Rubik's Cube of Estate Planning Ideas for Estates under $10MMDominic Pepper
Some of the newest ideas for estate planning for families with assets below the Federal Exemption. Set to adjust for inflation, the current exemption is $5.34MM for an individual and $10.68MM for a married couple.
Learn about J.E.S.T., Gap QTIP, Gains tax planning etc.
The document discusses the importance of estate planning and describes various estate planning tools. It emphasizes that a living trust can avoid probate, utilize both spouses' estate tax exemptions, and pass assets privately to heirs while a will guarantees probate. It also notes that without proper estate planning, the state determines how assets pass and probate can deplete much of the estate.
This document provides an overview of estate planning concepts for women, including transfer taxes, lifetime gifts, trusts, life insurance, and income tax basis. It discusses how women often outlive their husbands, meaning they may inherit their estate and have control over final disposition. Advanced estate planning can help consider tax implications and strategies for transferring property during life or at death.
This document discusses estate planning strategies using life insurance in light of recent tax law changes. It begins by outlining the key provisions of the American Taxpayer Relief Act of 2012 (ATRA) related to estate taxes, including permanently setting the federal estate tax exemption and making portability of the unused exemption between spouses permanent. It then provides questions for individuals to consider regarding their current estate planning and goals to determine which strategies may be most appropriate, such as using trusts, annual gifting, or life insurance to minimize taxes and achieve goals. The document provides an overview of various planning tools and strategies individuals can explore with their advisors based on the size and goals of their estate.
Income and Wealth Transfer Tax Aspects of Joint TrustsMelinda Merk
This document provides an overview and summary of key issues regarding community property laws and their interaction with estate planning. It discusses how community property principles apply to property acquired during marriage in certain U.S. states and other countries. It outlines the categories of community property and separate property and the tax treatment of each. The summary also identifies several potential pitfalls to consider when using joint trusts or making gifts involving community property to avoid unintended tax consequences.
This document provides summaries of three articles:
1) How divorce can affect Social Security retirement benefits. Even if divorced, one may still collect benefits from an ex-spouse's record if certain requirements are met, such as a marriage of 10+ years. Benefits are 50% of the ex-spouse's amount but may be reduced depending on the recipient's own earnings record and age of claiming. Remarriage can also impact eligibility for ex-spousal benefits.
2) An overview of probate, the legal process for distributing assets after death according to a will. Probate can be slow, costly and public. Ways to avoid probate include joint ownership, beneficiary designations, trusts
Changing Trust Situs; Forum Shopping for TrustsMelinda Merk
This document provides information about trust situs and how to change a trust's situs. It discusses what determines a trust's administrative and tax situs, as well as how situs impacts matters like trustee powers and duties, investments, and creditor rights. The document also outlines factors that can influence a trust's initial situs and how a situs change may alter the governing law. It provides examples of trust provisions and statutory guidelines related to situs designation and transferring situs between jurisdictions.
According to Skeeles and Cunningham from the Ohio State University Extension, estate planning ensures that the welfare of a loved one is secured even after his or her death. However, the majority of Americans do not have a plan or a will. Why? No one likes to think or talk about his or her own demise, and our loved ones don’t want to hear about this subject either. Another reason is that the majority of us do not fathom the idea of planning an estate.
Rubik's Cube of Estate Planning Ideas for Estates under $10MMDominic Pepper
Some of the newest ideas for estate planning for families with assets below the Federal Exemption. Set to adjust for inflation, the current exemption is $5.34MM for an individual and $10.68MM for a married couple.
Learn about J.E.S.T., Gap QTIP, Gains tax planning etc.
The document discusses the importance of estate planning and describes various estate planning tools. It emphasizes that a living trust can avoid probate, utilize both spouses' estate tax exemptions, and pass assets privately to heirs while a will guarantees probate. It also notes that without proper estate planning, the state determines how assets pass and probate can deplete much of the estate.
This document provides an overview of estate planning concepts for women, including transfer taxes, lifetime gifts, trusts, life insurance, and income tax basis. It discusses how women often outlive their husbands, meaning they may inherit their estate and have control over final disposition. Advanced estate planning can help consider tax implications and strategies for transferring property during life or at death.
This document discusses estate planning strategies using life insurance in light of recent tax law changes. It begins by outlining the key provisions of the American Taxpayer Relief Act of 2012 (ATRA) related to estate taxes, including permanently setting the federal estate tax exemption and making portability of the unused exemption between spouses permanent. It then provides questions for individuals to consider regarding their current estate planning and goals to determine which strategies may be most appropriate, such as using trusts, annual gifting, or life insurance to minimize taxes and achieve goals. The document provides an overview of various planning tools and strategies individuals can explore with their advisors based on the size and goals of their estate.
Income and Wealth Transfer Tax Aspects of Joint TrustsMelinda Merk
This document provides an overview and summary of key issues regarding community property laws and their interaction with estate planning. It discusses how community property principles apply to property acquired during marriage in certain U.S. states and other countries. It outlines the categories of community property and separate property and the tax treatment of each. The summary also identifies several potential pitfalls to consider when using joint trusts or making gifts involving community property to avoid unintended tax consequences.
