Now’s The Time To Take Advantage Of Transferring Or Selling Assets

  The clock’s ticking for wealthy clients looking to find tax advantages when transferring assets to the next generation or selling their business—especially considering the looming, potentially watershed election. “With a possible administration change and proposed changes to the capital gains rate, it might be wise to complete the transfer prior to year’s end,” said Julia Carlson, CEO and founder of Oregon-based Financial Freedom Wealth Management Group. Democratic candidate Joe Biden’s tax plans include bumps in the top tax rate … Continued

2019 Estate and Gift Tax

The IRS has published new guidelines relating to estate and gift tax changes for 2019. Starting this year, estates of decedents who die during 2019 have a basic estate tax exemption amount of $11,400,000 (increased from $11,180,000 in 2018). This means that the estate of a person dying in 2019 with more than $11.4 million in assets may pay a federal estate tax (on assets which do not pass to charity or to a surviving spouse). Over both deaths of … Continued

Sitting on $11 million? Give it away to save on estate taxes

  If the holiday spirit is encouraging you to gift millions of dollars to family members, it’s time to start sharing the wealth. The Tax Cuts and Jobs Act increased the gift and estate tax exemption — also known as the basic exclusion amount — to $11.18 million per person in 2018, which is more than double the amount under the old law. That means any individual can transfer up to $11.18 million, either as gifts during their lifetime or … Continued

How advisors can use trusts in estate planning for clients | Financial Planning

  So how can your clients have their cake and eat it too? To plan better, advisors first need to identify how a client’s goals might be different today because of the 2017 tax changes. They may want to consider the following strategies: The current estate, gift and GST tax exemption is a whopping $11.8 million, but that amount is halved in 2026, so clients should try to use as much as feasible before it is reduced. Using the exemption … Continued

IRS Provides Guidance On Gifts From US Expatriates

  mposes a tax (at the highest applicable gift or estate tax rates) on US residents and citizens receiving gifts and bequests from expatriates. As provided for in the Heroes Earnings Assistance and Relief Tax Act of 2008, the regulations impose a gift and/or estate tax on gifts or bequests received from “covered expatriates” who relinquished US citizenship or ceased to be lawful permanent residents of the United States on or after June 17, 2008. “Covered expatriate” is defined as … Continued