Estate Planning attorneys need to understand multiple issues ranging from taxes to asset protection to create a comprehensive estate plan. Passage of the Corporate Transparency Act adds yet another layer to the already complex world of Estate Planning. Beginning on January 1, 2024, any company that qualifies as a Reporting Company needs to file a report with the Financial Crimes Enforcement Network (FinCEN) regarding its Beneficial Owners and individuals who helped register the Reporting … [Read more...] about The Not-So Transparent Corporate Transparency Act
Trusts are misunderstood by many people that are new to the concept of estate planning. There are multiple types of trusts, and they are not exclusively for very wealthy people. In this post, we will look at three reasons why you may want to utilize a trust when you are planning your estate. Estate Planning for Second Marriages If you are getting remarried as a parent, you may have concerns about the inheritances that you want to leave to your children. This type of situation can be magnified … [Read more...] about Use a Trust to Address These Estate Planning Situations
IRAs have become ubiquitous components of estate plans. The SECURE Act of 2019 altered the landscape for IRAs significantly. Just when advisors began to get comfortable with the new 10-year rule, the United States Treasury Department promulgated proposed Treasury Regulations early in 2022 adding additional complexity to that rule by requiring annual distributions for a non-Eligible Designated Beneficiary of a participant who died after their Required Beginning Date. Once again, the SECURE Act … [Read more...] about What You Need to Know About SECURE Act 2.0
There are not many downsides to wealth accumulation, but there is an exception when it comes to estate planning matters. The federal estate tax can be a factor if the value of your estate exceeds the credit or exclusion, and it carries a hefty 40 percent top tax rate. 2023 Federal Estate Tax Exclusion In 2010, the estate tax was completely repealed because of a provision in the Bush era tax cuts, but it was scheduled to return in 2011. At the end of that year, the Tax Relief, Unemployment … [Read more...] about Can You Use Lifetime Gift Giving to Avoid Estate Taxes?
There are different estate planning approaches that can be taken depending on the circumstances. If you make assumptions without seeking legal counsel, you could make mistakes that yield negative consequences. With this in mind, we will provide some tips about estate planning for parents that are getting remarried in this post. Don’t assume that leaving everything to your spouse in a simple will is the right choice. On the day that you are getting married, there will be a great deal of … [Read more...] about Estate Planning Tips for Blended Families
In part, our field is devoted to events that will take place after you pass away. At the same time, holistic estate planning should also address the eventualities of aging, and life as we age can be quite challenging. Cognitive Impairment A lot of people become incapacitated late in their lives, and Alzheimer’s disease or dementia are major culprits. It strikes about one third of the oldest old, and there are other causes of cognitive impairment. If you can no longer take care of your … [Read more...] about Holistic Estate Planning: Anticipate the Eventualities of Aging
While it is true that passing away is at the bottom of everyone’s to do list, it is an inevitability that we should all face head on. It is important to take the right steps to make sure that your legacy is passed along in accordance with your wishes after you are gone. Unfortunately, a very surprising majority of Americans have no estate planning documents at all. Eye Opening Survey Results A legal website engaged Harris Interactive to conduct an in-depth survey a while back that was intended … [Read more...] about Estate Planning Survey: Americans Are Woefully Unprepared
Now that the Democratic party has taken control of the White House and both chambers of Congress, there may be new legislation passed that impacts the way inheritances are taxed. We will provide some insight in this post. Elimination of Stepped-Up Basis Let’s say that your rich uncle passes away, and he leaves you a thousand shares of stock. The stock is worth $100 a share, but he bought it years ago when it was valued at $10 a share. Your uncle paid $10,000 for the stock, and it grew in … [Read more...] about Dem Control Could Impact Taxes on Inheritances
There are many different facets to the estate planning process, and questions arise when you start to ponder the details. With this in mind, if you have an individual retirement account (IRA), you may wonder about the rules for the beneficiary or beneficiaries. We will provide some clarity in this post, and it is important right around now, because there have been some relatively recent changes that have altered the playing field. Traditional Individual Retirement Accounts The traditional … [Read more...] about What Are the Rules for Inherited IRAs?
We are going to provide some information about taxes on living trust distributions in this post. But before we address this central question, we should provide some general information about the benefits that these trusts provide. Lump Sum Inheritance Concerns You may have concerns about leaving a direct, lump sum inheritance to someone that is on your list. Some folks have a proven history of poor money management, and there are young people that simply may not be prepared to handle a … [Read more...] about Are Living Trust Payouts Taxed?