Even though the Tax Cuts and Jobs Act (TCJA) doesn’t include many revisions to estate tax laws, it does provide one major enhancement. Under the TCJA, the unified gift and estate tax exemption of $5 million, which is indexed for inflation, is doubled to $10 million. The indexed figure for 2018 is $11.18 million ($22.36 million for married couples). This means that only the wealthiest families run a risk of federal estate tax liability (although state taxes may offer additional challenges). Given the substantially increased exemption amount, consider re-examining your lifetime gift-giving strategies. (more…)
Insight on Estate Planning
There are many good reasons to move abroad, such as retirement or to begin a new career. But before you finalize your plans, a thorough review of your financial and estate plans is in order. Let’s take a look at what areas to focus on. (more…)
Is your elderly parent or other relative who lives alone experiencing difficulty with daily living activities? Although moving a loved one to a nursing home might be the best option for all concerned, the move may be challenged by the senior citizen, much to the adult children’s chagrin. In some cases, a squabble can evolve into a full-fledged family feud where siblings stop talking to one another or a parent disowns his or her offspring. (more…)
After recent tax legislation, including the Tax Cuts and Jobs Act (TCJA), few tax shelters are left standing. One key exception is life insurance. If certain requirements are met, the buildup of value in a life insurance policy is exempt from current income tax, while proceeds payable upon death can avoid estate tax. (more…)
Is a substantial portion of your net worth tied up in your closely held business? Even if you plan to stay involved with the company for many years, it’s critical to have an exit strategy.
An employee stock ownership plan (ESOP) is one tool that offers a tax-efficient way to share equity with employees. It can also help you address issues such as a lack of liquidity and enable you to provide for family members who don’t work in the business. (more…)
One of the primary objectives of estate planning is protecting your assets from unreasonable creditors’ claims, frivolous lawsuits or financial predators ― the reason being that you want to pass as much of your wealth to your family as possible.
Both offshore and domestic trusts can be highly effective vehicles for protecting wealth, but they can be complicated and expensive. The good news is that there are basic yet effective tools you can implement to protect your hard-earned wealth. (more…)
Vacation homes are typically treasured by families and often pass down from generation to generation. But there may be more to transferring the family lake cottage or beach house than first meets the eye. If you plunge ahead without careful planning, it could disrupt harmony and lead to a “family feud.” In some cases, relationships may be severed forever. (more…)
According to the 2017 Genworth Cost of Care Survey, a widely used barometer for the industry, the median cost of adult day health care in the United States is $1,517 a month. It’s $3,750 for an assisted living facility, $3,994 for home care services and $4,099 for home health aides. And the median cost rises to $7,148 for a semiprivate room at a nursing home and $8,121 for a private room! (more…)
The Tax Cuts and Jobs Act (TCJA), which generally went into effect at the beginning of 2018, lowers individual and corporate tax rates, reduces or eliminates many deductions and enhances other tax breaks. One thing the new law doesn’t do is repeal the federal estate tax. But the TCJA does include other provisions that can impact your estate plan. (more…)