U.S. directly. Both companies needed access to U.S. bankruptcy courts but chose different routes, with Vitro using Mexico as the main proceeding and Satmex choosing the U.S. The cases demonstrate how global companies can use voluntary and involuntary filings across multiple jurisdictions as part of their restructuring strategies.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...mayaclinic18
Whatsapp (+971581248768) Buy Abortion Pills In Dubai/ Qatar/Kuwait/Doha/Abu Dhabi/Alain/RAK City/Satwa/Al Ain/Abortion Pills For Sale In Qatar, Doha. Abu az Zuluf. Abu Thaylah. Ad Dawhah al Jadidah. Al Arish, Al Bida ash Sharqiyah, Al Ghanim, Al Ghuwariyah, Qatari, Abu Dhabi, Dubai.. WHATSAPP +971)581248768 Abortion Pills / Cytotec Tablets Available in Dubai, Sharjah, Abudhabi, Ajman, Alain, Fujeira, Ras Al Khaima, Umm Al Quwain., UAE, buy cytotec in Dubai– Where I can buy abortion pills in Dubai,+971582071918where I can buy abortion pills in Abudhabi +971)581248768 , where I can buy abortion pills in Sharjah,+97158207191 8where I can buy abortion pills in Ajman, +971)581248768 where I can buy abortion pills in Umm al Quwain +971)581248768 , where I can buy abortion pills in Fujairah +971)581248768 , where I can buy abortion pills in Ras al Khaimah +971)581248768 , where I can buy abortion pills in Alain+971)581248768 , where I can buy abortion pills in UAE +971)581248768 we are providing cytotec 200mg abortion pill in dubai, uae.Medication abortion offers an alternative to Surgical Abortion for women in the early weeks of pregnancy. Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman
Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Donc Test
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting, 8th Canadian Edition by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Ebook Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Pdf Solution Manual For Financial Accounting 8th Canadian Edition Pdf Download Stuvia Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Financial Accounting 8th Canadian Edition Ebook Download Stuvia Financial Accounting 8th Canadian Edition Pdf Financial Accounting 8th Canadian Edition Pdf Download Stuvia
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
1. The
Estate Planner
May/June 2011
Lifetime gifts are
more important
than ever
Are you protecting
your business interests?
2010 Tax Relief act
2 notable omissions
provide continuing
opportunities
Estate Planning Red Flag
Your estate plan contains a formula clause
Shumaker, Loop & Kendrick,LLP
Charlotte Columbus Sarasota Tampa Toledo
First Citizens Bank Plaza Huntington Center 240 South Pineapple Ave. Bank of America Plaza North Courthouse Square
128 South Tryon Street 41 South High Street 10th Floor 101 East Kennedy Blvd. 1000 Jackson Street
Suite 1800 Suite 2400 Sarasota, Florida Suite 2800 Toledo, Ohio
Charlotte, North Carolina Columbus, Ohio 34236-6717 Tampa, Florida 43604-5573
28202-5013 43215-6104 941.366.6660 33602-5151 419.241.9000
704.375.0057 614.463.9441 813.229.7600
Distribution of The Estate Planner is limited to clients of Shumaker and estate planning professionals who request a subscription.
2. Lifetime gifts are more
important than ever
R
Recent tax law changes have created an unprec-
edented opportunity for affluent taxpayers to remove
substantial amounts of wealth from their estates
through lifetime gifts. The Tax Relief, Unemployment
Gifts within the $5 million exemption, on the other
hand, are still considered “taxable.” So, for example,
they’re subject to the “three-year rule,” which pro-
vides that certain assets transferred within three
Insurance Reauthorization, and Job Creation Act of years before death are included in the deceased’s
2010 increased the gift and estate tax exemptions to taxable estate.
$5 million, and reduced the top rate for these taxes to
35%, but for 2011 and 2012 only.
It’s uncertain whether Congress will make the
If you have a large estate,
$5 million exemption and 35% rate permanent, consider making lifetime
allow them to return to levels prescribed by pre-
2001 tax law in 2013 or take some other action. So gifts to take advantage of
if you have the ability to make large gifts (either your $5 million exemption
outright or using trusts or other estate planning
vehicles), doing so this year and next may be ben- this year and next.
eficial. Let’s take a closer look at how to make the
most of lifetime gifts.
