Building a SLAT in your estate plan

Spousal lifetime access trust, or SLAT, planning can provide powerful estate and tax planning opportunities – and perhaps one of the most popular techniques for married couples for the foreseeable future given the possible changes in the law post-election and to help pay for massive government bailouts due to the pandemic. The government raising revenue will be critical and ways to do so can include raising taxes, reducing federal estate tax exemption, increasing estate tax and other changes. SLATs are … Continued

U.S. Supreme Court To Hear Key Income Tax Issue For $120 Billion Trust Industry

  The U.S. Supreme Court has announced it will hear a trust tax case that has significant implications for states and trust beneficiaries: Hundreds of millions of dollars of annual tax revenue hang in the balance. “It’s a big development,” says Carol Harrington, an estate lawyer with McDermott Will & Emery. The question posed in North Carolina Department of Revenue v. the Kimberley Rice Kaestner 1992 Family Trust is: Does the due process clause prohibit states from taxing trusts based … Continued

An Estate Tax Time Bomb

  Bypass trusts, or B trusts, have long been used as a strategy to help families avoid estate taxes. But with recent changes in income tax and estate tax rates, in many cases B trusts now trigger substantially higher capital gains taxes for beneficiaries or heirs without providing any estate tax savings.  An existing B trust can be a ticking time bomb, detonating after the death of the surviving spouse. Private wealth professionals should advise clients with existing B trusts … Continued

Selecting The Right Trustee by Susan Willett | WilmingtonBiz Insights

  There are several qualifications you should consider when selecting your trustee. Among the more important are the following: Administrative skill and knowledge: A trustee has to perform a multitude of tasks, including safeguarding of assets, collection, reinvestment and distribution of income, document interpretation, bill paying and any number of other duties. Investment expertise: A trustee must develop an investment program that meets the requirements of all the trust beneficiaries. In today’s changing and volatile investment arena, investment expertise is … Continued

Tax Consequences of an Inheritance From an Irrevocable Trust — The Motley Fool

COMPLICATED STUFF The death of a loved one can create a lot of financial complexity. For families that have set up irrevocable trusts to facilitate the transfer of assets from one generation to another, the tax implications can be even more complicated. However, there are some basic rules that any heir should know if they get an inheritance from an irrevocable trust. Tax Consequences of an Inheritance From an Irrevocable Trust — The Motley Fool