by Dave Duringer | May 15, 2017 | Archived, Death Tax, Estate Planning, Gift Tax, Income Tax, Tax Planning
The tenuousness of the President’s plan raises a whole host of additional questions. These include: (1) whether the President’s plan would be coupled with a step-up in basis at death versus carryover basis (carryover basis would effectively increase total taxes...
by Dave Duringer | May 15, 2017 | Estate Planning, Tax Planning
If advisors don’t understand estate planning as well as they think they do (and tell their clients they do) then why do we as estate planning attorneys ingratiate ourselves to them by perpetuating the myth that “they are the quarterbacks” who...
by Dave Duringer | May 15, 2017 | Archived, Death Tax, Estate Planning, Gift Tax, Income Tax, Tax Planning
The election of Donald J. Trump to the presidency and Republican control of both houses of Congress make estate tax reform extremely probable in the next two years. However, given the new administration’s other proclaimed priorities, including the repeal of...
by Dave Duringer | May 15, 2017 | Asset Protection, Estate Planning, Retirement Planning, Tax Planning
In the current environment of uncertainty, many married clients should consider implementing non-reciprocal spousal lifetime access trusts (SLATs). This strategy can provide a flexible framework for a wide range of clients. The technique can be adapted for more...
by Dave Duringer | May 15, 2017 | Archived, Income Tax, Tax Planning
The way things ought to be! Under the Trump plan, the top income tax rate of 35 percent would be reduced to 15 percent for pass-throughs. The pass-through rate under the W&M plan would be 20 percent (instead of a top rate of 35 percent). Source:...
by Dave Duringer | Apr 24, 2017 | Charity, Estate Planning, Retirement Planning, Tax Planning
And for those with qualified retirement plans, it may be time to seriously consider charitable remainder unitrust (CRUT) planning. In the case of qualified long-term appreciated property, outright gifts can be used to offset other taxable income, while bypassing the...
by Dave Duringer | Apr 23, 2017 | Tax Planning
On April 6, comprehensive tax changes went into effect in the United Kingdom (U.K.) that impact wealth planning considerations for certain individuals who spend a significant amount of time in the U.K., but who are domiciled outside of the country. Source:...
by Dave Duringer | Apr 21, 2017 | Archived, Estate Planning, Tax Planning, Venture Protection
by Dave Duringer | Apr 19, 2017 | Estate Planning, Tax Planning
Good examples in this article on QDOT planning: The examples above illustrate the general rules applicable to gratuitous lifetime transfers of property, or gifts. The following examples illustrate the general rules applicable to transfers at death: Source:...
by Dave Duringer | Apr 19, 2017 | Estate Planning, Tax Planning
Community property is treated preferentially by the tax code — it gets a full step-up in basis at death, instead of only stepping up the decedent’s half as in joint tenancy. (Could also step down if the market timing is unlucky, but that is rare.)...
by Dave Duringer | Apr 11, 2017 | Asset Protection, Tax Planning
Nations lose hundreds of billions of dollars every year through tax evasion and avoidance facilitated by havens. Gabriel Zucman, an economist at the University of California, Berkeley, has estimated that as of 2013, about 10 percent of the world’s...
by Dave Duringer | Apr 8, 2017 | Asset Protection, Retirement Planning, Tax Planning
ETF Securities Group, a U.K.-based asset manager, launched three ETFs on the NYSE Arca exchange that track the Bloomberg Commodity Indices, on March 31. The funds are among thousands traded on the exchange but stand out because they are broad-based and...
by Dave Duringer | Apr 8, 2017 | Asset Protection, Income Tax, Retirement Planning, Spendthrift Children, Tax Planning
IRA stretch is great in theory, but your beneficiary can withdraw the principal at any time and there is no asset protection. As an estate planning attorney, I can make the stretch real by using an asset-protected standalone IRA Beneficiary Trust, separate from...
by Dave Duringer | Apr 8, 2017 | Property Tax, Retirement Planning, Tax Planning
In general, the most tax-friendly states for retirees are, in order, Alaska, Delaware, Georgia, Nevada, and Wyoming, according to the J.P. Morgan report. The least tax-friendly states, in order, are New Jersey, Connecticut, New York, Maine, and Vermont. Property taxes...
by Dave Duringer | Apr 8, 2017 | Career Preparation, Family Protection, Retirement Planning, Tax Planning
The kids can work their way through college like we did. ‘Should I dip into my retirement account to pay for college?’People do it, but most financial professionals advise against it. At the very least, experts say, you should limit such withdrawals, so as not...
by Dave Duringer | Apr 7, 2017 | Asset Protection, Death Tax, Estate Planning, Gift Tax, Tax Planning
In this matter, the draftsman failed to include language prohibiting the trustee from issuing a note, other debt instrument, option or other similar financial arrangement in satisfaction of the annuity obligation as required by § 25.2702-3(d)(6) of the Gift Tax...
by Dave Duringer | Apr 6, 2017 | Asset Protection, Death Tax, Estate Planning, Tax Planning
Sacramento is at this moment plotting to bring back the estate tax here. Also, you might own property, or plan to retire, in one of these states. Do you have a flexible estate plan? Reforms being debated by Congress could repeal the federal estate tax with...
by Dave Duringer | Mar 31, 2017 | Death Tax, Estate Admin
Recently, in Estate of Kollsman v. Commissioner (T.C. Memo. 2017-40), the U.S. Tax Court held that an art collector’s estate significantly underreported the value of two artworks for estate tax purposes. The problem: the estate relied on appraisals by an...
by Dave Duringer | Mar 28, 2017 | Charity, Estate Planning, Gift Tax, Tax Planning
A GRAT must be drafted to comply with the requirements set forth in the applicable Treasury Regulations under Section 2702. Unfortunately, the regulations don’t resolve all issues, such as whether there’s a minimum or maximum term for a GRAT, or whether a GRAT...
by Dave Duringer | Mar 27, 2017 | Estate Planning, Tax Planning
In other words, a repeal of the estate tax would really only impact those clients with a net worth north of $11 million. That’s why Natanya told me that most of her moderately wealthy clients have already rounded the corner from thinking about taxes to focusing...
