Insight on Estate Planning - June/July 2015

Jun 12, 2015

Related Practice: Estate Planning & Administration

Here's a brief glance at what you'll find in the June/July issue...

The basics of basis: Basis planning can result in significant tax savings

Because the gift and estate tax exemption is at a record high of $5.43 million for 2015, many people have shifted their focus from estate planning to income tax planning. An understanding of basis — and the benefits of the "stepped-up basis" rule — can help people identify valuable tax planning opportunities. This article discusses how basis can affect gift planning. A sidebar explains how a "reverse gift" can minimize capital gains. Read more...

Does a private annuity have a place in your estate plan?

A private annuity can be a powerful strategy for passing assets to heirs in a tax-efficient manner. In a typical private annuity transaction, a parent transfers property to his or her children in exchange for their unsecured promise to make annual payments to the parent for the rest of his or her life. This article examines both the benefits and risks of private annuities. Read more...

Estate tax relief for family businesses

If a substantial portion of a person's wealth is tied up in a family or closely held business, he or she may be concerned that the estate will lack sufficient liquid assets to pay estate taxes. If that's the case, heirs may be forced to borrow funds or, in a worst-case scenario, sell the business in order to pay the tax. This article explores how an estate tax deferral may be an option. Read more...

Estate Planning Pitfall: Your IRA owns real estate

Most people invest their IRA funds in stocks, bonds and mutual funds. But others may opt for nontraditional investments, such as real estate, in the hope of boosting their returns. As this article details, when choosing to hold real estate in an IRA there are several tax traps for the unwary, chief among them the prohibited transaction rules. Read more...

One Final Spring Cleaning Task: A Gift to Your Future Agent or Personal Representative

Before you run out of spring cleaning energy, take some time to organize your financial information. In the event that an agent or personal representative has to step in and manage your property or marshal your assets, accessible and organized financial records will help ensure that your needs and wishes are met. Read more...

Click here to read the full newsletter. Click here to read more about how we can help you with your estate planning needs.