The document summarizes the new estate tax rules under the 2010 Tax Act and how they may impact estate planning. Key points include:
- The estate tax exemption has increased to $5.12 million per person and is portable between spouses. This allows married couples to transfer up to $10.24 million tax-free.
- Existing estate plans using credit shelter trusts may no longer achieve their objectives due to the higher exemption amount. Plans will need to be reviewed.
- The higher exemption provides an opportunity for significant gift giving in 2012 to reduce the overall estate and take advantage of gift tax exclusion.
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.
Estate planning involves managing assets while alive and controlling their distribution after death according to one's goals. This document provides an overview of common estate planning needs for different groups, including unmarried couples, married couples, young singles, families with children, retirees, the elderly or ill, and wealthy individuals. It also discusses the advantages of trusts and the importance of periodically reviewing one's estate plan.
The document discusses marital deduction and bypass trusts, also known as A-B trusts. These trusts give the surviving spouse access to assets but minimize estate taxes, often eliminating them entirely at the first spouse's death. Assets are placed in a marital trust and bypass trust, with the marital trust receiving the marital deduction and bypass trust assets avoiding tax at the second death. The document provides details on unified credit amounts, qualifying requirements for different types of trusts, and considerations for using marital deduction trusts.
This document provides an overview of estate planning strategies and techniques. It discusses how forming an estate planning team with professionals like financial representatives, attorneys, accountants, and bank trust officers can help create a sound plan. Some key estate planning techniques discussed are wills, trusts, and life insurance trusts. The document also notes how the changing tax environment affects estate planning considerations. The goal of estate planning is to help keep promises to family by minimizing estate taxes, providing for heirs, and controlling asset distribution according to one's wishes.
Investing Retirement Plan Assets: What Are The Limits?Bruce Givner
The Internal Revenue Code and the Title I of ERISA (administered by the U.S. Department of Labor) have restrictions on how retirement plan assets can be invested. For example, certain investments will cause UBTI (unrelated business taxable income) to what is otherwise a tax-exempt trust. Certain investments may cause prohibited transactions with the resulting excise tax under IRC Section 4975. There are also the general fiduciary rules governing trustees generally, e.g., the duty to diversify. This handout is designed to advise the trustee and the plan sponsor on how to avoid the pitfalls.
The document discusses changes to UK pension rules that revolutionize how pension benefits can be taken in retirement. Key points include: the abolition of the age 75 rule; allowing income drawdown indefinitely; introducing flexible drawdown; changing current drawdown to capped drawdown; changes to death benefits and tax charges; transitional rules for those already in drawdown; keeping the ability to take 25% tax-free cash; and keeping annuities as an option but allowing their purchase at any age after 55. It also notes that drawdown is complex and risky compared to annuities which provide secure lifetime income.
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.
Estate planning involves managing assets while alive and controlling their distribution after death according to one's goals. This document provides an overview of common estate planning needs for different groups, including unmarried couples, married couples, young singles, families with children, retirees, the elderly or ill, and wealthy individuals. It also discusses the advantages of trusts and the importance of periodically reviewing one's estate plan.
The document discusses marital deduction and bypass trusts, also known as A-B trusts. These trusts give the surviving spouse access to assets but minimize estate taxes, often eliminating them entirely at the first spouse's death. Assets are placed in a marital trust and bypass trust, with the marital trust receiving the marital deduction and bypass trust assets avoiding tax at the second death. The document provides details on unified credit amounts, qualifying requirements for different types of trusts, and considerations for using marital deduction trusts.
This document provides an overview of estate planning strategies and techniques. It discusses how forming an estate planning team with professionals like financial representatives, attorneys, accountants, and bank trust officers can help create a sound plan. Some key estate planning techniques discussed are wills, trusts, and life insurance trusts. The document also notes how the changing tax environment affects estate planning considerations. The goal of estate planning is to help keep promises to family by minimizing estate taxes, providing for heirs, and controlling asset distribution according to one's wishes.
