Obviously, qualified retirement plans such as 401(k) plans and IRAs are meant to provide retirement savings. However, if you’re fortunate and don’t have to draw heavily, if at all, on plan and IRA assets, you can preserve a tidy nest egg for your heirs.
In fact, if handled correctly, distributions can be stretched over the lifetimes of several generations. Thus, these vehicles become estate planning tools, as well as retirement planning tools. (more…)
The Tax Cuts and Jobs Act (TCJA) has reduced estate tax concerns for many families, but estate tax liability remains a concern for some. Notably, you may implement strategies in the wake of the TCJA that are designed to reduce future exposure to federal and state estate taxes.
One such option, a Crummey trust, remains a viable option. Despite its odd-sounding name, derived from the landmark case authorizing its use, the results are anything but crummy. (more…)
An estate planning rule of thumb is to review (and, if necessary, revise) your estate plan in light of major life events. Such events include a marriage, birth of a child and a divorce. A second marriage also calls for an estate plan review. You’ll want to provide for your current spouse but not inadvertently benefit your former spouse. And if you have children from each marriage, juggling their interests can be a challenge. (more…)
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…)
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…)
In this podcast, Chris Madrid from our Family Wealth and Individual Tax Planning Group discusses important modifications the Tax Cuts and Jobs Act made to the income taxation of trusts and estates for 2018 and beyond.
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…)
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…)
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…)