In this 2011 FOX Financial Executives Forum presentation, the president and CEO of the Policy and Taxation Group discusses up-to-the-minute legislative developments as well as the group’s ongoing lobbying efforts on behalf of wealthy owners.
Many individuals are wondering whether the IRS intends to use its new audit unit to develop tax enforcement cases. A former high-ranking executive with the IRS provides answers in this 2011 FOX Financial Executives Forum presentation.
Wealth owners have an 18-month window of opportunity to capitalize on gift, estate, and generation-skipping tax provisions of the 2010 Tax Act. In this session at the 2011 FOX Financial Executives Forum, a noted trusts and estates attorney recommends what to do now.
The financial risks associated with unplanned health care events need to be part of the financial planning process to guard against negative impacts to an investment portfolio or retirement income plan in the event of a catastrophe.
The lifetime credit shelter trust offers a way to lock in the benefits of the increased lifetime gift exemption of $5 million per person, as provided in the Tax Relief Act of 2010, without giving that much away immediately. One spouse can set up the tax-sheltered trust for the other without paying any gift tax, or they each can set up a trust of as much as $5 million for each other.
Modern dynasty trust laws, such as those in South Dakota, provide the settlor with the flexibility to deal with uncertainty while maintaining the benefits of intergenerational planning. Directed trusts, trust protectors, special purpose entities and other state statutory trust provisions provide the flexibility that has made the modern dynasty trust a popular planning tool for 2011 and beyond.
The 2010 Tax Act reinstated the gift, estate and generationskipping transfer taxes that were repealed earlier in 2010. The reinstatement comes with increased transfer tax exemptions and favorable rates for 2011 and 2012. Consequently, the opportunity for making new or additional gifts to trusts has never been more favorable.
Expected changes in gift, estate, and generation-skipping taxes after 2012 has led many families and advisors to conclude that 2011-2012 presents a valuable, two-year window of opportunity to update estate plans. However, certain developments suggest the best results may be obtained by acting sooner rather than later.
This paper provides answers to such questions as what is an intentionally defective irrevocable trust; what is meant by defective; when is this type of trust appropriate; how does an installment sale to an intentionally defective irrevocable trust work, and what are the tax considerations?
The increase in the lifetime gifting limit, combined with the temporary nature of the current estate and gift tax law, open a window of opportunity for wealth transfer. Leveraged gifts can safeguard the benefits of this situation by compressing the value of the gift for tax purposes while amplifying the impact of the wealth transfer.