This document provides summaries of three articles:
1) How divorce can affect Social Security retirement benefits. Even if divorced, one may still collect benefits from an ex-spouse's record if certain requirements are met, such as a marriage of 10+ years. Benefits are 50% of the ex-spouse's amount but may be reduced depending on the recipient's own earnings record and age of claiming. Remarriage can also impact eligibility for ex-spousal benefits.
2) An overview of probate, the legal process for distributing assets after death according to a will. Probate can be slow, costly and public. Ways to avoid probate include joint ownership, beneficiary designations, trusts
Changing Trust Situs; Forum Shopping for TrustsMelinda Merk
This document provides information about trust situs and how to change a trust's situs. It discusses what determines a trust's administrative and tax situs, as well as how situs impacts matters like trustee powers and duties, investments, and creditor rights. The document also outlines factors that can influence a trust's initial situs and how a situs change may alter the governing law. It provides examples of trust provisions and statutory guidelines related to situs designation and transferring situs between jurisdictions.
According to Skeeles and Cunningham from the Ohio State University Extension, estate planning ensures that the welfare of a loved one is secured even after his or her death. However, the majority of Americans do not have a plan or a will. Why? No one likes to think or talk about his or her own demise, and our loved ones don’t want to hear about this subject either. Another reason is that the majority of us do not fathom the idea of planning an estate.
An Overview of Some Sophisticated Estate Planning Strategies for individuals who are concerned about minimizing gift and estate taxes, and individuals who have specific goals such as transferring a business interest, providing for a favorite charity, or protecting assets from future creditors.
Please keep in mind that this presentation is intended only to give a general overview of some sophisticated planning strategies, and that these strategies are subject to various technical considerations. Some of them may or may not be appropriate in your particular situation, so you’ll need to consult your estate planning advisor to determine whether they are right for you.
Jean is considering marrying her boyfriend Joe but is concerned because Joe owes back taxes. The document provides the following advice:
1) Jean should not marry Joe until his tax problems are resolved, otherwise his tax debt could become her responsibility.
2) Filing jointly could make Jean liable for Joe's back taxes, so she should consider filing separately or getting a prenuptial agreement to protect her assets.
3) If they file jointly and the IRS keeps their refund for Joe's back taxes, Jean can file an injured spouse form to try to get her portion of the refund back.
The Mortgage Forgiveness Debt Relief Act of 2007 allows taxpayers to exclude income from the discharge of debt on their principal residence from 2007 to 2012. Up to $2 million of forgiven debt is eligible for this exclusion. The Act applies to debt forgiven through mortgage restructuring or foreclosure. It does not apply to debt forgiven for reasons unrelated to a decline in home value or financial condition.
This document discusses the role of life insurance in retirement planning. It notes that cash value life insurance can provide benefits if the policyholder dies prematurely, becomes disabled, or lives to retirement. At retirement, the cash value can be a source of income through lump sums, annuities, or withdrawals. It also details how life insurance protects income, grows tax-deferred, and allows flexible access to funds. The document outlines important facts about Social Security benefits and notes that personal savings are needed to bridge the gap between Social Security and other retirement income sources.
This document provides an overview of deferred fixed interest and indexed annuities. It discusses how these annuities can help accumulate funds on a tax-deferred basis for retirement and overcome obstacles to retirement planning like a lack of savings discipline, taxes, inflation, and longevity. The document also explains how deferred annuities work during the accumulation and income phases, and the benefits of tax-deferred growth.
In Issue 12 of The OHL Wire, we look at how the rise in minimum wage affects you and what are the hidden costs of retirement villages in NSW. We also look at everything you need to know about estate administration. We discuss whether now is the right time to legalise same-sex marriage in Australia. We check out upcoming events in Sydney and invite you to attend a unique and entertaining activity, Mozart’s classic comedic opera - The Marriage of Figaro.
The document discusses estate planning considerations related to unwanted heirs and the federal estate tax. It notes that upon death, assets may not automatically pass to loved ones, as unwanted heirs like taxes may claim a portion. Life insurance can be used to pay estate taxes and costs, protecting more from passing to these heirs. Several case studies and tables show how estates of different sizes may face taxes and shrinkage without proper planning.
The document discusses the financial challenges many women face, as most will become solely responsible for financial decisions due to being widowed or divorced, with many lacking pensions beyond Social Security. It provides steps for women to take control of their financial situation, including creating a support team, setting goals, investing wisely, planning for unexpected events, and being proactive in managing finances.
The document summarizes new information for nonresidents filing Kentucky state income taxes. It outlines updates to the standard deduction amount, family size tax credit thresholds, and the definition of modified gross income for 2007. It also describes new deductions for qualified mortgage insurance premiums and a tax exemption for all income of military personnel killed in the line of duty in 2001 or later, including death benefits.
