For high-net-worth individuals, effectively planning to minimize estate taxation canrequire creative solutions. Gifts to beneficiaries that exceed the annual gift tax or lifetimegift and estate tax exclusions can be subject to potentially steep taxes. In 2024, theannual gift limit is $18,000 per person per year, and the lifetime gift and estate taxexclusion is $13.61 million—but…
What is a Charitable Remainder Annuity Trust (CRAT)? A CRAT is a type of Charitable Remainder Trust (CRT), and is specifically designed to provide a steady income to one or more non-charitable beneficiaries (such as the donor or their family) for a specified term or the lifetime of the beneficiaries. At the end of the…
Key Differences among CRTs Charitable Remainder Trusts (CRTs) are powerful tools for charitable giving, philanthropy and financial planning, offering individuals a way to secure income, avoid capital gains taxes, and make impactful charitable contributions. Within the CRT framework, there are three primary types to consider: Standard Charitable Remainder Unitrusts (SCRUTs), Net Income with Makeup Provision…
We prepared this guide so you can be prepared with the estimated costs to go through California Probate. Please reach out to us if you are facing the following situations: Net Worth Filing Fees Executor Fees Calculation Executor Fees Total Attorney Fees Calculation Attorney Fees Total Total Probate Fees $1 million $435 4% of the…
Estate planning can be an uncomfortable subject for some to contemplate. After all, even if the idea of passing your property and assets on to your loved ones after you’re gone gives you a sense of satisfaction, nobody wants to think too long or hard about their own death. But few people understand the complications…
In part 1 of this article, we discussed the features of joint ventures, how they are different from other types of business arrangements, and some purposes for which they are used. A joint venture can help two or more parties work together to accomplish a shared business goal, but as with other business transactions, a…
To accomplish a specific business goal, a business entity or partner may need access to capital, assets, skills, or other resources they do not already possess to succeed. When this is the case, a joint venture can provide a mutually beneficial means for two or more parties to work together temporarily to accomplish that shared…
As a relatively new asset class, cryptocurrency is only beginning to be a consideration in estate planning. For its fans, the decentralized nature of cryptocurrency is one of its benefits—no need to go through a bank or other traditional financial institution to invest. However, that also presents a serious and potentially insurmountable challenge when it…
When couples are planning how their estate will be distributed to their beneficiaries, one common goal is to maximize the amount that can pass to their heirs by minimizing estate tax obligations. Another consideration, however, is providing for the surviving spouse after one member of the couple has passed. Planning can also be complicated by…
But, would you live for them? Dear Friends, As an estate planning lawyer, I deal with death everyday. Everyday, people in my life die, and our office gets “the call.” After you deal with it daily, death is not as depressing as you may think. Because once you understand death, you truly understand life. I…
In certain circumstances, an employee may receive restricted stock as part of their compensation package. Restricted stock is a type of equity compensation in which the employee (perhaps a corporate executive, startup founder, or startup employee) receives shares of company stock that are subject to specified restrictions. These may include a vesting schedule or other…
“First of all, breathe, because nothing on this list is worth losing your peace of mind. Take time to grieve and be with your family. Decisions made when you’re dealing with a flood of emotions tend to be poor anyways, so when you’re ready, you can take these matters up”, Lalit Kundani 1. Order at…
Nobody likes inflation, but recent high inflation has produced a silver lining in terms of increased exclusions to the estate and gift tax exclusion amounts for 2023. While this is good news in the short term, taxpayers should remain aware that in the absence of Congressional action, many of the tax benefits provided by the…
With the sudden closures of some major regional and industry-specific banks, many people are worried about their FDIC coverages for accounts held in trust. This is a good opportunity to review the rules when it comes to FDIC insurance and trusts. In fact, the FDIC approved changes, on January 21, 2022, to the deposit insurance…
What is the purpose of a Power of Attorney? If you are an adult with capacity, you, as the Principal, have the right to designate an Agent, sometimes called an “Attorney in Fact” or “Financial Agent”, to manage your financial affairs for you. When is a Power of Attorney effective? The authority of an Agent…
Bye-Bye U.S., Hello Exit Tax! If you are a U.S. citizen thinking about relinquishing your U.S. citizenship, or if you are what is defined as a “long-term” green card holder and thinking about giving it up, you may be in for a surprise. The U.S. has a sinister parting gift for you, called an “exit…
How Trusts are Taxed We can talk hours about the intricacies of trust taxation, but here are some basic concepts that will still go a very long way when it comes to how trusts get taxed. Trusts get taxed in two different ways: a grantor trust, and a non-grantor trust. Grantor Trust A grantor trust…
This is Part 3 in a three-part series about Estate Planning for Non-Citizens. In Part 1, I discussed general issues involving non-citizen planning. In Part 2, I discussed what is a QDOT. What’s the Best Way to Own Real Estate if you are not a US citizen? In Part 1, entitled “Estate Planning for the Non-Citizen,”…
This is Part 2 in a two-part series about Transfer Taxes. In Part 1, I discuss what is the gift tax and estate tax. The GST Tax The generation skipping transfer (GST) tax is often overlooked and misunderstood even by practitioners. It is complex to say the least. In this article, I discuss what the GST…
This is Part 2 in a three-part series about Estate Planning for Non-Citizens. In Part 1, I discussed general issues involving non-citizen planning. In Part 3, I discuss the various ways foreigners can own U.S. real property. Who Needs a QDOT? One of the lesser known benefits of US citizenship is something called the “unlimited…
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