Intrafamily Loans vs. Trust Loans
Two methods for providing financial help to a loved one
If a relative needs financial help, you can offer an intrafamily loan. However, if it’s not properly executed, such a loan can carry substantial negative tax consequences. Also, if you lack liquid assets, an intrafamily loan may not be...
Handle an Inherited IRA With Care
An inherited IRA can be a welcome financial windfall. But the rules governing required minimum distributions (RMDs) from these tax-deferred accounts are complex. IRA recipients should familiarize themselves with these rules to avoid potentially costly tax mistakes.
End of the “stretch” IRA
Until relatively recently, IRA...
Estate Planning Red Flag – You’ve Sent Your Child to College Without an Estate Plan
As you create a checklist of things your college-aged student will need for the upcoming school year, a critical, and often overlooked, item is an estate plan. Even though your child likely has few assets to his or her name, a basic estate plan is a necessity should the unthinkable happen.
Is it Time to Update Your Will? Consider a Codicil
Creating a will is a foundational step in your estate plan. But life rarely stays the same after it’s drafted. Whether you’ve gotten married (or divorced), welcomed a new family member or acquired significant property, it may be time to revisit your will and make any necessary revisions.
One...
Can Your Will Be Contested?
A no-contest clause can cause beneficiaries to think twice
Your will is meant to ensure that your final wishes are honored. However, it can sometimes be contested, potentially leading to lengthy legal battles and financial disputes among your heirs. Understanding when and why a will might be contested —...
A Primer on Health Care Directive Terms
A comprehensive estate plan has many objectives. They include ensuring your assets are passed on to your loved ones according to your wishes while minimizing gift and estate taxes. Another equally important objective is to communicate your preferences in advance for medical care in the event you’re incapacitated and cannot express your...
Understanding the ins and outs of a Family Limited Partnership
A family limited partnership (FLP) is an estate planning tool that offers various benefits. These include centralized management of family assets, the ability to transfer wealth without ceding control, reduced gift and estate taxes, income tax savings, and asset protection. Let’s take a closer look at how an FLP works.
Estate Planning Red Flag – You Own Property Jointly with your Child and Haven’t Planned Properly
There are certain estate planning strategies that, on the surface, may sound appealing. This includes owning property jointly with a child or other family member. However, in practice, these techniques can result in unwelcome outcomes that outweigh any potential benefits.
To be clear, owning an asset with your child...
Now’s the Time to Review your Generation-Skipping Transfer Tax Exposure
Absent congressional action this year, the federal gift and estate exemption and the generation-skipping transfer (GST) tax exemption (currently $13.99 million) are scheduled to return to their pre-2018 levels of $5 million (around $7 million when adjusted for inflation) beginning in 2026. So, it’s a good idea to consider strategies for taking...
Estate Planning Red Flag – You Don’t Understand the Rules when Splitting Gifts with your Spouse
Here’s a quick estate planning tip: one of the easiest ways to reduce the size of your taxable estate is to take advantage of your gift tax exclusion. For 2025, you can transfer up to $19,000 per recipient gift-tax-free. And you can double the exclusion to $38,000 per beneficiary if you elect...