Helping you in stretching your inherited retirement assets iraConnie Dello Buono
An Inherited IRA allows a beneficiary to maintain tax benefits while withdrawing money over their lifetime. For a Roth IRA, it allows growth to continue tax-free. For a Traditional IRA, it avoids taxes on lump sums while allowing tax-deferred growth and penalty-free withdrawals. Even if the original owner did not meet the 5-year rule, an Inherited Roth IRA allows qualifying tax-free withdrawals after that rule is met. Spouses can also avoid penalties on withdrawals by using an Inherited IRA instead of rolling over to their own IRA.
This document is a summary of an individual's Social Security statement. It provides estimates of their Social Security benefits based on their lifetime earnings record. It notes that the individual has already filed for and is receiving benefits. It also provides information about Social Security retirement, disability, family and survivor benefits. Additionally, it discusses factors that could impact estimated benefits and encourages the individual to review their earnings record for accuracy.
Webinar: So You Have a PPP Loan. Now What?PYA, P.C.
The CARES Act provides relief to small businesses through Paycheck Protection Program (PPP) loans, but receiving the loan is only the first part of the equation. PYA discussed what businesses need to know and do next.
Failure to fully understand the requirements for PPP loan forgiveness could cost employers money, at a time when every penny counts. Employers need to stay up-to-date on recent activities regarding the PPP loan forgiveness application, necessary documentation, and other best practices to ensure they are well-prepared for the next steps under the PPP.
As part of PYA’s ongoing commitment to sharing helpful guidance, Tax Principals Debbie Ernsberger and Mark Brumbelow outlined PPP loan forgiveness requirements and answered questions during a one-hour webinar on Wednesday, June 3, 2020.
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.
401k negatives, shrinkage of typical 401k account at retirement due to taxes, inflation and survivor pension costs. Alternatives to offset these negatives with ILIPP funding.
This document discusses making important decisions about pension income at retirement. It may negatively impact future financial security if not considered carefully. One must decide between maximum monthly income for life alone or reduced income with survivor benefits for a spouse. Federal law requires a joint annuity paying the spouse at least half the benefit. However, this reduces the primary beneficiary's income for life. Alternatively, one could take the maximum income and purchase life insurance to provide funds to the spouse upon death, allowing control over benefits. The document provides examples and checklist for analyzing risks and establishing a retirement income protection plan.
The document discusses the anti-malware capabilities of Outpost 7.5 security software. Key features include a comprehensive file scanner, real-time virus protection, email security, optimized scanning performance, and SmartDecision technology which analyzes files before launch. Benchmark results show Outpost provides fast scanning speeds and minimal impact on system performance.
Este documento trata sobre los delincuentes informáticos como hackers, virus y crackers. Explica que los hackers originalmente eran programadores experimentados pero ahora el término se usa también para referirse a delincuentes digitales. Distingue entre hackers blancos que buscan mejorar la seguridad y hackers negros que usan sus habilidades para fines ilegales o dañinos. También habla sobre diferentes tipos de virus y amenazas cibernéticas como phishing que afectan a usuarios de Internet.
El documento es una ficha de lectura para un plan de lectura en un colegio. La ficha contiene preguntas sobre los números ganadores de un sorteo y preguntas sobre cuántos números acertados había en cada bloque, cuánto dinero se gastó el señor, en qué fecha fue el sorteo y cuántos bloques se quedaron en blanco.
An Overview of Some Sophisticated Estate Planning Strategies for individuals who are concerned about minimizing gift and estate taxes, and individuals who have specific goals such as transferring a business interest, providing for a favorite charity, or protecting assets from future creditors.
Please keep in mind that this presentation is intended only to give a general overview of some sophisticated planning strategies, and that these strategies are subject to various technical considerations. Some of them may or may not be appropriate in your particular situation, so you’ll need to consult your estate planning advisor to determine whether they are right for you.
Jean is considering marrying her boyfriend Joe but is concerned because Joe owes back taxes. The document provides the following advice:
1) Jean should not marry Joe until his tax problems are resolved, otherwise his tax debt could become her responsibility.
2) Filing jointly could make Jean liable for Joe's back taxes, so she should consider filing separately or getting a prenuptial agreement to protect her assets.
3) If they file jointly and the IRS keeps their refund for Joe's back taxes, Jean can file an injured spouse form to try to get her portion of the refund back.
The Mortgage Forgiveness Debt Relief Act of 2007 allows taxpayers to exclude income from the discharge of debt on their principal residence from 2007 to 2012. Up to $2 million of forgiven debt is eligible for this exclusion. The Act applies to debt forgiven through mortgage restructuring or foreclosure. It does not apply to debt forgiven for reasons unrelated to a decline in home value or financial condition.
This document discusses the role of life insurance in retirement planning. It notes that cash value life insurance can provide benefits if the policyholder dies prematurely, becomes disabled, or lives to retirement. At retirement, the cash value can be a source of income through lump sums, annuities, or withdrawals. It also details how life insurance protects income, grows tax-deferred, and allows flexible access to funds. The document outlines important facts about Social Security benefits and notes that personal savings are needed to bridge the gap between Social Security and other retirement income sources.
