Estate Planning Discussions: difficult, emotional and stressful
Delaying these discussions can lead to significant family hardship and a loss of highly prized and hard-earned assets.
Navigating the Step-Up Tax Basis Rule
Do not try this at home alone. Consult with your tax adviser to determine the best course of action regarding your entire tax liability.
Non-Resident Estate Tax Trap
If you aren't a citizen or resident of the United States, and want to own U.S. shares, don't hold them in your own name.
Estate tax future unclear
Many commentators do not believe that a permanent fix for the federal tax will emerge anytime soon.
IRA Beneficiary Designation Planning
When an estate or another non-individual is a primary beneficiary, the entire IRA must be distributed within five years after the original owner's passing.
BUSINESS SUCCESSION LEGAL PLANNING
By Parag Patel, Esq. If the U.S. Government is your favorite charity, rest assured, it will find a way to use your donation. But wouldn’t it be better to give your money to your children? Studies show that 60% to
15 IRS Audit Tips
1. In an audit, you must convince the IRS that you reported all of your income and were entitled to any credits, deductions and exemptions that are questioned. 2. Delaying the audit usually works to your advantage. Request more time
Naming A Minor as Your IRA Beneficiary
IRAs and qualified plans are great vehicles for saving for retirement. Contributions to the plans are not taxed, and the assets inside the plan enjoy tax free reinvestment and accumulation. The income tax is payable only when the assets are
Estate Planning for Non-US citizens
Estate Planning for Non-US citizens By Parag Patel Esq. Non-US citizens (greencard holders or H-1 visaholders) are severely discriminated against by US estate tax laws. Since estate taxes are based on the size of your estate. It is estimated that
Introduction to Estate Planning
Estate planning is concerned with the use, conservation and disposition of a person’s property and wealth. This involves two elements: (1) minimizing the gift or estate tax consequences that occur when a person’s property is passed to another either during
GRATS: A Great Estate Planning Tool
As its name implies, in a GRAT, you, the grantor, retain the right to an annuity for a fixed period of years from assets you’ve placed into a trust.
ESTATE PLANNING: MORE THAN A WILL
By Parag P. Patel, Esq. During our lifetime, most of us strive to create and build upon our net worth. We generate savings, purchase a home, and eventually invest in stocks, bonds, mutual funds, IRAs and retirement plans. Unfortunately, most
A perfect storm for gifting…
Every storm eventually comes to an end...Now is the time to gift.
Why should you do estate planning in a down economy?
1. Business and real estate values may be down as much as 20% since last year at this time. This creates opportunities for transferring the business, stock or assets to children or key employees at significantly less tax cost than
Estate Planning in a Recession
Most people know that they should have an estate plan in place; however, making estate planning a priority is difficult even in the best of times, let alone during times of financial crisis. While the benefits of estate planning are
Intentionally Defective Grantor Trusts
Estate tax planners have long employed intentionally defective grantor trusts to freeze the value of an asset for estate tax purposes while transferring assets out of the estate free of gift tax. An intentionally defective grantor trust (IDGT) is a
Buy-Sell Agreements
By Parag Patel, Esq. What if your business partner retires, sells her portion of the business, or gets a divorce? To make sure there is a smooth transition following the departure of a business partner, it is important that business
Stretch IRA – How Your IRA Can Survive Several Generations
The stretch IRA concept is a wealth-transfer strategy that can help you extend the period of tax-deferred earnings on your retirement assets. After the owner of the IRA dies, the beneficiaries will also have the longest allowable period of tax-deferral
New Tax Legislation Introduced: H.R. Bill 436 has Potential Changes to Estate and Gift Taxes and Available Discounts
H.R. Bill 436: Potential Changes to Estate and Gift Taxes and Available Discounts On January 9, 2009, Bill 436 was introduced to the House by Representative Earl Pomeroy (D-ND). The bill, referenced as H.R. 436 and similar to other
Review Your Guardian Nominations Periodically
Celebrity deaths often highlight various estate planning issues as prior posts have discussed. Michael Jackson’s death brought public awareness to issues about choosing your executor and trustees, pour over wills, and guardianship. You may recall that Michael Jackson named his
Why should I go to the trouble of planning my estate and writing a will?
Estate planning pays real dividends—in results achieved, in dollars saved, and, most important, in security and peace of mind. And it doesn’t have to be expensive, traumatic, or even especially time consuming. An estate plan is your blueprint for where
Estate Tax Revisit
There are many other viable estate-planning tools and techniques that should be discussed with your tax adviser, but the key is to plan ahead.
Taking Advantage of Low Interest Rates
The Federal Reserve’s interest rate cuts haveaffected two important interest rates used inestate planning – the “applicable federal rates”(“AFRs”) under Internal Revenue Code §1274and the “7520 rate” under Internal RevenueCode §7520. AFRs are calculated and publishedby the IRS every month
Letter to Your Spouse
By Parag Patel, Esq. In addition to your estate planning, it’s a good idea to have a non-binding letter to your spouse, children and other heirs outlining where the important documents are kept and who to contact for help in
Ten Things to Do to Prepare a Will for Probate
If you are the executor of a will there are many things you must do to get that will ready for probate. Probate means the process by which the deceased’s assets are gathered; outstanding debts, taxes, and expenses of the
Estate Planning When a Spouse is Confronting Health Issues (Estate Planning for the Healthy Spouse)
When one spouse is a resident of a nursing facility or medical institution (the “institutionalized spouse”), but the other spouse continues to live in the community (the “community spouse”), the community spouse may take a number of steps to retain
A great time for GRATs
The rate is the lowest it has been since the inception of the 7520 rate in May 1989.
2009 Tax Update
A few things have changed with the coming of a new year—below are some tax items to be aware of. Estate and gift taxes: The basic federal estate-tax exemption increased to $3.5 million from $2 million in 2008. The increase
HOW IS MY NJ ESTATE DISTRIBUTED WITHOUT A WILL IN NJ?
New Jersey law provides how your Estate will be distributed if you do die without a Will. The property referred to in this section deals with assets in the decedent’s name alone. A)If you die leaving a spouse or domestic