Estate and tax planning — it’s a subject many people like to avoid. That’s often because they think that estate planning is about two topics they’d rather not focus on: death and taxes. For some people, estate and tax planning is about something even more ominous: death, taxes and math. There is, however, another way to look at estate and tax planning. Beyond the details it’s about doing something that […]
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Gift and estate tax issues can be especially complex in the case of an individual whose domicile or property spans multiple countries. Each country has its own gift and estate tax laws, and when a decedent resides in one country while owning property in another, the estate may be subject to both higher and duplicative taxes. A huge potential variable is the existence of an estate and gift tax treaty […]
Read MoreOne year after Prince’s death on April 21, 2016, the fate of his estate remains up in the air, and according to a recent article in the New York Times, the six likely heirs to the pop icon’s vast fortune are fighting. At issue are legal fees and the question how much discretion the estate’s administrator should have in managing the estate. But the disputes — as well as a […]
Read MoreEstate and tax planning — it’s a subject many people like to avoid. That’s often because they think that estate planning is about two topics they’d rather not focus on: death and taxes. For some people, estate and tax planning is about something even more ominous: death, taxes and math. There is, however, another way to look at estate and tax planning. Beyond the details it’s about doing something that to […]
Read MoreI’m curious: Did you create your estate plan before 2011? Does it include a bypass trust, aka family, credit shelter or B trust? If so, then you should be aware that changes in estate taxes may affect you and that you and your attorney should take a fresh look at your estate plan. This is especially important if your net worth is less than $6 million. A bypass trust, which […]
Read MoreHow much life insurance do you carry? Just enough to cover your funeral expenses? Enough for your stay-at-home partner and your children to make it through until the kids have finished college? Enough for your spouse to live comfortably to the end if he or she invests the money wisely? In estate planning terms, does it even matter? Actually, no. What counts is: Will your life insurance, once it is […]
Read MoreA brief history of estate taxes reads like this: The ancient Egyptians levied duties on property transferred at death. So did the Romans 2,000 years ago, and so did feudal Europe. In our country, similar fees came due intermittently almost from the beginning, and the estate tax in its present form is 99 years old. But a closer look at the history of estate duties in the United States reveals […]
Read MoreIn my last blog post, “When tax exemptions carry over: Portability explained,” I promised to talk today about the cons of portability and why I still believe in the usefulness of bypass trusts even for the 99 percent. To cut to the chase: Portability has its advantages, but it doesn’t provide some of the protections a bypass trust can offer. I’m not going to delve into the specifics of bypass trusts […]
Read MoreYou and your spouse hold the title to a nice-sized home in a well-to-do L.A. suburb; maybe you even rent out a second, smaller house and have a couple of insurance policies, or you own some shares here and some bonds there. Bottom line, you live comfortably but you’re not part of the top one percent. Should your family worry about the federal estate tax? The answer may surprise you, […]
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