This document provides an overview of deferred fixed interest and indexed annuities. It discusses how these annuities can help accumulate funds on a tax-deferred basis for retirement and overcome obstacles to retirement planning like a lack of savings discipline, taxes, inflation, and longevity. The document also explains how deferred annuities work during the accumulation and income phases, and the benefits of tax-deferred growth.
In Issue 12 of The OHL Wire, we look at how the rise in minimum wage affects you and what are the hidden costs of retirement villages in NSW. We also look at everything you need to know about estate administration. We discuss whether now is the right time to legalise same-sex marriage in Australia. We check out upcoming events in Sydney and invite you to attend a unique and entertaining activity, Mozart’s classic comedic opera - The Marriage of Figaro.
The document discusses estate planning considerations related to unwanted heirs and the federal estate tax. It notes that upon death, assets may not automatically pass to loved ones, as unwanted heirs like taxes may claim a portion. Life insurance can be used to pay estate taxes and costs, protecting more from passing to these heirs. Several case studies and tables show how estates of different sizes may face taxes and shrinkage without proper planning.
The document discusses the financial challenges many women face, as most will become solely responsible for financial decisions due to being widowed or divorced, with many lacking pensions beyond Social Security. It provides steps for women to take control of their financial situation, including creating a support team, setting goals, investing wisely, planning for unexpected events, and being proactive in managing finances.
The document summarizes new information for nonresidents filing Kentucky state income taxes. It outlines updates to the standard deduction amount, family size tax credit thresholds, and the definition of modified gross income for 2007. It also describes new deductions for qualified mortgage insurance premiums and a tax exemption for all income of military personnel killed in the line of duty in 2001 or later, including death benefits.
Helping you in stretching your inherited retirement assets iraConnie Dello Buono
An Inherited IRA allows a beneficiary to maintain tax benefits while withdrawing money over their lifetime. For a Roth IRA, it allows growth to continue tax-free. For a Traditional IRA, it avoids taxes on lump sums while allowing tax-deferred growth and penalty-free withdrawals. Even if the original owner did not meet the 5-year rule, an Inherited Roth IRA allows qualifying tax-free withdrawals after that rule is met. Spouses can also avoid penalties on withdrawals by using an Inherited IRA instead of rolling over to their own IRA.
This document is a summary of an individual's Social Security statement. It provides estimates of their Social Security benefits based on their lifetime earnings record. It notes that the individual has already filed for and is receiving benefits. It also provides information about Social Security retirement, disability, family and survivor benefits. Additionally, it discusses factors that could impact estimated benefits and encourages the individual to review their earnings record for accuracy.
Webinar: So You Have a PPP Loan. Now What?PYA, P.C.
The CARES Act provides relief to small businesses through Paycheck Protection Program (PPP) loans, but receiving the loan is only the first part of the equation. PYA discussed what businesses need to know and do next.
Failure to fully understand the requirements for PPP loan forgiveness could cost employers money, at a time when every penny counts. Employers need to stay up-to-date on recent activities regarding the PPP loan forgiveness application, necessary documentation, and other best practices to ensure they are well-prepared for the next steps under the PPP.
As part of PYA’s ongoing commitment to sharing helpful guidance, Tax Principals Debbie Ernsberger and Mark Brumbelow outlined PPP loan forgiveness requirements and answered questions during a one-hour webinar on Wednesday, June 3, 2020.
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.
401k negatives, shrinkage of typical 401k account at retirement due to taxes, inflation and survivor pension costs. Alternatives to offset these negatives with ILIPP funding.
This document discusses making important decisions about pension income at retirement. It may negatively impact future financial security if not considered carefully. One must decide between maximum monthly income for life alone or reduced income with survivor benefits for a spouse. Federal law requires a joint annuity paying the spouse at least half the benefit. However, this reduces the primary beneficiary's income for life. Alternatively, one could take the maximum income and purchase life insurance to provide funds to the spouse upon death, allowing control over benefits. The document provides examples and checklist for analyzing risks and establishing a retirement income protection plan.
The document discusses the anti-malware capabilities of Outpost 7.5 security software. Key features include a comprehensive file scanner, real-time virus protection, email security, optimized scanning performance, and SmartDecision technology which analyzes files before launch. Benchmark results show Outpost provides fast scanning speeds and minimal impact on system performance.
Este documento trata sobre los delincuentes informáticos como hackers, virus y crackers. Explica que los hackers originalmente eran programadores experimentados pero ahora el término se usa también para referirse a delincuentes digitales. Distingue entre hackers blancos que buscan mejorar la seguridad y hackers negros que usan sus habilidades para fines ilegales o dañinos. También habla sobre diferentes tipos de virus y amenazas cibernéticas como phishing que afectan a usuarios de Internet.
El documento es una ficha de lectura para un plan de lectura en un colegio. La ficha contiene preguntas sobre los números ganadores de un sorteo y preguntas sobre cuántos números acertados había en cada bloque, cuánto dinero se gastó el señor, en qué fecha fue el sorteo y cuántos bloques se quedaron en blanco.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help boost feelings of calmness, happiness and focus.
