The low interest rate environment, depressed asset values and current transfer tax rules seem to offer superior wealth transfer planning opportunities. However, time may be of the essence as the window of opportunity created by these three conditions may be short-lived.
This organizer, developed by a FOX Thought Leaders Council™ member, assists individuals in the collection and organization of personal and financial information essential to the estate planning process.
Many wealthy individuals are being told to prepare for more income tax audits by the Internal Revenue Service. Recent statistics seem to support that view. The IRS recently released its annual Data Book, which summarizes audit and collection activities for fiscal year 2010. Not surprisingly, the IRS is focusing its audits on returns that will likely produce the most revenue for the U.S. Treasury.
Increased tax exemptions, continued availability of valuation discounts, historically low interest rates and depressed asset values have created a perfect storm for families interested in preserving their wealth. However, current opportunities may begin being eliminated as early as January 2012.
Among the items on the list are basic tax-free gift opportunities, larger exempt gifts, tax-free transfers to credit shelters and family trusts, IRAs and retirement benefits, charitable contributions from IRAs, low interest rates related to leveraged gifting opportunities, decanting and creative planning with irrevocable trusts, and family C corporations.
This guide covers wealth management and tax planning strategies to consider before year-end and into 2012. Topics include tax management, wealth transfer planning, education funding, philanthropy, retirement, liabilities management, insurance, business owner issues, tax implications of health care reform, and building a strategic plan.
An agreement was reached on 24 August between the UK Treasury and Swiss Federal Department of Finance regarding the treatment of Swiss accounts held by UK taxpayers. The agreement is due to be signed by both parties within the next few months at which stage the detailed terms will be issued. This briefing note summarises the outline of the agreement, which has been communicated by HMRC in advance of the full detail being available.
Private split dollar can help freeze an estate, minimize gift taxes, provide access to cash values, and finance needed or desired insurance for family members. Properly structured, death benefits may be excluded from the insured's taxable estate and even passed to many successive generations if a dynasty-type trust is used.
Because of the uncertainty as to what the new congressional bipartisan joint committee will do, it is important that individuals who want to take advantage of existing estate planning techniques talk with their advisors now to find out whether such planning is appropriate based on their circumstances.
Changes in tax laws have made the long-term, or dynasty, trust a particularly attractive means to transfer wealth to multiple generations free of estate taxes. However, the expiration of certain exemptions in 2013 means individuals need to act soon to realize the maximum benefit of these trusts.