If you’re in line to inherit property from a parent or other loved one, it’s critical to understand the basis consistency rules. Tax law provides that the income tax basis of property received from a deceased person cannot exceed the property’s fair market value (FMV) as finally determined for estate tax purposes. (more…)
Insight on Estate Planning
A blog to spur thought and family conversations around managing and transferring family assets and wealth.
NextThe Downsides of a “Do-It-Yourself” Will
Today, you can do practically anything online that used to require face-to-face contact. For example, you can buy clothing, do your banking or even download a form to write your own will. But a “do-it-yourself” will is a risky proposition, especially if you have considerable wealth. (more…)
Estate Tax Concerns for Both Today and the Future
The Tax Cuts and Jobs Act (TCJA) doubled the federal gift and estate tax exemption amount from $5 million to $10 million, adjusted annually for inflation. Combined with the unlimited marital deduction and other estate tax provisions, including portability of the exemption, a married couple can easily shelter more than $20 million from federal estate tax. (more…)
Estate Planning for Every Stage of Life
Virtually everyone needs an estate plan, but this isn’t a one-size-fits-all proposition. Even though each person’s situation is unique, general guidelines can be drawn depending on your current stage of life.
The early years
If you’ve recently embarked on a career, gotten married, or both, now is the time to build the foundation for your estate plan. And, if you’ve recently started a family, estate planning is even more critical. (more…)
Beware of the New Tax Law’s Impact on Trust and Estate Income
By Christine Collins Madrid, CPA, Tax Director
ASL Family Wealth & Individual Tax Planning Group
The Tax Cuts and Jobs Act (TCJA), signed into law in December 2017, made important modifications to the income taxation of trusts and estates for 2018 and beyond. Trust and estate income tax rates and brackets changed, along with deductibility of some estate and trust administrative expenses. Also, a new qualified business income deduction is available, under certain circumstances, that could be as much as 20% of qualified business income. (more…)
The Benefits of Long-Term Care Insurance
According to the 2017 Genworth Cost of Care Survey, the average annual cost of living in an assisted living facility is $45,000. The average annual cost of a private nursing home room is nearly $97,500.
If you or a loved one becomes ill and requires long-term care (LTC), the costs can quickly deplete your savings, thus derailing your estate plan. Insurance is a popular option to help cover LTC medical expenses. (more…)
Estate Planning Pitfall - You’re Not Making Payments Directly to the Educational Institution or Health Care Provider
Now that the unified gift and estate tax exemption has jumped to $11.18 million in 2018, you may no longer have to worry about gift and estate taxes. On top of that, you can still use the annual gift tax exclusion of $15,000 per recipient in 2018. (more…)
The Four Basic Steps of Probate
Probate. The word itself is enough to strike fear into the hearts of elderly individuals and their loved ones. It conjures images of lengthy delays waiting for wealth to be transferred and bitter disputes among family members. Plus, probate is open to the public, so all your “dirty linen” may be aired. The reality is that probate doesn’t have to be so terrible, and often isn’t, but both property owners and their heirs should know what’s in store. (more…)
The Basics of Protecting Your Assets
It’s one thing to earn enough to live a comfortable lifestyle. It’s yet another to develop a plan for protecting your assets so that there’s more for your heirs after your death. If you’ve been fortunate enough to achieve the former, there are estate planning tips to help with the latter.
Asset protection may take many forms, ranging from the simple to the sophisticated, often involving a combination of several techniques. In any event, you should begin planning now instead of leaving matters to chance. (more…)