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

Where Not To Die

New Jersey and Maryland levy both types of tax.