By Steven J. Oshins, Esq., AEP (Distinguished) The 2017 Tax Act was rushed in order to make it effective as of January 1, 2018. Anything that is rushed certainly will create opportunities for creative estate planners who will exploit the new tax laws for the benefit of their clients. The greatest opportunity business owners received from the Trump Tax Act is the new IRC 199A pass-thru business deduction. This deduction allows certain taxpayers to deduct 20% of their Qualified Business Income. The Taxable Income Limitations For a married couple with taxable income of no more than $315,000 and for an…
ABA Heckerling Reports from the 2018 Heckerling Institute
For the past 19 years, the American Bar Association Section of Real Property, Trust and Estate Law with the permission of the University of Miami School of Law, releases several extensive reports highlighting the various lectures and proceedings of the Heckerling Institute, one of the nation’s largest estate planning conferences, held every year in January. This past January 2018, marked the 52nd Annual Heckerling Institute. To view, download and access these extensive reports, please click here to visit the ABA’s website. Further, at the above website, you can also access reports from prior Heckerling Institutes as well. We, at The…
FREE WEBINAR: Adding Business Planning To Your Estate Planning Practice
If you’re an estate planning attorney, you may have been struggling to figure out what’s the “next best thing” coming to you in your practice now that estate tax planning is (and has been for the last several years) effectively dead. Business law is often an effective complement to an estate planning practice. The folks at WealthCounsel, LLC are hosting a free 60-minute webinar on Tuesday, February 27, 2018 at 10am Pacific Time (1pm Eastern Time) entitled, “Adding Business Planning To Your Estate Planning Practice” with speakers, Jeramie Fortenberry, J.D., LL.M. and Patrick Carlson, J.D., LL.M. *NOTE: This program is sponsored…
Trump Tax Act Restricts Deductibility of State Income Taxes: So What? Use a NING Trust
By Steven J. Oshins, Esq., AEP (Distinguished) The dust has settled. The Trump Tax Act has been finalized. Who stands to lose the most from the new tax rules? Those who live in a state with a high state income tax. That’s who. Prior to the Trump Tax Act, state income taxes paid were deductible against federal income tax. However, the Trump Tax Act limits the amount of the federal income tax deduction for state income taxes paid, real property taxes paid and sales taxes paid to a cumulative (yes, cumulative!) total of $10,000 per year. The $10,000 is used…
Tax Reform is Here: What You Need to Know to Advise Your Clients
By Jeramie Fortenberry, J.D., LL.M. (Taxation) Director of Education WealthCounsel, LLC The most significant tax reform package of this generation is now awaiting the President’s signature and is widely expected to be signed into law at any time. The new tax law changes the tax planning landscape, creating both pitfalls and opportunities for attorneys and the clients they serve. It is critical for business and estate planning attorneys to understand these changes and how they affect their clients. In this Thought Paper, Jeramie Fortenberry, JD, LLM, provides actionable guidance for planning under the new and different tax landscape. It includes…
Impact of Potential Tax Reform on Business Owners and Possible Steps to Take in 2017
By Edwin P. Morrow III, J.D., LL.M. (Tax), CFP®, CM&AA® On November 2, 2017, the Speaker of the House, with the backing of the President, finally introduced the long-awaited bill that represents Republican efforts at comprehensive tax reform, to be titled the “Tax Cuts and Jobs Act”. Of course, the Senate will propose significant changes, and there is opposition from both parties about the direction of the bill and the trillions it could add to the national debt. That said, there is a very strong chance of something close to the bill being passed this year or early next year. What are…
Top 5 Dumbest Comments Made by Estate Planners
By Steven J. Oshins, Esq., AEP (Distinguished) Having practiced estate planning for more than two decades, I have seen and heard my share of comments and representations that are true head-scratchers that often make you roll your eyes. This epidemic seems to have gotten much worse through the years, possibly because of the pressure to perform and thrive in a very competitive environment. This article will highlight some of my favorites. DUMB COMMENT #1: “Bad facts make bad law!” The “bad facts make bad law” excuse has been around for many years. Obviously, every case that has a result we…
Crowdsource Funding to Help Victims of the Las Vegas Massacre
By Martin M. Shenkman, CPA, MBA, PFS, AEP, JD, Bernard A. Krooks, JD, CPA, LLM (Taxation), CELA, AEP® (Distinguished)., and Jonathan G. Blattmachr, Esq. Introduction One of the authors just received a call to assist those helping one of the hundreds of victims of the Las Vegas shooting with some questions concerning a crowdfunding effort. What initially seemed like a simple question, which that might help one victim struggling with unfathomable challenges, following an equally unfathomable mass shooting, grew into something more. The questions grew and it became clear that they may affect the hundreds of victims of the Las…
Supply and Demand of Advanced Estate Tax Planning
By Steven J. Oshins, Esq., AEP (Distinguished) The federal estate tax exemption was increased to $5 million plus annual inflationary increases earlier this decade. “The sky is falling! The sky is falling! The sky is falling!” Those were the words of many estate planners who realized that there would be a substantially smaller pool of prospective clients who need advanced estate tax planning. At that point, not considering state estate taxes, only individuals with estates greater than $5 million and married couples with estates greater than $10 million needed any advanced estate planning done. Today, in 2017, those figures are…
The Curious Case of the Exponential Growth of the NING Trust to Save State Income Taxes
By Steven J. Oshins, Esq., AEP (Distinguished) It’s the year 2017. The tax world seems to be relatively similar to that of 2016. But one tax-saving technique seems to have certainly taken on a life of its own this year. This technique is called a NING Trust. In prior years, although there were plenty of individuals creating NING Trusts, this technique was relatively unknown throughout the estate planning industry. However, it seems that 2017 has been the Year of the NING as many tax practitioners have noticed the exponential growth of this strategy! Suddenly, a technique that hadn’t yet gone…