The Wealth Counselor for Clients Newsletters
Five Key Considerations for Your Estate Plan
Maintaining your estate plan can feel overwhelming when faced with all the changes life can bring. Calling your attorney may not be your first instinct when you’re faced with a significant shift in income, investments, or employment, but consulting with us is a wise way to ensure your legal health is always maintained. Read on for five events that should capture your attention and prompt you to reach out to us for some personalized advice.
Planning for Individuals and Couples Without Children
Financial advisors often have a clear path to starting the estate planning discussion when their clients have children, as many estate planning discussions center around clients’ objectives for passing their wealth, properties, and legacy to the next generation. Because of this traditional emphasis on the next generation, individuals and couples without children can easily arrive at the conclusion that they don’t need the same level of detail in their own plans or, worse yet, that they don’t need a plan at all. Nevertheless, there are several ways to help estate planning resonate with individuals and couples who aren’t parents.
3 Estate Planning Secrets the Wealthy Use That You Can Too!
Estate planning is complex and continually evolving. Often, affluent families are “early adopters” of the newest and best estate planning strategies. Luckily, by working with us, you can benefit from the same estate planning strategies that affluent families do. Here are a few techniques we should discuss soon.
5 Hidden Client Risks That Demand Your Immediate Attention
Estate planning provides your clients with a wealth of opportunities to strategically grow their net worth while also planning for their families’ future comfort and security. Opportunity brings risk, but also the potential reward of deeper, longer-lasting client relationships.
Estate Planning Projects to Tackle in the New Year
As the end of the year approaches and you begin to look back on 2018, what changes need to be reflected in your estate plan? Have you gotten married or divorced in the past year? Perhaps you’ve welcomed a new child or grandchild, or experienced a change in your health. So much can change in a year, and it’s important not to let too much time pass before those changes are reflected in your plan.
What the 2018 Midterm Election Results Mean for Estate Planning and Deepening Client Engagement
Estate planning is an ongoing process, not a one-time transaction. While your core objective is to help your clients remain financially sound in the face of whatever comes their way, our core objective is to ensure a client’s estate plan works when it needs to.
2018 Midterm Elections: What Do They Mean For Your Estate Plan?
Estate planning is meant to be an ongoing process, not a one-time transaction. In the same way that you never stop budgeting, saving, and investing as you go through life, it is also sensible to see estate planning as a lifelong project. Let’s look at some of the considerations you should make now that the 2018 midterm elections are in the history books.
Three Charitable Giving Solutions to Consider for Year End
It may seem too early to talk about year-end planning. But the 2017 Tax Cuts and Jobs Act set many changes in motion for charitable giving. Whether a clients’ charitable giving stems from a concern for those who are less fortunate, the desire to support a particular cause, or an endeavor to gain recognition in their community, the changes to the income tax deductions will likely impact the charitably inclined.
Three Legal Strategies When Facing a Major Health Event
Receiving a health diagnosis or learning that you need to undergo major surgery can cause substantial disruption in your day-to-day life. During this time, the last thing you may want to think about is estate planning. While you have many things going through your head at the moment, now is a crucial time to make sure your estate plan is in order. Proactive planning can help put your mind at ease and let you focus on your treatment. Let’s review your estate plan together to make sure each of the following important components is up to date and reflects your current goals and wishes.
What 199A Regulations Mean for Your Clients
Are any of your business-owning clients curious about the new Section 199A deduction? Although the deduction became effective on January 1, 2018, guidance on how it would be calculated was delegated to the Internal Revenue Service (IRS) by Congress. For months, financial and tax professionals have speculated about various aspects of this new deduction since Congress gave us little concrete guidance to work with.
What Do the New 199A Regulations Mean for You?
Are you a business owner curious about the new Section 199A deduction? Although the deduction became effective on January 1, 2018, guidance on how it would be calculated was delegated to the Internal Revenue Service (IRS) by Congress. For months, tax professionals and their clients were only able to speculate based on the text of the statute and had no specific guidance to work with.
Preparing Your Clients for the Rising Costs of Education
Higher education costs are just that - higher. The steady increase in educational expenses means your clients have much steeper bills for their children’s college tuitions than they had for their own. To illustrate how stark this contrast is, the average cost of tuition has increased 213 percent in the last 30 years.[1] To make matters worse, there is no end in sight for this trend.
