This is Part 2 in a series I have written on the use of QSBS in estate planning. Part 1 focused on what is qualified small business stock. QSBS & Non-Grantor Trusts If a business has qualified small business stock under IRS Section 1202, the benefits of QSBS can be expanded on with the effective…
This is a part in a series of articles I have written on various types of irrevocable trusts. What is a Dynasty Trust? Many people refer to dynasty trusts to mean an irrevocable trust that is built so that after the death of the grantor, the trust benefits the grantor’s descendants. I don’t disagree with this…
This is a part in a series of articles I have written on various types of irrevocable trusts. What is a SLAT? A SLAT stands for a Spousal Lifetime Access Trust. It is an irrevocable trust created by one spouse for the benefit of the other spouse during their lifetime. The grantor (person creating the…
What to Consider When Creating an Advance Health Care DIrective What is the purpose of an Advance Health Care Directive? If you are an adult with capacity, you have the right to provide instructions about your own health care choices. An Advance Health Care Directive sets forth (1) the person(s) you nominate to make medical…
This is a part in a series of articles I have written on various types of irrevocable trusts. Intentionally Defective Grantor Trust What is a sale to an Intentionally Defective Grantor Trust (IDGT)? Why would a trust be “intentionally defective”? And what is so popular about this strategy? Intentionally Defective Grantor Trust An IDGT is a…
This is a part in a series of articles I have written on various types of irrevocable trusts. What is a NING? A Nevada Incomplete Gift Non-Grantor trust (NING) is an irrevocable trust built in Nevada, and is popular among those individuals living in high-income tax states seeking to reduce their state income tax liability, or…
This is a part in a series of articles I have written on various types of irrevocable trusts. What is DAPT? One of the most unique forms of irrevocable trusts is a Domestic Asset Protection Trust (DAPT), otherwise referred to as a self-settled spendthrift trust. With most irrevocable trusts, the person setting it up (the…
This is Part 2 in a two-part series about LLCs. In Part 1, I covered “Why People Should Create LLCs?” How should I setup my LLC? Once you know why you need to create an LLC, there are a number of considerations that go into how to set up your LLC to maximize asset protection….
This is Part 1 in a series I have written on the use of QSBS in estate planning. Part 2 focuses on using non-grantor trusts to further leverage QSBS in a future liquidity event. What is Qualified Small Business Stock and Why Is It Important? Shares of a “qualified small business” (as defined by the…
On July 16, 2021, Governor Gavin Newsom signed Assembly Bill 150 into law. This bill enables certain California taxpayers to write off more than the $10,000 limit placed on state and local tax (SALT) deductions — but it’s not automatic, you need to know what to do to get this relief. BRIEF HISTORY OF SALT…
This is a picture of me and my uncle (who I call “Mama”) taken when I first moved to Michigan from India. Mama was the world’s greatest listener, as you can see even in this picture. He passed away in February of this year. Almost ten years ago, when I left the DA’s office, I flew…
A lot of people have been talking about what President Biden’s tax plan will look like and whether there’s anything we can do now. In April of this year, Biden released the American Families Plan, which essentially increases taxes on both corporations and certain individuals. Following this, the Treasury Department issued its Green Book, which…
Proposition 19 was a highly contested ballot measure during the recent election, narrowly passing with 51% approval. The proposition was marketed as a solution to benefiting wildfire victims and the elderly. However, the proposition also rips away protections against property tax changes that California residents have enjoyed for almost forty years. Proposition 19 removes a…
What to Think About When Naming Permanent Guardians Most estate planning attorneys will encourage you to set up estate plans for many reasons: to protect against probate; to plan for incapacity; to create asset protection; to further tax planning; if you have a child under the age of 18, to plan for their guardianship in…
Per Stirpes vs. Per Capita at Each Generation? Say What? While engineering your estate plan, you’re likely to come across the terms “per capita at each generation” or “per stirpes.” (No, we are not talking about stripes here. Unfortunately, your estate plan is not available in stripes, houndstooth, or gingham). Instead, these terms are options…
IRS Form 706 is commonly known as an “Estate Tax Return.” It is not well-known even by most accountants and is rarely filed. But estate planning lawyers will swear by them! So what’s the deal? Why are they so elusive to some, and yet so important to file according to others? Usually, there is a…
HOW TRUST ADMINISTRATION WORKS What happens if someone creates a trust and then dies? Now what? The person in charge is called the “successor trustee.” Being a successor trustee is an honor and privilege since the person who created the trust (the “Decedent”) trusted your judgement and character to allow you to exercise control over…
How Probate Works If your loved one has passed away and left behind certain assets, you may or may not have to go to court in order to access or inherit those assets. You can learn more about what a probate is generally and why it occurs by reading our article, What is a Probate? …
This is a common question from those who set up living trusts. First off, if you are contemplating NOT doing a trust because you plan on just owning an account in your personal name, and you figure by naming other individuals as your beneficiaries, you are fine, then please read why you should not rely…
Whether intentionally or not, some people are of the opinion that a trust is not necessary either because they have someone else named on their account or because there is a beneficiary. So can beneficiary-designated accounts or joint accounts avoid going through probate? Well, it depends. Keep reading… Avoiding Probate with Beneficiary Accounts If an…
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