Retirement accounts are a seemingly simple and effective way to protect assets from future creditors, but the subtle nuances of what is protected under Missouri law and what is protected in bankruptcy can be complex. In the July/August 2019 edition of the Journal of the Missouri Bar, attorneys Keith Herman and Jeffrey Herman analyze how
Powers of attorney for your college-age child
For the parents of students entering college this fall, you may have a long checklist of to-do items already. It’s possible you are missing one of the most important items, though: Having your child sign estate planning documents.
Why is this important?
Once your child turns 18, you will no longer have the right to
New Illinois Trust Code takes effect Jan. 1, 2020
On July 12, 2019, Illinois Gov. J.B. Pritzker signed House Bill HB1471, which enacts the Illinois Trust Code (ITC) and repeals many of Illinois’ current trust statutes. The ITC was effective as of Jan. 1, 2020. Below is a brief overview.
Illinois Trust Code and Uniform Trust Code
The ITC generally conforms with the Uniform
Stretched to the limit: Stretch IRAs may be going away under the SECURE Act
On May 23, 2019, the U.S. House of Representatives, by a vote of 417 to 3, passed legislation called Setting Every Community Up for Retirement Enhancement Act of 2019, or the SECURE Act. This legislation, if passed by the Senate and signed by the president, will cause significant changes for retirement planning, many of which
Supreme Court finds for trust in state income tax case
On June 21, 2019, the U.S. Supreme Court unanimously decided in favor of a taxpayer trust, finding that the state of North Carolina could not tax the trust merely because a trust beneficiary, who received no trust income or right to demand income, resided in North Carolina.
In North Carolina Department of Revenue v. Kimberley
65-day rule may provide a tax-savings advantage
How many times have you prepared your income tax returns for the previous year, only wishing you knew then what you know now, so you could go back and make more advantageous tax decisions? In most cases, you are stuck with the decisions you made before the new tax year began, even though you
Maximize charitable giving by bunching deductions
The Tax Cuts and Jobs Act of 2017 brought a myriad of changes to the tax law, including for individual taxpayers. While certain deductions that were available to individuals have now been limited — e.g., the $10,000 limit on the state and local income tax (SALT) deduction — the standard deduction has increased to $24,000
Small trust termination limit increases in Missouri
Recent changes to Missouri law could make it easier for trustees to terminate “uneconomic” trusts.
Sometimes the cost of administration of an existing trust outweighs the justification for continuing to hold assets in the trust. This may be especially true if there is a corporate trustee and the beneficiaries have no estate tax, creditor, or
IRS increases retirement account contribution limits and income phase-out ranges for 2019
The IRS announced cost-of-living increases for various retirement-related accounts on Nov.1, 2018. These changes for 2019 include:
- The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000.
- The limit on annual contributions to an IRA is increased from $5,500
IRS lists AFRs for October 2018
The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for October 2018. AFRs are published monthly and represent the minimum interest rates that should be charged for family loans to avoid tax complications.
Here are the rates for October 2018:
|
|
Annual |
Semiannual |
Quarterly |
Monthly |
|
Short-term |
2.55% |
2.53% |
2.52% |
2.52% |
|
Mid-term |
2.83% |
2.81% |
2.80% |