Also, keep in mind that the $5 million exemption is
Maximize nontaxable gifts “unified” with the estate tax exemption, meaning that
it covers up to $5 million in combined lifetime gifts and
As you consider the opportunities the $5 million bequests at death. Thus, if you make $2 million in life-
exemption provides, don’t overlook the tax-saving time gifts, only $3 million will be left to protect your
power of annual exclusion gifts and direct pay- assets from estate taxes. Or, if the estate tax exemption
ments of tuition and medical expenses. These are goes back to $1 million in 2013 as scheduled and you
true “nontaxable gifts” that can’t be exposed to gift die after 2012, no exemption will be left.
or estate taxes.
For these reasons, consider maxing
out your annual exclusion gifts
and direct payments of tuition and
medical expenses before making any
“taxable” gifts. Nontaxable gifts can
be deceptively effective.
Currently, the annual exclusion is
$13,000 per recipient ($26,000 for gifts
you split with your spouse). Let’s say
you and your spouse have three mar-
ried children and six grandchildren.
Each year, you give $26,000 to each
child, each of their spouses, and each
2
3. Why credit shelter trusts are still a good idea
For 2011 and 2012, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of
2010 makes the $5 million estate tax exemption portable between spouses. Portability allows a surviv-
ing spouse to add the unused portion of a deceased spouse’s exemption to his or her own, and use it
to make additional tax-free transfers during life or at death.
To enjoy this benefit, however, the estate of the first spouse to die must elect portability on a timely
filed estate tax return. In addition, the remaining exemption must be used up before portability
expires or it will be lost.
For many married couples — particularly those whose combined estates are worth more than $5 million
but less than $10 million — it will be tempting to rely on portability to simplify their estate plans.
But credit shelter trusts continue to offer several advantages. For one thing, a trust may be needed to
reduce estate taxes once portability expires at the end of 2012.
To determine whether a credit shelter trust is a good idea for your estate plan, review your overall financial
situation, taking into account not only federal gift, estate and GST taxes, but also the potential impact of
income taxes, state death taxes and nontax considerations.
grandchild. You also pay $20,000 in tuition for Also, be aware of a potential “clawback” issue that
each grandchild. That’s a total of $432,000 per may arise because of the way estate taxes are calcu-
year in tax-free transfers without tapping your lated under the unified system. Some people fear
$5 million exemption. that, if the estate tax exemption shrinks to $1 million
by the time someone dies, any lifetime gifts in excess
Take advantage of the of that amount (even if they were made in reliance
$5 million exemption on the $5 million exemption) may be “clawed back”
into the person’s estate and subject to estate tax
If you have a large estate, consider making lifetime (possibly at the 55% rate).
gifts to take advantage of your $5 million exemption
this year and next. Depending on your situation, Whether clawbacks are a real concern (many experts
and your feeling about the likelihood that gift and argue that they’re not), lifetime gifts still offer signifi-
estate tax rates and exemptions will be reinstated cant benefits because, even if the date-of-gift value
at the pre-2001 levels in 2013, you might even con- is later subject to estate tax, the post–date-of-gift
sider making taxable gifts in excess of your available appreciation is removed from your estate. And if
exemption. That way you’ll be able to leverage the the clawback issue doesn’t materialize, you’ll have
lower 35% tax rate before it potentially increases to significantly reduced your taxable estate — and the
55% in 2013. associated estate tax liability.
Even if Congress extends the current exemptions
Look at the big picture
and rates, making gifts sooner rather than later
can be a good strategy because it removes all future Lifetime gifting can be an effective strategy to
appreciation on the gifted assets from your estate. remove large sums of wealth from your estate, but
Remember, though, that assets transferred by gifts it’s important to look at the big picture. Don’t make
aren’t entitled to a “stepped-up basis.” So be sure decisions on gifts based on tax savings alone. Also
to weigh the potential impact of capital gains taxes consider nontax issues, such as the gift’s impact on
your heirs will have to pay if they sell the assets the recipient and the sufficiency of your remaining
against the gift and estate tax savings. resources to finance a comfortable retirement. D
3
4. Are you protecting
your business interests?
