Private split dollar can help freeze an estate, minimize gift taxes, provide access to cash values, and finance needed or desired insurance for family members. Properly structured, death benefits may be excluded from the insured's taxable estate and even passed to many successive generations if a dynasty-type trust is used.
The financial risks associated with unplanned health care events need to be part of the financial planning process to guard against negative impacts to an investment portfolio or retirement income plan in the event of a catastrophe.
Many wealthy individuals are being told to prepare for more income tax audits by the Internal Revenue Service. Recent statistics seem to support that view. The IRS recently released its annual Data Book, which summarizes audit and collection activities for fiscal year 2010. Not surprisingly, the IRS is focusing its audits on returns that will likel...
With the looming December 31 expiration of the Bush tax cuts, the threat of sequestration, and the need to raise the debt ceiling in January, neither Democrats nor Republicans will want to face the consequences of inaction and/or no agreement. The nature of these issues and the convergence of interests and deadlines lead us to predict a deal that f...
Intra-family loans can provide a low-risk way to achieve estate planning objectives in a volatile economy, but these loans can result in unexpected taxable income or gift taxes. In addition, some debt attributes can pose valuation challenges. Stout Risius Ross discusses valuation concepts and other important attributes to consider in structuring in...
After 17 years of declining or fairly constant tax rates, investors face a changing environment of much higher tax rates on investment income starting in 2013. This brief from BNY Mellon Wealth Management details the coming changes in taxation and offers strategies for greater tax efficiency for business owners, investors and corporate executives.
Given the uncertainty around income and estate taxes, planning with a financial advisor is essential. While Congress may not act on taxes until late in the year, individuals will be best positioned to implement a plan if they spend the intervening weeks laying the necessary groundwork.
It is increasingly common for estate planning attorneys to reduce estate taxes on tangible property by transferring ownership of that property from an individual to a trustee of a trust. However, this strategy can expose an entire estate to some serious potential uninsured claims.
Be sure that your heirs have the information they need to access your online accounts.
Despite the uncertainty regarding estate taxes, wealth owners still can take steps to ensure their estates are in the best possible position no matter what laws are passed.
This white paper reviews how investors can take advantage of the current gift tax exemption without hurting their liquidity.
While life insurance is often purchased as a solution to funding estate taxes, it can also be inflexible and costly and is rarely a perfect antidote. This article discusses how insurance should be considered in conjunction with alternate lifetime estate planning solutions and proposes alternative atypical insurance designs that can offer substantia...
This white paper details strategies that take advantage of today’s favorable wealth transfer climate, and some important planning ideas designed to prepare your estate for the uncertainties of 2013.
Current law provides that on January 1, 2013, income tax rules revert to significantly higher pre-2001 levels. In addition, it appears that the new Medicare Hospital Insurance taxes for high-income individuals will go into effect in 2013 following the Supreme Court’s decision to uphold the majority of the Obama health care law. Congress is unlikely...
Over the past several months, private investors and their advisors have been pondering the wisdom of accelerating long-term capital gains in the 2012 tax year. This paper looks at why.