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2025 Tax Numbers for Estate Planning

Transfer Tax

Basic Exclusion Amount $13,990,000
Annual Gift Tax Exclusion $19,000
GST Tax Exemption $13,990,000

Estate and Trust Income Tax Brackets

Capital Gains – Maximum Zero Rate Amount: $3250

Ordinary Income Brackets:

Not over $3,150 10% of the taxable income
Over $3,150 but not over $11,450 $315 plus 24% of the excess over $3,150
Over $11,450, not over $15,650 $2,307 plus 35% of the excess over $11,450
Over $15,650 $3,777 plus 37% of the excess over $15,650

[Yikes! But don’t worry: Trust income tax can be avoided through a combination of income distribution to beneficiaries, and Beneficiary Deemed Owner Trust (BDOT) planning designed to make income taxable to a beneficary even without distribution.]

TAX.GD updated with IRS Inflation Adjustments for 2025

by | October 30, 2024 | Asset Protection, Blog, Creditors & Predators, Estate Admin, Estate Planning, Estate Tax, Family Protection, Fortune, Gift Tax, GST Tax, Income Tax, News & Commentary, Spendthrift Children, Tax Planning, Trust Admin | 0 Comments

The IRS has released Revenue Procedure 2024-40, which specifies annual inflation adjustments for tax year 2025. Some highlights: Gift, estate and generation-skipping transfer tax exemption amounts: $13.99 million (up from $13.61 million) Annual gift tax exclusion (IRC...
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Charitable Remainder Trust (CRT) and other Charitable Planning

by | October 30, 2024 | Asset Protection, Blog, Charity, Creditors & Predators, Estate Admin, Estate Planning, Estate Tax, Fortune, Gift Tax, GST Tax, Income Tax, Spendthrift Children, Tax Planning, Trust Admin | 0 Comments

Charitable Remainder Trust (CRT) planning can be quite complex, and the expenses involved usually are justified only with a very large gift to charity, well north of a million. Practically speaking most of this planning is tax-driven and must be to make it feasible,...
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Yes California, BDOT can Yield Better Asset Protection

by | October 27, 2024 | Asset Protection, Blog, Bloodline Protection, Creditors & Predators, Estate Admin, Estate Planning, Estate Tax, Family Protection, Fortune, Gift Tax, GST Tax, Income Tax, Retirement Planning, Spendthrift Children, Tax Planning, Trust Admin | 0 Comments

There seems to be a misconception among some California estate planning attorneys that BDOT planning (BDOT stands for Beneficiary Deemed Owner Trust; also called a 678 trust, named after IRC §678) is inconsistent with, and should never be used with, a trust designed...
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Firearms and the California Uniform Directed Trust Act

by | October 20, 2024 | Asset Protection, Blog, Bloodline Protection, Creditors & Predators, Dying Embarrassed, Estate Admin, Estate Planning, Estate Tax, Family Maintenance, Family Protection, Firearm Legacy, Firearm Training, Fortune, Gift Tax, GST Tax, GunLaw.Pro, Honor, Income Tax, Life, Spendthrift Children, Tax Planning, Trust Admin | 0 Comments

At the beginning of this year, the California Uniform Directed Trust Act (CUDTA) went into effect, codified in Probate Code §§ 16600-16632. It was a long time coming, having been first proposed back in 2010 by our state bar's trust and estate section. When it went...
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Gun HEET Revisited

by | October 17, 2024 | Asset Protection, Blog, Bloodline Protection, Business Succession, Buying or Selling a Closely Held Business, Creditors & Predators, Entity Formation, Estate Planning, Estate Tax, Family Maintenance, Family Protection, Firearm Legacy, Firearm Training, Fortune, Gift Tax, GST Tax, GunLaw.Pro, Honor, Income Tax, Life, Limitation of Liability, Operation & Governance, Regulatory Compliance, Spendthrift Children, Tax Planning, Trust Admin, Venture Protection | 0 Comments

Six years ago I posted this article proposing use of an advanced planning technique known as the Health and Education Exclusion Trust (HEET) to leave a dynastic legacy of firearm training. Such a trust might be called a Gun HEET. The Fall of the Republic and...
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What You Give Up with a Local Estate Planning Attorney

by | October 10, 2024 | Asset Protection, Blended Families, Blog, Bloodline Protection, Business Succession, Buying or Selling a Closely Held Business, Career Maintenance, Career Preparation, Charity, Creditors & Predators, Entity Formation, Estate Admin, Estate Planning, Estate Tax, Family Maintenance, Family Protection, Financial Mentorship, Firearm Legacy, Firearm Training, Fortune, Gift Tax, GST Tax, GunLaw.Pro, Health Planning, Honor, Incapacity Planning, Income Tax, Life, Limitation of Liability, Operation & Governance, Pet Protection, Property Tax, Punishment, Regulatory Compliance, Religious Faith, Retirement Planning, Spendthrift Children, Tax Planning, Trust Admin, Venture Protection | 0 Comments

[Central Coast residents: You can safely ignore this article because we are here to help you with comprehensive planning.] Most of our local clients prefer to have the first meeting in person at our office in Morro Bay. After that initial meeting, many of these local...
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IRS Allows Late Filing of QSST Election (PLR 202428003)

by | September 30, 2024 | Asset Protection, Blog, Entity Formation, Estate Admin, Estate Planning, Fortune, Income Tax, Regulatory Compliance, Tax Planning, Trust Admin, Venture Protection | 0 Comments

Under Private Letter Ruling 202428003, the IRS has allowed late filing of a Qualified Subchapter S Trust (QSST) election, to obtain relief from termination of S corporation status. The corporation represented that the termination was inadvertent and not for tax...
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Estate Reduction Surgery (SLATs, etc.) May Be Urgent

by | September 29, 2024 | Asset Protection, Blog, Dying Embarrassed, Entity Formation, Estate Planning, Estate Tax, Fortune, Gift Tax, GST Tax, Income Tax, Tax Planning | 0 Comments

Estate reduction surgery may be more urgent than you think. Understandably, a lot of folks are sitting on the sidelines, waiting to see what happens in November -- not only in the presidential race, but in the congressional races that will determine the balance of...
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Buying a Business with Real Estate

by | September 26, 2024 | Asset Protection, Blog, Business Succession, Buying or Selling a Closely Held Business, Estate Planning, Income Tax, Limitation of Liability, Operation & Governance, Property Tax, Tax Planning, Venture Protection | 0 Comments

Buying a business and purchasing real estate are two very different investments. Business ownership typically requires some management skills and knowledge about market conditions, consumer trends, staffing, and finances. Ownership of real estate, on the other hand,...
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Hiring Family Members to Work for Your Business

by | September 24, 2024 | Asset Protection, Blog, Business Succession, Buying or Selling a Closely Held Business, Career Maintenance, Career Preparation, Entity Formation, Estate Planning, Family Protection, Financial Mentorship, Fortune, Honor, Income Tax, Operation & Governance, Regulatory Compliance, Tax Planning, Venture Protection | 0 Comments

The decision to hire family members for your business is a delicate balancing act that involves both personal and professional considerations. Working with loved ones can create a sense of trust and unity within the workplace and has been shown to increase business...
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