Investing Retirement Plan Assets: What Are The Limits?Bruce Givner
The Internal Revenue Code and the Title I of ERISA (administered by the U.S. Department of Labor) have restrictions on how retirement plan assets can be invested. For example, certain investments will cause UBTI (unrelated business taxable income) to what is otherwise a tax-exempt trust. Certain investments may cause prohibited transactions with the resulting excise tax under IRC Section 4975. There are also the general fiduciary rules governing trustees generally, e.g., the duty to diversify. This handout is designed to advise the trustee and the plan sponsor on how to avoid the pitfalls.
The document discusses changes to UK pension rules that revolutionize how pension benefits can be taken in retirement. Key points include: the abolition of the age 75 rule; allowing income drawdown indefinitely; introducing flexible drawdown; changing current drawdown to capped drawdown; changes to death benefits and tax charges; transitional rules for those already in drawdown; keeping the ability to take 25% tax-free cash; and keeping annuities as an option but allowing their purchase at any age after 55. It also notes that drawdown is complex and risky compared to annuities which provide secure lifetime income.
Life Insurance Trusts and Charitable Planning Techniquesscoop85
Learn techniques to provide protection for life insurance proceeds against estate tax exposure and creditors, and how to integrate charitable planning techniques that benefit the client and their family as well as selected charities.
In 1989 Alaska was the first state to allow a domestic asset protection trust. In that same year Nevada and Delaware also changed their laws to allow DAPTs (also called self-settled spendthrift trusts). The question was - for 30 years - if a person in California set up a DAPT in Nevada - could a judgment creditor in California take his judgment to Nevada and have the Nevada court enforce the judgment against the California debtor's asset protection trust. Some lawyers argued "yes," citing Art. IV, Section 1 of the U.S. Constitution, the "full faith and credit clause." Other lawyers argued "No, it would be against Nevada's public policy." Finally, in June, 2019, the South Dakota Supreme Court held that it would give "full faith and credit to the California family law court order. However, it would not give full faith and credit to the enforcement against a South Dakota trust. Will this case make it to the U.S. Supreme Court? What about the on-going divorce of Ed and Marie Borsarge? The Cameron case did not involve an asset protection trust. But certainly South Dakota, Nevada and the other states will rule the same way in a case involving an asset protection trust.
A reverse mortgage allows senior homeowners aged 62 or older to convert equity in their home into tax-free cash payments, while continuing to live in their home. They do not require monthly mortgage payments or repayment of the loan until the last borrower permanently moves out or passes away. Common myths about reverse mortgages include that the borrower could lose ownership of their home or owe more than their home is worth, but reverse mortgages are structured to protect borrowers from these outcomes. Eligibility requires the home to be the borrower's primary residence and for them to receive counseling on reverse mortgage options and costs.
An overview of the 2013 changes and modifications to the National Flood Insurance Program (NFIP) presented at the September 4, 2013 Lunch and Learn at the Charleston Trident Association of REALTORS (CTAR)
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.
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 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.
Survivor universal life insurance 4088541883 san jose california connie dello...Connie Dello Buono
connie dello buono 4088541883 san jose california ca life ins lic 0G60621 on page 3 is about preserving your heir's inheritance, charitable gifts, key person coverage and wealth transfer
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 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.
Investment Tax Landscape Countdown To 2013dvanderjagt
The document discusses the tax landscape between now and 2013 as Congress wrestles with budget deficit issues. It may represent a stay of execution for higher taxes rather than a pardon. Several types of investors should pay attention to planning, including those with substantial capital gains, those reliant on dividends/bonds for income, and those investing in small businesses. Capital gains and dividend tax rates may increase after 2012, and tax-free municipal bonds may become relatively more attractive for high-income investors. The 100% capital gains exclusion was extended for qualifying small business stock issued before January 2012.