Back-To-School Preparation: Not Just About the School Supplies
With all the considerations about your children’s wellbeing weighing on your mind from day to day, it can be easy to forget about some of the most important factors in keeping them well cared for and secure: naming a guardian in your estate plan.
Taking Full Advantage of the 2017 Tax Cuts and Jobs Act
Like all things, tax laws are constantly changing. An important part of serving your clients is responding quickly and strategically to new developments in the tax law landscape. But at the same time, a knee-jerk reaction is rarely the best course of action—often resulting in unforeseen complications in the future.
Have You Taken Advantage of the Tax Cuts and Jobs Act Planning Window?
Like all things, tax laws are constantly changing. Together, we need to respond quickly and strategically to the new developments in the tax law landscape. While you shouldn’t wait to review your estate plan in light of the passing of the Tax Cuts and Jobs Act (TCJA), making a knee-jerk reaction is rarely the best course of action, either.
Which Asset Protection Strategies Are Right for Your Clients?
Most of us do not expect to be sued. However, lawsuits are filed every day the courthouses are open. If your clients’ estate plans don’t include adequate asset protection, they could end up losing a substantial amount of their wealth in the event of a claim - even a “frivolous” one.
Keeping the Peace After You Are Gone
A will or trust contest can wreak havoc on families. The conflict can result in possibly irreparable resentment and loss of familial communication. Old rivalries and disputes can resurface during the trying time that occurs after the death of a loved one, especially a parent. But careful estate planning can help you substantially reduce the risk, or even avoid this problem entirely.
Solve the Troubled Adult Child Beneficiary Dilemma in Three Easy Steps
Many clients with concerns about a struggling adult child are apprehensive about discussing such a sensitive topic. But broaching this subject can lead to a number of benefits for all parties involved — for the family, for the adult child, and for you as their financial advisor.
Planning for the Financial Future of a Troubled Adult Child
Are you concerned about any of your adult children? Estate planning can pose extra challenges for families with adult children struggling with addiction, marital issues, or irresponsibility with money. The last thing you want is for your wealth to end up having a negative impact on your child, or to see them squander their inheritance. Many parents are concerned about what they can do to shield an adult child who struggles with problems like these from bad decisions and bad people that could worsen their child’s situation.
Helping Clients Plan From the Heart: Beyond Money in Estate Planning
Many clients and advisors think of estate planning as a logistical process designed to reduce taxes, avoid court, and protect assets. Of course, proper planning does enhance the security of their families and assets, but estate planning is actually much more.
Does Your Family Know About Your Estate Plan?
It’s the thick of tax season and you’ve probably been working on (or finished) your tax returns. Most of us don’t feel comfortable sharing the details of our tax returns, unless we have to, say for a mortgage. But, your estate plan, an important part of having your affairs in order, is a bit different. You might be wondering whether or not your family should be acquainted with the details of your estate plan.
How Remodeling a Client Trust Can Retain Assets Under Management while Saving Clients Money
Planning Your Summer Vacation? 5 Things to Consider Now
In many states, winter is starting to thaw and flowers are beginning to bud. This can only mean one thing: summer vacation planning season is here. As vacation planning kicks into high gear, here are a few important things to add to your vacation readiness checklist.
Will My Debt Outlive Me? Your Questions About Debt After Death Answered
Have you ever wondered what would happen to your debts if you passed away before paying them off? Will your loved ones be obligated to pay your debts or will they simply disappear? Every person’s debt landscape is different, and the best approach is to create a tailor-made estate planning strategy to make sure your debt doesn’t come back to haunt your family after you’re gone.
How Tax Reform Will Impact You and Your Estate Planning
In December 2017, Congress passed, and President Trump signed a sweeping tax reform bill commonly known as the Tax Cuts and Jobs Act. This Act contains significant changes that will impact your estate planning and income tax situation going forward.
Avoiding Disastrous Will or Trust Lawsuits: How to Keep Family Squabbles from Undermining Estate Plans
Who Will Inherit Your Financial Wisdom? Passing on More Than Just Wealth
Many people who inherit wealth or small businesses are at significant risk for essentially squandering the wealth. An Ohio University study shows that an astonishing 33 percent1 of all beneficiaries lose their entire inheritance within two years of receiving it. The ways they manage to do so are as varied as the imagination, but in our experience we have seen a common thread: mismanagement.
