In this era of Congressional contentiousness, any legislation that comes out of those chambers with bipartisan support deserves note. Such is the case with the SECURE Act, an acronym for “Setting Every Community Up for Retirement Enhancement,” which was passed last July by a near-unanimous vote in the House of Representatives. But the SECURE Act also warrants a note of caution for those heavily invested in IRAs and/or 401(k) plans because it truly is a “game-changer,” and not for the better, when it comes to the distribution and taxation of withdrawals from inherited plans.
Trusts and Estates
Relinquishing one's US citizenship can mitigate an individual's estate and gift tax obligations, but a "Covered Expatriate"* should plan carefully when disposing of assets. Internal Revenue Code Section 2801 imposes a tax on US citizens or residents who receive certain gifts or bequests from Covered Expatriates (CEs). Even if the property is non-US-situs property, all of it is subject to the 2801 taxing regime.
In the last few years, some of entertainment’s most iconic performers have left us. Both Prince and David Bowie passed in 2016, and just this year we lost Aretha Franklin. It seems a lot more recent, but it has been almost ten years since Michael Jackson passed away at age 50.
Trusts and Estates: Should You Make the Election? Trust and estate fiduciaries, take note: you still have time to improve your 2018 tax position. The U.
The political ground appears to be shifting on the taxation of assets that are transferred among family members as part of their estate planning. While many details have yet to emerge, there are indications that in 2017 there could be some tax law changes that would help families and their businesses preserve more assets and reduce tax liabilities. We reviewed those issues on May 15 at a Business Valuation Conference sponsored by the New York State Society of CPAs.
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 introduced the concept of portability. Portability allows the executor of a deceased spouse’s estate to transfer any unused estate tax exemption to the surviving spouse, as long as the surviving spouse was a US citizen or resident. In simple terms, portability of the federal estate tax exemption between married couples means that if the first spouse dies and the value of the estate does not require the use of all of the deceased spouse’s federal exemption from estate taxes, then the amount of the exemption not used for the deceased spouse’s estate may be added to the surviving spouse’s exemption when the surviving spouse later dies.
Social Security was created in 1935 to help Americans supplement their retirement income. The idea of Social Security is universal for Americans, but it is a complex system and can often cause confusion. Full retirement age is the age at which you can begin to collect full Social Security retirement benefits without any reductions.
Over the last year, after talking to many clients about estate tax planning, it became clear that even though the New York State estate tax law was changed on March 31, 2014, many people paid no attention to the changes. There was some good news regarding the change of law. The NY estate tax exclusion amount rises each fiscal year beginning April 1 until it equals the federal exclusion amount on January 1, 2019.
Differences Between the Generations By: Mark Ackerman, CPA When we perform estate financial and asset protection, it is important to take into consideration generational differences.
Typically, people do not begin to consider their long-term care until they are well into retirement. In today’s economic environment, it is essential to create and implement an elder care plan in your early 60s to ensure you take advantage of planning opportunities and have your wishes carried out. Outright Gifts