Top Ten Estate Planning Mistakes and How to Avoid ThemMelinda Merk
This document summarizes the top 10 estate planning mistakes and how to avoid them. It discusses issues like failing to create an estate plan, doing it yourself without an attorney, not properly funding a revocable trust, using a poorly drafted joint trust, leaving assets outright to children instead of in trust, improperly selecting trustees, failing to utilize tax exemptions, and not following formalities of family business entities. The document provides details on each mistake and recommends working with an experienced estate planning attorney to create customized documents and ensure your goals and intentions are carried out.
Dan Borst Power Point Presentation 2015 Tax SymposiumDaniel Borst
The document discusses the 2015 estate and gift tax landscape including:
- The federal estate tax exemption was $5.43 million per individual or $10.86 million for married couples.
- Only the portion of an estate over the exemption is taxed, with an example showing a $7.8 million estate with $2.37 million taxed after exemptions.
- Portability allows a surviving spouse to make use of the deceased spouse's unused exemption, simplifying planning for many estates. However, it has some disadvantages like lack of asset protection and loss of discounts.
- Proper estate planning techniques can help address long-term care needs, property tax issues, and transferring property to heirs.
What Every Realtor Needs to Know about Estate Planning & Probate and Selling ...Paul Saba
This document provides an overview of the legal services offered by Stagnaro, Saba & Patterson, Co. L.P.A., a full service law firm. It discusses their practice areas, which include wills, trusts, estate planning, real estate, corporate law, and various types of litigation. It also provides brief summaries of probate processes, estate planning tools like powers of attorney and trusts, and estate and gift tax laws. Key details include how probate works, ways to avoid probate, an overview of intestacy laws, and the use of trusts and other strategies for asset protection and tax planning.
This document provides a summary of key estate planning considerations and taxation rules that apply on death. It discusses the deemed disposition of assets and taxation of capital gains, exceptions for transfers to spouses and dependent children, principal residence and vacation property rules, issues related to US and business properties, charitable gifts, probate fees, and trusts. Readers are advised to seek professional advice when planning their estate to navigate complex tax implications and avoid unintended consequences.
This document provides an overview of joint revocable trusts (JRTs), including:
- What a JRT is and its potential benefits and pitfalls
- Drafting considerations for different estate planning scenarios using a JRT
- Post-mortem administrative issues that can arise
The document discusses various JRT structures and how they impact estate tax planning and basis adjustments at the first spouse's death. It also notes why clients and attorneys may prefer JRTs but cautions they require careful accounting of each spouse's contributions to avoid tax issues.
This document discusses various estate and gift planning opportunities available in 2013 and beyond, including:
1) The gift, estate, and GST tax exemptions and rates for 2013-2014 which allow for large tax-free transfers of up to $5.25 million individually or $10.5 million for a married couple.
2) Techniques for leveraging exemptions such as annual exclusion gifts, installment sales to intentionally defective grantor trusts, and irrevocable life insurance trusts.
3) The benefits of using trusts including removing future appreciation from one's estate, providing for heirs, and maintaining some control over transferred assets.
This document summarizes an estate planning seminar that discusses the basic reasons for estate planning including planning for incapacity, avoiding probate, proper disposition of estate assets, estate tax planning, and creditor protection. It outlines various estate planning tools like powers of attorney, trusts, wills, and beneficiary designations that can help achieve these goals. Specific planning strategies are discussed for different asset classes like retirement accounts, real estate, businesses, and life insurance. Estate and gift tax planning techniques including utilizing exemptions and the marital deduction are also covered. Examples are provided showing how estate planning can reduce costs, taxes, and complexity when distributing assets after death.
StateTrust specializes in providing financial products and services to help clients reach their investment goals and objectives, including marriage and estate planning. Married couples need to establish how property will be divided between spouses upon death, as laws regarding community and common-law property differ by state. An irrevocable life insurance trust allows life insurance proceeds to pass tax-free to beneficiaries upon death. A person can transfer unlimited assets to their spouse during life or at death without gift or estate taxes, though the assets will eventually be taxed in the surviving spouse's estate if not sold or subject to gift taxes. Ways to transfer property between spouses include outright gifts, jointly held property, life insurance, trusts, and wills.
This document discusses estate planning issues related to women managing farms, including estate planning objectives, forms of asset ownership to avoid probate, options for avoiding probate like trusts and beneficiary designations, types of wills and trusts, distribution considerations for farming and non-farming beneficiaries, buy-sell agreements, using life insurance in planning, and federal estate tax issues. Key points covered include minimizing costs like taxes and probate fees, ensuring assets pass as intended, and providing for minor children through tools like trusts.
The document summarizes 5 basic estate planning tools: wills, living trusts, powers of attorney, family limited partnerships (FLPs), and irrevocable life insurance trusts (ILITs). It notes that most people do not have even basic estate plans like wills or powers of attorney in place. It stresses the importance of having the right tools, such as living trusts to avoid probate, ILITs to protect life insurance from estate taxes, and FLPs to facilitate wealth transfers and take advantage of valuation discounts when gifting assets.
