Daniel Mangena Nov. 4, 2022 “You can’t take it with you” — how often have you heard that? It’s an oft-abused phrase employed, usually within the context of a person amassing wealth or assets beyond their needs. What it speaks to is intent, and that’s what building multi-generational wealth is all about:…
You will need to think about the disposition of your assets at your death and any tax implications. Statistically speaking, women live longer than men. So, if you are married, you’ll also probably have the last word about the final disposition of all of the assets you’ve accumulated during your marriage. You’ll want to consider…
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the 2010 Tax Act) included new gift, estate, and generation-skipping transfer (GST) tax provisions. The 2010 Tax Act provided that in 2011 and 2012, the gift and estate tax basic exclusion amount was $5 million (indexed for inflation in 2012), the GST tax…
Here are some key numbers associated with estate planning, as well as the federal gift tax and estate tax rate schedules for 2022 and 2023. 2022 2023 Annual gift tax exclusion: $16,000 $17,000 Gift tax and estate tax applicable exclusion amount: $12,060,000 1 + DSUEA 2 $12,920,000 1 + DSUEA 2 Noncitizen spouse annual gift tax exclusion: $164,000 $175,000 Generation-skipping…
With the holiday season upon us and the end of the year approaching, we pause to give thanks for our blessings and the people in our lives. It is also a time when charitable giving often comes to mind. The tax benefits associated with charitable giving could potentially enhance your ability to give and should…
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the 2010 Tax Act) included new gift, estate, and generation-skipping transfer (GST) tax provisions. The 2010 Tax Act provided that in 2011 and 2012, the gift and estate tax basic exclusion amount was $5 million…
Estate Planning – There are five estate planning documents you may need, regardless of your age, health, or wealth: Durable power of attorney, Advance medical directives, Will, Letter of instruction, Living trust. The last document, a living trust, isn’t always necessary, but it’s included here because it’s a vital component of many estate plans.
An ILIT is a trust primarily set up to hold one or more life insurance policies. The main purpose of an ILIT is to avoid federal estate tax. If the trust is drafted and funded properly, your loved ones should receive all of your life insurance proceeds, undiminished by estate tax.
Incapacity means that you are either mentally or physically unable to take care of yourself or your day-to-day affairs. Incapacity can result from serious physical injury, mental or physical illness, advancing age, and alcohol or drug abuse.
When developing your estate plan, you can do well by doing good. Leaving money through charitable giving rewards you in many ways. It gives you a sense of personal satisfaction, and it can save you money in estate taxes.