IRS Updates AFRs
IRS Updates Applicable Federal Rates for April 2012Summary The IRS has announced the Applicable Federal Rates for April 2012, including the Section 7520 rate of 1.4%. Relevant Documents |
Income Tax Planning: What Estate Planners Need to Know
The Wealth Counselor The American Taxpayer Relief Act of 2012 (which became law on January 2, 2013) made permanent the temporary estate/gift/generation-skipping transfer tax exemptions established in December 2010, increased the rate on non-exempt estates/gifts/generation-skipping transfers to 40% and introduced substantial new income tax burdens on high income taxpayers and trusts. In addition, 2013 is…
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Income Tax Planning with Alaska Community Property Trusts
The Wealth Counselor The Internal Revenue Code (“IRC”) provides substantial income and estate tax benefits to the married residents of the nine “community property” states. A tenth state – Alaska – allows married couples to opt in to the community property regime and reap these benefits. In addition, Alaska offers the married residents of the…
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Income Tax Issues When Planning for the Sale of a Closely Held Business
The Wealth Counselor When a closely held business is a significant part of a client’s estate, as is often the case, business succession planning becomes an important part of the client’s estate planning. Estate planning issues include how to turn the business into cash for the owner’s retirement, who will take over or buy the…
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Including Life Expectancy and Health Care Costs in Retirement Planning
The Wealth Counselor The collision between economics and demographics is increasing client concerns about running out of money in retirement. Defined benefit plans are pretty much a thing of the past, and people are living longer. Clients need income that is sustainable and that they will not outlive. The cost of health care continues to…
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If You Die Without a Will, Does Your Spouse Inherit Your Entire Estate?
If You Die Without a Will, Does Your Spouse Inherit Your Entire Estate? If you are married and you die without a Last Will and Testament, you may mistakenly believe that your spouse will still inherit your entire estate. Not so fast. Who will inherit your estate depends on several different factors: 1. How is…
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Identifying Hidden Financial Risks Creates Sales Demand
The Wealth Counselor The world changes; clients’ circumstances change; motivations and interests change. As these changes occur—often gradually—“hidden” risks emerge that can significantly deteriorate future wealth if left unattended. By “hidden” risks, we mean exposures of which the client or potential client is likely to be unaware. Identifying hidden risks in an education-based marketing program…
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How to Talk to Prospective Clients about Estate Planning
The Wealth Counselor Helping clients build, manage and protect their wealth is the goal of each member of the advisory team—financial/investment advisors, CPAs, attorneys and insurance agents. Estate planning is part of this larger process and, as a result, should be on each advisor’s checklist for every client. In this issue of The Wealth Counselor,…
DetailsHow to Protect Inherited IRAs After the Clark v. Rameker Decision
The Wealth Counselor In a landmark, unanimous decision handed down on June 12, 2014, the United States Supreme Court held that inherited IRAs are not “retirement funds.” This ruling is important to you and your family because it means you need to take action to insure your retirement funds are protected when they pass to…
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How to Protect Inherited IRAs After the Clark v. Rameker Decision
The Wealth Counselor In a landmark, unanimous 9-0 decision handed down on June 12, 2014, the United States Supreme Court held that inherited IRAs are not “retirement funds” within the meaning of federal bankruptcy law. This means they are therefore available to satisfy creditors’ claims. (See Clark, et ux v. Rameker, 573 U.S. ______ (2014))…
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How to Minimize Legal Fees After Death
How to Minimize Legal Fees After Death Death is a costly business. Aside from funeral expenses, legal fees can take a big chunk out of how much is left for your loved ones after you’re gone. But it doesn’t have to be this way. Careful planning can minimize the legal fees your loved ones will…
DetailsHow to Help Clients Avoid a Disastrous Will or Trust Contest
The Wealth Counselor A will or trust contest can derail a client’s final wishes, rapidly deplete their estate, and tear their loved ones apart. But it doesn’t have to end like this. In this issue you will learn: What a will or trust contest is Who can contest a will or trust When a will…
DetailsHow to Create a Successful, Multigenerational Wealth Transfer Plan
The Wealth Counselor Studies have shown that 70% of family wealth is lost by the end of the second generation and 90% by the end of the third. Don’t let your loved ones become part of these statistics. You need to understand, and work to overcome, the disconnect that occurs between generations regarding the transfer…
