Will the Estate Tax Be “Sensible” in 2016?
Congressman Sander Levin (D-MI), ranking member of the House Ways and Means Committee, and other Democrats recently introduced a bill, H.R. 4996, to adjust the estate, gift and generation-skipping transfer taxes to more “sensible levels.” Hence, the bill was given the catchy name, the “Sensible Estate Tax Act of 2016” (the “Act”). Currently, a U.S... read more →
Annual Exclusion Gift Amount Increases in 2013
The tax law allows all individuals to make gifts to other persons on an annual basis free of gift tax and without the requirement to file a gift tax return. These gifts are known as annual exclusion gifts. In 2012, the annual exclusion gift limit is $13,000 for each gift made to a person. This.. read more →
Leaving a Life Estate in the House to the Boyfriend
Estate planning for unmarried couples, whether they are of the opposite sex or the same sex, is challenging from a tax perspective. Upon the death of the first partner to die (we will call this person the “deceased partner”), his or her estate is not entitled to the benefit of the unlimited marital deduction from.. read more →
Avoiding Capital Gains Taxes By Borrowing A Charity’s Tax Exemption
It is important to be mindful of opportunities to minimize taxes and retain your hard earned money and assets for you and your family rather than sharing those assets with Uncle Sam. One such opportunity arises when you have appreciated capital assets (such as stock, mutual funds, bonds, real estate or collectibles) that you wish.. read more →
Is a Private Foundation the Right Choice for You?
Many wealthy philanthropic people establish private family foundations in order to make a positive impact on the community, to educate their children and future generations about the importance of giving back to the community to make the world a better place, and to obtain charitable income, gift and estate tax deductions. You may have seen.. read more →
The Facebook GRATs
Excitement ran rampant through the financial community with the recent initial public offering (IPO) of Facebook stock where it was offered at $38 a share. Although the biggest IPO in technology stock history is now the subject of several lawsuits with claims that sensitive financial information about Facebook was not properly disclosed to the public,.. read more →
Planning With A GRAT
An effective estate planning method for transferring assets to family members with little to no gift tax consequences may be achieved through the use of a Grantor Retained Annuity Trust (a “GRAT”). What is a GRAT? A GRAT is an irrevocable trust established by a grantor (the creator of the GRAT) in accordance with Internal.. read more →
The Benefits Of A QPRT
QPRT is an acronym that stands for Qualified Personal Residence Trust. A QPRT is an irrevocable trust used as an estate planning technique to make a gift of a residence to family members at a reduced gift tax cost. The grantor of a QPRT (the person who creates the QPRT) may transfer a principal residence, another.. read more →
Considerations When Adding Children On Title To Real Estate
Problem. Bob and Mary Smith are in their 70s. They want their eldest daughter, Darla, to assist them in managing their assets. So, Bob and Mary add Darla as a signatory on all of their bank and brokerage accounts and they add Darla on title (as a co-owner) to all of their real estate holdings. .. read more →
Saving For College On A Tax Favored Basis: The 529 College Savings Plan
Kids grow-up fast. Before you know it, they are ready to embark on their college careers. Unfortunately, the cost of college tuition has escalated substantially over the last 20 years, placing a significant financial burden on parents, grandparents and students alike. I recently performed an informal survey to find out what some California colleges are.. read more →