Insight on Estate Planning
Showing 273–288 of 376 results
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Estate Planning Pitfall — A trust is the beneficiary of an IRA or retirement plan
April / May 2012
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 410
Abstract: If a person owns an IRA or participates in a qualified retirement plan such as a 401(k), it’s possible that he or she can have the assets distributed to a trust upon death. As illustrated in a recent IRS private letter ruling (PLR), however, to preserve the retirement account’s tax-deferral benefits, it’s critical to properly designate a trust beneficiary. This article lists the IRS requirements to have a trust beneficiary qualify as a designated beneficiary of an IRA or qualified plan.
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Which planning strategies should unmarried couples implement?
April / May 2012
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 751
Abstract: Married couples have available to them greater (and more advantageous) estate planning options than unmarried couples. Yet unmarried couples face many of the same estate planning concerns as married couples. So they must engage in special planning to ensure that their decisions regarding asset distribution and health care are carried out per their wishes. This article examines several estate planning challenges that unmarried couples must plan around, but also discusses one significant estate planning opportunity that gives unmarried couples an edge over married ones: a grantor retained income trust (GRIT).
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Due diligence required when taking charitable deductions
April / May 2012
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 650
Abstract: It’s important to understand the tax implications of an estate plan that includes charitable contributions. The availability of income tax deductions for lifetime donations affects a contribution’s cost and, therefore, the amount one can afford to give without jeopardizing other estate planning goals. But, to ensure that contributions are deductible, it’s critical to monitor the tax-exempt status of the beneficiary organizations. This article discusses the steps involved.
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Make health care decisions while you’re healthy
April / May 2012
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 1057
Abstract: Estate planning isn’t just about what happens to assets after death. It’s also about protecting oneself and one’s loved ones, which includes having a plan for someone to make critical medical decisions in the event of one’s own incapacity. There are generally two ways of putting decisions in writing: 1) a living will and 2) a health care power of attorney (HCPA). This article describes the characteristics of each and explains why it’s a good idea to have both — or, if allowed by state law, a single document that combines the two. A sidebar discusses the importance of having a financial management plan in place and lists three traditional techniques for doing so.
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Estate Planning Pitfall — You own a high-cash-value insurance policy on your own life
February / March 2012
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 367
Abstract: A person who owns a life insurance policy that has built up a sizable cash value should realize that the death benefit will be included in their taxable estate. Depending on the size of the policy and the applicable estate tax exemption when the owner dies, the tax bill could be substantial. One option to avoid this is to transfer the policy to an irrevocable life insurance trust (ILIT). This article discusses what’s involved.
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Privacy, please! — Keep family matters out of the public eye by avoiding probate
February / March 2012
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 766
Abstract: Although probate can be time consuming and expensive, perhaps its biggest downside is that it’s public — anyone who’s interested can find out the details of an estate and its distribution. It can also draw unwanted attention from disgruntled family members who may challenge the disposition of assets, as well as from other unscrupulous parties. The good news is that, by implementing the right estate planning strategies, it’s possible to keep much or even all of an estate out of probate. This article shows how, while a sidebar notes that a living trust can be an effective tool for larger estates to avoid probate.
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Consider a “stretch” to maximize and preserve IRA benefits
February / March 2012
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 882
Abstract: One of the great benefits of an IRA is that contributions can grow and compound on a tax-deferred basis for years. Distributions are taxable, but there’s no requirement to withdraw any funds until April 1 following the year in which the holder turns age 70½. By structuring the IRA as a “stretch IRA,” you can allow it to last as long as possible. This article shows how a stretch IRA works and the tax benefits it offers for a beneficiary. Or, one can designate a trust as beneficiary.
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Does your trust need a protector?
February / March 2012
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 903
Abstract: Typically, to achieve the greatest tax savings, trusts must be irrevocable. But it can be disconcerting to relinquish control over assets placed in a trust, particularly if one expects that Congress will continue to modify the tax laws. One potential solution is to appoint a “trust protector” to oversee the trustee’s activities and to provide flexibility to adapt the trust to changing laws and circumstances. This article explains the protector’s role and the benefits of having one, along with cautions that should be observed. A sidebar lists specific powers of a trust protector.
