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Guides & Whitepapers

Sep 18 2020
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education planning fafsa

How Savvy Investors Plan for Education Expenses (2020 Update)

By and Guides & Whitepapers
There is a changing reality for many parents: that advanced planning and a long-term strategy for financing a child’s education are becoming more of a necessity than a luxury, even for families of significant means. Education funding is one of the largest expenditures most American families will undertake, and costs continue to grow, far outpacing inflation. Today, average costs for just tuition and fees, not including room and board, exceed $36,880 per year for private schools, and $10,440 for in-state residents (or $26,820 for out-of-state residents) attending public schools. Funding four years of college, or potentially more, requires forethought, and…
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Sep 09 2020
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sell business

Preparing to Sell Your Business: How to Optimize the Sale and Transition

By Guides & Whitepapers
We’ve worked with entrepreneurs over the years who have poured their hearts and souls into their businesses. And when the time is right, many consider selling their company. Planning ahead can allow an entrepreneur to take steps to increase the value of their business. It can also help them to sell at the right time – when the price they can get for their business is optimal or before health issues or other problems might force them to sell. While many business owners understand that a transition plan is important, 43% have no plan in place and 80% do not…
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Jun 12 2020
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executors trustees guardians

Choosing Executors, Trustees, and Guardians for Your Estate Plan

By Guides & Whitepapers
Who would you trust to take care of your children if something happened to you? Who would you trust to manage their finances? Who in your life would be capable of administering your estate if you pass away? For some fortunate people, the answers to these questions are clear. For many others, however, answering these questions is far from easy. When clients are crafting or revising their estate plans, there are a lot of questions to answer and a lot of decisions to make. As a starting point, we suggest that clients start the planning process by considering the people…
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May 07 2020
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mortgage invest estate plan

Estate Planning 101

By Guides & Whitepapers
The purpose of this white paper is to provide you with an overview of estate planning basics. Establishing or revising an estate plan first and foremost involves making a series of decisions, some of which can be daunting. We hope the information below serves as a useful guide during this process. What is an estate plan and why do I need one? Contrary to popular belief, estate planning typically involves more than just signing a Will. It generally involves two sets of considerations: lifetime planning and testamentary planning. Lifetime planning may involve choosing decision-makers to make health or financial decisions…
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Apr 08 2020
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charitable remainder trust

Charitable Remainder Trusts (CRTs)

By Guides & Whitepapers
What is a Charitable Remainder Trust (CRT)? It is a trust where non-charitable beneficiaries (usually the grantor and grantor’s spouse) receive payments at least annually during their lives or for a number of years, and a charity receives the trust assets remaining at the end of the trust term. A charitable trust is also referred to as a “split interest trust”. This is because the beneficial interests in the trust are “split” between the initial non-charitable beneficiaries and the charitable beneficiaries that receive what remains at the end of the trust term. We will refer to the initial non-charitable beneficiaries…
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Mar 11 2020
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intra-family loans

Intra-Family Loans: A Powerful Gifting Strategy

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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Feb 26 2020
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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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Feb 04 2020
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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 process and help you plan for your future after. Here's how to organize your finances before, during, and after 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…
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Jan 27 2020
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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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Jan 15 2020
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tax cheat sheet

2021 Federal & State Estate and Gift Tax Cheat Sheet

By and Guides & Whitepapers
Here we have provided a “cheat sheet” to keep in mind for 2021 federal estate, gift and GST exemptions, as well as exemptions and inheritance tax consequences in specific states where a number of our clients reside. Federal Estate, Gift, and GST Tax Below is a summary of the current federal estate, gift, and generation-skipping transfer tax provisions for 2021. 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…
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