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Let’s take a strategy we developed last month, build on it, and turn it into something very powerful. In the “defective” grantor trust we discussed last month the grantor of the trust is taxed on all its income, but the trust is excluded from the grantor’s estate. The combination lets you leave more tax-free dollars […]
Would you like your grandchildren to end up with only 20% of what you intended? That’s what happens in most cases. The government doesn’t want you to pass wealth directly to your grandchildren. It wants the money to stay in your estate, get it hit by estate taxes, go to your children, get it hit […]
Sometimes when Congress closes one tax loophole it creates another. This is especially likely when Congress doesn’t coordinate the income and estate tax sections of the law. That’s how complicated the tax law is. And it opens up an opportunity for you with “grantor trusts.” A grantor trust in the income tax law is one […]
How much of your IRA will make it to your heirs? If you are like most people, your IRA is your most valuable asset. But by the time it reaches your heirs, it will be worth less than one half what it is now. Estate taxes will take the first chunk out of the IRA. […]
There’s a big down-side to the boom in stocks and other financial assets. When the value of the assets you own goes up, so do potential estate and gift taxes. If you don’t take action, the IRS could end up with more of your estate than your loved ones. One easy way to handle the […]
You might be eligible for one of the sweetest tax breaks in the law. The break can net you tens of thousands of dollars in tax breaks without your having to shell out any cash beyond some lawyer’s and appraiser’s fees. Some experts call it the tax break for giving away air. The tax break […]
As the successful business owner nears retirement, one of life’s more difficult questions must be faced: What to do with the business? In the past, I’ve covered estate planning strategies that can be used to transfer the business to the next generation. But often a family member does not want to take over the business. […]
It is decision time for Roth IRA conversions. By letting the decision slip past Dec. 31 you miss a very profitable gift from Congress. As you probably know, Congress created the Roth IRA, which accumulates income and gains tax free, and from which all withdrawals are tax free. Another benefit of the Roth IRA is […]