How To Use Irrevocable Gift Trusts To Take Advantage Of Your Estate And Gift Tax Exemptions

Before the presidential election, many wealthy taxpayers were worried that a “blue wave” would mean a reduction of their $11.58 million estate, gift, and generation-skipping transfer tax exemptions. That’s because the Democrats were expected to propose lowering those exemptions back down to the $3.5 million to $5 million range they were before President Trump signed the 2017 Tax Cut and Jobs Act. Even though that blue wave was more like a blue ripple, it’s still possible that the Democrats could … Continued

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

  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

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

3 Types of Trusts That Can Cover Your Assets | Business Markets and Stocks News |

  Most people think of trusts as something that only the super-rich need: a mysterious legal trick to evade taxes (and rack up tons of attorneys’ fees). In reality, trusts can be helpful for folks at any income level and are much more commonplace than most people realize. For example, if you’ve ever listed your spouse or child as a beneficiary on a bank account, you’ve technically set up a simple trust. The three types of trusts discussed below can … Continued

Which Trust to Use? | Financial Planning

  Trusts, which can range from simple to extremely complex, are a standard tool in the anti-estate- tax arsenal. There is just one firm rule: If the trust benefits a spouse, “you must cause the trust to be included in the second spouse’s estate, for estate- tax purposes,” says Samuel Donaldson, a professor of law at Georgia State University. “There may be a lot of gain inside the trust. Because it’s subject to estate tax, it gets the step-up in … Continued