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…
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…
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…
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…
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…
This is Part 1 in a three-part series about Estate Planning for Non-Citizens. In Part 2, I discuss what is a QDOT. In Part 3, I discuss the various ways foreigners can own U.S. real property. This article is focused on the issues that occur with regards to estate planning when a non-U.S. citizen is…
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…
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…
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…
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…
This is a part in a series of articles I have written on various types of irrevocable trusts. Understanding Bypass Trusts Prior to 2012, many married couples created joint trusts known as “A-B” trusts. The problem now is that these trusts may actually cause more harm than good. In this article, I discuss Bypass Trusts. Who…
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