A great example of why you should consider your adult beneficiaries own marginal tax rate before making equal percentage distributions as beneficiaries pay taxes on inherited assets from tax-deferred accounts. https://www.kiplinger.com/article/retirement/T021-C032-S014-equal-shares-for-heirs-take-taxes-into-account.htmlRead More
After a divorce, it is important to update your beneficiary designations and power of attorney for healthcare/finance. Although many are quick to update, it is imperative that you do not name your minor children as direct beneficiaries. The reason is two-fold. First, children will not be able to access funds until they reach 18...Read More
Revocable trusts are a great way to avoid probate for assets titled to the trust, consolodate assets, and provide management of assets in periods of incapacity. Learn more at the link below. https://www.forbes.com/sites/frankarmstrong/2019/02/20/revocable-trusts-the-swiss-army-knife-of-financial-planning/#2f662a8429ebRead More
I have many clients and friends that share many misconceptions and opinions about Wisconsin Marital Property Law and marital property agreements (prenups), so I thought I would assist in clarifying the law and what marital property agreements can ultimately accomplish. So, what is marital property? In Wisconsin, marital property is “all income and possessions a...Read More
I had many clients, in addition to age restrictions, insist on trust provisions that restrict, incentivize, or otherwise reward behaviors of their intended beneficiaries. This concept is not new, especially today, where clients believe their children or grandchildren are spoiled, will live above their means, lack motivation and basic life skills, and basically do not...Read More
Absolutely! As of January 1, 2018, the federal estate tax exemption amount will rise to $5.6 million, up from $5.49 million in 2017. The annual exclusion amount for gifts in 2018 will increase to $15,000, which is up from $14,000 for gifts in 2017. This means that individuals can gift $15,000, and couples can gift...Read More
With the high estate tax applicable exclusion amounts, which may become infinitely higher in the coming months (a married couple can currently pass about $11 million tax free), and the American Taxpayer Relief Act allowing “portability” (the estate of the deceased spouse who did not use their $5.49 million exemption to pass the remaining amount...Read More
It will be interesting to see if Trump’s tax reform proposals will be enacted. According to The Committee for a Responsible Federal Budget, Trump proposes to “reduce the corporate tax rate from 35 percent to 15 percent, eliminate most business tax breaks, tax carried interest as ordinary income, impose a one-time deemed repatriation tax on profits held abroad,...Read More
