The federal estate tax exclusion is the amount that can be transferred before the estate tax would become applicable. However, if you are married to an American citizen, you do not have to use any of your exclusion to transfer assets tax-free to your spouse. There is an unlimited marital deduction that allows for unlimited transfers between citizen spouses. For the remainder of the 2015 calendar year, the exact amount of the estate tax exclusion is $5.43 million, and the maximum rate of the … [Read more...] about Can a Surviving Spouse Use Two Estate Tax Exclusions?
Tax Avoidance
Tips When Inheriting IRAs
We regularly get inquiries from our clients who are recipients of an inheritance. An ever increasing asset that is being inherited is a retirement account such as an IRA. Special considerations must be attended to when inheriting an IRA because of their special characteristics. In this blog, we'll discuss some of these considerations. Don’t automatically request to cash in the IRA. The income tax repercussions could be great and there are better options. If you opt for a lump sum … [Read more...] about Tips When Inheriting IRAs
Do You Have to Report an Inheritance as Taxable Income?
You may be concerned about taxes that your loved ones may have to pay when they receive their inheritances. We will examine some taxes that can come into play, but first, we should look at regular income taxes. There is usually very little good news to pass along with regard to taxation, but this case is an exception. In fact, an inheritance is not considered to be taxable income, so your loved ones would not have to report their inheritances when they file their returns. Plus, appreciated … [Read more...] about Do You Have to Report an Inheritance as Taxable Income?
Estate Tax: Citizenship Can Be a Factor
The federal estate tax is potentially applicable on asset transfers to anyone other than your spouse. It is possible to use the unlimited marital deduction to transfer any amount of property to your spouse free of the death tax. There is a gift tax that exists to stop people from giving gifts in an effort to avoid the estate tax. This unlimited marital deduction also applies to lifetime gift giving. The estate tax exclusion is $5.43 million. This is the amount you could transfer to anyone … [Read more...] about Estate Tax: Citizenship Can Be a Factor
What Is a QTIP Trust?
The acronym QTIP may conjure certain images outside of an estate planning context. For our purposes as estate planning attorneys, the acronym stands for a qualified terminable interest property trust. This type of trust can be useful if you are a parent who is getting remarried. Protecting Your Children If you are getting remarried as a parent, you may have estate planning concerns. Clearly, you want to make sure that you provide resources for your new spouse to draw from after you are gone if … [Read more...] about What Is a QTIP Trust?
Basics of Asset Protection – Part 1 of 4 Parts
The term asset protection is heard a lot in planning circles. However, it has no definitive definition and its role depends on the context in which it is used. One aspect of asset protection is to protect the owner of those assets. Sometimes it refers to protecting those assets from possible seizure after a finding of liability, e.g., in a lawsuit. Other times it refers to legally minimizing or avoiding (not evading) certain tax liabilities such as the estate and gift taxes. Still other … [Read more...] about Basics of Asset Protection – Part 1 of 4 Parts
What Is the Estate Tax Marital Deduction
What Is the Estate Tax Marital Deduction In Northern California from Timothy Murphy You should devise a holistic tax efficiency strategy with the assistance of a licensed estate planning attorney. Learn more about estate tax marital deduction in this presentation. … [Read more...] about What Is the Estate Tax Marital Deduction
Medi-Cal Long Term Care Primer – Part 2 of 4
In this blog, we will address how eligibility for Medi-Cal long term care (LTC) benefits is established. Eligibility is essentially an asset test. For eligibility purposes, assets fall within one of three categories: countable (non-exempt), not countable (exempt) and unavailable (countable, but not counted). To be eligible for Medi-Cal LTC, an individual applicant's countable assets must be below $2,000. If the applicant is married, in 2015, the spouse can have another $119,220 of countable … [Read more...] about Medi-Cal Long Term Care Primer – Part 2 of 4
JTWROS And Your Estate Plan
There are some terms you might come across as you develop your estate plan, such as JTWROS, that you should know about before you start making your plan in earnest. A JTWROS, which stands for joint tenancy with the right of survivorship, is a form of property ownership that can offer certain benefits for people interested in avoiding probate. However, this form of property ownership also has some significant negatives that you will need to consider. Always talk to your attorney whenever you have … [Read more...] about JTWROS And Your Estate Plan
Charitable Gifting in Your Estate [Infographic]
For many people, philanthropy is something that is very important in daily life. If you are one of those people then you likely wish to include charitable gifting in your estate plan as well. Along with fulfilling your personal philanthropic goals, charitable gifting can also provide a number of tax advantages when properly incorporated into your estate plan. Click here to view a larger image. … [Read more...] about Charitable Gifting in Your Estate [Infographic]