The document summarizes real estate provisions in the "Fiscal Cliff" bill passed by Congress in January 2013. Key provisions included extending the mortgage cancellation relief and deductions for mortgage insurance premiums and energy efficiency improvements through 2013. The bill also reinstated limitations on itemized deductions for high-income individuals earning over $250,000 individually or $300,000 jointly. Capital gains rates remained at 15% for income under $400,000/$450,000 and increased to 20% above those thresholds, while the estate tax exemption rose to $5/$10 million with a 40% rate applying above those amounts.
The National Association of Realtors Fiscal Cliff Summary for Mortgage Interest Deductions, Mortgage Relief for Short Sales, Leasehold Improvements, Energy Efficiency Tax Credit summary
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.
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.
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.
1. Inheritance tax is payable on estates valued over £325,000. Recent house price increases have pushed more estates over the threshold.
2. Exemptions and allowances exist to help reduce inheritance tax liability, including the nil-rate band, gifts to spouses, gifts made more than 7 years before death, and regular gifts out of income.
3. Planning ahead, such as making a will, using available exemptions and allowances, and considering life assurance, can help avoid needing to sell assets to pay unexpected inheritance tax bills.
Extension of Tax Cuts, Estate Changes Highlight Final Bill of 2010RobertWBaird
The Tax Relief, Unemployment Insurance Reauthorization and Jobs Creation Act of 2010 extended several expiring tax provisions, including extending the 2001 and 2003 tax cuts through 2012. It also increased the estate tax exemption to $5 million per individual for 2011-2012, reduced the top estate tax rate to 35%, and made the exemption portable between spouses. Additionally, it reduced the employee portion of the payroll tax from 6.2% to 4.2% for 2011 and extended Alternative Minimum Tax relief for 2010-2011.
Estate and Gift Tax Laws: New Rules - Dec. 2011RobertWBaird
The document summarizes new rules for estate and gift taxes under legislation passed in December 2010. It outlines increases to the estate and gift tax exemption amounts to $5 million per person and $10 million per married couple. The top tax rate was lowered to 35%. Executors can elect to apply the new rules retroactively for those who died in 2010. Other changes include reunifying the estate and gift tax systems, and allowing portability of unused exemptions between spouses. However, the changes only apply through 2012 unless extended by Congress.
This document discusses myths and realities surrounding annuities. It aims to dispel common misconceptions about annuities by providing factual information. Some myths addressed include that annuities are prohibitively expensive, their gains are taxed at higher rates than other investments, tax deferral is lost if an annuity is owned by a trust, and they are treated the same as other assets when inherited. The document explains that variable annuities can offer valuable benefits that justify their costs, their effective tax rates are often lower than assumed, tax deferral may be retained if the trust beneficiary is a person, and beneficiaries have tax deductions to alleviate double taxation upon inheritance.
Life Insurance Trusts and Charitable Planning Techniquesscoop85
Learn techniques to provide protection for life insurance proceeds against estate tax exposure and creditors, and how to integrate charitable planning techniques that benefit the client and their family as well as selected charities.
In 1989 Alaska was the first state to allow a domestic asset protection trust. In that same year Nevada and Delaware also changed their laws to allow DAPTs (also called self-settled spendthrift trusts). The question was - for 30 years - if a person in California set up a DAPT in Nevada - could a judgment creditor in California take his judgment to Nevada and have the Nevada court enforce the judgment against the California debtor's asset protection trust. Some lawyers argued "yes," citing Art. IV, Section 1 of the U.S. Constitution, the "full faith and credit clause." Other lawyers argued "No, it would be against Nevada's public policy." Finally, in June, 2019, the South Dakota Supreme Court held that it would give "full faith and credit to the California family law court order. However, it would not give full faith and credit to the enforcement against a South Dakota trust. Will this case make it to the U.S. Supreme Court? What about the on-going divorce of Ed and Marie Borsarge? The Cameron case did not involve an asset protection trust. But certainly South Dakota, Nevada and the other states will rule the same way in a case involving an asset protection trust.
