It is likely that you're going to have multiple objectives when you're putting together a comprehensive estate planning strategy, and achieving them can seem like a daunting task. The good news in this regard is that there are a number of estate planning vehicles that enable you to reach multiple objectives through the execution of a single document. Those who would like to reduce the taxable value of their estates, receive a steady stream of income, and quite possibly provide a … [Read more...] about Grantor Retained Annuity Trusts Enable Potential Tax-Free Giving
Taxes
Portable Exclusion Part of Tax Relief Legislation
When the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 was signed into law by Pres. Obama on December 17th, the Bush era tax cuts were extended, and that was the headline news. But there were a number of additional provisions included in the measure, and one of them that is positively impacting many people is the one-year reduction of the Social Security payroll tax. There were also some provisions included in this new measure that profoundly impacted … [Read more...] about Portable Exclusion Part of Tax Relief Legislation
Avoid Asset Erosion With Generation Skipping Trusts
In estate planning circles you hear a lot of talk about "avoiding the estate tax" and "gaining estate tax efficiency." There are those patriotic Americans who may question this mentality, feeling as though they are more than willing to assume their fair share of the tax burden. This is an admirable stance, but the operable term here is "fair share." Let's explain by way of a very simple example. Let's say you start to put away a portion of your paycheck when you are in your … [Read more...] about Avoid Asset Erosion With Generation Skipping Trusts
Intelligent Estate Planning, Gifts & Tax Efficiency
When you are interested in reducing the value of your estate in an effort to gain estate tax efficiency, you may want to consider the practice of tax-free gift giving. Of course, the tax man is well aware of the fact that people could choose to give their assets away to their heirs before they pass away in an effort to sidestep the estate tax. So there is a gift tax in place to close this potential loophole, and the rate of taxation mirrors that of the estate tax. There is a lifetime gift tax … [Read more...] about Intelligent Estate Planning, Gifts & Tax Efficiency
Estate Tax Relief On Way
There was a great deal of uncertainty throughout the 2010 calendar year regarding the estate tax, and needless to say this made the job of estate planning attorneys rather challenging. The estate tax was repealed for the 2010 calendar year, but under existing laws it was scheduled to return in 2011. Its return was not especially welcome, but the details surrounding the tax were an additional source of concern. In 2009 when the tax was last in effect, the exclusion amount stood at $3.5 million … [Read more...] about Estate Tax Relief On Way
Estate Tax Return In The Offing
In 2010 we had a one year respite from the estate tax, and most people view any tax relief as a positive. However, there is an intrinsic inequity existent in a temporary repeal that makes a relative few immune to a tax the rest of us must address. A good case in point involves the former owner of the fabled New York Yankees, the mercurial George Steinbrenner who died in July of 2010. Forbes magazine estimated the overall worth of his estate at $1.1 billion. The estate tax exclusion amount in … [Read more...] about Estate Tax Return In The Offing
Feeling Charitable? Give It Away and Come Out Ahead
What if you bought a piece of property years ago for about $25,000 and now it is worth more than $300,000? You don't want it anymore but want to get rid of it in a way that maximizes your tax advantages. If you sold it outright, you might have to pay capital gains tax, and you don't want that. How about making a charitable remainder trust to your favorite cause? Knowing that both you and the charity will benefit makes it an especially attractive option. How it works: You must be able to … [Read more...] about Feeling Charitable? Give It Away and Come Out Ahead
Annual Gift Tax Exclusion: Tax Free Money Zone
If you have a large estate and want to start giving it away, but want to limit your tax liability, consider using the annual gift tax exclusion. What that means is that you can give up to $13,000 per person per calendar year and neither you nor the recipient has to pay taxes on it. So, you can give $13,000 per year to 10 people or 1,000 people and there will be no taxes. And you can do that year after year. (The amount of the exclusion is increased from time to time.) You and your spouse can … [Read more...] about Annual Gift Tax Exclusion: Tax Free Money Zone
When to use a Q-Tip
When do you use a Q-Tip? We are not talking about the cotton swab but a Trust that can be used to accomplish your estate planning goals. You might want to consider establishing a Q-Tip, or Qualified Terminable Interest Trust, if you are: Concerned about your spouse remarrying and your money benefiting the new spouseWorried your spouse will not pass on your money to your childrenAfraid that creditors will attach your surviving spouse's propertyConcerned your spouse is unsophisticated about … [Read more...] about When to use a Q-Tip
Will Estate Tax Get Life Support?
George Steinbrenner, owner of the New York Yankees, really hit a ball out of the park. He died on July13, allowing his beneficiaries to win the estate tax lottery. That is because the estate tax expired in 2009, so no tax has been imposed on estates in 2010, including the more than $1.15 billion he left. But the tax will come back in some form in 2011, and at what percentage and exemption level is of extreme importance to estate planning lawyers and their clients. The House of … [Read more...] about Will Estate Tax Get Life Support?
