The temporary doubling of the federal gift and estate tax exemption is viewed by some people as a “use it or lose it” proposition. In other words, you should make gifts now to take advantage of the exemption before it sunsets at the end of 2025 (or sooner if lawmakers decide to reduce it earlier).
Estate Archives - Crawford Ellenbogen
Feb 23, 2021
Now or later: When’s the right time to transfer your wealth?
- By Joan Ellenbogen
- Estate
- 0 Comments
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Feb 10, 2021
Consider your options when addressing life insurance in your estate plan
- By Joan Ellenbogen
- Estate
- 0 Comments
Life insurance has long provided a source of liquidity to pay estate taxes and other expenses. Even though for many families, federal and state estate taxes aren’t a concern, life insurance continues to offer many benefits for these nontaxable estates. For this reason, it’s important to properly account for your life insurance policies in your
Feb 2, 2021
Reduce gift and estate tax exposure by making direct payments of tuition and medical expenses
- By Joan Ellenbogen
- Estate, Financial Planning
- 0 Comments
Now that the gift and estate tax exemption has risen to $11.7 million for 2021, you may be less concerned about these taxes. But if you have children or grandchildren in college or with medical expenses, you may want to take advantage of the exemption for direct payments of tuition and medical expenses. It can
Jan 13, 2021
Make your legacy last by educating your children about wealth management
- By Victor Dozzi
- Estate
- 0 Comments
If you’ve worked to build a large estate, you probably would like to leave a lasting legacy to your children and future generations. Educating your children about saving, investing and other money management skills can help keep your legacy alive. One strategy is to introduce incentives while remaining flexible by using an incentive trust. This
Jan 5, 2021
Does your estate plan clearly communicate your wishes?
- By Joan Ellenbogen
- Estate
- 0 Comments
Precise language is critical in estate planning documents. A lack of clarity is an invitation to litigation. An example of this is the dispute that arose after Tom Petty’s death between his widow and his two daughters from a previous marriage. In this case, it appears that his trust appointed his widow as “directing trustee,”
Dec 1, 2020
Avoid these four estate planning deadly sins
- By Victor Dozzi
- Estate
- 0 Comments
According to literature, the “seven deadly sins” are lust, gluttony, greed, laziness, wrath, envy and pride. Although individuals may be guilty of these from time to time, other types of “sins” can be fatal to an estate plan if you’re not careful. Here are four transgressions to avoid. Sin #1: You don’t update beneficiary forms.
Nov 17, 2020
Estate planning and your art collection
- By Victor Dozzi
- Estate
- 0 Comments
If you’re an art collector, it’s critical for your estate plan to address your collection separately from other types of assets. You’ll want to preserve the value of your collection and avoid unnecessary taxes. Regular appraisals will give you an idea of how the collection is growing in value and help you anticipate tax consequences
Oct 28, 2020
Put pen to paper: How a letter of instruction can benefit family harmony
- By Victor Dozzi
- Estate
- 0 Comments
You may view your will as the centerpiece of your estate plan. But other documents can complement it. For example, if you haven’t already done so, consider writing a letter of instruction. Elements of the letter A letter of instruction is an informal document providing your loved ones with vital information about personal and financial
Oct 14, 2020
Why it’s important to plan for income taxes as part of your estate plan
- By Victor Dozzi
- Estate
- 0 Comments
The current federal estate tax exemption ($11.58 million in 2020) means that many people aren’t concerned with estate tax. But they should still plan to save income taxes. For example, be careful making lifetime transfers of appreciated assets. It’s true that the assets and future appreciation generated by them are removed from your estate. But
Oct 8, 2020
Don’t procrastinate if you plan to transfer ownership of your life insurance policy
- By Joan Ellenbogen
- Estate
- 0 Comments
Generally, the proceeds of your life insurance policy are included in your taxable estate. You can remove them by transferring ownership of the policy, but there’s a catch: If you wait too long, your intentions may be defeated. Essentially, if ownership of the policy is transferred within three years of your death, the proceeds revert