One Year After the Historic 2016 Election: Strategic Estate Planning in Uncertain Times
With only a handful of legislative days remaining in 2017, many Americans are waiting with bated breath to find out when (or if) President Trump’s proposed tax reform plan will change the tax landscape. As you already know, any changes to tax policy may mean you’ll need to revisit certain parts of your estate plan to ensure everything continues to effectively protect your family.
End the Year on a High Note with Up-To-Date Trust-Based Estate Planning
You may already be done with your tax returns (or maybe you even finished them in time for the April deadline!). October 16, 2017 is the deadline to file your 2016 federal and state income tax returns. But even after your returns are filed, there are still a few items on your financial to-do list.
4 Times You Should Call an Estate Planning Attorney Right Away: Using Your Clients' Entire Financial Team Improves Results
Don't Put Off Till Tomorrow What You Can Do Today: Why It's Time to Talk with Your Family and Your Estate Planning Attorney
There’s no perfect time to broach the subject of estate planning with your family. We all know that everyone passes away eventually, but many of us often want to conveniently forget that reality. Faced with the decision between taking the initiative to start a family discussion about estate planning and putting it off until later, most people are more inclined to the latter. But that means opening your family up to some really unpleasant consequences in the future. That is why, unappealing as it may seem at first, the perfect time to schedule your family meeting is now.
What if you don’t die?
Why Ignoring the Importance of Incapacity Planning Can Have Serious Consequences. It’s a common misconception that all your efforts to create a comprehensive estate plan are focused on what happens after your death. That is very much not the case, and it’s a dangerous misconception to plan by. Estate planning does not equate to death planning. There are several ways in which your estate plan can drastically impact you and your loved ones’ quality of life well before you pass away. That is why it’s also crucial that your plan includes up-to-date provisions for what will take place if you don’t die.
Have You Considered a Dynasty Trust for Your Family’s Estate?
When most people hear the term “dynasty trust,” they assume it’s something for only the wealthiest of families. However, dynasty trusts are not as out of reach as you might think, and can be used by many more families of a greater wealth spectrum than currently use them.
Modernizing an Outdated Estate Plan
Estate plans evolve. Or at least they should. Any plan that fails to achieve your goals and doesn’t match your current financial and family circumstances is out of date and is in need of an overhaul. We can help you revitalize the obsolete aspects of your plan and get you back on track for the future.
Trump's First 100 Days: Looking Back and Planning Ahead
The recent political news cycle has been nothing if not lively. Are you concerned about how your taxes, healthcare, and trusts might be impacted by changes in our government under the new administration? If so, you are not alone: Considering how many twists and turns the first 100 days of Trump’s presidency has provided, many Americans are wondering what’s happening with estate planning and what they can do to secure their future.
How a Community Property Trust Can Save Tens of Thousands of Dollars in Capital Gains Taxes
Are You Familiar With Community Property Trusts?
Community property trusts can save your family tens of thousands of dollars in capital gains taxes, and that’s just one of their many benefits. This lesser-known strategy isn’t right for everyone, but for households that can make the most of it, it’s a planning tactic that could have a huge impact on keeping more of the value of your estate in the family.
Estate Plans for College Students and Other Young Adults
It can be exciting to see your children branching out and becoming successful adults in their own right — a time full of hard work and self-discovery that hopefully lays the groundwork for a fulfilling career in the coming years. But, it can also be a time of anxiety for some parents. We all want to know that we are doing absolutely everything we can to make sure our kids stay safe, healthy, and secure so they can pursue their dreams to the fullest.
The Flexible Protection of Trust-Based Planning
As you assess your goals for the year ahead, take a moment to review your legacy planning. You’ve hopefully already handled a few key pieces—set up and funded a trust, signed a will, created a power of attorney, etc. But does your plan offer you and your family the greatest possible protection for the circumstances in your life right now?
9 Financial Resolutions For A Happy New Year!
According to a study conducted by Fidelity Investments, 37 percent of Americans considered making at least one finance-based New Year’s resolution for 2016, up from 31 percent in the previous year. Those numbers are likely to increase again this year, especially since we won’t have a Presidential election to focus on during 2017. While many people avoid making New Year’s resolutions for fear that they will only break them, the same study indicated that more than half of people who made financial New Year’s resolutions ended the year in better financial shape than when they began.
