In this podcast, Anu Joshi from our Family Wealth and Individual Tax Planning Group discusses the top 5 non-tax related reasons you need an estate plan, from dividing your wealth to protecting your well-being.
Top 5 Non-Tax Reasons to Have an Estate Plan
Despite what one might think, estate planning isn’t limited to only the rich and famous. Previously, avoiding or minimizing federal estate tax liability was a primary motivation for creating an estate plan. But with a generous gift and estate tax exemption of $11.18 million for 2018, this is less of a worry for most families. This article details other important benefits of having an estate plan. (more…)
Buy-Sell Agreements - When a Smart Business Decision Also Makes Estate Planning Sense
Do you own a business with one or more individuals? Undoubtedly, your interest in the business represents a substantial part of your net worth and is likely your “pride and joy.” So it’s normal if your fondest wish is for the business to continue long after you’re gone or for you to keep it running if a co-owner or partner dies first. (more…)
Estate Planning Pitfall - You’re Not Taking Advantage of Your Lifetime Gift Tax Exemption
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…)
Estate Planning Pitfall - You Haven’t Transferred Ownership of a Life Insurance Policy to a Trust
In this podcast, Julie Malekhedayat from our Family Wealth and Individual Tax Planning Group discusses:
- Life insurance policies and how they work with estate taxes
- Would it make sense to remove a life insurance policy out of your taxable estate?
- How do life insurance policies interact with estate and income taxes?
- How do I know if I’m the owner of a life insurance policy?
All in the Family - Transferring Your Vacation Home
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…)
New Tax Law Affects Estate Planning Strategies
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…)
Want To Give Your House Away? Consider a QPRT
By Julie Malekhedayat, Principal
ASL Family Wealth and Individual Tax Planning Group
Qualified personal residence trusts (QPRTs) are an estate planning technique that can provide both tax and non-tax benefits to certain taxpayers looking to gift a principal residence, second home, or vacation home slowly over a number of years using a discounted gift value. However, before entering into a QPRT, you should consider the advantages and disadvantages in order to determine if it is right for you. (more…)
Looming Regulations Affecting Valuation Discounts For Estate Planning
By Chris Bitter, Senior Valuation Analyst and Jeff Faust, Director of Valuation Services
Taxpayers are still awaiting new tax regulation changes that may affect the valuation of family-owned entities. In April 2015, Cathy Hughes, from the Treasury’s Office of Tax Policy, announced that the Treasury would amend regulations under IRS Code §2704 around mid-September. However, the Treasury has yet to release any new regulations limiting the applicability of valuation discounts on family-owned entities. Much speculation has arisen as to what the new regulations will look like. In November 2015, senior IRS official Leslie Finlow stated “Guidance on restrictions on estate valuation discounts for certain corporations and partnerships is expected very soon and won’t be based on previous administration proposals. (more…)