A reverse mortgage allows senior homeowners aged 62 or older to convert equity in their home into tax-free cash payments, while continuing to live in their home. They do not require monthly mortgage payments or repayment of the loan until the last borrower permanently moves out or passes away. Common myths about reverse mortgages include that the borrower could lose ownership of their home or owe more than their home is worth, but reverse mortgages are structured to protect borrowers from these outcomes. Eligibility requires the home to be the borrower's primary residence and for them to receive counseling on reverse mortgage options and costs.
An overview of the 2013 changes and modifications to the National Flood Insurance Program (NFIP) presented at the September 4, 2013 Lunch and Learn at the Charleston Trident Association of REALTORS (CTAR)
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.
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 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.
Survivor universal life insurance 4088541883 san jose california connie dello...Connie Dello Buono
connie dello buono 4088541883 san jose california ca life ins lic 0G60621 on page 3 is about preserving your heir's inheritance, charitable gifts, key person coverage and wealth transfer
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 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.
Investment Tax Landscape Countdown To 2013dvanderjagt
The document discusses the tax landscape between now and 2013 as Congress wrestles with budget deficit issues. It may represent a stay of execution for higher taxes rather than a pardon. Several types of investors should pay attention to planning, including those with substantial capital gains, those reliant on dividends/bonds for income, and those investing in small businesses. Capital gains and dividend tax rates may increase after 2012, and tax-free municipal bonds may become relatively more attractive for high-income investors. The 100% capital gains exclusion was extended for qualifying small business stock issued before January 2012.
The document summarizes real estate provisions in the "Fiscal Cliff" bill passed by Congress in January 2013. Key provisions included extending the mortgage cancellation relief and deductions for mortgage insurance premiums and energy efficiency improvements through 2013. The bill also reinstated limitations on itemized deductions for high-income individuals earning over $250,000 individually or $300,000 jointly. Capital gains rates remained at 15% for income under $400,000/$450,000 and increased to 20% above those thresholds, while the estate tax exemption rose to $5/$10 million with a 40% rate applying above those amounts.
The National Association of Realtors Fiscal Cliff Summary for Mortgage Interest Deductions, Mortgage Relief for Short Sales, Leasehold Improvements, Energy Efficiency Tax Credit summary
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.
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.
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.
1. Inheritance tax is payable on estates valued over £325,000. Recent house price increases have pushed more estates over the threshold.
2. Exemptions and allowances exist to help reduce inheritance tax liability, including the nil-rate band, gifts to spouses, gifts made more than 7 years before death, and regular gifts out of income.
3. Planning ahead, such as making a will, using available exemptions and allowances, and considering life assurance, can help avoid needing to sell assets to pay unexpected inheritance tax bills.
Extension of Tax Cuts, Estate Changes Highlight Final Bill of 2010RobertWBaird
The Tax Relief, Unemployment Insurance Reauthorization and Jobs Creation Act of 2010 extended several expiring tax provisions, including extending the 2001 and 2003 tax cuts through 2012. It also increased the estate tax exemption to $5 million per individual for 2011-2012, reduced the top estate tax rate to 35%, and made the exemption portable between spouses. Additionally, it reduced the employee portion of the payroll tax from 6.2% to 4.2% for 2011 and extended Alternative Minimum Tax relief for 2010-2011.
Estate and Gift Tax Laws: New Rules - Dec. 2011RobertWBaird
The document summarizes new rules for estate and gift taxes under legislation passed in December 2010. It outlines increases to the estate and gift tax exemption amounts to $5 million per person and $10 million per married couple. The top tax rate was lowered to 35%. Executors can elect to apply the new rules retroactively for those who died in 2010. Other changes include reunifying the estate and gift tax systems, and allowing portability of unused exemptions between spouses. However, the changes only apply through 2012 unless extended by Congress.
This document discusses myths and realities surrounding annuities. It aims to dispel common misconceptions about annuities by providing factual information. Some myths addressed include that annuities are prohibitively expensive, their gains are taxed at higher rates than other investments, tax deferral is lost if an annuity is owned by a trust, and they are treated the same as other assets when inherited. The document explains that variable annuities can offer valuable benefits that justify their costs, their effective tax rates are often lower than assumed, tax deferral may be retained if the trust beneficiary is a person, and beneficiaries have tax deductions to alleviate double taxation upon inheritance.
