By Eden Rose Brown, Esq. The statistics are compelling: Over 90 million American households own companion animals – a total of more than 218 million pets of all shapes and sizes! These pet owners spend an average of $500 on each pet, totaling more than $12 billion annually, and that does not include toys, grooming and food. Of these pet owners, over 63% say that they consider their pets to be family members and 79% allow their pets to sleep with them. The strength of the human-animal bond is powerful. Through the years I have found that…
The Dynasty Trust: Jurisdictional Choices
By Steven J. Oshins, J.D., AEP (Distinguished) Most trusts are designed as Staggered Distribution Trusts which are trusts that make mandatory distributions to the beneficiaries upon reaching certain ages. For example, many trusts pay out one-third of the assets upon the beneficiary reaching age 25, one-half of the balance upon the beneficiary reaching age 30 and the balance upon the beneficiary reaching age 35. The philosophy used by the scriveners of these types of trusts is that the beneficiaries have multiple opportunities to learn from their mistakes. Those who recommend Staggered Distribution Trusts fail to properly consider the estate tax…
Year-End Gain Harvesting May Create Impressive Tax Savings, But Be Careful!
By Robert S. Keebler, CPA, MST, AEP (Distinguished) Bracket management has always been an important part of income tax planning. As we noted in our May newsletter, however, the 3.8% Medicare Surtax and higher tax rates make it even more important in 2013. We listed the following strategies that taxpayers can use to avoid the surtax and stay out of the higher tax brackets: (1) Income smoothing CRTs; (2) income shifting CRTs; (3) using NIMCRUTS as a substitute for or supplement to a retirement plan; (4) CLATs; (5) Life Insurance; (6) deferred annuities; (7) installment sales; (8) managing IRA distributions;…