As part of our December 2014 Newsletter, we are featuring a special “Best Of” issue. Below, you will find a list of our Top 10 Articles on Tax and IRA Planning. All of these articles were authored and written by Robert S. Keebler, CPA, PFS, MST, AEP (Distinguished), CGMA. Beneficiary Designation Problems with IRAs: More Than Just the RMD Rules! (with Kristen M. Lynch, J.D., AEP, CISP, CTFA) PLR Opens Door to Post-Death Exchanges of Non-Qualified Annuities Tax-Free! (with Michael E. Kitces, MSFS, MTAX, CFP®, CLU, ChFC, RHU, REBC, CASL) Frank Aragona Trust: What Now Constitutes Trustee “Material Participation”? Understanding…
Family Business Succcession Planning
By Brandon E. Crooks, Principal at Counsel Trust Company There are over 5.5 million family businesses in the US with an average life span of 24 years (familybusinesscenter.com, 2010). About 40% of family-owned businesses turn into second-generation businesses; approximately 13% are passed down successfully to a third generation, and 3% to a fourth generation or beyond (Businessweek.com, 2010). Business owners are attractive clients due to the amount of wealth that lies within family-owned businesses. The challenge for advisors working with this group is that the business succession risks are greater than ever because nearly a third of owners have no…
2014 Year-End Tax Planning
By Robert S. Keebler, CPA/PFS, MST, AEP (Distinguished), CGMA As we near the end of 2014, year-end tax planning again takes center stage. In this article we summarize a number of strategies that may produce substantial tax savings with just some year-end tax planning. Making Trust Distributions The tax brackets for trusts are much more compressed compared to the brackets for individuals. This suggests, if the governing instrument allows it, that trustees should consider making discretionary distributions of income to beneficiaries at the end of 2014 to reduce tax rates. Harvesting Ordinary Income Harvesting ordinary income is another part of…
3rd Annual Dynasty Trust State Rankings Chart Released
Every year, nationally renowned estate planning and asset protection attorney, Steven J. Oshins, J.D., AEP (Distinguished), puts together a state rankings chart for Dynasty Trusts, showing which states rank among the highest in the country for Dynasty Trust planning. To download a free copy of Steve’s 3rd Annual Dynasty Trust State Rankings Chart, complete the form below. In particular, some highlights of this year’s chart: include: The top 3 states are #1 South Dakota, #2 Nevada and #3 Alaska. The #4, #5 and #6 states will surprise many people. More weight was put on Decanting in this year’s chart versus…
Tax Alpha®: What Sophisticated Counselors & Advisors Need to Know—Part 2 of 2
By Robert S. Keebler, CPA, MST, AEP (Distinguished), CGMA In the world of finance, “Alpha” is often referred to as the value a money manager generates by exceeding a particular benchmark. In the world of financial planning, Tax Alpha® is best defined as the value financial advisors add by reducing the tax burden on portfolio income – “After all, it is what you keep not what you earn that counts.” A thorough knowledge of the intersection between tax and finance will allow an advisor to substantially reduce a client’s overall tax burden. The heart of Tax Alpha® for most clients…
Top Five Reasons to Situs Your Irrevocable Trust in a Different Jurisdiction
Download Printable Article By Steven J. Oshins, J.D., AEP (Distinguished) Most estate planners automatically situs their clients’ irrevocable trusts in the jurisdiction in which the client resides without considering the possibility of using a different jurisdiction. This is often done for no reason other than the fact that it is customary to do so. However, in many situations this decision causes a loss of potential benefits that may have been obtained by exploring the use of a different trust situs. Following are some of the common reasons to situs an irrevocable trust in a different jurisdiction: Reason #1: State Income…
Trusts Aren’t Just for The Rich Anymore
By Jonathan G. Blattmachr & Matthew D. Blattmachr Many people associate trusts with the very wealthy, because they are often used in the media and pop culture in the context of two other words: “fund” and “baby”. The reality is that a trust is a helpful estate planning instrument for most of your clients, not just the wealthy. Clients with $250,000 to $1 million in investable assets should consider a trust to help tackle their estate and financial planning challenges. Another reason trusts are commonly associated with the rich is because in the past for many families the cost of…
Referring Advisors – Shelf Life?
By Joseph J. Strazzeri, Esq. Each year we conduct the same exercise of compiling a list of each advisor that referred us a client over the last two years – noting how many clients were referred, those that we met with, those that retained us, and the associated total revenue. Some of the results are what we expected to see, but often we are shocked that many were one-time referrals and worse, too many great referral relationships have drifted away. “I worked with him once, but . . .” After many industry events and presentations, filtering through an unknown number…
Why Offshore Trusts Do Make Sense (A Brief Story)
By Jeffrey M. Verdon, J.D. Advising your clients on establishing and funding an offshore asset protection trust (APT) can be challenging. After all, what client wants to spend tens of thousands of dollars to take preventative steps against something they just don’t expect to happen? It is a lot like the decision a person goes through when buying a life insurance policy. I have never met a widow who thought her husband was over insured, but convincing the insured to purchase a policy can be a challenge. So it is with the offshore APT – the client must be sued…
Some Magical Aspects of Life Insurance
By Jonathan G. Blattmachr & Matthew D. Blattmachr Life insurance is one of the least understood financial products in the world. In just a few minutes of study, one can reasonably grasp the concept of equity interests in a business (e.g., common stock, preferred stock), bonds and other forms of debt. Even more complicated financial products, such as derivatives and options can be readily understood. However, even some people who have spent a career in the life insurance industry do not really understand the financial aspects of this product. Indeed, after finishing a lecture on how life insurance “works,” a…