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Guides & Whitepapers

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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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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medicare

Medicare: Everything You Always Wanted to Know

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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margin borrowing

The Lesser-Known Benefits of Margin Borrowing

By Guides & Whitepapers
It is often surprising to find so few investors and financial professionals that are aware of the possibilities and advantages of borrowing on margin (a practice I will refer to here as “margin”). Some consider margin taboo, or do not have a clear understanding of benefits, risks, drawbacks or mechanics. This will discuss the basics of the margin process for those looking for new ideas to manage cash flow. What is margin and what are the benefits? Margin is the act of borrowing cash from a financial custodian by using current portfolio assets as collateral. The major benefits, if used…
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POAs

Designating Powers of Attorney (POAs)

By Guides & Whitepapers
Selection, Documentation, and Communication Best Practices Most of our clients put Powers of Attorney or “POAs” in place as they age. POAs are legal documents that allow you to name an “agent” (also sometimes referred to as an “Attorney-in-fact”) to act on your behalf for financial or health care decisions, and are key components of any estate plan. We believe POAs are increasingly important beyond your estate plan too. Consider the following examples: Parents of college-aged adult children need healthcare POAs to interact with doctors and be involved with their children’s health care decisions. A business associate needs a non-durable…
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investment letter

Equity Market Volatility and Long/Short Investing

By Guides & Whitepapers
A Portfolio Manager Q&A Special Thanks to Jay Feeney, CFA, Co-Chief Executive Officer & Chief Investment Officer, Boston Partners After a year of unusually low stock market volatility in 2017, 2018 kicked off with far more ups and downs in the market. At the same time, interest rates are rising, albeit from historic low yields. We hosted a discussion with Deputy Chief Investment Officer Dmitriy Katsnelson and Boston Partners Portfolio Manager Jay Feeney to discuss strategies for managing market volatility. Part of this discussion focused on long/short investing, an investment strategy that includes buying investments that are expected to increase…
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estate attorney

Preparing to Meet with Your Estate Planning Attorney

By Guides & Whitepapers
You can streamline the estate planning process by coming prepared to your first meeting with your estate planning attorney. It will be helpful if you have taken some time to consider who you would like to name as guardian, executor and trustee, as well as who you would generally like to inherit your property. In addition, your attorney will ask for some basic information from you in order to best advise you. Below is a list of the information and documents that we recommend you make available to your estate planning attorney. If you are married, you should provide information…
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estate plan checklist

Estate Plan Checkup Checklist

By Guides & Whitepapers
We recommend reviewing your estate plan regularly to determine whether it remains up to date - below is a checklist of some questions to revisit each year. How do I know when to update my estate plan? Who: Consider whether there have been any changes with the people in your life. Have you or your children been married or divorced? Have there been any new births? Has anyone named in your Will died or become disabled? Have you fallen out of touch with anyone named in your Will? What: Consider whether there have been any changes in your personal circumstances…
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