October 25th, 2019 by Kim Chen
A common estate planning mistake that people make is to own property jointly with an adult child or other family member. True, adding a loved one to the title of your home, bank account or other property can be a simple technique for leaving property to that person without the need for probate. But any […]
June 13th, 2019 by Kim Chen
If you’re about to receive an inheritance and your net worth is already high, you might save gift and estate taxes by using a qualified disclaimer to refuse the bequest. The assets will then bypass your estate and go to the next beneficiary. Despite today’s lofty estate tax exemption, wealthier people, including unmarried individuals who […]
December 9th, 2018 by Kim Chen
Are you interested in setting up a private foundation? With this approach, you make contributions to a foundation and get a charitable tax deduction just as you would with any qualified organization. Then, as the director, you decide which charities you want to make distributions to so you retain control of the assets. There are […]
November 11th, 2018 by Kim Chen
Estate of Streightoff, TC Memo 2018-178 The Tax Court has determined the type and value of an interest that a taxpayer transferred during his lifetime to a revocable trust that had to be included in his estate — a limited partnership interest or an assignee interest in the partnership interest. Background. Generally, State law determines […]
February 22nd, 2018 by Kim Chen
I am writing to inform you about changes to the estate and gift tax exemption made by the massive Tax Cuts and Jobs Act effective beginning in 2018 that will result in many fewer estates being subject to the 40% tax, and larger estates owing less tax. Before the Tax Cuts and Jobs Act, the […]
June 14th, 2017 by Kim Chen
Mortgage interest rates are still at low levels, but they likely will increase as the Fed continues to raise rates. So if you’ve been thinking about helping your child — or grandchild — buy a home, consider acting soon. There also are some favorable tax factors that will help: 0% capital gains rate. If the […]
February 24th, 2017 by Kim Chen
During his lifetime, the decedent designated a trust as his IRA’s beneficiary. However, the IRA’s custodian didn’t have a copy of the trust instrument and found no evidence that a trust had been created. According to his will, the decedent’s entire estate was left to his spouse, who wanted to roll over the account to […]
January 8th, 2017 by Kim Chen
Despite its name, the term “dynasty trust” has nothing to do with aristocracy or the TV show that used to be popular. It involves preserving wealth for your heirs. A dynasty trust is sometimes called a legacy or perpetual trust. Some states have a law called the “Rule Against Perpetuities” that limits the duration of […]
October 11th, 2016 by Kim Chen
Here’s a scenario that some family members sadly face: They contact their estate planning adviser to explain that an elderly relative is no longer able to care for himself or herself. Perhaps the family members just went to visit the loved one and found filthy living conditions, bills piled up and little food in the […]
August 20th, 2016 by Kim Chen
To qualify as a CRAT under IRC Sec. 664, a trust must (1) provide a charitable remainder interest to charity of at least 10% of the total value of assets initially transferred to the trust, (2) pay at least 5% to the trust beneficiary each year, and (3) pass a 5% probability of exhaustion test. […]
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