The IRS imposes a gift or estate tax on the transfer of money or property from one individual to another, with certain exceptions. One exception that we’d like to delve into is the self-canceling installment note (SCIN). It is a promissory note used to transfer valuable accounts and property between individuals. However, the note includes…
Estate planning can be a sensitive subject, but the experiences of iconic figures like Gloria Vanderbilt, Aretha Franklin, and Lucille Ball offer valuable estate planning lessons. This month’s newsletter explores their practices and pitfalls to gain insights into the importance of clear, strategic planning. Gloria Vanderbilt: No Trust Fund As baby boomers prepare to pass…
Many individuals choose to incorporate a charitable bequest into their estate plan. For some, this decision stems from a deep sense of altruism; for others, the drive is the significant financial advantage. Yet, for the vast majority of donors, the charity they leave behind represents a harmonious blend of both motivations. Including charitable donations in…
In this month’s newsletter, we provide a comprehensive understanding of the Generation-Skipping Transfer Tax and its implications. With each transfer of wealth, federal estate taxes are collected. Typically, money goes from spouses to children, then grandchildren, and so on, with taxes collected each time. Wealthy families discovered they could avoid estate taxes by giving money…
An intrafamily loan is a financial agreement between a family member who borrows money from a lending family member. These loans benefit children and grandchildren learning to be financially responsible but may have difficulty obtaining a loan due to age or credit score. In many circumstances, these loans offer flexible repayment terms and interest rates….
Many people misinterpret estate planning as merely obtaining documents to show their wishes regarding the distribution of their assets after their passing. However, estate planning is much more intricate. Undoubtedly, estate planning is a multifaceted process involving carefully considering one’s financial, personal, and familial circumstances. Nonlawyers who act like lawyers cannot create the best comprehensive…
When drafting a will, a crucial decision involves selecting the individual who will act as the executor of your estate. This person is the representative tasked with executing the instructions you provide in your will. Moreover, this person may have certain discretionary powers that you grant them in deciding the distribution of your assets. However,…
In our latest newsletter, we delve into the intricacies of dynasty trusts. If you have a high net worth, this is one of the best ways to protect your family and transfer your estate. However, setting one up requires considerable financial and estate planning knowledge. What Is a Dynasty Trust? A dynasty trust provides long-term…