Trusts can be drafted to be quite flexible. In the past, trusts often were drafted with little flexibility. Now, more and more, trusts tend to be drafted with more flexibility and there are even ways to change “irrevocable” trusts. This is the first of a three-part series. This first part examines ways of building flexibility into a trust. The second part examines using Trust Protectors to add flexibility to a trust. The third part examines modifying a trust by going to court. Why Is … [Read more...] about Making Trusts More Flexible
There are new tax proposals working their way through the House and Senate. These proposals, if passed, would change retirement savings significantly. It seems there are often new tax proposals. In fact, a couple of prior articles this year examined other tax proposals, such as those from Senator Elizabeth Warren (D-MA) and Senator Bernie Sanders (I-VT). But, regardless of their merits, those proposals are not likely to go anywhere given they are opposed by most Republicans. However, … [Read more...] about New Tax Proposal re: Retirement Savings
Where you die matters. While you’ll pay the same federal estate tax no matter where you die, 1/3 of the states have a separate estate or inheritance tax. The most populous state, California, is the latest state to consider adding a state estate tax. Read on to learn more. The federal estate and gift tax exclusion is set “permanently” to $5 million, adjusted for inflation. However, if you die between now and the end of 2025, the exclusion is doubled to $10 million, adjusted for inflation. Its … [Read more...] about When and Where You Die Matters
It’s important for estate planning attorneys to stay up on the latest developments and techniques. The American Academy of Estate Planning Attorney held its semi-annual conference in Atlanta last month. Read on to learn more about the topics discussed at that cutting-edge conference. Staying Current on Estate Planning … [Read more...] about Staying Current on Estate Planning
What are 529 plans? Can they be held in trusts? Read on to learn more about these plans and why to consider them. What Are 529 Plans and What Are Their Advantages? … [Read more...] about What Are 529 Plans and What Are Their Advantages?
Domestic Asset Protection Trusts are spreading to more jurisdictions. However, their protections may be waning. Read on to learn more about Domestic Asset Protection Trusts. Domestic Asset Protection Trusts … [Read more...] about Domestic Asset Protection Trusts
What are UTMA and UGMA accounts? Are there better alternatives? Read on to learn more about these accounts, their drawbacks, and better alternatives. What are UGMA and UTMA Accounts? … [Read more...] about What are UGMA and UTMA Accounts?
An ABLE account is a great strategy for someone who became disabled by age 26. An ABLE account may be income tax-free. It has other unique benefits for a disabled person. Read on to learn more about the ABLE account and how it can help. ABLE Accounts … [Read more...] about ABLE Accounts
As I noted in a prior article, states are all over the board on their income taxation. An individual in a state with a high state tax rate could use a nongrantor trust to hold some of their income-producing assets and thereby avoid state income taxation on the income from those assets. Briefly, trusts may be taxed as grantor trusts or nongrantor trusts. A grantor trust is taxed directly to the grantor, so this type of trust doesn’t help if you’re trying to avoid your state of residence’s … [Read more...] about State Income Taxation of Nongrantor Trusts
States are all over the board in their taxation of income. Some tax at a low rate, some tax at a high rate, and some don’t tax at all. Read on to learn more about state income taxation and how you could avoid it. Everyone knows (or should know) that the federal government taxes the income you earn. But, depending where you live and how you earn money, states may tax your income, too. States run the gamut in the income taxation of individuals. Seven states don’t tax you at all: Alaska, … [Read more...] about State Income Taxation