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.
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.
Current Thinking, November/December 2012Kevin Lenox
- If lawmakers cannot agree on a deal by the end of the year to avoid the "fiscal cliff", $560 billion in tax increases and $136 billion in spending cuts will automatically go into effect in 2013, resulting in a 3.6% decline in GDP and average household tax bills rising by $3,500.
- With many popular tax deductions and credits set to expire, tax planning strategies are more important than ever given the uncertainty around which provisions will be extended or changed.
- Estate and gift tax exemptions could be reduced substantially if Congress does not act, so accelerating gifts may help move assets out of estates before year-end.
Current Tax Legislation And Estate Planning Practicesdkprintz
The document summarizes current estate tax legislation and planning practices. It discusses the gift tax, estate tax, and generation-skipping transfer tax. It then provides details on current tax exemption amounts and rates, pending legislation that could decrease estate tax rates and increase exemptions, and recommended estate planning techniques like gifting, grantor retained annuity trusts (GRATs), and discounts for minority interests.
Agenda: Tax Updates for Individuals; Tax Update for Businesses; Fiscall Cliff; Disposition of Assets or Business Interests; Depreciation; Basis Issues; Business Income and Deductions; Estate Planning; Other Cases and Rulings.
Year-End Tax Planning and Financial Planning Ideas - Dec. 2011RobertWBaird
This document provides year-end tax and financial planning ideas for private wealth management clients. It discusses reviewing capital gains and losses to realize losses to offset gains, considering realizing gains to use up losses, and avoiding wash sales. It also recommends ensuring adequate tax withholdings and payments to avoid penalties, accelerating or deferring income and deductions as needed, and completing charitable donations by year-end to take the deduction. The tax rates for 2012 are expected to remain the same as 2011 but could change significantly after that.
Similar to The new estate tax rules and your estate plan (20)
The post-election political landscape leaves President Obama working with a Democratic Senate and Republican House for at least two more years. With little time left, they must address expiring tax provisions, automatic spending cuts, and reaching the debt ceiling. Expiring tax cuts and provisions at the end of 2012 could significantly raise income tax rates and reduce many tax breaks unless extended. Automatic spending cuts are set to begin in 2013 to reduce the deficit, but they apply broadly across all programs. The debt ceiling will likely be reached before the end of the year as well, requiring Congress to allow more government borrowing.
The Medicare open enrollment period begins on October 15 and runs through December 7, allowing people with Medicare to switch plans for the upcoming year. During this period, individuals can change prescription drug plans, switch between Medicare plans, and join or drop Medicare drug coverage. People should review their current coverage and consider factors like costs, services covered, and anticipated healthcare needs to determine if another plan would better suit their situation for the coming year.
The Dow Jones Industrial Average hit a level less than 4% below its pre-2008 high, while the S&P 500 was roughly 6.5% away from achieving the same target. Encouraging manufacturing and employment data helped boost stock market indexes. The unemployment rate fell to 7.8% in September, its lowest level since January 2009, and manufacturing showed growth after three months of decline over the summer. However, factory orders declined 5.2% in August due to a drop in transportation equipment orders.
It’s good to understand Europe’s debt crisis and why it’s affecting
U.S. markets. Here’s an overview of how the European Union
operates, why the euro is in danger, and what the crisis could mean
to American investors.
While it is generally a good idea to draw retirement funds from taxable accounts first, there are some exceptions. Whether pre-tax or tax-free accounts should be tapped first depends on factors like the client's tax situation, risk tolerance, investments, and income needs. For example, if a client has significant stock gains in a taxable account, it may make more sense to draw from retirement accounts instead to avoid capital gains taxes. Additionally, Roth IRAs should be drawn from last since required minimum distributions do not apply. Planning which accounts to use requires considering the client's full financial picture.