Planning After the Election: What to Expect Under President-Elect Trump
On January 20, 2017, Donald Trump will become the 45th President of the United States. Earlier in January, the Senate and House will convene with Republican majorities. How you update and manage your estate plan and financial plan under the Republican controlled Congress and Presidency can make a significant difference in your tax burdens and the way your wealth continues to accumulate. We’re here to help guide you during this time of transition and change.
Talk to Your Family over the Holidays about Your Estate Plan
Many of us labor a lifetime to build up our assets and fight for causes that matter to us. Few things are more fulfilling than the thought of sharing wealth and legacy with our family. Of course, it’s impossible to plan for every eventuality, but careful planning can mitigate against the two primary risks.
Act Now, Save Later
As summer draws to a close, tax time seems like a world away for most of us. We’re preoccupied with squeezing in that last vacation and/or getting the kids ready to go back to school, and once we settle into our fall routine, the holidays are right around the corner. The last thing we want to do is think about taxes. However, the financial decisions you make now can have a huge impact on your tax burden going into next spring. Too many people miss out on significant tax savings simply because they fail to plan in advance. This is why year-end tax planning is so important, and why you should start thinking about it now, before the holiday season consumes your attention.
Planning for Blended Families: Second or Later Marriages and Divorce of Beneficiaries
A brief look at statistics reveals that family structure has dramatically changed over time and that there’s an astonishing variety of family structures out there. Everything ranging from the “traditional” nuclear family to blended families of step-siblings and half-siblings headed by parents in a second or later marriage. Most of us want to take care of our spouse, our children, and maybe the rest of our family too. But, letting everyone else work out the details after you are gone or incapacitated means chaos, and, sadly, the risk of a family being torn apart.
Expand Your Cast to Prevent Chaos
A Trust Protector is another member of the estate planning “cast” that you must consider adding to your trust. Their primary duty is to oversee the trust and make sure your intentions are carried out, even when an unforeseen change in the law or other challenge occurs. They can also be given other duties, specific to your needs, your trust, and your beneficiaries.
Reconsider Outright Inheritances
As you contemplate the future, it’s easy to ponder disagreeable scenarios. What if your adult child squanders the business you leave her by getting involved with a dubious partner or burning through cash reserves and taking speculative risks? What if the non-profit that you co-founded mismanages the property that you leave it or runs afoul of legal issues? Your carefully outlined plans for passing money onto the next generation can be derailed in many ways.
Beyond Wills and Trusts: 3 Documents Everyone Needs
When it comes to estate planning, you probably think of wills and trusts. But there are three other estate planning documents you should think about to make your plan complete: (1) a Durable Financial Power of Attorney; (2) An Advance Medical Directive; and a HIPAA Authorization.
The Only Constant in Life is Change
Your estate plan was written to reflect your situation at a specific point in time – and – as we all know – our lives continually change, unfolding in ways we might not have anticipated. Just like you meet with your doctor, financial advisor, or CPA on a regular basis, you need to meet with us on a regular basis as well.
Just When You Thought an Irrevocable Trust Couldn’t Be Changed: 5 Ways to Modify an Irrevocable Trust
Irrevocable trusts shouldn’t be left to languish as the years go by. In this issue, we’ll show you why and how an old or out-of-date irrevocable trust can be modified to benefit you, your clients, their spouses, or other beneficiaries. And, of course, it’s all totally legal.
Dispelling a Malicious Myth: Irrevocable Trusts Aren’t Irrevocable
It’s counterintuitive, we know: irrevocable trusts are revocable (and amendable). Unfortunately, irrevocability is a malicious myth. The uninformed could spend years relying on an old, out-of-date trust that could be updated and improved without too much effort. Yes, the so-called “irrevocable trusts” absolutely can be, and, often, should be, modified.
Wills vs. Trusts: In Plain English
Everyone has heard of wills and trusts. Most articles written on these topics, however, often presume that everyone knows the basics of these important documents. But, in reality, many of us don’t – and with good reason – as they’re rooted in complicated, centuries-old law.
How to Protect Your Retirement Account
Shocking to most people, your retirement accounts can be seized once they pass to your loved ones. During your lifetime, your retirement funds have asset protection, meaning they can’t be taken in a lawsuit. Unfortunately, as soon as retirement accounts are inherited, the protection evaporates. This means your hard earned money can legally be snatched by strangers and the courts. As estate planning attorneys, we constantly look for ways to protect our clients as well as their loved ones and assets. That’s why we suggest we have a conversation about your retirement accounts and together determine whether a retirement trust would make sense for you.
