Traditionally, due to lower estate tax exemption amounts, many married couples would use bypass trusts or credit shelter trusts as part of a typical estate plan. For example, on the death of the first spouse, assets in that spouse’s revocable trust would be allocated to a bypass trust (frequently referred to in the trust document
I-N-T-E-S-T-A-T-E … Find out what it means to me
Aretha Franklin, the Queen of Soul, died Aug. 16, 2018. Within days, her four sons filed court documents alleging that she died without a will or trust. If the court filing is confirmed and no will or trust is found, her estate will be considered “intestate.” In other words, Franklin gave no indication as to
At back-to-school time, college checklist should include durable powers of attorney
If you are one of the countless parents sending a child to college this year, you have a lot on your mind. Packing clothes, buying dorm room accessories and learning how to do laundry are probably only a few of the items on your child’s college checklist. Odds are that signing estate planning documents is
Q&A: Using a trust protector
Many people who create irrevocable trusts are uncomfortable giving up control of their assets to a trustee, especially a corporate trustee. Even if the trustee is a trusted individual, it is increasingly likely that the trust could last for many years. As a result, the trustee may experience changes in the law that could negatively
Special needs? It’s time to think about a special needs trust
A growing problem in estate planning is how to provide for special needs individuals (those who may be eligible for government benefits and programs due to a disability or otherwise) without disqualifying them from government benefits and programs they may need now or in the future. As most government benefits have a limit on the
IRS releases AFRs for June 2018
The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for June 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 June 2018, which show overall increases over the May 2018 rates:
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Annual |
Semiannual |
Quarterly |
Monthly |
Considering a gift in 2018? Here are 10 things to consider
On December 22, 2017, President Trump signed into law what is commonly known as the Tax Cuts and Jobs Act of 2017 (2017 Act). The 2017 Act increased the estate, gift, and generation-skipping (GST) transfer tax exemptions to $10 million, indexed for inflation ($11.18 million for 2018), and retained the estate/gift/GST tax rates of 40
IRS lists AFRs for May 2018
The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for May 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 May 2018:
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Annual |
Semiannual |
Quarterly |
Monthly |
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Short-term |
2.18% |
2.17% |
2.16% |
2.16% |
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Mid-term |
2.69% |
2.67% |
2.66% |
Oops! I bid (on) it again … Can I at least get a tax deduction?
“Any other bids? And….sold to No. 45 for $1,500!”
Yes! You have outbid the other contenders at the local humane society’s charity auction to win a five-night stay at a condo in Destin, Florida, in August. You think, “Not only did I get a great vacation, I also get a tax deduction for my donation!”
I always feel like somebody’s watching the trustee: Annual trust reports in Missouri
A trustee is responsible for administering a trust for the benefit of the beneficiary or beneficiaries. Unless the beneficiary is also a trustee, he or she will not have direct access to information regarding the investments, debts, liabilities, expenses, receipts and other financial arrangements of the trust. Without a mechanism for learning this information, the