Insight on Estate Planning
Showing 337–352 of 384 results
-
Estate Planning Pitfall – You’re keeping your trust a secret
Year End 2009
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 310
Abstract: Many like to keep their trusts secret because they’re worried that, otherwise, the beneficiaries might spend recklessly or neglect educational or career pursuits. But the law in many states requires trustees to disclose certain information to beneficiaries. One way to avoid the disclosure requirements is by not naming children as beneficiaries and, instead, granting someone else a power of appointment over the trust; however, the power holder is under no legal obligation to provide for the children. So it’s important that those wishing to keep a trust secret be sure to consult an attorney about the law in their state in order to explore alternative strategies.
-
Land, sweet land – Preserve it (and reap tax benefits) with a conservation easement
Year End 2009
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 597
Abstract: Those who have the opportunity to buy or inherit a pristine piece of land sometimes want future generations to have the opportunity to enjoy it. They can accomplish this through a conservation easement, which is an agreement to permanently restrict some or all of the development rights associated with the land. One grants the easement to a qualified conservation organization and records it so it’s binding on future owners. Not only does a conservation easement preserve the land, but it offers the donor important income and estate tax savings.
-
A formula for estate planning success?
Year End 2009
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 637
Abstract: An important goal of many estate plans is to optimize use of the unlimited marital deduction, which allows one to leave any amount of assets to a U.S.-citizen spouse estate-tax free. In many cases, however, leaving too much can cause one to overpay estate taxes. To achieve the best tax result regardless of what the future holds, many people incorporate a marital deduction formula into their estate plans. But formulas aren’t right for every situation, and their impact can change over time, such as when net worth or tax laws change. This article takes a look at the distinction between pecuniary and fractional formulas, and whether it’s necessary to use any formula at all.
-
Home in on tax savings with an RPM trust
Year End 2009
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 1251
Abstract: For those wishing to transfer a personal residence to the next generation at a low tax cost, a remainder purchase marital (RPM) trust is worth a look. Although a qualified personal residence trust (QPRT) is a more common vehicle for transferring a home, an RPM trust offers several advantages. This article looks at the pros and cons of QPRTs, and how RPM trusts can offer a better alternative. (A sidebar gives an example.) On the downside, RPM trusts can cost more than QPRTs, and they aren’t officially sanctioned by the Internal Revenue Code. But by eliminating mortality risk and providing more flexibility, they may well be worth it.
-
Estate Planning Pitfall – You haven’t named backup beneficiaries for your life insurance policies
October / November 2009
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 286
Abstract: A life insurance policy’s beneficiary designation is extremely important but easily overlooked. Many people make the mistake of naming their estate as beneficiary, which can result in needless expense and delay. As this short article explains, the solution is to designate at least two backup (or contingent) beneficiaries.
-
You, your noncitizen spouse and your estate plan – Use a QDOT to preserve marital deduction benefits
October / November 2009
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 620
Abstract: For married couples, the unlimited marital deduction is a powerful estate planning tool that allows an unlimited amount of assets to pass (through lifetime gifts or bequests at death) to a spouse free of gift and estate taxes — if the spouse is a U.S. citizen. If not, however, one can have assets transferred estate-tax free at death to a qualified domestic trust (QDOT), with the noncitizen spouse receiving the trust income during his or her lifetime. But there are pros and cons to be considered, along with international treaties that address estate taxes.
-
For a healthy estate plan, know the HIPAA privacy rules
October / November 2009
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 795
Abstract: Health issues play an important role in a variety of estate planning situations. Typically, many estate planning documents and document provisions are triggered by a physician’s certification that a person lacks the capacity to make decisions. But this requirement may be at odds with the Health Insurance Portability and Accountability Act of 1996 (HIPAA). HIPAA privacy rules prohibit physicians, hospitals and other health care providers from discussing a patient’s condition or releasing his or her medical records to third parties without the patient’s written consent. To ensure timely acquisition of the necessary information, it’s important to ensure that estate plan documents are written with HIPAA requirements in mind.
-
GRATs: The long and short of it
October / November 2009
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 932
Abstract: The grantor retained annuity trust (GRAT) can be a powerful estate planning tool. But the appropriate length of a GRAT’s term is at times a source of confusion among people planning their estates and a subject of debate among experts. There are important differences between short-term and long-term GRATs; to decide which is best, a person needs to factor in his or her age, health, and risk tolerance, along with the IRS’ Section 7520 rate of return, the nature and projected performance of the assets being contributed, and the availability of valuation discounts (which this article discusses in a sidebar).