How to Avoid Sending Your Assets and Loved Ones Into Probate Court
Over the years, we’ve discovered that many people make a BIG mistake, catapulting their assets and loved ones right into the court system. Most of our clients want to avoid probate because it has a reputation for being expensive, time consuming, stressful - and public, meaning anyone anywhere can see who got what and how to contact them. Beneficiaries may become victims to nosey neighbors, predators, and unscrupulous “charities."
Is There an Income Tax Time Bomb Lurking in Your Estate Plan?
As the federal estate tax exemption has ballooned from $1.5 million ten years ago to $5.43 million today, the need for estate tax planning has drastically decreased. Instead, higher income tax rates that were ushered in under the American Taxpayer Relief Act of 2012 (ATRA) have shifted the focus of estate planning to a new frontier: income tax basis planning.
Don't Miss Out on These Year-End Tax Planning Strategies
Now is the ideal time to start year-end tax planning so that credits and deductions can be maximized before the December 31st deadline. Below you will find a variety of tax-saving strategies you should consider using immediately so that you can get your 2015 tax house in order well in advance of the fast-approaching holiday season.
The Lifetime QTIP Trust or How to Maintain Control of Your Estate and Keep Spouse No. 2 Happy
The Lifetime QTIP Trust or How to Maintain Control of Your Estate and Keep Spouse No. 2 Happy
Estate planning for couples in a second or later marriage can be tricky, particularly when one spouse is significantly wealthier than the other. One solution for allowing the well-to-do spouse to maintain control of his or her assets but keep the other spouse happy is the Lifetime QTIP Trust. In this issue, you will learn what a Lifetime QTIP is and the multiple benefits this special type of trust can provide to you and your spouse if you have lopsided estates.
What's Hot in Estate Planning Right Now May Surprise You
Estate planning has truly evolved over the past 20 years. Gone is the uncertainty about federal estate taxes and the absolute requirement for married couples to use complex trusts to minimize these taxes. But also gone is planning for the “traditional” family. In this issue you will learn why estate planning has become more complicated and what you need to do now to insure your estate plan is flexible enough to roll with the changes.
How Will the 2015 Supreme Court Decisions Affect You?
While approximately 10,000 cases are appealed to the U.S. Supreme Court each year, only 75 to 80 make it to oral argument. Of those 75 to 80 cases, there are usually only a few that grab the media’s attention. This newsletter highlights three landmark decisions handed down in 2015 – Comptroller v. Wynne, King v. Burrell, and Obergefell v. Hodges – that could affect how you are taxed, pay for healthcare, and plan your estate.
The Shocking Truth About Asset Protection Planning
Some view asset protection planning with a skeptical eye. They believe there is a moral obligation to pay one’s debts. They think that asset protection planning is immoral because it prevents a creditor from collecting on a judgment entered by a court. The truth is the U.S. justice system is unpredictable. Defendants are faced with ever-expanding theories of liability, being sued just because they appear to have “deep pockets,” and judgments entered against them based on desired outcomes instead of the law.
Three Lessons Business Owners and Others Can Learn From the Estate Planning Mistakes of Farmers and Ranchers
Three Estate Planning Mistakes Farmers and Ranchers Make and How to Avoid Them
Farming or ranching is more than a means of livelihood – it is about preserving a legacy and unique way of life. Unfortunately, many farmers and ranchers don’t fully protect their legacy with an up to date estate plan. An out of date or inadequate estate plan could result in a farm or ranch that has been passed down for generations ending up being sold and converted into non-agricultural use. Sadly, a lack of planning can cut a legacy short and end a family’s unique lifestyle choice.
Three Liability Planning Tips for Physicians You Can Use Too
The practice of medicine is a profession fraught with liability. It’s not just medical malpractice claims either – employment related issues (wrongful termination, sexual harassment, and discrimination), careless business partners and employees, and contractual obligations (personal guarantees, leases, business agreements, etc.), coupled with personal liabilities (divorce, vehicular accidents, rental real estate), add to the increased risk assumed by a physician in private practice. Unfortunately, in our litigious society, these liability risks are not unique to physicians. A broad range of people, including business owners, board members, real estate investors, and retirees, need to protect their hard earned assets from a variety of liabilities too.