1. The document discusses a Deferred Sales Trust (DST) as a way for property owners to defer capital gains taxes when selling highly appreciated assets like real estate.
2. A DST allows the seller to defer capital gains taxes over a period of time by selling the property to a trust, which then pays the seller in installments according to a contract.
3. Benefits of a DST include tax deferral, estate tax benefits, maintaining family wealth, estate liquidity, and retirement income. It also eliminates risks of ownership by converting an illiquid asset into monthly payments.
This document provides information on using life insurance for retirement and estate planning purposes. It discusses three main reasons why retirees may still need life insurance: 1) to replace a spouse's lost income if they pass away, 2) for estate planning to distribute assets or pay estate taxes, and 3) to maximize IRA or retirement plan distributions by leaving tax-free life insurance proceeds to heirs. The document then discusses how much life insurance retirees may need based on obligations and supporting future family income needs. It also provides strategies for using existing life insurance policies, such as 1035 exchanges to annuities or lower death benefit policies, to gain tax benefits and income. Finally, it discusses how life insurance trusts can be used to keep policy
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.
The document discusses strategies for maximizing Social Security benefits. It recommends claiming benefits at different ages depending on individual circumstances to get the highest total lifetime benefits. Spousal and survivor benefits are also factors to consider in deciding when to claim. Proper planning and understanding all options can help ensure one's retirement income needs are met.
This document provides an estate planning update for 2011-2012. It discusses possible changes to minimum distribution rules for inherited retirement plan benefits. It also covers proposals for the Uniform Trust Code in Minnesota, the estate tax exemption amount and portability, and proposed federal legislation for fiscal year 2012. The document provides details on drafting trusts to take advantage of the qualified small business and farming deduction under Minnesota law.
This document discusses several advanced estate planning strategies, including:
1) Wealth transfer strategies using grantor trusts like spousal lifetime access trusts (SLATs) and installment sales/loans to intentionally defective grantor trusts (ISIGTs/IFLs).
2) Using family limited partnerships/family limited liability companies (FLPs/FLLCs) to leverage gift and estate tax exemptions through valuation discounts.
3) Employing grantor retained annuity trusts (GRATs) and charitable lead annuity trusts (CLATs) to transfer wealth at a reduced transfer tax cost.
4) Unwinding prior estate planning using split purchase trusts as an alternative to qualified
This document provides an estate planning update for 2011-2012. It discusses potential changes to the minimum distribution rules for inherited retirement plan benefits. It also covers proposals for the Uniform Trust Code in Minnesota, the estate tax exemption amount and portability, and proposed legislation for fiscal year 2012. The document provides details on drafting trusts to take advantage of the new qualified small business and farming deduction in Minnesota.
This presentation considered newly enacted progressive trust laws within the overall context of the vital importance of selecting proper trust jurisdiction in the wealth planning process. Concepts such as the community property trust, dynasty trust, directed trust, trust protector, family advisor, privacy, and trust taxation were discussed in detail, with special focus on how these compelling modern trust planning tools have combined to render the United States both a worldwide tax and privacy haven for families across the nation.
Similar to Heckerling 2014 Estate Tax Breifing (20)
Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...Sangyun Lee
Presentation slides for a session held on June 4, 2024, at Kyoto University. This presentation is based on the presenter’s recent paper, coauthored with Hwang Lee, Professor, Korea University, with the same title, published in the Journal of Business Administration & Law, Volume 34, No. 2 (April 2024). The paper, written in Korean, is available at <https://shorturl.at/GCWcI>.
Defending Weapons Offence Charges: Role of Mississauga Criminal Defence LawyersHarpreetSaini48
Discover how Mississauga criminal defence lawyers defend clients facing weapon offence charges with expert legal guidance and courtroom representation.
To know more visit: https://www.saini-law.com/
Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...Massimo Talia
This guide aims to provide information on how lawyers will be able to use the opportunities provided by AI tools and how such tools could help the business processes of small firms. Its objective is to provide lawyers with some background to understand what they can and cannot realistically expect from these products. This guide aims to give a reference point for small law practices in the EU
against which they can evaluate those classes of AI applications that are probably the most relevant for them.
Matthew Professional CV experienced Government LiaisonMattGardner52
As an experienced Government Liaison, I have demonstrated expertise in Corporate Governance. My skill set includes senior-level management in Contract Management, Legal Support, and Diplomatic Relations. I have also gained proficiency as a Corporate Liaison, utilizing my strong background in accounting, finance, and legal, with a Bachelor's degree (B.A.) from California State University. My Administrative Skills further strengthen my ability to contribute to the growth and success of any organization.
This document briefly explains the June compliance calendar 2024 with income tax returns, PF, ESI, and important due dates, forms to be filled out, periods, and who should file them?.
Lifting the Corporate Veil. Power Point Presentationseri bangash
"Lifting the Corporate Veil" is a legal concept that refers to the judicial act of disregarding the separate legal personality of a corporation or limited liability company (LLC). Normally, a corporation is considered a legal entity separate from its shareholders or members, meaning that the personal assets of shareholders or members are protected from the liabilities of the corporation. However, there are certain situations where courts may decide to "pierce" or "lift" the corporate veil, holding shareholders or members personally liable for the debts or actions of the corporation.
