Year End Estate Planning Tips – Make Annual Exclusion Gifts
This year the annual gift tax exclusion is $13,000 per person and in 2010 the exclusion will remain the same.
Foreign Account Tax Compliance Act – Traps for the Unwary
For anyone who has clients or family members that live and work abroad, the new Foreign Account Tax Compliance Act (FATCA) is a real problem. Although this Act is supposed to punish Americans who hide assets abroad to avoid their
The Need for Long Term Care Planning
One of the greatest fears of older Americans is that they may end up in a nursing home. This not only means a great loss of personal autonomy, but also a tremendous financial price. Depending on location and level of
Conservatorship or Legal Guardianship: Which is the Right Choice?
Conservatorship concerns only the conservatee's financial matters when they need assistance.
New Jersey Transfer Inheritance Tax : How the Tax Works
New Jersey also has an inheritance tax. An inheritance tax means that when a New Jersey resident dies his or her assets will be taxed on the basis of who inherits those assets No Tax on Most Inheritances For most
What is an Irrevocable Life Insurance Trust (ILIT)?
Many people aren’t aware that all of the proceeds from life insurance policies that they own at death will be included their estate for estate tax purposes. This is because if the policy owner can withdraw the cash value and
Estate Planning Discussions: difficult, emotional and stressful
Delaying these discussions can lead to significant family hardship and a loss of highly prized and hard-earned assets.
Navigating the Step-Up Tax Basis Rule
Do not try this at home alone. Consult with your tax adviser to determine the best course of action regarding your entire tax liability.
Non-Resident Estate Tax Trap
If you aren't a citizen or resident of the United States, and want to own U.S. shares, don't hold them in your own name.
Estate tax future unclear
Many commentators do not believe that a permanent fix for the federal tax will emerge anytime soon.
IRA Beneficiary Designation Planning
When an estate or another non-individual is a primary beneficiary, the entire IRA must be distributed within five years after the original owner's passing.
BUSINESS SUCCESSION LEGAL PLANNING
By Parag Patel, Esq. If the U.S. Government is your favorite charity, rest assured, it will find a way to use your donation. But wouldn’t it be better to give your money to your children? Studies show that 60% to
15 IRS Audit Tips
1. In an audit, you must convince the IRS that you reported all of your income and were entitled to any credits, deductions and exemptions that are questioned. 2. Delaying the audit usually works to your advantage. Request more time
Naming A Minor as Your IRA Beneficiary
IRAs and qualified plans are great vehicles for saving for retirement. Contributions to the plans are not taxed, and the assets inside the plan enjoy tax free reinvestment and accumulation. The income tax is payable only when the assets are
Estate Planning for Non-US citizens
Estate Planning for Non-US citizens By Parag Patel Esq. Non-US citizens (greencard holders or H-1 visaholders) are severely discriminated against by US estate tax laws. Since estate taxes are based on the size of your estate. It is estimated that
Introduction to Estate Planning
Estate planning is concerned with the use, conservation and disposition of a person’s property and wealth. This involves two elements: (1) minimizing the gift or estate tax consequences that occur when a person’s property is passed to another either during
GRATS: A Great Estate Planning Tool
As its name implies, in a GRAT, you, the grantor, retain the right to an annuity for a fixed period of years from assets you’ve placed into a trust.
ESTATE PLANNING: MORE THAN A WILL
By Parag P. Patel, Esq. During our lifetime, most of us strive to create and build upon our net worth. We generate savings, purchase a home, and eventually invest in stocks, bonds, mutual funds, IRAs and retirement plans. Unfortunately, most
A perfect storm for gifting…
Every storm eventually comes to an end...Now is the time to gift.
Why should you do estate planning in a down economy?
1. Business and real estate values may be down as much as 20% since last year at this time. This creates opportunities for transferring the business, stock or assets to children or key employees at significantly less tax cost than
Estate Planning in a Recession
Most people know that they should have an estate plan in place; however, making estate planning a priority is difficult even in the best of times, let alone during times of financial crisis. While the benefits of estate planning are
What does divorce do to your estate plan?
According to census bureau statistics, nearly half of married couples will at some time go through a divorce. If you are going through the divorce process, you’ve got a lot of company. So, do you need a new will? What
Intentionally Defective Grantor Trusts
Estate tax planners have long employed intentionally defective grantor trusts to freeze the value of an asset for estate tax purposes while transferring assets out of the estate free of gift tax. An intentionally defective grantor trust (IDGT) is a
Buy-Sell Agreements
By Parag Patel, Esq. What if your business partner retires, sells her portion of the business, or gets a divorce? To make sure there is a smooth transition following the departure of a business partner, it is important that business
Stretch IRA – How Your IRA Can Survive Several Generations
The stretch IRA concept is a wealth-transfer strategy that can help you extend the period of tax-deferred earnings on your retirement assets. After the owner of the IRA dies, the beneficiaries will also have the longest allowable period of tax-deferral
Asset Protection
For the client who needs to protect assets, estate planning may include the use of asset protection trusts (such as foreign-situs trusts) that will put assets safely out of reach. Although there are potentially many reasons to use such vehicles,
New Tax Legislation Introduced: H.R. Bill 436 has Potential Changes to Estate and Gift Taxes and Available Discounts
H.R. Bill 436: Potential Changes to Estate and Gift Taxes and Available Discounts On January 9, 2009, Bill 436 was introduced to the House by Representative Earl Pomeroy (D-ND). The bill, referenced as H.R. 436 and similar to other
Review Your Guardian Nominations Periodically
Celebrity deaths often highlight various estate planning issues as prior posts have discussed. Michael Jackson’s death brought public awareness to issues about choosing your executor and trustees, pour over wills, and guardianship. You may recall that Michael Jackson named his
Why should I go to the trouble of planning my estate and writing a will?
Estate planning pays real dividends—in results achieved, in dollars saved, and, most important, in security and peace of mind. And it doesn’t have to be expensive, traumatic, or even especially time consuming. An estate plan is your blueprint for where