Three Liability Planning Tips for Physicians
The practice of medicine is a profession fraught with liability. It’s not just medical malpractice claims either – employment related issues (wrongful termination, sexual harassment, and discrimination), careless business partners and employees, and contractual obligations (personal guarantees, leases, business agreements, etc.) add to the increased risk assumed by a physician in private practice. Couple these practice-related liabilities with personal liabilities (divorce, vehicular accidents, rental real estate), and it is clear that your physician clients need to protect themselves from more than just professional negligence claims.
How to Easily Integrate Asset Protection Trusts into Your Estate Plan
Asset protection has become a common goal of estate planning. Asset protection trusts come in many different forms and can be used to protect property for your use and benefit as well as for the benefit of your family. In this issue you will learn how you can easily integrate asset protection trusts into your estate plan.
It's Not Just Death and Taxes: You Need an Incapacity Plan That Works When It's Needed
Estate planning is not only about having a plan in place to deal with what happens at your death, it is also about having a plan in place to deal with what happens if you become mentally incapacitated.
It's Not Just Death and Taxes: Clients Need an Incapacity Plan that Works When It's Needed
5 Ways to Modernize Your Estate Planning Using Flexible Trusts
Your estate plan undoubtedly includes trusts that will continue for the benefit of your spouse’s lifetime and then for the benefit of several generations of your family. Implementing and maintaining trusts that will cover the administration, investment, and distribution of trust property over the span of multiple decades is challenging and generally requires you to have flexibility in your trust agreements. In this issue you will learn five ways that flexibility can be incorporated into your trust agreement.
How to Avoid a Disastrous Will or Trust Contest
A will or trust contest can derail your final wishes, rapidly deplete your estate, and tear your loved ones apart. But with proper planning, you can help your family avoid a potentially disastrous will or trust contest.
How to Create a Successful, Multigenerational Wealth Transfer Plan
Studies have shown that 70% of family wealth is lost by the end of the second generation and 90% by the end of the third. Don’t let your loved ones become part of these statistics. You need to understand, and work to overcome, the disconnect that occurs between generations regarding the transfer of wealth.
Trust-Focused Strategies for Wealth Transfer through Tax Planning
With the end of the year approaching fast, now is the time to consider ways to reduce your 2014 income tax bill. In this issue you will learn several strategies, such as how charitable trust-based planning can be used to reduce your taxable income; and how distributions, trust decanting, and investment shifting may be used to reduce a trust's taxable income.
Strategies for Reducing Income that Individuals and Trustees Can Use Now
Knowing the ins and outs of reducing income in view of the new tax laws will add value to your client relationships.
Seven Trust-Based Asset Protection Strategies for You and Your Family
You don’t have to make your family’s assets easy for creditors to reach. Protecting your hard-earned assets for the benefit of yourself and your family can be accomplished through careful planning. These seven trust-based asset protection strategies can put significant (and often insurmountable) obstacles in the way of a creditor.
Yes, Your Family Needs Asset Protection Planning
If you’re like most people, when you hear “estate planning” or “asset protection planning,” you think of someone like JR Ewing of the 1978 show Dallas, Bill Gates, or the Kennedys. A common misconception is that only wealthy families and people in high-risk professions need asset protection planning. In reality, however, any of us might be sued and lose all of our assets.
How to Protect Inherited IRAs After the Clark v. Rameker Decision
In a landmark, unanimous decision handed down on June 12, 2014, the United States Supreme Court held that inherited IRAs are not “retirement funds.” In light of the Clark decision, clients must thoughtfully reconsider any outright beneficiary designations through Beneficiary Designation forms. By far the best option for protecting an inherited IRA is to create a Standalone Retirement Trust (SRT). SRTs can provide asset protection of IRAs received as an inheritance, along with many other significant advantages.
Income Tax Basis leading to Capital Gains Tax is the New Estate Tax
Income Tax Basis is a critically important topic to anyone who owns any assets. Gaining an understanding of the basics of Basis is a way to avoid costly tax consequences for nearly everyone. Basis is the foundation for Capital Gains Tax, which has reached the highest level in recent years. Capital Gains Tax is the "new" estate tax and it affects nearly everyone with assets; not just the wealthy. Take heart--with proper estate planning, Basis and Capital Gains Tax potentially may be completely eliminated!
