Yes—You Might Owe More Taxes Under President Biden. Here’s How to Avoid It

Use a spousal limited access trust (or SLAT) Of all of the proposed changes, the most significant is the reduction of the estate and gift tax exemption from $11 million to $5 million. This decrease can be avoided by transferring wealth now. One option is the spousal limited access trust (or SLAT). To use a SLAT, one or both spouses creates a trust for the benefit of the other spouse. Because the trust is funded by gift while both spouses … Continued

Why The Wealthy Write These Checks At Year End

  There is a ritual that often occurs in high net worth households in the final weeks of the year. It can be a check in the mail or tucked inside a Christmas present. At other times, it may be a deposit into a 529 plan or a trust without the beneficiary knowing. Regardless, we are at the time of year when the older generations in wealthy families make the annual gift exclusion to the younger generations. The amount they … Continued

Tax Day: The Best Single Change to the Tax Code – Bloomberg

VERY INTERESTING READ The Tax Cuts and Jobs Act of 2017 left some Americans celebrating their gains, others decrying losses, and a good chunk of the nation unsure of what to think, actually. That’s to be expected – it will take time to understand the true impact of such sweeping changes. For Tax Day, we posed a simpler question to our columnists: What single change in tax policy would do the most good for the nation? They offered the following … Continued

The Ultimate 2019 Tax Planning Guide

  Tax reform ushered in major changes for the U.S. taxation system for the 2018 tax year, with the Tax Cuts and Jobs Act introducing new rates and brackets, expanded deductions and credits, and new limits on certain tax breaks. You probably had to do some pretty substantial tax planning to cut your tax bill due this spring, by taking full advantage of these adjustments. While the 2019 tax year is shaping up to be much quieter in terms of … Continued

You can give away up to $11 million and save on taxes

  Even as controversy heats up around the transfer of wealth from the real estate empire of the president’s father, Fred Trump, to his children, it’s getting much easier to gift millions of dollars — legally — to family. The Tax Cuts and Jobs Act raised the gift and estate tax exemption — also known as the unified credit — to $11.18 million per person in 2018, more than doubling the limit under the old tax law. This means that … Continued