The Benefits of Gifting The obvious manner to minimize estate taxation is simply to reduce the size of your estate. It is also permissible by the Internal Revenue Service for couples to “split” gifts to a third party; this is accomplished by having the spouse “join” in the gift. Also, remember each person has a
Intentionally Defective Grantor Trusts–What is It and Why Do I Want One? How about transferring an asset to a trust so it will be removed from your estate and therefore not a taxable estate asset, but retaining enough “strings” to the asset so that any income taxation will be paid by yourself and this income
Joint Ownership: When is it Appropriate?? Many people own real estate or bank accounts with another person, often a spouse, adult child, other relative, or trusted friend. Some individuals “add the name” of another person to their bank account for convenience, such as having bills paid and refunds received. Others use joint tenancy as a
Estate planning is not only about dying; it is a lifelong process. The impact of estate planning extends beyond the span of an individual life it impacts the surviving spouse as well as future generations. Estate planning is a very personal matter, that is why you must feel comfortable with your planner; proper planning represents
FEDERAL ESTATE TAXATION: The present Estate Tax Exemption Amount is increased to $5,430,000; this exemption amount may be reduced by certain lifetime gifts. The calculation of the taxable assets includes life insurance unless same has been transferred to a trust. The Federal Estate tax rate is also forty per cent (40%). The present law permits the surviving
Senate bill S2899 has been introduced by Senator Bernie Sanders (I-Vt.) that would establish the federal estate tax rate to be 40% on all estates worth $3,500,000 but less than $10,000,000, and 50% on all estates in excess of $10,000,000 but less than $50,000,000. Thereafter the estate tax rate would be 55% on estates in
Many federal and state laws changed this year that affect estate and gift taxation. It is wise to review your estate plan before the end of the year to take advantage of the changes. As the temperatures drop, thoughts turn to end-of-year considerations such as taxes, charitable contributions and estate planning. While many are used
Time may be running out for one of the biggest tax breaks for Americans: the chance to gift up to $5.12 million to heirs tax-free and then pay “only” 35 percent gift tax on a gift above that. The break is scheduled to expire on December 31, 2012. The original $5 million limit was increased
In 2010, taxpayers and their advisers were presented with a real gift from Congress – an increase of the estate tax exclusion to $5 million and a corresponding increase to the lifetime gift exclusion from $1 million to $5 million. This window of opportunity came with a short shelf life, with both provisions set to
A properly funded trust will avoid probate upon your death and provide management of your assets without court involvement should you become disabled or incapacitated. Although your Last Will and Testament may provide that all assets pour over into your trust for further disposition, that is only after they pass through probate. Regarding the assets