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Showing 225–240 of 384 results
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Estate Planning Red Flag – Your spouse’s estate didn’t make the portability election
July / August 2014
Newsletter: Estate Planner
Price: $225.00, Subscriber Price: $157.50
Word count: 334
Abstract: Portability allows a surviving spouse to take advantage of a deceased spouse’s unused estate tax exemption. But portability isn’t automatic: It’s available only if the deceased spouse’s estate makes a portability election on a timely filed estate tax return. But this article notes that the IRS now permits estates to make a late portability election under certain circumstances. The rule change is of particular interest to same-sex married couples who were ineligible for portability and couldn’t have made the election before the law was changed late last year.
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Wealth preserver – Use an ILIT to shield life insurance proceeds from estate tax
July / August 2014
Newsletter: Estate Planner
Price: $225.00, Subscriber Price: $157.50
Word count: 617
Abstract: Life insurance can provide peace of mind, but it’s important to not own the policy at death. Why? The policy’s proceeds will be included in the taxable estate and may be subject to estate taxes. To avoid this result, a common estate planning strategy is to set up an irrevocable life insurance trust (ILIT) to hold the policy. This article describes the tax benefits of an ILIT, along with some drawbacks.
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Estate planning for the young and affluent – How to hedge your bets
July / August 2014
Newsletter: Estate Planner
Price: $225.00, Subscriber Price: $157.50
Word count: 660
Abstract: How can young, affluent people plan their estates when the tax landscape may look dramatically different 20, 30 or 40 years from now? Today, the current gift and estate tax exemption is high and the estate tax rate slightly higher than the income tax rate — but that could change in the future, requiring a shift in strategy. The answer for young people is to take a flexible approach that allows them to hedge their bets. This article explains how a carefully designed trust can achieve this purpose.
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Net gain for taxpayers – Tax Court approves net gift strategy
July / August 2014
Newsletter: Estate Planner
Price: $225.00, Subscriber Price: $157.50
Word count: 874
Abstract: A net gift is a technique that potentially allows reduction of the effective gift tax rate by requiring the donee to agree to pay the gift tax as a condition of receiving the gift. This reduces the gift’s value for gift tax purposes. Recently, the U.S. Tax Court approved a strategy that can reduce a gift’s value even further: In addition to paying the gift tax, the donee can agree to assume the potential estate tax liability that would result if the donor dies within three years after making the gift. This article offers an example of how net gifts work, while a sidebar explains how gifts can reduce transfer taxes.
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Estate Planning Red Flag – You hold joint title to property with a relative or friend
May / June 2014
Newsletter: Estate Planner
Price: $225.00, Subscriber Price: $157.50
Word count: 308
Abstract: Owning assets jointly with one or more children or other heirs is a common estate planning “shortcut.” But like many shortcuts, it can produce unintended — and costly — consequences, such as unnecessary taxes, creditor claims, and loss of control. This article notes that one or more properly drafted trusts can avoid each of these problems without the need for probate.
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Preservation effort – A “stretch IRA” can maximize your IRA’s benefits
May / June 2014
Newsletter: Estate Planner
Price: $225.00, Subscriber Price: $157.50
Word count: 749
Abstract: Structuring an IRA as a “stretch IRA” can preserve its benefits for many years — and can benefit both one’s estate and retirement plans. This article takes a closer look at the ins and outs of stretch IRAs, showing how the beneficiary can enjoy tax advantages by having distributions based on his or her own, presumably longer, life expectancy, rather than the distribution period that applied to the deceased. To avoid having the beneficiary immediately empty the account — thus defeating the purpose of a stretch IRA — a “conduit trust” can be set up.
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Should you keep your trust a secret?
May / June 2014
Newsletter: Estate Planner
Price: $225.00, Subscriber Price: $157.50
Word count: 564
Abstract: Worried that the prospect of a large inheritance might harm their children’s work ethic, some people establish “quiet trusts,” also known as “silent trusts.” In other words, they leave significant sums in trust for their children; they just don’t tell them about it. But this article lists several disadvantages of this approach. It argues that an “incentive trust,” which is known to the beneficiaries and which specifies conditions they must meet to be eligible for distributions, can do a better job of encouraging a sense of responsibility.
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Valuing LLC interests: How to lose in Tax Court
May / June 2014
Newsletter: Estate Planner
Price: $225.00, Subscriber Price: $157.50
Word count: 937
Abstract: After the IRS determined that an estate had underreported the value of its interest in a limited liability company (LLC), it assessed an estate tax deficiency. The estate responded with a new appraisal, prepared by another professional appraiser, which valued the LLC interest at a figure that was lower than what was reported on the estate tax return. The estate sought a refund. While the Tax Court seemed sympathetic to part of the estate’s argument, it ultimately refused to admit the second appraisal into evidence at least partly because the second appraiser wasn’t available to testify in support. This article emphasizes the importance of having a valuation supported by a qualified valuation expert. A sidebar discusses how LLCs and family limited partnerships (FLPs) can save taxes.
