Take care of a loved one who has special needs with an SNT

Posted on Leave a commentPosted in Trusts, Uncategorized

Special needs trusts (SNTs), also called “supplemental needs trusts,” benefit children or other family members with a disability that requires extended-term care or that prevents them from being able to support themselves. This trust type can provide peace of mind that your loved one’s quality of life will be enhanced while not disqualifying him or […]

Tread carefully if you and your spouse have similar trusts

Posted on Leave a commentPosted in Estate Tax, Personal consulting

When spouses have similar irrevocable trusts for each other’s benefit, they can be subject to the “reciprocal trust” doctrine. It prohibits tax avoidance through trusts that 1) are interrelated, and 2) place both grantors in the same economic position as if they’d each created trusts naming themselves as life beneficiaries. What not to do Suppose […]

Review your powers of attorney at least every 5 years

Posted on Leave a commentPosted in Estate Tax, Personal consulting, Personal Finances

Powers of attorney are critical components of an effective estate plan. After you’ve executed powers of attorney, it’s important to review them periodically — at least every five years and preferably more frequently — and consider executing new ones. 2 types A sound estate plan should include two types of powers of attorney: Financial power […]

Direct payments of tuition and medical expenses can reduce future estate tax exposure

Posted on Leave a commentPosted in Estate Tax, Personal Finances, Tax

With the gift and estate tax exemption at $5.45 million in 2017, you may be less concerned about these taxes. But if you don’t take advantage of making tax-free direct payments of tuition and medical expenses, you’re missing a valuable opportunity to reduce your potential gift and estate tax exposure down the road. Leveraging the break […]