I
If you’re a business owner, your
company likely is the biggest asset
you own, and you know you must
account for it in your estate plan.
But did you know that there are
several business asset-protection
strategies you should consider
implementing to help ensure that
your business will remain a valu-
able asset for your heirs?
Building an
asset barrier
Most asset-protection strategies for
businesses involve putting up walls
between a company and its assets.
One way to do this is to divide the
business into separate entities. For
example, you may want to form
separate entities to conduct any
business activities that are riskier
than others. Doing so allows you
to limit the liability risk associated
with them. Provided the entities are structured and Another way to protect valuable business assets
operated properly, you can prevent creditors from is to sell them to another entity created by the
going after assets owned by other entities within the company’s owners and then lease them back.
group, even if they have common ownership. If done right, these assets no longer belong to
your company, so they’re beyond the reach of
the company’s creditors.
You also can strip the company of equity, leaving
Most asset-protection strategies less wealth exposed to creditor claims. Equity strip-
for businesses involve putting up ping involves pledging company assets as collateral
for a loan. The company then lends the funds to
walls between a company and its owners, who protect the loan proceeds with
their own personal asset-protection arrangements.
its assets.
Still another option is to distribute accumulated
earnings to the owners. So long as the business
4
5. retains a reasonable amount of working capital,
this strategy allows you to shield excess funds Beware of fraudulent
against the business’s creditors. (This assumes that
the business is conducted within an entity that conveyance laws
allows your personal assets to be protected from
the business’s liabilities.) Sometimes timing is everything. And the time
to implement asset-protection strategies is
Finally, it’s important to ensure that the company well before your company runs into trouble
is left with sufficient funds to meet its future oper- with creditors’ claims. Otherwise you could
ating needs. If a court finds that the company is run afoul of fraudulent conveyance laws.
grossly undercapitalized, these walls may quickly Although specifics vary from state to state,
tumble down. these laws are intended to prevent you from
transferring property with the intent to
Take the right steps hinder, delay or defraud present or future
creditors. The reference to “future creditors”
Owning a business is a huge responsibility, and doesn’t mean that fraudulent conveyance laws
you want your children to benefit from your hard protect anyone that could potentially become
work after you’re gone. Thus, it’s important to your creditor some day. But if someone has
implement business asset-protection strategies. threatened a claim or if you have reason to
Because these strategies can be complex, talk to believe that a legal problem may arise in the
your business, estate planning and legal advisors future, the fraudulent conveyance laws may
to determine your best course of action. D pose an obstacle to asset protection planning.
2010 Tax Relief act
2 notable omissions provide
continuing opportunities
W
When it comes to estate planning, the Tax Relief,
Unemployment Insurance Reauthorization,
and Job Creation Act of 2010 is notable not only
for the changes it made, but also for those it
of interests in family limited partnerships (FLPs)
and family limited liability companies (FLLCs).
These omissions provide continuing tax-saving
omitted to make. opportunities. But there’s no guarantee that Congress
won’t revisit these proposals in the future. Plus these
It did not, for example, include a proposed mini- strategies may be even more powerful while the gift
mum 10-year term for grantor retained annuity tax exemption is $5 million. (See “Lifetime gifts are
trusts (GRATs). It also didn’t adopt a proposal that more important than ever” on page 2.) So if you’re
would have eliminated valuation discounts for considering setting up a GRAT, FLP or FLLC, it’s a
certain intrafamily transfers, including transfers good idea to do so sooner rather than later.
5
6. Now’s the time to consider A popular strategy in recent years has been to use a
short-term GRATs series of short-term GRATs (two years, for example).
This strategy takes advantage of tax-free growth by
Congress’s decision not to include a minimum capturing the upside of market volatility, but mini-
term for GRATs — combined with low interest mizes the mortality risk associated with longer-term
rates — makes it an ideal time to add short-term GRATs. If you’re considering this strategy, act soon.
