Blog

Nov. 8, 2022

The tax Code provides a very strong incentive for making gifts of appreciated property to charity. Not only is there an income tax deduction for the fair market value of the contributed property, which offsets ordinary income, but at the same time you do not recognize the gain on which you would have been taxed had you sold the property and contributed the proceeds.

Nov. 1, 2022

In a previous blog post, we talked about the grantor retained annuity trust, or GRAT, and gave a brief description of that planning strategy which is based on section 2702 of the tax Code. In short, the GRAT is a device for discounting the present value of a deferred gift, but it requires that the trust be funded with assets from which a fixed annuity can be paid. What if the asset you are trying to give to your children and grandchildren is your residence?

Oct. 25, 2022

If you're like most people, you have worked hard to accumulate assets over the years—assets that you want to protect for yourself and your loved ones. You may have also heard about irrevocable asset protection trusts and wondered if one might be right for you. In this blog post, we will discuss what irrevocable asset protection trusts are, who might need one, and the benefits of having one in place.

Oct. 18, 2022

When it comes to estate planning, one of the most important concepts to understand is step-up basis. What is step-up basis, and when does it apply? Why does it matter? In this blog post, we will answer these questions and provide some examples to help you better understand this important concept.

Oct. 11, 2022

An asset protection trust (APT) is a legal arrangement that can help protect your assets from creditors and lawsuits. This type of trust can be very beneficial for high-net-worth individuals, business owners, and other individuals who want to protect their assets in case of unforeseen events. In this article, we will discuss what a APT is and who can benefit from having one.

Oct. 4, 2022

A life estate deed is a legal document that allows you to give someone else ownership of your property during your lifetime, while retaining the right to live there yourself. You can also transfer a life interest to an individual in your Will or Trust, which would allow that individual the right to live in the property for the rest of their lives, and then when they pass away, the remaining interest in the property goes to other people you designate in your Will or Trust.

Sept. 27, 2022

A QDOT, or qualified domestic trust, is a special type of trust designed to hold assets for the benefit of non-citizen spouses. Under federal law, non-citizen spouses are not entitled to the same inheritance tax exemptions as citizens, which can result in significant tax liability upon the death of the citizen spouse.

Sept. 20, 2022

A spendthrift trust is a legal arrangement in which a trustee is appointed to manage the assets of a trust for the benefit of a person who is unable to manage their own finances. This type of trust can be very helpful for people who are prone to overspending or who may have a history of bad financial decisions.

Sept. 13, 2022

The December 2017 tax bill temporarily doubled the "basic exclusion amount" for federal estate and gift taxes, from $5 million to $10 million. These figures are indexed for inflation from 2010, so that in 2022, the exclusion amount is $12.06 million, which means that with proper planning a married couple could transfer as much as $24.12 million to their children and grandchildren without incurring estate or gift tax. However, the 2017 measure will "sunset" at the end of 2025, and unless Congress takes further action, the exclusion amount will revert to somewhere between $6 million and $7 million in 2026.

Sept. 6, 2022

While it is natural to think of leaving your estate outright to your children and grandchildren, in many cases it may be better to place your assets into a trust for their benefit, and give an independent trustee the discretion to make or withhold distributions as circumstances might require.