IEP
Showing 289–304 of 384 results
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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.
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Estate Planning Pitfall – You’re cashing in a life insurance policy
August / September 2011
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 263
Abstract: There are a variety of reasons why a life insurance policy may no longer be needed. When cashing in a life insurance policy, a variety of options are available. But each has different financial and tax implications, so it’s important to know the outcomes before taking action. This brief article explores, among other options, surrendering the policy for its cash value, or donating the policy to charity in exchange for a charitable gift annuity and its lifetime income stream.
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Who covers the estate tax bill? Spell it out in an apportionment clause
August / September 2011
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 543
Abstract: To ensure one’s estate tax bill doesn’t fall to the wrong beneficiaries, it’s important that a will or living trust include a carefully crafted tax apportionment clause. A poorly drafted clause may result in the collection of estate taxes from unintended beneficiaries or ambiguity over the payment of taxes, resulting in disputes or litigation. If one fails to plan for estate tax apportionment, the government has a plan. This article examines federal and state law in this regard.
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Don’t overlook generation-skipping transfer tax
August / September 2011
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 1143
Abstract: In 2010, Congress raised the generation-skipping transfer (GST) tax exemption to $5 million through 2012. This provides a significant planning opportunity for those wishing to share their wealth with their grandchildren or other future generations. This article explains what a GST is and gives a brief history of the GST tax. It shows how to leverage the exemption and allocate it where it will do the most good. A sidebar offers an example of the GST tax exemption at work.
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FLPs and FLLCs: To save taxes, you need a nontax purpose
August / September 2011
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 595
Abstract: For a family limited partnership (FLP) or family limited liability company (FLLC) to reduce gift and estate taxes, there must be a legitimate nontax reason for forming one. The IRS will disallow the tax benefits for an FLP set up strictly as an estate planning tool. This article shows how FLPs save taxes and how a person can establish a legitimate nontax purpose for an FLP.
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Estate Planning Pitfall – You made large taxable gifts in 2010
June / July 2011
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 295
Abstract: People who made large taxable gifts in 2010, in anticipation of a higher gift tax rate, might have regretted their decision when Congress maintained the rate for another two years and increased the gift tax exemption. For example, someone making a $1 million gift on Dec. 1, 2010, might, under some circumstances, have owed $350,000 in gift tax. But the gift could have been tax-free if it had been made one month later. This article offers a couple of options that might allow such gifts to be “undone.”
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Putting the “state” in your estate plan
June / July 2011
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 661
Abstract: At least until current tax law expires in 2013, married couples with combined estates worth less than $10 million need not concern themselves with federal estate taxes. However, as federal taxes become less significant, state estate taxes — including inheritance and estate taxes — take on a more prominent role. And, as this article explains, overlooking their potential impact can be costly. But there are strategies that can help.
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Charitable giving vehicles – CRTs and CLTs offer dual beneficial interests
June / July 2011
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 733
Abstract: A charitable remainder trust (CRT) or a charitable lead trust (CLT) can be an important tool in achieving philanthropic and estate planning goals. These “split-interest” trusts — so-called because of their dual beneficial interests — provide for both qualified charities and noncharitable beneficiaries. This article discusses the details of each type of trust.
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To give or not to give in 2011 and 2012 … that is the estate planning question
June / July 2011
Newsletter: Insight on Estate Planning
Price: $225.00, Subscriber Price: $157.50
Word count: 869
Abstract: Now that the gift tax exemption stands at $5 million and the top gift tax rate is 35%, the tax environment is especially favorable for making large gifts. But because the current levels are scheduled to expire after 2012, the question of whether to maximize gifts to children or other loved ones this year and next is a good one. This article takes a look at a few answers, taking into account “clawback” risks and how family limited partnerships (FLPs) and grantor retained annuity trusts (GRATs) fit into the picture. A sidebar looks at the tax-saving power of nontaxable gifts.