Here are some common scenarios in which courts might lift the corporate veil:
Fraud or Illegality: If shareholders or members use the corporate structure to perpetrate fraud, evade legal obligations, or engage in illegal activities, courts may disregard the corporate entity and hold those individuals personally liable.
Undercapitalization: If a corporation is formed with insufficient capital to conduct its intended business and meet its foreseeable liabilities, and this lack of capitalization results in harm to creditors or other parties, courts may lift the corporate veil to hold shareholders or members liable.
Failure to Observe Corporate Formalities: Corporations and LLCs are required to observe certain formalities, such as holding regular meetings, maintaining separate financial records, and avoiding commingling of personal and corporate assets. If these formalities are not observed and the corporate structure is used as a mere façade, courts may disregard the corporate entity.
Alter Ego: If there is such a unity of interest and ownership between the corporation and its shareholders or members that the separate personalities of the corporation and the individuals no longer exist, courts may treat the corporation as the alter ego of its owners and hold them personally liable.
Group Enterprises: In some cases, where multiple corporations are closely related or form part of a single economic unit, courts may pierce the corporate veil to achieve equity, particularly if one corporation's actions harm creditors or other stakeholders and the corporate structure is being used to shield culpable parties from liability.
What are the common challenges faced by women lawyers working in the legal pr...lawyersonia
The legal profession, which has historically been male-dominated, has experienced a significant increase in the number of women entering the field over the past few decades. Despite this progress, women lawyers continue to encounter various challenges as they strive for top positions.
Genocide in International Criminal Law.pptxMasoudZamani13
Excited to share insights from my recent presentation on genocide! 💡 In light of ongoing debates, it's crucial to delve into the nuances of this grave crime.
Synopsis On Annual General Meeting/Extra Ordinary General Meeting With Ordinary And Special Businesses And Ordinary And Special Resolutions with Companies (Postal Ballot) Regulations, 2018
2. * International Boutique Trusts and
Estates firm specializing in
sophisticated multigenerational
asset transfers.
* Recognized both nationally by
Martindale Hubbell as AV
preeminent
* STEP Boutique firm of the year
*
3. *
1. The increased Federal exemption has created a new paradigm in estate
planning. Why must equal emphasis now be given to capital gains tax
planning?
2. What are the opportunities to achieve a step up in basis after planning is
complete?
3. What are the consequences and income tax benefits of planning
testamentary trusts for the benefit of the surviving spouse as grantor trusts?
4. Can Joint Exempt Step-up Trusts (JEST) be used to ensure a full step up in
basis for jointly owned property first?
5. Gifting “gap-QTIP” (or Qualified Terminable Interest Property) interest
income – how can unused exemption amounts be uniquely leveraged? Why
sprinkle distributions among other beneficiaries?
6. Hot Topics in Life Insurance
4. *
*Many clients have greatly
appreciated stock, and the
gains tax if sold in the trust
can be a significant amount.
With the higher exemption
amount, it might make sense
to leave low basis assets in
one’s estate to achieve step
up.
Estate planning has become inextricably
intertwined with income tax planning.
Income tax planning can minimize
current income taxes and maximize
basis step up upon death.
Step up in income tax basis in many
instances will have a greater tax
benefit than state estate tax savings.
5. Swapping into the trust high
basis assets or cash for low
basis assets can help to
achieve the desired step up
in basis at the grantor’s
death.
The trust could also hold a
note for assets moved back
into the grantor’s estate to
achieve the same step up in
basis.
*
6. *
Joint Exempt Step-Up Trust (JEST) Chronology
The 4 Steps from Drafting to Implementation
Copyright 2013 Gassman Law Associates, P.A.
J:GGassmanARTICLELeimberg ArticlesJoint Trust ArticleNew Joint Exempt Step-Up Trust Chart.1e FINAL.xlsx :kh*jr 3/
STEP 2 STEP 4
Step 3 note:
STEP 3
Before Funding Funding of Joint
Revocable Trust
each spouse has the
right to revoke
his/her share until
Division upon First Dying
Spouse's Death
assume Husband dies first
Results of JEST technique
Husband's Assets
Joint Assets: Joint Tenants
w/ Right of Survivorship
Joint Assets: Tenancy by
the Entirety
Wife's Assets
Husband's Share
Husband's Assets
1/2 of former
JTWROS Assets
1/2 of former TBE
Assets (or by other
percentage)
Wife's Share
Wife's Assets
1/2 of former
JTWROS Assets
1/2 of former TBE
Assets (or by
other percentage)
1/2 to
each
Spouse's
Share
1/2 to
each
spouse's
share or
actuarial
value
Credit Shelter Trust A
Funded from Husband's Share
in the amount of Husband's
available estate tax exemption
(EST)
Q-TIP Trust A
If Husband's Share exceeds
his available EST, the excess
will fund this trust
The IRS could find a gift upon contribution of TBE
assets to the joint revocable trust, but this gift will
qualify for the marital deduction if recipient
spouse can withdraw what is added to his or her
share. Also see PLR 200201021.
