It may be possible to double your gifting by using spousal “gift-splitting.” Spouses may elect to split gifts made to others. If they do so, they must split all the gifts made by the other spouse to others for that year. For example, let’s say John made gifts of $30,000 to each of his five siblings, Aaron, Betty, Charlie, Darlene, and Ed. Let’s say the gifts qualify for the annual exclusion because they are of present interests. If John makes the gifts alone, then each gift of $30,000 would be … [Read more...] about Double Your Gifting with Spousal Gift-Splitting
Estate Planning
Using Entities in Estate Planning
Estate Planning attorneys have long recommended the use of closely-held entities such as family limited partnerships (“FLPs”) and limited liability companies (“LLCs”) to provide flexibility in allocating rights to profits and capital, to shift income and property appreciation from one generation to the next, and to provide asset protection. Individuals transfer assets to the entity in exchange for membership or partnership interests, which provide management control and income distribution … [Read more...] about Using Entities in Estate Planning
It Can Be Scary to Die Without an Estate Plan…the HORRORS of Intestacy
October brought us fall, pumpkin-spiced everything, and macabre things. Ghosts, ghouls, and goblins may Monster Mash through your mind; however, when I think of something truly terrifying, it’s dying without an estate plan. Although the pandemic encouraged people to consider what would happen at their death, many folks believe that they “have time” or are overcome with feelings of superstition and dread when considering planning for the end of their life, as if by planning for death, they invite … [Read more...] about It Can Be Scary to Die Without an Estate Plan…the HORRORS of Intestacy
Neither Age Nor Health Determines Whether You Need an Estate Plan
There’s an oft-cited, paraphrased quote attributed to George Bernard Shaw: “Youth is wasted on the young.” In many ways it’s true. When we are young, we rarely appreciate the beautiful gift of youth. We waste our talents and time on unworthy endeavors, at least most of us. There are a select few on whom youth is not wasted. Olympians belong in that select group. Olympic hopefuls devote hours upon hours to training, travel long distances to compete, and do it with injuries that would sideline the … [Read more...] about Neither Age Nor Health Determines Whether You Need an Estate Plan
Don’t be a Turkey – Use Your Annual Per Donee Exclusion Amount
As fall turns into winter and the holiday season arrives, it’s natural to review the year, plan for the next, and count your blessings. One of the ways to plan for the next year, and perhaps to address some outstanding concerns in this one, is to consider making annual per donee exclusion gifts.As the holidays approach us, we will gather with our family, friends, and loved ones to give thanks for our blessings and consider all that has transpired in 2021. It’s been a wild year that started … [Read more...] about Don’t be a Turkey – Use Your Annual Per Donee Exclusion Amount
Charitable Planning in Times of Crisis
The ongoing global pandemic provides us with a great opportunity to re-evaluate our goals. At the outset of the pandemic, we were forced to make drastic changes to our everyday lives. Even now, countless health care workers continue to endure long hours in overrun hospitals with insufficient supplies struggling to save lives in the face of growing admissions. Across the country and around the planet, people have looked for ways to help. Many have done that by providing food, school supplies, and … [Read more...] about Charitable Planning in Times of Crisis
How Using Specific Bequests Could Cost Beneficiaries their Inheritance
Sometimes even the best-laid plans do not work out. Most everyone has certain goals in mind for their estate plan, including detailed disposition of their assets upon death. Often, these goals reflect long-standing plans to reward a beneficiary for their devotion to the business or even to follow through on a promise to gift a particular asset to a beneficiary. The ideas may seem straightforward; however, these simple bequests can prove difficult, if not impossible, to implement if the assets no … [Read more...] about How Using Specific Bequests Could Cost Beneficiaries their Inheritance
Estate Planning Reduces Stress During High Anxiety Times
Everyone who lived through September 11, 2001, shares a common experience. Although colored by our individual circumstances, we remember looking at the horrific images of destruction and misery and wondering why this tragedy occurred. Since that fateful day, Americans have flocked to churches, synagogues, mosques, and other places of worship seeking answers to questions regarding the meaning of life and the existence of suffering.This national tragedy continues to affect all of us to … [Read more...] about Estate Planning Reduces Stress During High Anxiety Times
Dangers of Do-It-Yourself Estate Planning
Occasionally, those who aren’t Estate Planning attorneys will attempt to do their own Estate Planning. They think they can find a document online or use a friend’s document and can figure it out. Unfortunately, there are many pitfalls one could run across.Let’s look at three of these pitfalls which one must sidestep.Bill and Mary had a house worth $500,000, an IRA worth $500,000, and investments of $500,000. They have three children, Aaron, Betty, and Charlie. At the death of the … [Read more...] about Dangers of Do-It-Yourself Estate Planning
What Happens to Assets Left Out of My Living Trust?
If you establish a revocable living trust, the first step will be to fund the trust. When you do this, you are transferring ownership of the property to the trust, but worry not. You would act as the trustee, so you would have complete control of the assets every step of the way.Your trust can hold your home and other property, even if there are mortgages. Stocks, bonds, and bank accounts can be in the trust along with small business interests. Intellectual property, collectibles, and … [Read more...] about What Happens to Assets Left Out of My Living Trust?