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Estate Planning Pitfall – You own assets jointly with others
Year End 2011
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 329
Abstract: There’s a common misconception that owning a home or another asset jointly with your spouse or child is an effective way to transfer the asset. But joint ownership can have significant tax disadvantages. As this article notes, it can waste one spouse’s estate tax exemption. Or, if the property is owned jointly with a child, he or she could have control over the property, which exposes it to claims by the child’s creditors. Income taxes can also be a concern with joint ownership.
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Semantics matter – When using ascertainable standards, precise language is a must
Year End 2011
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 651
Abstract: If a trust includes the use of ascertainable standards (which limit distributions to amounts needed for a beneficiary’s health, education, support and maintenance), how the standards are drafted is critical to its success. As this article explains, ascertainable standards are objective, so they limit the trustee’s discretion and allow a court to determine whether distributions are appropriate or should be compelled. But precision of language is important to head off disputes.
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Leveraging the $5 million exemption – An installment sale to a defective trust is a powerful strategy
Year End 2011
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 627
Abstract: With the currently high gift and estate tax exemptions set to go down to $1 million after 2012, now is a good time to explore strategies for making the most of the present opportunity. One strategy to consider is a combination of two effective estate planning vehicles: the installment sale and the intentionally defective grantor trust (IDGT). An installment sale to an IDGT has the potential to transfer substantial value at little or no tax cost. This article explains how it works and how to design one.
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Home economics: A QPRT can help you save taxes
Year End 2011
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 976
Abstract: From a gift and estate tax perspective, costs are lower when an asset is transferred to beneficiaries sooner rather than later. But this creates a problem for those who want to continue living in their home indefinitely. An effective solution is a qualified personal residence trust (QPRT). When a home is transferred to a QPRT, its value for gift tax purposes is heavily discounted and any future appreciation is removed from one’s taxable estate. Plus, the transferor retains the right to stay in the home for many years. This article looks at the pros and cons of a QPRT, while a sidebar shows why it’s important to get the terms in writing.
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Estate Planning Pitfall – You have a living trust but no will
October / November 2011
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 224
Abstract: Many people mistakenly believe that if they have a living trust — also known as a revocable trust — they don’t need a will. After all, a primary purpose of a living trust is to avoid probate and ensure that one’s wealth is distributed quickly and efficiently after death. But even for those with a living trust, a will serves several important purposes, which this short article discusses.
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Charitable IRA rollover: A limited time offer
October / November 2011
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 550
Abstract: Last year’s tax relief legislation extended several expiring tax breaks, including tax-free treatment of charitable IRA rollovers — formally called “qualified charitable distributions” — by taxpayers age 70½ or older. But taxpayers have only until the end of 2011 to take advantage of this break. This article discusses charitable IRA rollover requirements and the circumstances under which a rollover may (or may not) be advantageous.
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A trust that keeps on giving – Create a dynasty to make the most of today’s exemptions
October / November 2011
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 880
Abstract: A dynasty trust can extend estate tax benefits for several generations, and perhaps indefinitely. It can protect wealth from gift, estate and generation-skipping transfer (GST) taxes and help leave a lasting legacy. And, with today’s higher lifetime gift and GST tax exemptions, a dynasty trust is all the more powerful. This article shows how a dynasty trust can be beneficial under particular scenarios, and how to enhance its benefits
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Keep future options open with powers of appointment
October / November 2011
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 813
Abstract: A power of appointment is an important tool that gives an estate plan flexibility to react to changing situations, because it gives the “holder” of the power — often a beneficiary — the ability to decide how, when and to whom specified assets in a trust or estate will be distributed. This article explains the distinction between a general and limited power of appointment, along with the tax implications. A sidebar explains how a creator of an irrevocable trust can use a limited power to authorize a family member or other trusted person to transfer assets to the creator, as well as to the trust beneficiaries.