Under Section 663(b) of the Internal Revenue Code, any distribution by an estate or trust within the first 65 days of the tax year can be treated as having been made on the last day of the preceding tax year. Using this rule to treat any distribution by an estate or trust can provide a possible opportunity for tax savings.
Trust and Estate Planning
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A Charitable Lead Annuity Trust (CLAT) is an effective means to reduce current income taxes, transfer wealth to a family free of gift and estate tax, and benefit charity. Here is an illustration of a specific tax planning technique that might be valuable.
Too often, taxes are only thought of once or twice a year, but the reality is that an effective tax plan is considered year-round and on a multi-year basis. Tim Steffen, Baird’s Director of Tax Planning, shares his insights on common tax planning misconceptions, when and why to consider tax planning, and how to respond to legislative changes to the tax code.
Compound growth over time—uneroded by taxes—is key to amassing substantial wealth, and that’s where dynasty trusts come in. It’s designed to minimize taxes over multiple generations. When done correctly, dynasty trusts can leave an enduring and significant financial legacy for generations to come.
In this Tax Outlook Survey, 150 tax executives were polled on questions ranging from their tax planning strategies to their views on environmental, social, and governance (ESG) initiatives. The findings indicate that the recently enacted and proposed tax policy changes continue to pose challenges to tax executives and their teams as they strive to guide their organizations through a dynamic world.
In preparing for the birth of his daughter, David Slover developed a to-do list each parent should think about executing. Topics shared include Last Will and Testament, Financial and Healthcare Powers of Attorney, Living Will, Life Insurance Policies and Retirement Accounts.
Families with the means and flexibility to choose where they live, particularly those anticipating a liquidity event or a life change such as retirement may be looking for a more tax advantageous place to call home. Changing your tax residency has many potential positives, but it’s not as simple as filing a change of address with the U.S Postal Service.
Before changing your residency to a new state for income tax purposes, consider the items outlined in this checklist. For additional insights, read more on how to successfully change your tax residency.
Selecting the right trustee is one of the most important decisions a grantor will make. The role of trustee has evolved significantly over the 21st century, and today’s trustee needs to recognize that a trust is rooted in a human relationship, not just a legal one. When selecting your trustee, look for the 7 traits to help you select the right one for you.
For families with significant wealth, a new IRS Revenue Procedure could result in millions of dollars in tax savings. The procedure makes the Deceased Spouse Unused Exclusion available up to five years after the death of the first spouse of a married couple.