Category

Guides & Whitepapers

intra-family loans

Intra-Family Loans

By Guides & Whitepapers
One of the most flexible and powerful gifting techniques is to loan money to other family members, especially in a period of low interest rates. The reason intra-family loans work is simple: on average, the person receiving the loan should be able to invest the money received in a way that produces a rate of return greater than the interest rate on the loan. Thus, when the borrower returns the loaned money at the end of the loan’s term, he will be able to keep this excess return. Because the money was loaned, and not gifted, this excess is tax-free,…
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creating trust

What to Consider When Creating a Trust

By and Blog, Guides & Whitepapers
You’ve decided to create and fund a trust as part of your overall estate plan. Now, you will need to make decisions that impact who controls the trust, how and when beneficiaries receive trust distributions, and how the trust is taxed. When creating a trust, here are the basic questions you will need to answer: Who are the beneficiaries? A trust can be for a single beneficiary or for multiple beneficiaries (often called a “pot trust”). Sometimes, a pot trust is created for a period of time, and then splits into separate shares at a later date. E.g., mom creates…
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finances divorce

Organizing Finances Before, During, and After Divorce

By Blog, Guides & Whitepapers
Most people don’t begin their marriage expecting it to end in divorce. For those who are ending a marriage, having a sound financial plan can help keep you organized during the divorce process and help you plan for your financial future after the divorce. Getting Organized You will need to gather important documents to start the divorce process. Both parties will have to complete a sworn statement of their income, expenses, assets and liabilities. This document, which is filed with the court, shows the divorcing couple’s financial situation and is what the judge will use to determine alimony and child…
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IDGT

What is an Intentionally Defective Grantor Trust (IDGT)?

By Guides & Whitepapers
Intentionally Defective Grantor Trusts (“IDGTs”) are a commonly used estate planning vehicle to transfer wealth to family members during the life of the grantor. In this White Paper we will explore the four tax types relevant to IDGTs, and the mechanics of how IDGTs work. The use of the phrase “intentionally defective” is confusing, but it simply refers to an irrevocable trust where the grantor pay the trust’s income tax bill during his or her life. What taxes relate to an IDGT? There are four types of taxes to consider: estate, gift, generation-skipping transfer (GST) and income. An IDGT allows…
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impact investing

Impact Investing: Why it Matters for Investors

By Guides & Whitepapers
Impact Investing has continued to gain popularity with investors across the globe. In this whitepaper, Managing Director Glen Macdonald and SVP Lauren Martin explain what it is, why it is important to investors, and how it can be integrated into your financial plan. Impact investing is on the rise among investors around the world, so much so that The World Economic Forum, Barron’s and leading Wall Street money managers alike have all pronounced that “impact investing has gone mainstream.” This view is backed by evidence of growing demand among investors: at the beginning of 2018, assets under management in the…
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medicare

Everything You Always Wanted to Know About Medicare

By Guides & Whitepapers
Medicare: The Basics Medicare is the Federal health insurance program for people ages 65 and older. The program helps pay for various medical expenses including hospital stays, physicians, prescription drugs, and more. The number of people enrolled in Medicare has tripled since 1970, climbing from roughly 20 million in 1970 to 60 million today, and is projected to reach almost 90 million in another 30 years. A common misconception about Medicare is that it is self-financed through premiums paid by current beneficiaries and payroll taxes by future beneficiaries. Unfortunately, payroll taxes and premiums only cover about half of the programs…
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social security

Social Security Optimization – What You Should Know

By , and Guides & Whitepapers
It is no secret that many Americans are ill prepared for retirement (excluding our clients, of course). With the continued disappearance of defined-benefit pension plans (apart from public sector employees), inadequate savings, and low interest rates, people are depending on Social Security now more than ever before. Despite these facts, billions of dollars in lifetime benefits are lost each year because retirees make uninformed decisions about claiming Social Security benefits. This white paper will discuss various concepts to consider in order to help maximize lifetime Social Security benefits. Regardless of whether you feel Social Security will be a major factor…
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long term care

Defining your Objectives for Long-Term Care

By Guides & Whitepapers
Americans are living longer and healthier lives than at any other time in history. Average life expectancy in the US is 78.7 years and continues to rise. For those without chronic illness, it is realistic to plan to live well into the 90’s. Longer lifespans come with a higher likelihood that aging adults will eventually need some sort of help with the daily functions of living. In fact, 7 out of 10 will need help in some form – either from a family member or a paid caregiver – and 9 out of 10 who receive that care will not fully recover their…
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tax cheat sheet

Federal Estate, Gift and GST Tax Cheat Sheet (2019)

By Guides & Whitepapers
2019 Federal Estate, Gift and GST Tax Cheat Sheet Below is a summary of the current federal estate, gift and generation-skipping transfer tax provisions for 2019. Note that, under current law, the increases in exemption amounts that began in 2018 are set to expire in 2026, at which point they will revert back to the pre-2018 numbers (i.e., $5,490,000 per person, indexed for inflation). Gift and Estate Tax Exemptions Single: $11,400,000 Married: $22,800,000 Rate: 40% Gift Tax Exemption Single: $11,400,000 (unified with estate tax exemption) Married: $22,800,000 Rate: 40% Annual Exclusion Amount: $15,000 Exclusions for medical and educational expenses Generation-Skipping…
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tax

State Estate and Gift Tax Cheat Sheet – NY, CT, NJ and CA (2019)

By Guides & Whitepapers
2019 State Estate and Gift Tax Cheat Sheet States vary in whether and how they tax transfers of property.  A gift tax is imposed on property transferred while the donor is still alive.  Estate taxes are imposed on the transfers of property after the decedent’s death.  Below is a summary of certain estate and gift tax laws applicable to New York, Connecticut, New Jersey and California residents. New York Gift Tax: No. Estate Tax: Yes. Rate: Top rate is 16%. Exemption Amount: Currently $5,740,000. The gift and estate taxes are unified, but subject to "cliff" for taxable estates in excess…
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