IEP

Showing 273–288 of 328 results

  • Estate Planning Pitfall – You haven’t provided for the removal of a trustee

    April / May 2010
    Newsletter: Insight on Estate Planning

    Price: $225.00, Subscriber Price: $157.50

    Word count: 259

    Abstract: When estate planning, most people put a great deal of thought into selecting the right trustees to carry out their wishes and protect their beneficiaries. But it’s also important to establish procedures for removing a trustee in the event that circumstances change. Failing to do so doesn’t mean beneficiaries will be stuck with an inadequate trustee. But they’ll have to petition a court to remove the trustee for cause, which can be an expensive, time-consuming and uncertain process. To avoid this, the trust agreement should include procedures for removing a trustee and include a list of successor trustees.

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  • Teach your children well – Education is the key to an estate plan that leaves your desired legacy

    April / May 2010
    Newsletter: Insight on Estate Planning

    Price: $225.00, Subscriber Price: $157.50

    Word count: 797

    Abstract: When it comes to teaching children about money management, even a well-designed estate plan is no substitute for education and experience. An incentive trust can be an effective estate planning tool, but a beneficiary’s good personal behavior doesn’t automatically translate to “money smarts.” A plan that suddenly releases an entire estate to a child who can’t handle money can result in the estate being rapidly dissipated. Conversely, a trust that’s too restrictive may incite rebellion or invite lawsuits. But there are a number of practical steps parents can take to teach their children about money management principles.

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  • The installment sale: A viable option for transferring appreciating assets

    April / May 2010
    Newsletter: Insight on Estate Planning

    Price: $225.00, Subscriber Price: $157.50

    Word count: 577

    Abstract: For those considering transferring real estate, a family business or other assets they expect to appreciate dramatically in the future, an installment sale may be a viable option. Its benefits include the ability to freeze asset values for estate tax purposes and remove future appreciation from one’s taxable estate. But there are disadvantages, as well. And, due to the possibility of tax law changes in 2010, it will be especially important to consult a professional tax advisor.

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  • Do you know the impact of the 2010 estate tax repeal on your estate plan?

    April / May 2010
    Newsletter: Insight on Estate Planning

    Price: $225.00, Subscriber Price: $157.50

    Word count: 947

    Abstract: On Jan. 1, 2010, a one-year repeal of the federal estate tax went into effect, throwing many estate plans into disarray. The repeal also applies to the generation-skipping transfer (GST) tax, while the gift tax lives on with a top rate of 35% (10 percentage points lower than in 2009) and a $1 million lifetime exemption (the same amount as in 2009). This means that many estate plans might not meet their objectives; income tax bills could increase and transfers to trusts could be affected. So, while the future of the estate tax remains uncertain, it’s critical to review one’s estate plan to assess the impact of the current tax laws and to prepare for what the future might bring.

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  • Estate Planning Pitfall – You haven’t looked at your estate plan in light of estate tax law uncertainty

    February / March 2010
    Newsletter: Insight on Estate Planning

    Price: $225.00, Subscriber Price: $157.50

    Word count: 320

    Abstract: The 2001 tax act that reduced the top estate tax rate and increased the estate tax exemption over the last several years also repealed the estate tax — for 2010 only. It was expected that Congress would repeal the repeal by the end of 2009, but that didn’t happen. Regardless of what happens, it’s important to review one’s estate plan both now and after Congress takes action.

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  • Splitting the insurance bill – Family split-dollar arrangements can reduce gift taxes

    February / March 2010
    Newsletter: Insight on Estate Planning

    Price: $225.00, Subscriber Price: $157.50

    Word count: 685

    Abstract: Dave and Susan have established an irrevocable life insurance trust (ILIT) to purchase and hold a second-to-die life insurance policy. When the second spouse dies, the death benefit will be paid to the trust estate-tax free and then distributed tax free to their daughter, Anna, the trust’s beneficiary. There’s just one problem: To cover the policy’s premium, Dave and Susan make annual contributions to the ILIT, which are considered taxable gifts to Anna. Because of the way the trust is structured, the couple can use their combined annual gift tax exclusions to shield a portion of each contribution from gift tax. But the remaining portion is still a taxable gift. A family split-dollar insurance arrangement may be the answer.

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  • I’ll take a pass – Use a qualified disclaimer to forgo an interest in property

    February / March 2010
    Newsletter: Insight on Estate Planning

    Price: $225.00, Subscriber Price: $157.50

    Word count: 541

    Abstract: Estate planning isn’t static — after a plan is created, life continues and circumstances likely will change. Estate tax laws also might change, warranting different strategies. A qualified disclaimer is one estate planning tool that provides some flexibility. A disclaimer is an irrevocable and unqualified refusal to accept an interest in property; if the disclaimer is “qualified,” the property will be redirected without negative gift or estate tax consequences. A person who is in line to inherit a significant amount of assets, but has a particular set of tax circumstances that make it unwise to accept further wealth, should consider using a disclaimer to pass the wealth on to another beneficiary.

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  • The Roth IRA: A powerful estate planning tool

    February / March 2010
    Newsletter: Insight on Estate Planning

    Price: $225.00, Subscriber Price: $157.50

    Word count: 1155

    Abstract: A Roth IRA may not be the first thing that many think about when considering estate planning techniques. After all, not only is it designed to be a retirement savings vehicle, but the income of wealthier individuals keeps them from being eligible to contribute. However, beginning in 2010, conversions from traditional IRAs are available to taxpayers at all income levels. This article looks at some of the pros (and a few possible cons) of Roth IRAs involving distribution requirements, income tax considerations and possible estate tax savings. A sidebar discusses the benefits of Roth IRAs for kids.

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  • 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.

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  • 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.

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  • 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.

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  • 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.

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  • 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.

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  • 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.

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  • 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.

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  • 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).

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