The “sandwich generation” is a large segment of the population. These are people who find themselves caring for both their children and their parents at the same time. As a result, estate planning — which traditionally focuses on providing for one’s children — has expanded in many cases to include one’s aging parents as well.
Estate Archives - Crawford Ellenbogen
Jul 1, 2021
Members of the sandwich generation find themselves in a unique situation
- By Joan Ellenbogen
- Estate
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Jun 22, 2021
Beware of the “reciprocal trust” doctrine
- By Victor Dozzi
- Estate
- 0 Comments
If you and your spouse have similar irrevocable trusts for each other’s benefit, you might be subject to the “reciprocal trust” doctrine. It prohibits tax avoidance through trusts that are interrelated and place both grantors in the same economic position as if they’d each created trusts naming themselves as life beneficiaries. There are many ways
Apr 29, 2021
Spendthrift trusts aren’t just for spendthrifts
- By Joan Ellenbogen
- Estate
- 0 Comments
Now that the federal gift and estate tax exemption has reached an inflation-adjusted $11.7 million for 2021, fewer estates are subject to the federal tax. And even though President Biden has proposed reducing the exemption to $3.5 million, it’s uncertain whether that proposal will pass Congress. If nothing happens, the exemption is scheduled to revert
Apr 15, 2021
What happens if your spouse fails to designate you as beneficiary of his or her IRA?
- By Joan Ellenbogen
- Estate
- 0 Comments
One advantage of inheriting an IRA from your spouse is that you’re entitled to transfer the funds to a spousal rollover IRA. The rollover IRA is treated as your own IRA for tax purposes, which means you need not begin taking required minimum distributions (RMDs) until you reach age 72. This differs from an IRA
Feb 23, 2021
Now or later: When’s the right time to transfer your wealth?
- By Joan Ellenbogen
- Estate
- 0 Comments
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).
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.