What is the purpose of a Power of Attorney? If you are an adult with capacity, you, as the Principal, have the right to designate an Agent, sometimes called an “Attorney in Fact” or “Financial Agent”, to manage your financial affairs for you. When is a Power of Attorney effective? The authority of an Agent…
Bye-Bye U.S., Hello Exit Tax! If you are a U.S. citizen thinking about relinquishing your U.S. citizenship, or if you are what is defined as a “long-term” green card holder and thinking about giving it up, you may be in for a surprise. The U.S. has a sinister parting gift for you, called an “exit…
How Trusts are Taxed We can talk hours about the intricacies of trust taxation, but here are some basic concepts that will still go a very long way when it comes to how trusts get taxed. Trusts get taxed in two different ways: a grantor trust, and a non-grantor trust. Grantor Trust A grantor trust…
This is Part 3 in a three-part series about Estate Planning for Non-Citizens. In Part 1, I discussed general issues involving non-citizen planning. In Part 2, I discussed what is a QDOT. What’s the Best Way to Own Real Estate if you are not a US citizen? In Part 1, entitled “Estate Planning for the Non-Citizen,”…
This is Part 2 in a two-part series about Transfer Taxes. In Part 1, I discuss what is the gift tax and estate tax. The GST Tax The generation skipping transfer (GST) tax is often overlooked and misunderstood even by practitioners. It is complex to say the least. In this article, I discuss what the GST…
This is Part 2 in a three-part series about Estate Planning for Non-Citizens. In Part 1, I discussed general issues involving non-citizen planning. In Part 3, I discuss the various ways foreigners can own U.S. real property. Who Needs a QDOT? One of the lesser known benefits of US citizenship is something called the “unlimited…
This is Part 1 in a three-part series about Estate Planning for Non-Citizens. In Part 2, I discuss what is a QDOT. In Part 3, I discuss the various ways foreigners can own U.S. real property. This article is focused on the issues that occur with regards to estate planning when a non-U.S. citizen is…
This is Part 2 in a series I have written on the use of QSBS in estate planning. Part 1 focused on what is qualified small business stock. QSBS & Non-Grantor Trusts If a business has qualified small business stock under IRS Section 1202, the benefits of QSBS can be expanded on with the effective…
This is a part in a series of articles I have written on various types of irrevocable trusts. What is a Dynasty Trust? Many people refer to dynasty trusts to mean an irrevocable trust that is built so that after the death of the grantor, the trust benefits the grantor’s descendants. I don’t disagree with this…
This is a part in a series of articles I have written on various types of irrevocable trusts. What is a SLAT? A SLAT stands for a Spousal Lifetime Access Trust. It is an irrevocable trust created by one spouse for the benefit of the other spouse during their lifetime. The grantor (person creating the…
What to Consider When Creating an Advance Health Care DIrective What is the purpose of an Advance Health Care Directive? If you are an adult with capacity, you have the right to provide instructions about your own health care choices. An Advance Health Care Directive sets forth (1) the person(s) you nominate to make medical…
This is a part in a series of articles I have written on various types of irrevocable trusts. Intentionally Defective Grantor Trust What is a sale to an Intentionally Defective Grantor Trust (IDGT)? Why would a trust be “intentionally defective”? And what is so popular about this strategy? Intentionally Defective Grantor Trust An IDGT is a…
This is a part in a series of articles I have written on various types of irrevocable trusts. What is a NING? A Nevada Incomplete Gift Non-Grantor trust (NING) is an irrevocable trust built in Nevada, and is popular among those individuals living in high-income tax states seeking to reduce their state income tax liability, or…
This is a part in a series of articles I have written on various types of irrevocable trusts. What is DAPT? One of the most unique forms of irrevocable trusts is a Domestic Asset Protection Trust (DAPT), otherwise referred to as a self-settled spendthrift trust. With most irrevocable trusts, the person setting it up (the…
This is Part 2 in a two-part series about LLCs. In Part 1, I covered “Why People Should Create LLCs?” How should I setup my LLC? Once you know why you need to create an LLC, there are a number of considerations that go into how to set up your LLC to maximize asset protection….
This is Part 1 in a series I have written on the use of QSBS in estate planning. Part 2 focuses on using non-grantor trusts to further leverage QSBS in a future liquidity event. What is Qualified Small Business Stock and Why Is It Important? Shares of a “qualified small business” (as defined by the…
On July 16, 2021, Governor Gavin Newsom signed Assembly Bill 150 into law. This bill enables certain California taxpayers to write off more than the $10,000 limit placed on state and local tax (SALT) deductions — but it’s not automatic, you need to know what to do to get this relief. BRIEF HISTORY OF SALT…
A lot of people have been talking about what President Biden’s tax plan will look like and whether there’s anything we can do now. In April of this year, Biden released the American Families Plan, which essentially increases taxes on both corporations and certain individuals. Following this, the Treasury Department issued its Green Book, which…
What to Think About When Naming Permanent Guardians Most estate planning attorneys will encourage you to set up estate plans for many reasons: to protect against probate; to plan for incapacity; to create asset protection; to further tax planning; if you have a child under the age of 18, to plan for their guardianship in…
Per Stirpes vs. Per Capita at Each Generation? Say What? While engineering your estate plan, you’re likely to come across the terms “per capita at each generation” or “per stirpes.” (No, we are not talking about stripes here. Unfortunately, your estate plan is not available in stripes, houndstooth, or gingham). Instead, these terms are options…
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