Why the Spousal Lifetime Access Trusts may be the perfect solution for couples seeking to do estate planning in 2020 The federal estate and gift tax exemption is currently $11.58 million per person, the highest it has ever been.  However, the exemption amount will automatically revert to $5 million in 2026.  The COVID-19 pandemic and…

Planning Strategies Grantor Retained Annuity Trusts (or “GRATs”) allow for the tax-efficient transfer of the future appreciation of assets.  As long as the assets appreciate over the IRS’s hurdle rate, and the grantor survives the term of the trust, heirs can take the remaining assets (representing the future appreciation) free of any gift tax.  This…

Planning Strategies As part of the federal government’s reaction to the coronavirus pandemic, the IRS has implemented a number of tax relief programs.  In addition, on Friday March 27, 2020, Congress passed the Coronavirus Aid, Relief and Economic Security Act (CARES Act), a landmark stimulus bill designed to support the American people and businesses during…

Planning Strategies “Out of adversity comes opportunity.” ─ Benjamin Franklin While low interest rates continue to put pressure on income oriented portfolios, the recent market correction and low rates have created some unique estate planning opportunities.  Last summer, we released a piece entitled “Planning in a Low Interest Rate Environment.”  All of the topics covered…

SECURE Act Passed: New Rules for IRAs and Beyond On December 20, 2019, Congress passed a series of year-end spending bills that included a retirement reform bill known as the SECURE Act, as well as other changes to the tax code. Among the changes to retirement plans, the SECURE Act affects Individual Retirement Arrangements (IRAs)…

Recent changes to estate and gift taxes  The Tax Cuts and Jobs Act (“TCJA”) made major changes to the estate and gift tax. The Act doubled the lifetime exemption from $5 million to $10 million (plus adjustments for inflation) and, in so doing, exempted 99.9% of the U.S. population from federal estate and gift taxation.…

Actively managing investments improves chances of continuing long-term philanthropic mission.   When it comes to interest rates, “Lower for Longer” has been the mantra for the past 11 years. Low rates, while good for borrowers, have been challenging for investors. Traditional asset allocation models, like 60% equity/40% fixed income, are harder to live with when the…