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Estate Planning Red Flag – You haven’t planned for long-term care
March / April 2014
Newsletter: Estate Planner
Price: $225.00, Subscriber Price: $157.50
Word count: 285
Abstract: The high cost of long-term care (LTC) — which may include an assisted living facility, nursing home or home health care — can quickly devour resources needed to maintain one’s lifestyle during retirement and provide for children or other heirs. This issue’s “Estate Planning Red Flag” discusses what to consider in an LTC insurance policy.
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A successful family business requires strong governance
March / April 2014
Newsletter: Estate Planner
Price: $225.00, Subscriber Price: $157.50
Word count: 628
Abstract: For a family business to provide financial security for current family members and future generations, the company must have strong governance. It starts with the initial organization (or reorganization) of a business into a corporation, partnership or LLC. This article focuses on the corporation, which is required by law to have a board of directors and officers and to observe certain other formalities. The article also looks at estate planning strategies, including having a well-designed buy-sell agreement.
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5 tips for donating artwork
March / April 2014
Newsletter: Estate Planner
Price: $225.00, Subscriber Price: $157.50
Word count: 607
Abstract: Valuable works of art may be ideal candidates for charitable donation. Generally, it’s advantageous to donate appreciated property to avoid capital gains taxes. Because the top capital gains rate for art and other “collectibles” is 28%, donating art is particularly effective. This article offers five tips to keep in mind, including getting an appraisal, being cognizant of the related-use rule, and considering a fractional donation.
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Private annuities can offer big tax savings
March / April 2014
Newsletter: Estate Planner
Price: $225.00, Subscriber Price: $157.50
Word count: 953
Abstract: A private annuity can be a powerful strategy for passing assets to heirs in a tax-efficient manner. It involves transferring property to children or others in exchange for their unsecured promise to make annual payments to the transferor for the rest of his or her life. This article examines both the benefits and risks of private annuities, while a sidebar looks at a case in which the U.S. Tax Court approved a deferred private annuity, which, under the right circumstances, can minimize the risk.
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Estate Planning Red Flag – You treat trust assets as if they’re your own
January / February 2014
Newsletter: Estate Planner
Price: $225.00, Subscriber Price: $157.50
Word count: 323
Abstract: Irrevocable trusts can provide a variety of benefits, including gift and estate tax savings, creditor protection, and the ability to control how assets are distributed. To preserve these benefits, however, it’s critical to respect all trust formalities. This article looks at one court case in which a couple discovered to their dismay that having a home’s title held by a trust was not sufficient to protect it from government foreclosure. The court held that the protection had been forfeited because the couple had continued to treat the asset as their own after transferring it to the trust.
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Do you know how to address IP in your estate plan?
January / February 2014
Newsletter: Estate Planner
Price: $225.00, Subscriber Price: $157.50
Word count: 636
Abstract: Intangible assets can easily be overlooked in an estate plan. Yet intellectual property (IP) can have great value, so it’s important to properly address it. This article examines two common forms of IP: patents and copyrights. It notes that, in deciding whether to transfer IP to family members, colleagues, charities or others through lifetime gifts or through bequests, it’s important to consider gift and estate tax consequences, income needs, and who is in the best position to monitor IP rights and take advantage of their benefits.
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The stretch IRA: A simple yet powerful estate planning tool
January / February 2014
Newsletter: Estate Planner
Price: $225.00, Subscriber Price: $157.50
Word count: 617
Abstract: If an IRA isn’t needed to fund retirement, it can be used as an estate planning tool to benefit children or other beneficiaries on a tax-advantaged basis by turning it into a “stretch” IRA. This article explains how a stretch IRA works, noting that there are different options for spouses as opposed to other beneficiaries.
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Planning for the net investment income tax
January / February 2014
Newsletter: Estate Planner
Price: $225.00, Subscriber Price: $157.50
Word count: 931
Abstract: Starting in 2013, high-income taxpayers are subject to a new 3.8% Medicare tax on some or all of their net investment income (NII). For individual tax purposes, there are a variety of planning options for reducing or even eliminating the impact of the NII tax (NIIT). For trusts, options are more limited, but there are nevertheless several strategies for reducing a trust’s taxable NII. This article discusses ways to reduce the NIIT’s potential impact on personal wealth management and retirement plans, while a sidebar looks at the IRS’s stance regarding a NIIT exemption for income from a trade or business in which a taxpayer materially participates.