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Wednesday, November 29, 2023
Thanks to a generous federal gift and estate tax exemption amount ($13.61 million for 2024), only the wealthiest of families are exposed to estate tax liability. For many, this means that estate planning now has a stronger focus on income tax planning. And one of the most valuable tax planning areas is the “stepped-up basis” rule.
Capital gain rules
Normally, when assets such as securities are sold, any resulting gain is taxable as a capital gain.
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Tuesday, November 28, 2023
It’s your will, so you can say whatever you want to say in it, or change any part of it, whenever you want to, right? Well, not quite. First, you’re bound to follow the prevailing laws of your state. Second, your will could be contested based on a claim that someone exercised “undue influence” over your decisions. Thus, your estate planning intentions, valid or not, can be defeated.
Undue influence defined
Undue influence is an act of persuasion that overcomes the free will and judgment of another person. Read more . . .
Monday, November 27, 2023
You don’t file a gift tax return
Thanks to the annual gift tax exclusion, you can systematically reduce your taxable estate with little effort. Plus, you typically don’t have to file a gift tax return. However, in certain situations, a gift tax return may be required or recommended.
The annual gift tax exclusion for 2024 is $18,000 per recipient (up from $17,000 in 2023). So, for example, Don can give each of his three children and seven grandchildren $18,000 in 2024, for a total of $180,000, without any gift tax liability. Read more . . .
Friday, December 31, 2021
CONSIDER ALL THE ANGLES OF JOINT OWNERSHIP
Estate planners generally tout the virtues of owning property jointly — and with good reason. Joint ownership offers several advantages for surviving family members. But this shouldn’t be viewed as a panacea for every estate planning woe. You must also be aware of all the implications. Two types of joint ownership.
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Friday, December 31, 2021
Shhhhhhhh This is a silent trust, let’s keep it quiet!Generally, estate planning advisors recommend that you be upfront with family members about how you plan to divide your assets. For example, you might hold a family meeting or write a letter to accompany your will. However, if you’re using a “silent trust,” sometimes referred to as a “quiet trust,” you’ll have keep it to yourself. A silent trust limits the amount of information shared with beneficiaries or, in some cases, keeps the existence of the trust secret. This trust type offers many benefits, but also a few drawbacks.
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Wednesday, November 17, 2021
The CARES Act Recent tax law changes may affect your estate plan The Coronavirus Aid, Relief and Economic Security (CARES) Act is designed to provide immediate tax relief to individuals and businesses struggling to make ends meet due to the novel coronavirus (COVIOD-19) pandemic. But this law may also have a long-reaching impact on your estate plan. Notably, the CARES Act includes several provisions for participants in qualified retirement plans and IRA that could span generations. Required minimum distributions Most individuals are familiar with the basic rules for required minimum distributions (RMDs). Generally, you must begin taking RMDs from qualified plans and traditional IRAs after attaining a specified age.
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Wednesday, November 17, 2021
ESTATE PLANNING PITFALL
You haven’t created a road map for your estate plan You’ve probably spent a lot of time creating documents for your estate plan, including a will, trusts and a power of attorney. While these documents are essential for your plan, your family could also use a “road map” to navigate the aftermath. Typically, the road map will be in the form of a “letter of instructions” or similar missive that isn’t legally binding. But it can still be a valuable source of information during trying times. This is especially true if your family is devastated by a loss due to novel coronavirus (COVID-19) or some other unexpected calamity.
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Wednesday, November 17, 2021
BREATHE NEW LIFE INTO A "BROKEN" TRUST BY DECANTING IT!
Building flexibility into your estate plan using various strategies is generally advised. The reason is that life circumstances change over your lifetime, specifically changing tax laws and family circumstances. This is especially true during the novel coronavirus (COVID-19) pandemic. One such strategy to consider is decanting a trust. Defining “decanting” Decanting is pouring wine or another liquid from one vessel into another.
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Monday, September 20, 2021
THE CARES ACT Recent tax law changes may affect your estate plan The Coronavirus Aid, Relief and Economic Security (CARES) Act is designed to provide immediate tax relief to individuals and businesses struggling to make ends meet due to the novel coronavirus (COVIOD-19) pandemic. But this law may also have a long-reaching impact on your estate plan. Notably, the CARES Act includes several provisions for participants in qualified retirement plans and IRA that could span generations. Required minimum distributions Most individuals are familiar with the basic rules for required minimum distributions (RMDs). Generally, you must begin taking RMDs from qualified plans and traditional IRAs after attaining a specified age.
Read more . . .
Monday, September 20, 2021
THE CARES ACT CREATES CHARITABLE TAX INCENTIVES
Many individuals incorporate charitable giving into their estate plans, providing assistance to their favorite charities while preserving sufficient assets for their heirs. Typically, the charitable donations are structured to maximize the tax benefits on the books. Now, the Coronavirus Aid, Relief and Economic Security (CARES) Act increases those tax incentives. Under the CARES Act — adopted to address the fallout from the novel coronavirus (COVID-19) pandemic — taxpayers of all stripes may realize additional tax savings from charitable donations in 2020. New deduction for nonitemizers Do you still itemize tax deductions on your federal tax return? It can make a big difference in how you approach charitable giving.
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Monday, September 20, 2021
TAKE THE PROPER STEPS TO INSULATE YOUR ESTATE FROM CREDITORS
For years, you may have viewed estate taxes as the main threat to your family fortune, especially if you own a successful business or valuable real estate. But with the federal gift and tax exemption set at $11.58 million for 2020, estate taxes likely are no longer a concern. Today you may be more concerned with protecting your estate from creditors and lawsuits. There are several ways to accomplish this objective in accordance with prevailing state laws.
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Littorno Law Group assists clients throughout Contra Costa County from our offices in Pittsburg, Pleasant Hill and Rancho Bernardo, California, including Antioch, Brentwood, Clayton, Concord, Lafayette, Moraga, Martinez, Danville, San Ramon, Pleasanton, Livermore, Fremont, Oakland, Piedmont, San Diego, San Mateo, Escondido, San Marcos, Vista, Oceanside, Carlsbad, Fallbrook, Bonsall, Encinitas, La Jolla, Poway, Rancho Bernardo, Del Mar, and the surrounding areas and suburbs.
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