This document discusses holistic caregiving planning for aging parents. It recommends assembling all available resources to help parents and minimize costs, which can deplete adult children's finances and retirement savings. Living arrangements like staying home, moving in with children, or assisted living should consider costs and quality of life. Regardless of arrangements, some care like housekeeping, transportation, and bill paying will be needed, which adult children or outside help could provide. Planning ahead allows families to integrate financial and life plans for mutual benefit. Professional advice can help evaluate resources and responsibilities.
This document discusses holistic caregiving planning for aging parents. It recommends assembling available resources to help parents and minimize costs to adult children. Living arrangements like staying at home, moving in with children, or assisted living should consider costs and quality of life. Regardless of arrangements, some care like housekeeping, transportation, and bill paying will be needed, which adult children or outside help could provide. Planning ahead allows families to integrate financial and life plans for mutual benefit by evaluating resources and responsibilities.
This document discusses the key differences between retirement accumulation and distribution strategies and the adjustments clients and advisors need to make when transitioning from accumulation to distribution. Some of the main points made include:
- Fundamental concepts like dollar cost averaging and compounding work differently in a distribution strategy compared to an accumulation strategy.
- The sequence of investment returns and volatility become more important in distribution since clients rely on steady withdrawals.
- Careful planning is needed to determine the best strategies for generating retirement income from a portfolio and transitioning assets over time in a tax-efficient manner.
- Close monitoring of withdrawal rates and account values is necessary to ensure the nest egg lasts throughout retirement.
This document provides a checklist to help determine if an aging loved one needs assisted living. It lists signs to watch for regarding medications, food/groceries, daily activities, social contact, driving abilities, and calls to family/providers. Catching the need for assistance earlier rather than later can help defray emotional and financial costs. Up to 12 million older adults may need assisted living by 2030. Nursing home care costs average $74,825 annually currently and are estimated to rise to $200,000 within 30 years. Resources for caregivers are also listed.
Working just a few more years can significantly reduce the amount baby boomers need saved for retirement. Delaying retirement by 1-4 years allows workers to save more, receive higher social security benefits, pay off debt, and have a shorter retirement to fund. Analysis shows a couple needing $510,000 saved if retiring at 62 could need $465,000 if retiring at 63 or as little as $117,700 if retiring at 70. Working longer provides substantial benefits for funding retirement.
The document provides 5 questions to ask yourself 5 years before retirement to help envision your retirement lifestyle and needs:
1. Where will you live and how will location impact costs of housing, taxes, proximity to family, and availability of work?
2. What activities will fill your time and how will those impact your budget as some are more expensive than others?
3. How will you want to live in terms of lifestyle - frugally or lavishly?
4. How long do you expect to live and plan finances accordingly rather than just average life expectancy?
5. What unexpected life events like health problems, family issues, economic downturns or disasters might impact your finances? Advanced
1. The document discusses seven key life events that most baby boomers will face as they move through the last third of their lives: their parents getting old and eventually dying, their own health issues and costs of staying healthy, reaching retirement age, managing multiple sources of income in retirement, and eventually dying.
2. It advises preparing for these events now by discussing health status, long-term care plans, powers of attorney, and estate planning with aging parents. It also discusses Social Security, Medicare, taxes in retirement, managing IRA and investment withdrawals.
3. The last event discussed is contemplating one's own mortality and doing legacy planning. The document encourages thinking about these major life transitions ahead of time
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
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?