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How to Become a Multigenerational, Purpose-Driven Advisor
The Wealth Counselor Studies have shown that more than 90% of family wealth is lost by the end of the third generation. To help clients avoid this, advisors must become adept at bridging the disconnect among generations when it comes to the transfer of family wealth. In this issue you will learn: The main factors…
DetailsHow to Avoid a Disastrous Will or Trust Contest
The Wealth Counselor A will or trust contest can derail your final wishes, rapidly deplete your estate, and tear your loved ones apart. But with proper planning, you can prevent a disastrous will or trust contest. In this issue you will learn: What a will or trust contest is Who can contest a will or…
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How to Avoid a Basis Management Disaster
The Wealth Counselor Many of us in the legal, financial and accounting worlds discover our new clients’ well-intentioned, yet disastrous, plans after the fact. The widow has already transferred her house into her children’s names or an inherited IRA is drained to pay for a Porsche. Observing the lost planning opportunity and the financial fallout…
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How Clients Can Easily Integrate Asset Protection Trusts into Their Estate Plans
The Wealth Counselor Protecting assets against loss has become a common goal of estate planning. Asset protection trusts come in many different forms and can be used to protect property for the use and benefit of clients as well as their families and other beneficiaries. In this issue you will learn how clients can easily…
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Get Ready: 2015 National Estate Planning Awareness Week Begins on October 19
In 2008 the National Association of Estate Planners & Councils (NAEPC), in conjunction with Rep. Mike Thompson (D-CA) and 49 of his colleagues, helped pass a law which declared the third week in October “National Estate Planning Awareness Week.” This year National Estate Planning Awareness Week falls on October 19 through 25.
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Five Ways to Make Trusts More Flexible
The Wealth Counselor Trusts that continue for the benefit of a surviving spouse’s lifetime and then for the benefit of several generations have become the norm. Drafting trust agreements that will cover the administration, investment, and distribution of trust property over the span of multiple decades is challenging. In this issue you will learn how…
DetailsEven Vampires Need Estate Planning
(Note: I am not a vampire; I’m not even a legal eagle; however, as a mere mortal who happens to work in the best estate planning law firm in this non-supernatural realm, even I know it’s important to plan ahead!)
Yes, even the undead need an estate plan. After you stop laughing you need to hear me out. As we’ve learned from the likes of The Vampire Chronicles, the Twilight saga, and HBO’s True Blood, vampires aren’t immortal. They do die, and it’s usually unexpected and messy.
DetailsEstate Planning Strategies for Your Early 20s
When you hear the term “estate planning,” you might envision an older couple arguing over how to divide their copious assets, properties and business holdings among numerous relatives – not someone closer to your age waylaid by student debt and uncertain job prospects. All that said, now is the time to start thinking about the…
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Estate Planning Must-Dos Before Traveling for Thanksgiving and the Holidays
As Thanksgiving, Christmas, New Year’s and the winter holidays approach, you might be daydreaming about a skiing trip to Mammoth or a Hawaiian vacation to escape the cold. Or you might be savoring (or, perhaps, less then eagerly anticipating) the thought of reconnecting with your extended family, who’s typically scattered across the country. Whether you’re…
DetailsEstate Planning for Disability
The Wealth Counselor Planning for the possibility of disability is probably the most overlooked part of estate planning. While many people will give serious consideration to estate planning for their death, few will seriously consider planning for their disability. Yet disability planning should be the more important part of estate planning from the client’s perspective…
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Estate Planning for Business Owners
The Wealth Counselor “Small businesses,” that is, those that have less than 500 employees, comprise 99.9 percent of all businesses in the United States. The owners of these businesses will, someday, exit their businesses due to retirement, incapacity or death. But most are so busy working that they don’t slow down and think about business…
DetailsEstate Planning – A Process, Not an Event
The Wealth Advisor You have signed all of your estate planning documents and, if your plan includes trusts, completed their funding. You sit back, relax, and enjoy the peace of mind that comes with completing that task. But don’t bask in that feeling for too long—estate planning is an ongoing process, not a one-time event.…
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