-
Estate Planning Pitfall – You plan to take a retirement distribution later this year
August / September 2009
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 302
Abstract: Those who have retirement plans such as IRAs and 401(k)s must take required minimum distributions (RMDs) when reaching age 70½. This is a problem for those whose assets have taken a tumble during this recession. In response, recent legislation has allowed a suspension of this requirement for 2009, thus giving account holders a little more time to rebuild their assets in these tax-deferred vehicles.
-
Now’s the time to revisit your buy-sell agreement
August / September 2009
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 568
Abstract: This is a good time for owners of closely held businesses to review their buy-sell agreements, particularly their valuation provisions. The economic crisis has been tough on everyone, and many business owners have seen the value of their shares decline. If a buy-sell agreement’s terms don’t reflect current conditions, the interest may be priced too high. And this can result in higher estate taxes and hurt the business or its surviving owners. This article describes the benefits of a buy-sell agreement, but also warns against relying too casually on standard valuation formulas.
-
All in the happy blended family – Consider a QTIP trust or ILIT when estate planning for a blended family
August / September 2009
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 692
Abstract: No one said estate planning is easy, and this is especially true with a blended family. The good news is that there are two trust types — a qualified terminable interest property (QTIP) trust and an irrevocable life insurance trust (ILIT) — that can provide for children from a previous marriage while also taking care of one’s current spouse and any children from the current marriage. There are pros and cons to each option.
-
Special needs trusts: Not just for the needy
August / September 2009
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 920
Abstract: If a child or other family member has a disabling condition requiring long-term care or that prevents them (or will prevent them) from being able to support themselves, a special needs trust (SNT) might be in order. Also known as a supplemental needs trust, an SNT can enhance a family member’s quality of life without jeopardizing his or her eligibility for government benefits, such as Medicaid or Supplemental Security Income (SSI). This article describes what the trust does and the considerations involved in setting one up; it also describes an option for beneficiaries who have too much money to be eligible for Medicaid or SSI. A sidebar describes what can be done if a trust has Crummey withdrawal powers that render a beneficiary ineligible for government assistance.
-
Estate planning pitfall – You haven’t reviewed your estate plan since your divorce
June / July 2009
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 325
Abstract: A divorce settlement typically takes care of issues such as jointly owned real estate, bank accounts and other property. But, if you’re divorced, is your spouse still a beneficiary of any life insurance policies, retirement accounts or irrevocable trusts? Is he or she still an agent for your health care issues, or have power of attorney for financial matters? These are reasons why you may need to review your estate plan.
-
Bankruptcy and your estate plan – When assets are transferred is key
June / July 2009
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 728
Abstract: Some estate planning tools, such as FLPs and FLLCs, provide some peace of mind that your assets will be there when your family needs them. But don’t be lulled into a false sense of security. Asset protection is never absolute, particularly when bankruptcy is involved. To minimize your risk, it’s important to consider bankruptcy issues as you plan your estate. This article explains how you can set up asset protection trusts and other vehicles in a way that keeps them from being disqualified as fraudulent or preferential transfers.
-
Don’t let your Crummey trust crumble
June / July 2009
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 959
Abstract: The annual gift tax exclusion lets you remove a substantial amount of wealth from your taxable estate without tapping any of your $1 million lifetime gift tax or $3.5 million estate tax exemptions. There’s just one catch: The annual exclusion applies only to gifts of a present interest — that is, the recipient must have all immediate rights to the use, possession and enjoyment of the gifted property or of the income from such property. But gifts to a trust are, by definition, gifts of future interests. So how do you make annual exclusion gifts to a trust? One way is to provide trust beneficiaries with Crummey withdrawal rights. This article discusses such trusts, including the “5&5 rule,” while a sidebar offers dos and don’ts in regard to protecting a Crummey trust from IRS challenge.
-
Defective by design – Weighing the ins and outs of income defective and estate defective trusts
June / July 2009
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 1071
Abstract: For decades estate planning has focused on avoiding or minimizing federal estate, gift and generation-skipping transfer taxes. But now that the federal estate tax exemption has climbed to $3.5 million, fewer people are subject to federal estate tax, and income tax has taken on a more significant role. If you’re among those for whom estate tax has become less of a concern, it’s a good idea to review your situation and consider such estate planning strategies as income defective trusts and estate defective trusts.