Blogs

Estate Planning

Valuation Discounts

Based largely on comments made by an IRS representative at a tax conference earlier this year, the IRS has signaled the likelihood of new rules designed to curtail the use of valuation discounts to leverage a taxpayer’s gift tax exemption in situations where assets are transferred to or for the benefit of family members. The comments indicated these rules would likely be issued this fall. The impact of leveraging through discounts can be dramatic. Gifts are valued based on the “fair market…

November 7, 2015

Tax Law

Obama Proposes Changes to Federal Tax Policy

In his State of the Union Address on January 20, the President outlined changes he would like to see made to federal tax policy. Among his proposed changes, President Obama suggested closing the stepped up basis “loophole” and increasing the top tax rate on capital gains and dividends from 23.8 percent to 28 percent. If such proposals become law, this could have major impacts on mid- and high-income Americans and their families. Currently gifts made at death receive a favorable “step up in…

February 2, 2015

Estate Planning

Estate Planning Questions: Naming a Beneficiary to your Accounts

Why not just add a child or loved one to your accounts? We often see instances where an elderly parent has added the name of a child or other loved one to their bank accounts, CDs or brokerage accounts. Normally the elderly individual is looking for a simple way to allow someone else to help manage their finances. When pressed, we often determine that it was not the intent of the older individual that the account would pass to a single individual, but rather that the person would manage the…

December 3, 2014

Estate Planning

Looking for a New Acronym? Try QLAC

What’s a QLAC? Effectively, it is a Qualified Longevity Annuity Contract that’s owned by a traditional IRA or 401K plan. Why is this important and what is a “Qualified Longevity Annuity Contract”? Longevity annuities provide income starting at a future date. As a number of commentators have pointed out, most retirees are not worried about retirement in their early years because they will have assets in their retirement account, but they’re often worried about whether or not their traditional…

December 3, 2014

Estate Planning

Managing Your Online Presence after Death

As we become an increasingly technology-dependent society, so much of what we do is online. Between email, Facebook, photos, music and documents stored online or in the cloud, most of us will have built a considerable online presence when we die. This raises the questions, what should happen to our online assets? How should they be managed? Traditional estate planning addresses tangible personal property, real estate, bank accounts and even intangible personal property such as stock…

December 3, 2014

Estate Planning

New Investment Thinking for Trustees?

Traditional trust investment strategies often emphasize preserving assets through cautious, low-volatility investing, but that approach may not always best serve beneficiaries over time. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts and Estates Newsletter, Jonathan C. Kinney and Jennifer O. Schiffer examine whether trustees should rethink conventional investment models and consider more growth-oriented strategies when managing trust assets. The piece explores how…

August 4, 2014

Estate Planning

Thinking of Moving to Florida? Maybe a Little Further South is a Better Option

Puerto Rico’s tax laws can offer substantial advantages for certain individuals and business owners willing to relocate, but those benefits depend on meeting strict residency and income-sourcing requirements. In this Bean, Kinney & Korman article, Jonathan C. Kinney and Samuel J. Banks explain how Puerto Rico’s Act 20 and Act 22 incentives may reduce taxes on active income, passive income, and certain capital gains for qualifying residents. The piece walks through the practical legal standards…

August 4, 2014

Estate Planning

A Contrarian View on Bypass Trusts

Bypass (or credit shelter) trusts have long been a cornerstone of estate planning for married couples seeking to maximize estate tax exemptions, but changes in federal law have shifted that analysis. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts & Estates Newsletter, Jonathan C. Kinney explains that the introduction of portability—allowing a surviving spouse to use a deceased spouse’s unused estate tax exemption—reduces the necessity of bypass trusts in many cases.…

May 12, 2014

Estate Planning

Estate Planning for Your Eighteen Year Old: What You Need to Do Now May Surprise You

Turning eighteen creates an immediate and often overlooked legal shift: parents lose the automatic authority to access medical, financial, and educational information or make decisions on behalf of their child. This Bean, Kinney & Korman article explains that even if a young adult has minimal assets, basic estate planning documents are still essential to avoid gaps in authority during emergencies. The analysis highlights practical tools such as healthcare directives, powers of attorney, and…

May 12, 2014

Estate Planning

Getting More Out of Trusts: The Total Return Unitrust

Traditional trust structures often rely on income-based distributions, which can create tension between current beneficiaries who rely on income and remainder beneficiaries who depend on long-term growth. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts & Estates Newsletter, John M. Bryan explains how the total return unitrust offers a modern alternative by tying distributions to a fixed percentage of the trust’s overall value rather than the income it generates. This…

May 12, 2014