Unlock Your Potential with NCVT MIS.pptxcosmo-soil
The NCVT MIS Certificate, issued by the National Council for Vocational Training (NCVT), is a crucial credential for skill development in India. Recognized nationwide, it verifies vocational training across diverse trades, enhancing employment prospects, standardizing training quality, and promoting self-employment. This certification is integral to India's growing labor force, fostering skill development and economic growth.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
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.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
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
1. The New Estate Tax Rules and
Your Estate Plan
The Tax Relief, Unemployment Insurance The portability of the exemption coupled with an
Reauthorization, and Job Creation Act of 2010 (the increase in the exemption amount to $5,120,000 per
2010 Tax Act) included new gift, estate, and taxpayer allows a married couple to pass on up to
generation-skipping transfer (GST) tax provisions. $10,240,000 gift and estate tax free in 2012. Though
The 2010 Tax Act provides that in 2011 and 2012, the this seems to negate the usefulness of A/B trust
gift and estate tax exemption is $5 million (indexed for planning, there are still many reasons to consider
inflation in 2012, and thus is $5,120,000), the GST tax using A/B trusts.
exemption is also $5 million (indexed for inflation in • The assets of the surviving spouse, including
2012, and thus is $5,120,000), and the maximum rate those inherited from the deceased spouse, may
for both taxes is 35%. New to estate tax law is gift appreciate in value at a rate greater than the rate
and estate tax exemption portability: generally, any at which the exemption amount increases. This
gift and estate tax exemption left unused by a may cause assets in the surviving spouse's estate
deceased spouse can be transferred to the surviving to exceed that spouse's available exemption. On
spouse. The GST tax exemption, however, is not the other hand, appreciation of assets placed in a
portable. These major changes are temporary: absent credit shelter trust will avoid estate tax at the death
further legislation, in 2013, the exemptions are of the surviving spouse.
generally scheduled to drop to $1 million, the
Looking ahead • The distribution of assets placed in the credit
maximum rate will jump to 55%, and portability will be
Without further legislation in repealed. You should understand how these new and shelter trust can be controlled. Since the trust is
the interim, the provisions irrevocable, your plan of distribution to particular
temporary rules may affect your estate plan.
of the Tax Relief, beneficiaries cannot be altered by your surviving
Unemployment Insurance Exemption portability spouse. Leaving your entire estate directly to your
Reauthorization, and Job
Under prior law, the gift and estate tax exemption was surviving spouse would leave the ultimate
Creation Act of 2010 are
scheduled to sunset, or effectively "use it or lose it." In order to fully utilize distribution of those assets to his or her discretion.
expire, on January 1, 2013, their respective exemptions, married couples often • A credit shelter trust may also protect trust assets
at which time tax rates and implemented a bypass plan: they divided assets from the claims of any creditors of your surviving
exemption amounts return between a marital trust and a credit shelter, or spouse and the trust beneficiaries. You can also
to their 2001 levels (subject include a spendthrift provision to limit your
bypass, trust (this is often referred to as an A/B trust
to increases for inflation in
plan). Under the 2010 Tax Act, the estate of a surviving spouse's access to trust assets, thus
some cases).
deceased spouse can transfer to the surviving spouse preserving their value for the trust beneficiaries.
any portion of the exemption it does not use (this • The portability feature is in effect for two years
portion is referred to as the deceased spousal unused only, and is scheduled to expire in 2013, unless
exclusion amount, or DSUEA). The surviving Congress enacts further legislation.
spouse's exemption, then, is increased by the
DSUEA, which the surviving spouse can use for A/B trust plans with formula clauses
lifetime gifts or transfers at death. If you currently have an A/B trust plan, it may no
Example: At the time of Henry's death in 2011, he longer carry out your intended wishes because of the
had made $1 million in taxable gifts and had an estate increased exemption amount. Many of these plans
of $2 million. The DSUEA available to his surviving use a formula clause that transfers to the credit
spouse, Linda, is $2 million ($5 million - ($1 million + shelter trust an amount equal to the most that can
$2 million)). This $2 million can be added to Linda's pass free from estate tax, with the remainder passing
own exemption for a total of $7,120,000 ($5,120,000 to the marital trust for the benefit of the spouse. For
+ $2 million), assuming Linda dies in 2012. example, say a spouse died in 2002 with an estate
October 19, 2012
Page 1 of 2, see disclaimer on final page
2. Beware of the worth $5,120,000 and an estate tax exemption of $1 to make significantly greater gifts of premium
"clawback" million. The full exemption amount, or $1 million, payments, which can be used to buy a larger life
Say you make a gift in the would have been transferred to the credit shelter trust insurance policy.
