In 2001, the Federal Government passed the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”). This tax bill provided for the gradual increase of your federal estate tax exemption amount from $675,000 in 2001 to $3.5 million in …
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To Gift Or Not To Gift
You have probably heard from family or friends that you can give up to $10,000 per year without having to report it. As with the case of most legal and tax advice you hear from family and friends, it is …
IRA Charitable Rollover
Under current law, if you are age 70½ or older, you are permitted to donate up to $100,000 from your IRAs to public charities without having to count the distributions as taxable income. This important charitable giving incentive, however, expires …
Separate Trust Offer More Benefits
I am occasionally asked why I usually prepare separate trusts for married couples instead of a joint trust. The reason is very simple, it is what most of my clients want. Once I explain all the benefits and burdens of …
Understanding Step Up Basis
I occasionally have discussions with people receiving inherited IRAs who think that they can escape both income and estate taxation on the IRAs because of the step-up in tax basis rule. You may have heard of the step-up in tax …
Real Estate in Your IRA
You have found the perfect investment property, the price is low and the seller wants to unload it. However, you don’t have the cash to purchase real estate except in your IRA. If you just take the funds out of …
Retirement Plan Distributions
You may have a traditional or rollover IRA or other retirement accounts. The funds that are held inside these retirement accounts have not been taxed and grow (hopefully) income tax free. You are taxed on the retirement funds only when …
Federal Estate Tax is a Voluntary Tax
You have probably heard a lot of talk about the Federal estate tax and about its so-called repeal. In our current estate tax system your estate will be subject to Federal estate tax if your taxable estate is more than …
Trust Your Trust v1 Single Column
The use of Trusts as an estate planning tool has become more prevalent over the last few years. There are however, still some misconceptions about the use of trusts. Many still believe that trusts should only be used if taxpayers …
The Seven Most Common Trust Mistakes
Many people use revocable or living trusts in their estate plans. Living trusts are very powerful planning tools that you can use for all kinds of purposes. Trusts can avoid probate, protect your beneficiaries from their creditors or divorcing spouses, …