Are you a trust beneficiary who recently received a “Crummy notice?” If so, and you have never before received one, you may be unsure what to do next. After all, there must be some reason why you received the notice, right? To help you better understand why you received the notice, an Indianapolis trust attorney at Frank & Kraft explains a Crummey notice and what to do if you received one. Trust Fundamentals To understand the significance of a Crummey Notice you must first understand … [Read more...] about What Is a Crummey Notice?
If you live in Indiana and see the words “Indiana inheritance tax” you may very well wonder why anyone would bother talking about a now-repealed form of taxation. For while the state did at one time levy that tax on inheritances, that old system of taxation was retroactively repealed in a law that went into effect in 2013. For heirs whose loved ones passed away after January 1, 2013, no inheritance tax is due. But does that mean that your future inheritance is free from any inheritance tax … [Read more...] about Indiana Inheritance Tax: Is Your Inheritance at Risk?
It would be logical to assume that you could give a gift without any tax consequences. Imagine this simple scenario. You receive your salary via direct deposit, and you notice that about 40 percent of your pay has been absorbed by taxes. It is your son's birthday, and you take some of the remainder to buy him a gift. You pay sales tax on the gift. That is a lot of taxation when you put it all together. However, technically speaking, the gift is also taxable. There is a gift tax in place in … [Read more...] about Can Lifetime Gifts Be Given to Avoid the Inheritance Tax?
One of the first orders of business when you are planning your estate is going to be an inventory of your assets. Clearly, regardless of the exact nature of your financial situation, you have to identify exactly what you have to give to your loved ones. For people who have been particularly successful, this inventory is going to have an added level of significance. If you have been able to accumulate a significant store of wealth, you may be subject to the federal estate tax, and you must … [Read more...] about A Look at Spousal Estate Tax Laws
People sometimes hear bits and pieces about estate planning topics, and they go forward with certain misconceptions. We endeavor to clear up some of these misunderstandings from time to time, and we will address one of them in this blog post. Death Taxes Taxes can come into play after someone passes away when assets are being transferred. There are federal taxes, and there are also a state-level taxes. While there is no tax that is formally called a "death tax," this term is often used to … [Read more...] about Indiana Does Not Have an Inheritance Tax Anymore
If you have looked into the subject, you may hear a general statement with regard to asset transfers between spouses. The surface statement would be that you are allowed to transfer an unlimited amount of property to your spouse free of the estate tax. In a broad sense, this is true, but there is a caveat, and there are intricacies to think about. We will look at the subject in this blog post. Marital Deduction The idea that you can transfer unlimited assets to your spouse free of … [Read more...] about Can I Leave Everything to My Spouse to Avoid the Estate Tax?
There are federal transfer taxes in the United States that can significantly erode your wealth as you are passing it on to your loved ones. These taxes carries a 40 percent maximum rate, and this is certainly an eye-catching figure. The good news is that there is an unlimited marital deduction. You can transfer unlimited assets to your spouse tax-free, as long as your spouse is an American citizen. If you are married to a foreign citizen, you could gain estate tax efficiency through the … [Read more...] about Free Report: What Is a Qualified Domestic Trust?
Each year the White House releases a proposed budget for the following year, and as you may imagine, there is a great deal of ground to cover when you are talking about that much spending. As a result, the hefty volume is referred to as the "blue book." The budget proposal for 2016 has been released, and it includes an expansion to the federal estate tax. If this budget was to be adopted, many more families would be exposed to the death levy. To understand the proposal, you … [Read more...] about Estate Tax Expansion Included in 2016 Budget Proposal
What is a Step-Up: In Basis? from Paul Kraft When you are still in possession of assets that have appreciated, you do not have to pay the capital gains tax. Learn more about Step-Up In Basis in this presentation. … [Read more...] about What is a Step-Up: In Basis?
What Is An ILIT from Paul Kraft The acronym ILIT stands for an irrevocable life insurance trust.This type of trust can be useful if you are exposed to the federal estate tax. Learn more about irrevocable life insurance trust (ILIT) in Indianapolis in this presentation. … [Read more...] about What Is An ILIT?