Family businesses would be wise to consider IRC Section 6166
It’s true that because of the current record-high gift and estate tax exemption amount, most families don’t have to worry about transfer taxes. However, there are some that must continue to work to reduce their estate tax liability. In fact, these taxes continue to place a burden on families with significant amounts...
Revocable trusts offer benefits, but beware of their drawbacks
There’s a good chance that your estate plan includes a revocable trust — sometimes known as a “living trust.” This type of trust can help your estate avoid probate, guard your privacy and provide protection in the event you’re incapacitated. But that’s not to say revocable trusts are without drawbacks.
Qualified Charitable Distributions – Use QCDs to transfer IRA funds to charity
After your retirement, or if you’re retiring soon, you may be more inclined to make donations to your charity. However, you may receive little or no tax benefit from your contribution, depending on whether you itemize deductions. As a result, you might rely on a provision in the tax code to achieve...
QTIP Trust – strange name, powerful trust
Granted, a QTIP trust is an odd sounding name for an estate planning technique. Nevertheless, it can be a valuable strategy, especially if you’re currently in a second marriage. The QTIP moniker is an acronym for the technical term of “qualified terminable interest property.” Essentially, this trust provides future security for both...
Should you place your home in a Qualified Personal Residence Trust (QPRT)?
If you own your principal residence, you may be able to benefit from its build-up in equity, realize current tax breaks and pocket a sizeable tax-exempt gain when you sell it. What’s more, from an estate planning perspective, it may be more beneficial to transfer ownership of your home to a qualified...
Going through a divorce? Ease the transfer of retirement plan assets with a QDRO
Despite its unusual sounding name, a QDRO isn’t an alien from a science fiction movie or a geometric equation. In fact, QDRO stands for “qualified domestic relations order.” If you’re in the process of getting a divorce, a QDRO can provide for the transfer of assets in a qualified retirement plan to...
A living trust and a pour-over will – two estate planning documents working in tandem
At the very least, your estate plan should include a legally valid will governing the disposition of assets on your death. But comprehensive estate planning often goes much further. For instance, you may provide for transfers of assets to a living trust (also known as a revocable trust) to supplement your will....
Who should you name as your children’s guardian?
If you’re like most parents of young children, you’ve probably put a lot of thought into raising your kids, ranging from their schools to their activities to their religious upbringing. But have you considered what would happen to them if you, and your spouse if you’re married, should unexpectedly die? Will they...
The long view of long-term care insurance
What are the chances that you or someone in your family — perhaps an elderly parent — will need long-term care assistance? According to the U.S. Department of Health and Human Services, roughly 70% of Americans aged 65 or over will require some form of long-term care.
How will...
Long-term care expenses can destroy your estate plan: Plan accordingly
Estate planning is about much more than reducing taxes; it’s about ensuring your loved ones are provided for after you’re gone and that your assets are passed on according to your wishes. However, few events can upend your estate plan as unanticipated long-term care (LTC) expenses.
LTC expenses generally...