Estate Planning - Overview, #101
The money and property you own when you die may be subject to federal estate tax, although the IRS notes that most estates are not subject to the estate tax. There is usually no tax, for example, if your estate goes to your spouse or to a charity at your death...
|
Estate Planning – Family Limited Partnership, #102
A family limited partnership is a device that can reduce estate taxes by transferring assets owned by an individual into a partnership with his or her family. Many business owners that enjoy a surge in profits toward the end of their working life have found these partnerships to be a useful way to avoid an enormous tax bite. However, the exchange of assets for partnership...
|
Estate Planning – Grantor Retained Trusts #103
A grantor retained trust can help taxpayers transfer assets to their children while minimizing tax liability. However, the IRS has many strict regulations for the schemes and often refers to them as “abusive.” Two legitimate types of trusts useful...
|
Estate Planning – Coverdell Education Savings Accounts #104
A Coverdell Education Savings Account is a trust or custodial account set up in the U.S. solely for the purpose of paying qualified education expenses for the designated beneficiary of the account. Qualified expenses include expenses for tuition, fees...
|
Estate Planning – Private Annuity, #105
Summary of Tax Brief
A popular estate tax avoidance technique is to sell your business or other appreciated property you own to a family member or trusted employee while you’re alive in return for a private annuity, which is an unsecured promise by the buyer to make specific, periodic payments to you for the rest of your life. This removes your interest in the business from your estate while providing you with an annual income…
|
Estate Planning – Charitable Remainder Trust #106
A Charitable Remainder Trust is one of the most efficient estate planning tools available to anyone holding assets that have experienced significant appreciation like stocks, real estate, a business, etc. This vehicle allows taxpayers to reduce estate...
|
Estate Planning – Section 529 #107
Qualified State Tuition Plans (QSTPs or Section 529 plans) established under Section 529 of the Internal Revenue Code offer federal income tax deferral on earnings and may also provide state tax advantages. Section 529 plans can be a remarkably useful tool in reducing estate...
|
Estate Planning – Buy-Sell Agreement, #108
Many business owners become so involved in the nuts and bolts of their business that they never address the issues they might face if one of the owners dies or is physically unable to operate the business. If you have one or more partners/owners in your business and do not have a buy-sell (or redemption) agreement, you may be asking for trouble. A Buy-Sell Agreement …
|
Estate Planning – Irrevocable Trusts, #109
A clever way to reduce estate tax and gift tax exposure is to set up a so-called “intentionally defective irrevocable trust.” An intentionally defective irrevocable trust allows you to transfer a substantial amount of money to your heirs during your lifetime while keeping the government out of the family cookie jar. Such a trust allows taxpayers to remove appreciating assets from their taxable estates at a low gift-tax cost, while providing...
|