amount of the exemption in and $4,120,000 would have passed to the marital
2012 ($5,120,000), then
The increased exemption may also prove beneficial
trust. Under the same facts in 2012, since the for same-sex couples whose estate planning is limited
you die in 2013 when the exemption has increased, the entire $5,120,000
exemption reverts to $1 due to a lack of gift or estate tax marital deduction. At
estate will transfer to the credit shelter trust, to which least for 2012, assets of significant worth can be
million, which it is currently
scheduled to do. Will your
the surviving spouse may have little or no access. transferred between partners without gift tax
estate be taxed on the Review your estate plan carefully with an estate consequences.
difference? This problem is planning professional to be sure your intentions will
referred to as the be carried out under the new laws. Before implementing a gifting plan, however, there
"clawback" and while most are a few issues you should consider.
practitioners believe it Wealth transfer strategies through • Can you afford to make the gift in the first place
ultimately won't apply, there gifting (you may need those assets and the related cash
is no legal documentation to
definitively refute that Because of the larger exemptions and lower tax rates, flow in the future)?
possibility. 2012 provides an unprecedented opportunity for • Do you anticipate that your estate will be subject to
gifting. estate taxes at your death?
By making gifts up to the exemption amount, you can • Is minimizing estate taxes more important to you
significantly reduce the value of your estate without than retaining control over the asset?
incurring gift tax. In addition, any future appreciation • Do you have concerns about gifting large amounts
on the gifted assets will escape taxation. Assets with to your heirs (i.e., is the recipient competent to
the most potential to increase in value, such as real manage the asset)?
estate (e.g., a vacation home), expensive art,
furniture, jewelry, and closely held business interests, • Does the transfer tax savings outweigh the
offer the best tax savings opportunity. potential capital gains tax the recipient may incur if
the asset is later sold? The recipient of the gift gets
Gifting may be done in several different forms. These a carryover basis (i.e., your tax basis) for income
include direct gifts to individuals, gifts made in trust tax purposes. On the other hand, property left to
(e.g., grantor retained annuity trusts and qualified an individual as a result of death will generally
personal residence trusts), and intra-family loans. receive a step-up in cost basis to fair market value
Currently, you can also employ techniques that at date of death, resulting in potentially less
leverage the temporarily high exemptions to income tax to pay when such an asset is ultimately
potentially provide an even greater tax benefit (for sold.
example, creating a family limited partnership may
also provide valuation discounts for tax purposes). Caution: The amount of gift tax exemption you used
prior to 2012 will reduce the $5,120,000 available to
For high-net-worth married couples, gifting to an you under the 2010 Tax Act. For example, a person
irrevocable life insurance trust (ILIT) designed as a who used $1 million of his or her exemption prior to
dynasty trust can reduce estate size while providing a January 1, 2012, will be able to make additional gifts
substantial gift for multiple generations (depending on totaling $4,120,000 during 2012 free from gift tax.
how long a trust can last under the laws of your
particular state). The value of the gift may be Tip: In addition to this limited opportunity to transfer a
increased (leveraged) by the purchase of significant amount of wealth tax free, it's important to
second-to-die life insurance within the trust. Further, remember that you can still take advantage of the
the larger exemptions enable you to increase, gift tax $13,000 per person per year annual gift tax exclusion
free, the premiums paid for life insurance policies that for 2012. Also, gifts of tuition payments and payment
are owned by the ILIT or other family members. of medical expenses (if paid directly to the
Premium payments on such policies are taxable gifts, institutions) are still tax free and can be made at any
so these premium payments are often limited to avoid time.
incurring gift tax. This in turn restricts the amount of
life insurance that can be purchased. But the
increased exemption in 2012 provides the opportunity
IMPORTANT DISCLOSURES
Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not
specific to any individual's personal circumstances.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose
of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her
individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed
to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time
and without notice.
Page 2 of 2
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2012