Monday Funny: A Proposed New Living Will Form

This was shared with us by a fellow colleague and we thought it was funny and a great way to start off the week (on a funny note!). Enjoy and please feel free to share! Proposed New Living Will Form I, _______________________, being of sound mind and body, do not wish to be kept alive indefinitely by artificial means. Under no circumstances should my fate be put in the hands of pinhead partisan politicians who couldn’t pass ninth grade biology if their lives depended on it or lawyers, doctors, and hospitals interested in running up the bills. If a reasonable…

IRS Announces Inflation Adjustments for 2014 – Increased Exemption Among Others

The Internal Revenue Service announced today annual inflation adjustments for more than 40 tax provisions, including the tax rate schedules, and other tax changes. Revenue Procedure 2013-35 provides details about these annual adjustments. Here are just a few of the adjustments that are coming: The tax rate of 39.6 percent affects singles whose income exceeds $406,750 ($457,600 for married taxpayers filing a joint return), up from $400,000 and $450,000, respectively. The other marginal rates – 10, 15, 25, 28, 33 and 35 percent – and the related income tax thresholds are described in the revenue procedure. The standard deduction rises…

SPECIAL TELECONFERENCE: The Future of Estate Planning with Jonathan G. Blattmachr

Thanks to The Trust Advisor and Alaska Trust Company for allowing us the opportunity to replay a special audio teleconference rebroadcast of the special program entitled, “The Future of Trusts, Wills & Estate Planning: Predictions from Futurist Jonathan G. Blattmachr that May Impact Your Clients’ Income, Wealth and Lifestyle” with speakers, Jonathan G. Blattmachr, J.D., LL.M. (Taxation) and Douglas Blattmachr on Wednesday, October 30, 2013 at 9am Pacific (12pm Eastern). On this special 60-minute teleconference replay, you will learn: How electronic wills will shape the future of estate planning Where asset protection planning is going and why How directed trust…

Portability Resources for Estate Planners

With passage of the American Taxpayer Relief Act in 2012, portability has now been made “permanent”. Introduced into law for the first time in 2011 with the 2010 Tax Act, the concept of portability permits a married couple to fully utilize its combined $10 million (and now $10.5 million) lifetime exemption as indexed by letting the surviving spouse claim any unused portion of the deceased spouse’s exemption. With this provision now permanent, the surviving spouse no longer has a time limit to decide how best to use the increased exemption both during life through increased gifting and at death by…

NEW CHART: Robert Keebler’s 2013 Year-End Tax Planning Chart

BRAND NEW—The 2013 Year-End Tax Planning Chart We are pleased to announce the release of Robert Keebler’s new 2013 Year-End Tax Planning Chart. This chart covers the Top 10 Tax Planning Ideas for 2013 including a further look at Roth Conversions, Harvesting Capital Gains, Gain Harvesting on Investments, PEP/PEASE and the 3.8% Healthcare Surtax. This chart takes a number of Bob’s charts and combines them on an easy-to-follow and simple chart to share with your clients and referral sources. NOTE: The 2013 Year-End Tax Planning Chart is available for purchase on our new credit card processing system and is not…

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;…

Teleconference On 709 Preparation HUGE Success!

Earlier today, we had almost 100 people attend our popular educational program entitled, “The Ins & Outs of Correct 709 Prep“. It is very clear that this is an area that many estate planners want further guidance on how to properly plan and prepare the gift tax return. Here are what just a couple of people had to say about today’s program: “Very good session on a most-confusing area!” – D. Zanish, CPA “Excellent, as always!” – C. Boomgarden, CPA Still a popular area, we will be looking to put together another program with either further in-depth discussion on the…

New Tax Haven: Puerto Rico

By Jeffrey M. Verdon, Esq., Travor Moses, Esq. & Fernando Goyco-Covas, Esq. Puerto Rico’s politicians have aimed to spur investment and economic activity in Puerto Rico by changing their tax code.  These series of reforms, including the Individual Investors Act (Act 22-2012 and 138-2012), now mean that Puerto Rico offers the potential for exceptionally advantageous United States and Puerto Rican income tax exemptions which, as long as certain requirements are met within the United States Internal Revenue Code of 1986, as amended (the “IRC”),[i] can provide remarkable income tax relief to a wide universe of US citizens, residents, and even…

Helping Your Clients with Portability

With passage of the American Taxpayer Relief Act in 2012, portability has now been made “permanent”. Introduced into law for the first time in 2011 with the 2010 Tax Act, the concept of portability permits a married couple to fully utilize its combined $10 million (and now $10.5 million) lifetime exemption as indexed by letting the surviving spouse claim any unused portion of the deceased spouse’s exemption. With this provision now permanent, the surviving spouse no longer has a time limit to decide how best to use the increased exemption both during life through increased gifting and at death by…

Steve Oshins on ILM 201330033: Ruling on Gift and Estate Tax Consequences of Self-Cancelling Installment Notes

Steve Oshins on ILM 201330033: Ruling on Gift and Estate Tax Consequences of Self-Cancelling Installment Notes Thanks to generosity of Leimberg Information Services and nationally renowned estate planning attorney, Steven J. Oshins, J.D., AEP (Distinguished), we are pleased to provide to you a recently published article on LISI, which discusses two recent cases deciding issues facing same-sex married couples. “In this case, the value of the notes was based upon the §7520 tables. The decedent accounted for the self-cancellation mechanism by adjusting the principal to be repaid or the interest rate that applied to the principal. However, the IRS did…