Portability and Married Couples: No Downside
Portability laws and the opportunities they create have significantly increased advisors’ roles in estate planning. No longer is the standard credit shelter trust (with QTIP or outright distribution to spouse) the only way for married couples to plan. Now, CPAs, insurance professionals, and financial advisors have a larger and more complex role in determining whether an estate plan should be credit shelter or portability based.
Laws Will Change, But the Fundamentals of Estate Planning Can't Get Legislated Away
Rcently an article surfaced about a recent celebrity's estate plan that focuses on a fundamental purpose of every estate plan-- instructions for the guardian of his minor son. The instructions serve as a reminder that some of the most important things have NOTHING to do with financial or tax-related matters.
These Four Childfree Prospect Tips Will Grow Your Business - And They're Not What You Think
Three Top Reasons to Update Your Estate Plan in 2014
If you didn’t update your estate plan last year when the federal tax laws changed, 2014 is the year to make some important changes in it. Alterations to tax laws can definitely impact your estate, plus addressing two other key issues can help you be confident you have everything in place for yourself and your heirs. Here are the three main reasons to review and update your estate plan as soon as you can this year.
Building Creative and Flexible Wealth and Estate Planning Solutions for Your Clients in 2014
Financial Planning with Execution
Financial planning has become a generic term. You find it mentioned across media channels from banks to brokerages to accounting firms to personal finance. While the term itself may be diluted, planning is the first step in securing your long-term security. But this security is only realized when the plan is implemented.
Life Expectancy and Health Care Planning
The aging, healthcare, and special needs conversation currently circulating in the media is vitally important to you and your family. Increases in longevity and starting families later means that many people who are nearing retirement age today also have responsibilities to their parents and their children. In addition, two major bear markets and historically low interest rates have taken a toll on many people’s retirement savings.
Why Estate Planning Still Is Important
With the federal gift and estate tax exemption currently (2013) at $5.25 million per person ($10.5 million for married couples), some with “smaller” estates may wonder if they need to do any estate planning. Many states, such as Maryland, impose their own state estate taxes so tax planning in these states still is important. Additionally, there are many reasons to plan your estate other than to avoid estate taxes. In fact, for most Americans, the recent tax legislation has brought incredible freedom: instead of jumping through hoops to avoid estate taxes, we can turn our focus on the more personal reasons we do estate planning: to take care of ourselves and our families the way we want.
What the New Tax Law Means to You
The law passed to deal with the so-called “fiscal cliff” included revisions to estate, gift and generation-skipping transfer (“GST”) tax laws and income tax laws that will affect estate planning for the foreseeable future. In this edition of The Wealth Counselor, we will take a first look at those changes and what they will mean to you.
Don't Let the Tax Tail Wag the Dog: Client Concerns, Not the Estate Tax, Should Drive Estate Planning
The Top Ten Reasons You Need to Do Estate Planning in 2012
Does it seem like you are hearing more about estate planning lately? Well, you probably are. The financial press and estate planning professionals (lawyers, CPAs and financial advisors) have all been working hard to get the word out that people need to act before the end of the year to take advantage of an unprecedented, and perhaps even historic, opportunity in estate planning. It’s a simple message, but one with tremendous impact: For the rest of 2012 only, which is quickly coming to a close, every American can transfer up to $5.12 million free of federal gift, estate, and generation-skipping transfer tax.
The Door Is Closing - Unique Gift and Estate Planning Opportunities in 2012
2012 is truly an exceptional year to do estate planning. The estate, gift, income and generation skipping transfer (GST) tax laws are the most favorable to taxpayers since the 1940s, or possibly ever, and are scheduled to become far less favorable in 2013. That gives taxpayers like you just five more months to complete making gifts to save tremendous amounts in taxes.
Estate Planning - A Process, Not an Event
You have signed all of your estate planning documents and, if your plan includes trusts, completed their funding. You sit back, relax, and enjoy the peace of mind that comes with completing that task. But don’t bask in that feeling for too long—estate planning is an ongoing process, not a one-time event. In this edition of The Wealth Counselor, we will explain why your estate plan will need to evolve to keep pace with your life, family, and finances as they change, events that should prompt you to consider making changes, and planning opportunities that can arise along the way.
