Estate Planning

Coronavirus Crisis Brings Estate Tax Opportunity

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  The coronavirus is causing major economic impacts as can be seen with the declining stock market. This adverse impact and the uncertain prospects for the future are a source of concern and worry for us all. However, this set of unfortunate circumstances has created a unique opportunity for the very wealthy to minimize or avoid estate taxes. There are three factors that play roles in this opportunity:   The current reduction in investment account values people are seeing in … Continued

6 advanced estate planning strategies

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With a new decade upon us and some significant changes to our tax code, there are a number of advanced estate planning strategies that can minimize income and estate taxes and provide asset protection. Leaving a legacy A family Limited Liability Company (or LLC) is often overlooked as an estate planning tool used to steward wealth transfers to multiple generations while minimizing estate taxes. An LLC is a business entity that provides asset protection and a more flexible tax and … Continued

Major Changes to Estate Planning with Retirement Accounts | Beverly, MA Patch

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  If you have a substantial IRA or 401(k), your estate planning may be obsolete due to the new SECURE Act.   The Setting Every Community Up for Retirement Enhancement Act (SECURE Act), signed into law on December 20, 2019, drastically changes the rules for inherited IRAs. Prior to the SECURE Act, if you owned an IRA (or 401(k), etc.) at your death, then your beneficiaries could take required minimum distributions (RMDs) over their own life expectancy. This was commonly … Continued

Family Business Succession Planning Opportunities

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  Any family business, however successful, will reach a day when ownership must change hands. A plan of succession for ownership of business interests ensures that the business will continue to operate with a minimum of disruption and can also provide tax benefits to the owner and the successor. The authors detail the various options available to business owners looking to establish succession plans, noting where CPAs can leverage their position as trusted advisors to assist clients with establishing such … Continued

With Tax Reform, Wealthy Clients Should Update Estate Plans

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  Your high-net-worth clients need to look again at their estate plans. Wills and trusts set up before passage of the Tax Cuts and Jobs Act may not take into account that reform more than doubled the amount that can be exempted from estate taxes. For 2020, the estate tax exemption is $11.58 million for an individual, $23.16 million for a married couple. Many estate plans were created prior to tax reform, with different exemption numbers. “Clients need to review … Continued