Credit Shelter Trust B
If Husband's Share is less than
his available EST, Wife's Share
will fund this trust in the
amount of Husband's remaining
EST (but not in excess of her
available EST)
Q-TIP Trust B
If Wife's share has any
remaining assets, they will
be used to fund this trust
- For Wife & descendant's benefit (limited by
ascertainable standard)
- Assets will receive a stepped-up basis
- Assets are protected from Wife's creditors
- Assets escape estate tax on Wife's death
-Wife can be beneficiary of income and principal
-Assets will receive a stepped-up basis on Husband's
death, and then again on Wife's death
- Assets included in Wife's taxable estate
- Will be protected from Wife's creditors
-Assets may receive a stepped-up basis, but this is
more likely if Wife is not a beneficiary
- May escape estate tax liability on Wife's death
-For creditor protection and estate tax exclusion
purposes, CST B may be moved to an APT jurisdiction
Special Consideration: If Wife is found to have a gift of
trust assets to Husband upon Husband's death, this
gift may qualify for the marital deduction
- If IRS argues that Wife has gifted to trust the gift will be
incomplete because of her power of appointment
-Wife will be income beneficiary
-Assets may receive a stepped-up basis on
Husband's death & again on Wife's death
- Assets included in Wife's estate
- May not be protected from Wife's creditors unless
moved to APT trust jurisdiction
- If IRS argues that Wife has gifted to trust the gift
will be incomplete because of her power of
appointment
CST A and CST B can be merged if there is no concern with estate tax,
stepped-up basis, creditor protection, or credit shelter trust effectiveness.
Q-TIP Trust A and Q-TIP Trust B can be merged if there is no concern with
respect to stepped-up basis or credit protection effectiveness.
This allows a full step up in
basis of all assets in the
trust (as opposed to the 50%
in normal cases).
A JEST is used in non-
community property states.
A husband, for example,
could create the trust and
reserve the power to
amend, revoke, or
terminate it. The wife could
be the beneficiary of the
trust, and all trust property
is paid to her estate upon
death.
There have been two recent
private letter rulings in
favor of this strategy, but it
is in its nascent stages.
7. *
*A trust jumps to the
highest levels of
taxation for gains and
income tax at much
lower thresholds than
for individuals.
*A grantor trust can be set
up to potentially pay
lower rates of taxation
with a trust established
for a surviving spouse for
which distributions are
not mandatory. The
income earned on the
trust will be picked up on
the surviving spouse’s
personal filing.
8. *
* For the amount of the gap
between the state
exemption amount and
the federal exemption
amount, one should
consider the gift of a gap-
QTIP trust.
* Income interest for the
QTIP should be given to
the trust for the children.
This will leverage the first
spouse’s Deceased Spousal
Unused Exclusion (DSUE)
and avoid inclusion in the
surviving spouse’s estate.
*The surviving spouse
should not be named
Trustee of the gap QTIP
trust but can use the
principal, since only
the owner of the
income interest is
considered owner for
the IRS purposes.
*The exercise by the
spouse of a general
power of appointment
will accomplish the
same tax results.
9. * Swapping trust assets
* Purchase contracts between trusts
for interpolated reserve value
* Providing for heirs not in family
business
* 2% owner to Christofani
Beneficiaries
*
10. *
*Avoid a “fire sale”
*Maintain illiquid assets
*Facilitate business
succession plan
*“Key man” policy,
cross purchase
agreements, etc.
*Gifts to those not
beneficiaries of the
estate at large
*Divorce obligations,
alimony or support
11. *
*No step up for gifted assets
*Insurance to cover gains taxes due
*Insurance employed as a hedge against
mortality risk (GRATs, QPRTs, installment sales)
12. *
*Move additional cash estate and capital gains
tax free to heirs
*Spousal Access if serving for income
replacement
*Asset protection for estranged spouses, law
suits, creditors, etc.
*Borrowing rights
*Decanting
15. *
*Who is a “covered expatriate?”
*Taxed at the highest rate (40%)
*Tax paid by recipient not individual making the
gift or bequest
*Much more confiscatory estate tax exemptions
*Use the gift tax exemption
16. *
*June 30th is deadline
*Threshold $10,000 total in
all international bank
accounts
*Form 8938
*Debate over International
Real Estate
Reporting for International Assets
17. *No income tax to US
beneficiary
*Form 3520 for amounts over
$100,000
*Penalties are significant and
can include jail time
*Subject to tax on US source
income as if trust was a
non-resident
*All current income
distributed to US
beneficiaries
*Throwback tax
*Insurance used as an
Accumulation vehicle
*
18. *
For decedents on or
after...
And before... The exclusion amount will be...
1-Apr-14 1-Apr-15 $2,062,500
1-Apr-15 1-Apr-16 $3,125,000
1-Apr-16 1-Apr-17 $4,187,500
1-Apr-17 Jan. 1, 2019 $5,250,000
Jan. 1, 2019 Scheduled to equal the federal estate tax
exemption