Introduction
Real estate owners are prime estate planning candidates. Without proper planning, an owner’s family can be left to pay significant estate tax without liquid assets to make the payment. Even though that tax can often be paid over a 14-year period, the cash flow needed to make those tax payments can significantly reduce cash…
Creating a grantor retained annuity trust (commonly referred to as a “GRAT”) is a relatively simple way to transfer property to your children at virtually no gift tax cost. In order for a GRAT to be successful, your retained annuity from the GRAT must increase in value greater than a hurdle rate. The hurdle rate…
On April 23, 2020, the IRS issued FAQs regarding “COVID-19 Relief for Estate and Gift” in response to issues raised by the extension of time granted to taxpayers to fulfill their estate, gift and generation-skipping transfer (GST) tax obligations. The FAQs address: (1) due dates related to Form 706; (2) allocation of GST exemption; and…
Funding Revocable (Living) Trusts
Many of your clients’ estate plans consist of “pour over” Wills into revocable living trusts. Many of these revocable trusts are unfunded which means a Will would still need to be probated in court when an individual dies. However, Probate or Surrogate’s Courts in many states are shut down. Even if…
As a result of the Federal Reserve Bank’s recent stimulus and interest rate decreases in response to the coronavirus, intra-family loans can be used to transfer wealth to future generations with no gift tax consequences as well as to renegotiate existing intra-family loans at reduced interest rates.
An intra-family loan is a basic estate-planning technique…
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