An Introduction to Asset Protection Planning
Almost everyone knows someone who had legal problems and lost everything. Claims can, for example, allege professional liability, responsibility for a car accident, or unpaid creditors. Whether valid or not, defending yourself legally can be enormously costly. With our litigious society and with limited risk for those making liability claims, asset protection planning has become required for many and highly desirable for many more. In this issue of The Wealth Counselor, we will provide an introduction to asset protection planning (what it is, types of risk, when to plan, what to expect in the planning process, and levels of planning) and how you can get started.
The Debt Ceiling Debate and the Estate Tax, Pets, Guns, and Alimony...What Could They Possibly Have in Common?
In this issue of The Wealth Counselor, we will look at what the recent debt ceiling debate can tell us about the estate tax. Then we will look at several specialized trusts designed to solve particular estate planning problems, including trusts for pets, registered firearms and alimony.
Trustee Selection for Irrevocable Trusts
In this issue of The Wealth Counselor, we will examine who can, who should, and who should not serve as trustee; non-tax and tax factors that should be considered when selecting a trustee; who can, and should, be given the right to remove and replace a trustee; and using a team approach to segregate duties among lay and professional trustees.
Planning You Should Consider Now
For the vast majority of Americans, planning is not discretionary. These individuals continue to have - or perhaps for the first time have - personal concerns that they need to address now because these concerns are unrelated to the economy. In fact, some of these concerns may even be made worse by our current economic situation.
New FDIC Rules: Are You Protected?
With the rash of bank failures, you may wonder whether - and to what extent - the FDIC (Federal Deposit Insurance Corporation) will protect your bank accounts. Fortunately, new rules from the FDIC clarify how you can ensure maximum FDIC insurance coverage. You may need to modify your planning slightly to take advantage of these new rules.
"Portability" of the Federal Estate Tax Exemption - What does it Mean?
With the political and economic climate as it is in the summer of 2008, we are not likely to see total repeal of the federal estate tax in the foreseeable future. However, both Republican and Democratic Presidential candidates support estate tax reform. Realistically, such reform is at least one year away, but the outlines are already clear. And while the top estate tax rate and the exemption amount are not yet established, both candidates support making the exemption "portable" for spouses. On its face, exemption portability is a good thing. However, like many "good" things from Congress, this one may not be all that it is cracked up to be.
Planning for the New
There was a recent change in the tax law that you might not be familiar with - yet it may entitle you to significant tax savings. Beginning January 1, 2008 and continuing through December 31, 2010 (unless extended by Congress), a zero tax rate may apply to long-term capital gain and dividend income that would otherwise be subject to the lowest federal income tax rates, 10% and 15%. The new zero tax rate creates the opportunity for eligible individuals to sell certain appreciated assets at no tax cost. By working with you to ensure that you take advantage of this new opportunity, if available, we can help you pay less tax and preserve more of your wealth.
Planning for Pets
For many pet owners, pets are members of the family. These individuals often say that if something happens to them, they are more concerned with what will happen to their pets than to their children or spouse. This issue of The Wealth Counselor examines the issues surrounding caring for pets after the disability or death of the pet's owner. Given the feelings of many individuals towards their pets, and the costs of care and longevity of some types of pets, planning in this area can be of critical importance. This is particularly true given our mobile society and that the laws of a different county or state may impact you and your pets or the pets of parents and other loved ones.
Understanding the Significance of Trusts
This issue of The Wealth Counselor addresses a topic that is important to many Americans yet is sometimes misunderstood - trusts. In the right circumstances, trusts can provide significant advantages to those who utilize them, particularly in protecting trust assets from the creditors of beneficiaries.
Planning for Disability
No one likes to think about the possibility of their own disability or the disability of a loved one. However, as we'll see below, the statistics are clear that we should all plan for at least a temporary disability. This issue of The Wealth Counselor examines the eye-opening statistics surrounding disability and some of the common disability planning options.
New Law Creates Exciting Planning Opportunities
The new Pension Protection Act of 2006 (signed into law last Fall) creates significant planning opportunities for those who understand it. This newsletter focuses on two key provisions: (1) non-spousal rollovers from a qualified plan to an inherited IRA and (2) charitable contributions of IRAs during lifetime.
Policy Reviews of Trust Owned Life Insurance (TOLI) - Why you should make it part of your standard estate planning process
