As we approach the holidays and the end of the year, many people may want to make gifts of cash or stock to their loved ones. By properly using the annual exclusion, gifts to family members and loved ones can reduce the size of your taxable estate, within generous limits, without triggering any estate or
Estate Archives - Crawford Ellenbogen
Sep 10, 2021
Planning for year-end gifts with the gift tax annual exclusion
- By Joan Ellenbogen
- Estate, Gifts, Taxes, Uncategorized
- 0 Comments
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Aug 5, 2021
5 possible tax aspects of a parent moving into a nursing home
- By Joan Ellenbogen
- Deductions, Estate, Financial Planning, Medical, Retirement
- 0 Comments
If you have a parent entering a nursing home, you may not be thinking about taxes. But there are a number of possible tax implications. Here are five. 1. Long-term medical care The costs of qualified long-term care, including nursing home care, are deductible as medical expenses to the extent they, along with other medical
Jul 1, 2021
Members of the sandwich generation find themselves in a unique situation
- By Joan Ellenbogen
- Estate
- 0 Comments
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.
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