Blog

Gifts to Minors

Posted by Wesley Young @ 12:15pm on August 8, 2018

Helping a child with his or her education or support often requires gifts. Fortunately, there also may be income and estate tax savings to making gifts to minor children. Gifts can be made directly or indirectly to a child, or to a trust for his or her benefit.

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Charitable Gift Giving

Posted by Wesley Young @ 2:40pm on July 19, 2018

The desire to assist a charitable organization must be a primary motive for making a gift; if no charitable inclination exists, charitable giving is difficult to justify. Alternatively, if a charitable motive exists, the tax laws provide various methods and incentives to encourage the donor’s goodwill. The following summarizes the general rules applicable to charitable giving, including a discussion of some common strategies used.

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Irrevocable Life Insurance Trust

Posted by Wesley Young @ 4:30pm on June 8, 2018

An irrevocable life insurance trust (ILIT) can be a useful vehicle to hold life insurance policies outside the grantor’s taxable estate. When an insured owns a life insurance policy on his/her life, the insured controls and has ownership rights over the life insurance, but the policy will be included in the insured’s taxable estate. However, by giving up control and ownership over coverage held within an ILIT, death proceeds may be removed from the grantor's estate, reducing the grantor’s estate tax obligation and providing numerous other benefits.

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457 Plans-Deferred Compensation

Posted by Wesley Young @ 1:05pm on May 21, 2018

Section 457 of the Tax Code provides the rules that govern all NQDC plans sponsored by “eligible employers.” The term “eligible employer” is defined to include states, their instrumentalities (e.g. schools, police departments, etc.) and tax-exempt organizations, but does not include “the federal government or any agency or instrumentality thereof.” A plan sponsored by a state or local government entity does not have to meet a specific ERISA exemption.

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Qualified Personal Residence Trust

Posted by Wesley Young @ 11:15am on April 23, 2018

A Qualified Personal Residence Trust (QPRT) can allow a homeowner to transfer a residence to other family members at a reduced gift tax cost while retaining the right to use the residence for a term of years. At the end of the period, the residence is removed from the grantor’s estate. However, if the grantor dies during the term of the trust, the entire value of the residence will be included in the grantor's taxable estate. QPRTs are valuable estate planning tools for homeowners, especially if a home has significantly appreciated in value, or if the personal residence or vacation home is of substantial value.

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Series LLC

Posted by Wesley Young @ 8:30am on March 8, 2018

A Series Limited Liability Company (Series LLC) is a form of entity that allows a single “parent” LLC to partition its assets and liabilities among various sub-LLCs called “Series.” Each Series may have different assets, operations, and/or investment objectives, and the members and managers, as well as their rights, obligations, and their sharing ratios, may be varied in each Series.

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Revocable Living Trust vs. Traditional Will

Posted by Wesley Young @ 11:30am on February 13, 2018

Revocable Living Trust: No estate tax savings. Trust assets are included in the grantor's gross estate and subject to estate tax. The same estate tax planning methods are available as with a traditional will.

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Taxation of Entities

Posted by Wesley Young @ 9:05am on January 26, 2018

Certain tax issues arise when distributing assets, including cash from a business. The type of entity the business is organized as largely determines what the tax consequences will be. C corporations, S corporations, partnerships, and sole proprietorships each have certain business advantages and disadvantages and are taxed differently.

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Charitable Estate Planning

Posted by Wesley Young @ 2:20pm on December 14, 2017

Every state now has legislation authorizing the use of some form of advance health-care directive—a power of attorney, a living will, or both. For those who have not executed an advance directive, some states have "surrogate decision-making" statutes allowing family members and others to make health-care decisions for individuals who lack decision-making capacity.

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Spousal Lifetime Access Trust (SLAT)

Posted by Wesley Young @ 4:00pm on November 19, 2017

A Spousal Lifetime Access Trust (SLAT) is an irrevocable trust that can own permanent life insurance and/or other assets. A SLAT permits the non-insured spouse to have access to the trust for distributions of principal and income during the spouse's lifetime, while continuing to prevent inclusion of the death benefit in the grantor's estate.

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Donor Advised Funds

Posted by Wesley Young @ 1:55pm on October 8, 2017

Donor advised funds (DAFs) are separate accounts of a sponsoring charitable organization established by a donor. The donor (or his designee) retains the right to make nonbinding recommendations for fund grants and investments. The sponsoring charity typically receives a small annual management fee and may assist the donor with selection of worthy grant recipients and performing due diligence on donor’s recommended grants.

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Living On the Edge

Posted by Wesley Young @ 3:25pm on June 7, 2016

One of the greatest gifts we possess is the desire to make today better than yesterday and tomorrow better than it is today. We all have a gap between what we see and what could be. This gap between where we are and where we want to be is never fully and finally satisfied. No matter how much success...

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Prepare to Receive

Posted by Wesley Young @ 1:25pm on March 30, 2016

What kind of future are you preparing to receive? Your present condition in life is not an accident. It is the direct beneficiary of the choices you have made in the past.

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Normal Vs. The New Normal

Posted by Wesley Young @ 9:30am on December 2, 2015

It was a trip to Europe in the early 80's that would birth a business idea in Howard's heart. An idea that he thought was going to be what was next when it came to coffee - a network of coffee houses similar to the Italian café. After passionately laying the idea out to his employers...

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GPS Leadership

Posted by Wesley Young @ 11:45pm on June 10, 2015

Have you ever traveled somewhere using a GPS to lead you step by step? It is great isn't it? The GPS tells you when to turn right or left and when to go straight, until eventually it says "you have arrived at your destination." Here is an interesting thought. While the GPS does a great job getting you to the destination, it does not do a great job preparing to get you there on your own the next time.

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Prepare to Receive

Posted by Wesley Young @ 9:10am on April 8, 2015

What kind of future are you preparing to receive? Your present condition in life is not an accident. It is the direct beneficiary of the choices you have made in the past.

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Where is the AX DULL?

Posted by Wesley Young @ 4:00pm on July 21, 2015

Have you ever found yourself in a place in your life that you are working hard but you don't seem to be making the kind of progress you seek?

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