The Wealth Counselor If you’re like most people, when you hear “estate planning” or “asset protection planning,” you think of someone like JR Ewing of the 1978 show Dallas, Bill Gates, or the Kennedys. WARNING: Common Misconception A very common misconception is only wealthy families and people in high-risk professions need asset protection planning. But…
DetailsThe Wealth Counselor Year-end tax planning is always important, but this year it is especially difficult because of uncertainty about what the tax laws will be for 2013. The Bush-era tax cuts are scheduled to expire on December 31 and the President and Congress have once again delayed taking any action. No one knows which,…
Details(Note: Originally published on October 6, 2014) The Trust Protection Myth: Your Revocable Trust Protects Against Lawsuits WARNING: Many people believe once they set up a Revocable Living Trust and transfer assets into the Trust, those assets are protected from lawsuits. This is absolutely nottrue. While Trusts commonly provide asset protection for beneficiaries, few Trusts…
DetailsPerhaps you first obtained life insurance 10 or more years ago, but you haven’t updated your insurance plan (or thought about it much) since. You should consider reviewing your policies. A re-assessment has the potential to pay off significantly. The insurance industry has come to understand that we are all living longer than they originally…
DetailsThe Wealth Counselor Did you know that April is National Financial Literacy Month? This is the perfect time to sit down with your loved ones to discuss your financial and estate planning objectives. To help you move the discussion forward, we would like to suggest three action items: (1) Gather around the computer monitor with…
DetailsThe Wealth Counselor With the federal gift and estate tax exemption currently at $5.25 million per person ($10.5 million for married couples), some clients and potential clients with “smaller” estates may wonder if they need any estate planning. But there are many reasons to do estate planning other than to avoid estate taxes. In fact,…
DetailsThe Wealth Counselor On January 2, 2013, the President signed into law the American Taxpayer Relief Act of 2012 (the 2012 Tax Act) to deal with the so-called “fiscal cliff.” The 2012 Tax Act included revisions to estate, gift and generation-skipping transfer (“GST”) tax laws and income tax laws that will affect estate planning for…
DetailsThe Wealth Counselor The law passed to deal with the so-called “fiscal cliff” included revisions to estate, gift and generation-skipping transfer (“GST”) tax laws and income tax laws that will affect estate planning for the foreseeable future. In this edition of The Wealth Advisor, we will take a first look at those changes and what…
DetailsMillions of fans mourned the 2014 death of actor Robin Williams – no one more so, perhaps, than his wife and his three children. Just a few months after his passing, however, the family he left behind became locked in a new and heated struggle: a dispute over how to interpret specific instructions in the actor’s estate plan.
DetailsThe Wealth Counselor Income tax basis may not be the most exciting topic to read about. However, it is a critically important topic to anyone who owns significant assets. Gaining an understanding of the basics of basis is a way to avoid costly mistakes. The Real Meaning of Basis According to IRS Tax Topic 703,…
DetailsThe Wealth Counselor Many clients have large IRAs and retirement plan accounts and need special estate planning for these assets. A 2009 study by the Investment Company Institute found that retirement plans account for 34% of all household financial assets, up from 14% in 1978; IRAs alone account for more than 10% of all household…
DetailsThe Wealth Counselor The next nine months are an exceptional window of opportunity for your clients to make family wealth transfers. The federal gift and estate tax exemption is $5,120,000, and both income tax rates and interest rates are at the lowest point in a generation. With federal deficit spending also at record levels, tax…
DetailsThe Wealth Advisor This issue of The Wealth Advisor addresses a topic that is important to many Americans yet is sometimes misunderstood – trusts. In the right circumstances, trusts can provide significant advantages to those who utilize them, particularly in protecting trust assets from the creditors of beneficiaries. Admittedly this can be a complex topic,…
DetailsThe Wealth Counselor This issue of The Wealth Counselor addresses a topic that is important to clients and all wealth planning professionals – trusts. When used properly, trusts can provide significant advantages to clients and to the advisors who recommend them. Given the numerous types of trusts, this newsletter explores the general advantages of trusts…
DetailsThe Wealth Counselor A prior issue of The Wealth Counselor addressed the planning opportunities that exist with planning for Medicaid (Medi-Cal in California), particularly where the client’s advisors work together to create a plan that addresses all aspects of the client’s planning needs. This issue addresses a related topic, VA Aid and Attendance pension benefits.…
DetailsThe Wealth Counselor A large part of many financial service professionals’ practices is helping clients with business succession planning. Yet only 29% of these professionals have created a formal practice transition plan for their own businesses. In this edition of The Wealth Counselor, we will look at some of the steps involved in transition planning…
DetailsThe Wealth Counselor The last issue of The Wealth Counselor addressed the significant need for clients to plan for the possibility of disability, and how proper disability planning more often than not involves the coordination of financial and legal solutions. This issue addresses a related and often misunderstood topic, Medicaid planning. What is Medicaid? Medicaid…
DetailsThe Wealth Counselor Last month’s issue of The Wealth Counselor examined the many benefits of 529 Plans, including the income tax and gift and estate tax benefits of these popular educational savings vehicles. There are, however, several other educational savings vehicles that clients should consider; this issue examines some of these other vehicles – and…
DetailsThe Wealth Counselor Last month’s issue of The Wealth Counselor examined the many benefits of 529 Plans, including the income tax and gift and estate tax benefits of these popular educational savings vehicles. There are, however, several other educational savings vehicles that clients should consider; this issue examines some of these other vehicles – and…
DetailsThe Wealth Counselor Charitable giving is discretionary spending. It is affected by both the economy and the income tax rates. Not surprisingly, charitable giving has been down in recent years, but this does not mean clients are less charitably inclined. Many just need to be pointed in the right direction. With the $5.12 million transfer…
DetailsThe Wealth Counselor Some think that trusts are used only for end-of-life planning. Trusts, however, are like wrenches: they come in a wide variety of shapes and sizes, each particularly suited to a particular need. Some are for wealth accumulation while others are for wealth preservation, and still others are designed to protect future generations. In…
DetailsThe Wealth Counselor Most professionals who work with trusts have plenty of “nightmare stories” about trustees chosen by clients for their irrevocable trusts. No doubt this is because trustees are often chosen without careful consideration of the qualifications required. In this issue of The Wealth Counselor, we will examine who can, who should, and who…
DetailsThe Wealth Counselor With the end of the year approaching fast, now is the time to consider ways to reduce your 2014 income tax bill. In this issue you will learn: How charitable trust-based planning can be used to reduce your taxable income. If you are the Trustee or beneficiary of an irrevocable, non-grantor trust…
DetailsThe Wealth Counselor Make this your top New Year’s resolution — update your estate plan this year. If you didn’t update your estate plan last year when the federal tax laws changed, 2014 is the year to make some important changes in it. Alterations to tax laws can definitely impact your estate, plus addressing two…
DetailsThe Wealth Counselor When it comes to financial and wealth planning issues, more often than not, people go to a professional they trust. They may be working with a financial planner, CPA, agent, or banker, but when trust and estate concerns arise, clients need their trusted advisor to listen to their needs and to explain…
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