Do you own a business with one or more individuals? Undoubtedly, your interest in the business represents a substantial part of your net worth and is likely your “pride and joy.” So it’s normal if your fondest wish is for the business to continue long after you’re gone or for you to keep it running if a co-owner or partner dies first. (more…)
The Tax Cuts and Jobs Act (TCJA) completely rewrites sections of the tax code for individuals and businesses. Under the TCJA, the federal gift and estate tax exemption doubles from $5 million to $10 million, indexed for inflation to $11.18 million in 2018.
Somewhat lost in the clamor is the fact that the new law preserves the “portability” provision for married couples. Portability allows your estate to elect to permit your surviving spouse to use any of your available estate tax exemption that is unused at your death. (more…)
Even though the Tax Cuts and Jobs Act (TCJA) doesn’t include many revisions to estate tax laws, it does provide one major enhancement. Under the TCJA, the unified gift and estate tax exemption of $5 million, which is indexed for inflation, is doubled to $10 million. The indexed figure for 2018 is $11.18 million ($22.36 million for married couples). This means that only the wealthiest families run a risk of federal estate tax liability (although state taxes may offer additional challenges). Given the substantially increased exemption amount, consider re-examining your lifetime gift-giving strategies. (more…)
There are many good reasons to move abroad, such as retirement or to begin a new career. But before you finalize your plans, a thorough review of your financial and estate plans is in order. Let’s take a look at what areas to focus on. (more…)
In this podcast, Julie Malekhedayat from our Family Wealth and Individual Tax Planning Group discusses:
- Life insurance policies and how they work with estate taxes
- Would it make sense to remove a life insurance policy out of your taxable estate?
- How do life insurance policies interact with estate and income taxes?
- How do I know if I’m the owner of a life insurance policy?
Is your elderly parent or other relative who lives alone experiencing difficulty with daily living activities? Although moving a loved one to a nursing home might be the best option for all concerned, the move may be challenged by the senior citizen, much to the adult children’s chagrin. In some cases, a squabble can evolve into a full-fledged family feud where siblings stop talking to one another or a parent disowns his or her offspring. (more…)
After recent tax legislation, including the Tax Cuts and Jobs Act (TCJA), few tax shelters are left standing. One key exception is life insurance. If certain requirements are met, the buildup of value in a life insurance policy is exempt from current income tax, while proceeds payable upon death can avoid estate tax. (more…)
Is a substantial portion of your net worth tied up in your closely held business? Even if you plan to stay involved with the company for many years, it’s critical to have an exit strategy.
An employee stock ownership plan (ESOP) is one tool that offers a tax-efficient way to share equity with employees. It can also help you address issues such as a lack of liquidity and enable you to provide for family members who don’t work in the business. (more…)
One of the primary objectives of estate planning is protecting your assets from unreasonable creditors’ claims, frivolous lawsuits or financial predators ― the reason being that you want to pass as much of your wealth to your family as possible.
Both offshore and domestic trusts can be highly effective vehicles for protecting wealth, but they can be complicated and expensive. The good news is that there are basic yet effective tools you can implement to protect your hard-earned wealth. (more…)