The step-up tax adjustment has been under siege for decades but has so far survived the onslaughts. The provision, which reduces capital gains tax for estates, has been controversial since the 1970s. Policymakers would still love to get their hands on the bonanza in tax revenues it represents. There is a counterargument: If the law […]
Trusts
What’s the Story on Gift Taxes?
In brief, the IRS is not imposing a tax on the sweater you gave to Uncle Arnold for Christmas or those Amazon and Visa gift cards you gave your nieces. The IRS only starts taxing gifts when they surpass a certain dollar limit each year and during your lifetime. And gift taxes generally only hit […]
A Close Look at a Trustees Duties
Julius Caesar’s wife was not a trustee, but she was (rather unfairly) expected to act like one. When she rebuffed a man who had tried to seduce her, Caesar divorced her anyway on the grounds that she must never even be suspected of unseemly behavior: “Caesar’s wife must be beyond suspicion.” The highest ethical standards […]
What to Know About Trusts and Taxes
For all intents and purposes, a trust is considered its own entity. Trusts are legal documents, but they are also taxed separately from those to whom the assets within a trust will be distributed. When doing taxes, it is important to understand what to know about trusts and taxes, let’s take a closer look at […]
Incentive Trusts: Can They Work For You?
Incentive trusts, like other trusts, are established by a grantor who names a trustee and funds the trust with the grantor’s assets. The difference between incentive trusts and other trusts is that distributions are made only when a beneficiary achieves certain contingencies — such as attaining a college degree or getting married — that […]
Trust Types, Purposes, and Benefits
A trust allows you to be specific about how, when, and to whom your assets are distributed. Trusts can be arranged for a variety of different goals: to reduce estate taxes, to transfer property, and to preserve assets for minors or a charity. Trusts offer more flexibility than a will to control your assets. You […]
See Larger Map Get Directions