GRATs to your estate planning arsenal. If Congress imposes a minimum on GRAT terms,
the window of opportunity will close.
Congress’s decision not to
FLPs and FLLCs remain
include a minimum term for viable — for now
GRATs — combined with These entities are popular estate planning vehicles
because they allow you to transfer wealth to your
low interest rates — makes children or other family members at a discounted
it an ideal time to add value for gift and estate tax purposes.
short-term GRATs to your Here’s how it works: Rather than transferring busi-
estate planning arsenal. ness interests or other assets outright, you place
the assets in an FLP or FLLC and transfer limited
partnership interests or LLC membership interests
A GRAT consists of an annuity interest, retained by to your beneficiaries. Provided that the FLP or FLLC
you, and a remainder interest that passes to your has a bona fide, nontax business purpose and meets
beneficiaries at the end of the trust term. When certain other requirements, these interests generally
you establish a GRAT, the value of the remainder qualify for valuation discounts for lack of control
interest may be subject to gift tax (depending on and lack of marketability, which reduces their value
your available exemption). for gift tax purposes.
The value of the remain-
der interest is calculated
using an assumed growth
rate prescribed by the
IRS. If the GRAT assets
outperform that rate —
which is easier to do
in a low-interest-rate
environment — the
GRAT can transfer
substantial wealth to
your beneficiaries gift-
tax-free. If you die during
the trust term, however,
the assets will be included
in your taxable estate,
erasing the GRAT’s ben-
efits. (This is known as
“mortality risk.”)
6
8. Experience. Responsiveness. Value.
At Shumaker, we understand that when selecting a law Estate planning is a complex task that often involves related
firm for estate planning and related services, most clients areas of law, as well as various types of financial services. Our
are looking for: clients frequently face complicated real estate, tax, corporate
and pension planning issues that significantly impact their
A high level of quality, sophistication, and experience. estate plans. So our attorneys work with accountants, financial
planners and other advisors to develop and implement
A creative and imaginative approach that focuses on
strategies that help achieve our clients’ diverse goals.
finding solutions, not problems.
Shumaker has extensive experience in estate planning
Accessible attorneys who give clients priority
and related areas, such as business succession, insurance,
treatment and extraordinary service.
asset protection and charitable giving planning. The skills
Effectiveness at a fair price. of our estate planners and their ability to draw upon the
expertise of specialists in other departments — as well as
Since 1925, Shumaker has met the expectations of clients that other professionals — ensure that each of our clients has a
require this level of service. Our firm offers a comprehensive comprehensive, effective estate plan tailored to his or her
package of quality, experience, value and responsiveness with particular needs and wishes.
an uncompromising commitment to servicing the legal needs
of every client. That’s been our tradition and remains our
constant goal. This is what sets us apart.
Shumaker, Loop & Kendrick,LLP
We welcome the opportunity to discuss your situation and provide the
services required to help you achieve your estate planning goals.
Please call us today and let us know how we can be of assistance.
Charlotte Columbus Sarasota Tampa Toledo
First Citizens Bank Plaza Huntington Center 240 South Pineapple Ave. Bank of America Plaza North Courthouse Square
128 South Tryon Street 41 South High Street 10th Floor 101 East Kennedy Blvd. 1000 Jackson Street
Suite 1800 Suite 2400 Sarasota, Florida Suite 2800 Toledo, Ohio
Charlotte, North Carolina Columbus, Ohio 34236-6717 Tampa, Florida 43604-5573
28202-5013 43215-6104 941.366.6660 33602-5151 419.241.9000
704.375.0057 614.463.9441 813.229.7600
www.slk-law.com
The Chair of the Trusts and Estates Department is responsible for the content of The Estate Planner. The material is intended for
educational purposes only and is not legal advice. You should consult with an attorney for advice concerning your particular situation.
While the material in The Estate Planner is based on information believed to be reliable, no warranty is given as to its accuracy or completeness. Concepts
are current as of the publication date and are subject to change without notice.
IRS Circular 230 Notice: We are required to advise you no person or entity may use any tax advice in this communication or any attachment to (i) avoid
any penalty under federal tax law or (ii) promote, market or recommend any purchase, investment or other action.