Clearwater, Florida Estate Planning Blog
Improper GSTT Exemption Allocation…IRS Grants Relief!
The generation skipping transfer tax (“GSTT”) is a harsh tax (40%) imposed on certain transfers to grandchildren and certain individuals in that same generation. Fortunately, the Internal Revenue Code (the “Code”) provides a GSTT basic exclusion amount (the...
Should Your Trust Be a Beneficiary of an IRA?
Once a person dies, the Internal Revenue Service requires that the designated beneficiary (“DB”) of an Individual Retirement Account (“IRA”) take minimum required distributions (“MRD”) from the IRA each year. You can take more than the MRD but you MUST take at least...
New rules for inherited IRAs may be coming….
Many of you may inherit traditional IRAs from loved ones. While inheritances are usually good news there is bad news also… income taxes!!! If you decide to withdraw the money in one lump sum, then you will be taxed on ALL the income in one year. Luckily the IRS has...
Sigh of Relief for Missed Allocation of GST Exemption
As I have discussed in a prior blog, the generation skipping transfer tax (“GSTT”) is a harsh tax and can total as much as 80%, when combined with the estate tax. Fortunately, each US individual is entitled to an exemption of $11.2 million in 2018. For our wealthy...
Amending Documents? Do Not Forget to Adjust Plan for Estate Taxes…
With the applicable exclusion amount of $5.490 million, many individuals’ estates will not be subject to estate tax. However, if you have a taxable estate, then determining whom will pay the estate taxes is critical. The recent case, Bandy v. Clancy, featured the...
Is Ignorance REALLY Bliss?…Not When Signing a Will.
Many individuals do not understand the importance of the procedure of signing a will and/or a trust and may get frustrated when required to go to their attorney’s office to sign their documents. Many ask “why can’t I just go to the bank and do this” or “I am out of...
US Supreme Court to Review DOMA Challenge of Same-sex Marital Deduction
The Supreme Court of the US has agreed to review the Court of Appeals for the Second Circuit (the “Appeals Court”) decision in Windsor v. US, which upheld a challenge to Section 3 of the Defense of Marriage Act (“DOMA”). DOMA denies recognition of same-sex marriages...
PROTECT YOUR EXEMPT ASSET- HEAD OF FAMILY EARNINGS…DO NOT COMMINGLE WITH OTHER ASSETS!
PROTECT YOUR EXEMPT ASSET- HEAD OF FAMILY EARNINGS…DO NOT COMMINGLE WITH OTHER ASSETS. In Hancock Whitney Bank v. John J. Adams, et. al, the bank obtained a judgement against Mrs. Adams and her former husband of approximately $45,000. The bank filed a writ of...
Do You Want a Charity to be a Beneficiary of Your IRA? Why or Why Not?
Many clients have charitable intent and may include provisions for charities in their Last Will and Testament and/or revocable trust (the “Trust”). But what if you have a substantial IRA and you have named your spouse and your children as beneficiaries of the IRA and...
Were you late in claiming your deceased spouse’s estate tax exemption?
As discussed here before the exemption for the estate tax is now “portable” between husband and wife. For example, if a husband dies in 2014 using $2 million of his exemption instead of the full estate tax exemption of $5.340 million, then the surviving spouse could...