Can a condominium ban smoking inside units?
There’s a growing trend among condominium owners to ban smoking – not just in common areas, but inside individual units and in outdoor areas as well. Bans on smoking in common areas have been around for years. But a ban on smoking in individual units is a relatively new idea – and there are many […]
‘Family LLC’ saves a family $14million
A family-owned limited liability company saved a family $14 million in taxes, in the latest ruling from the U.S Tax Court on this technique. With a family LLC, parents create a company and fund it with valuable assets. Then they give their children ownership interests in the LLC. Giving these interests triggers less gift tax […]
Do you want your trust to benefit your heirs’ surviving spouses?
An heir to the Johnson & Johnson fortune created a trust to benefit four children. The trust was set up so that it would provide money to charity for a period of years, then be distributed to the four children and their spouses. By the time the distribution came around, one of the children (named […]
Loan to family business could trigger higher estate tax
From 1997 to 2003, a family could take an estate tax deduction of up to $675,000 if more than half of the estate property consisted of interest in a family business. This law is scheduled to go back into effect in 2010, so it’s wise to be aware of it. In particular, you should be […]
Children who inherit a 401 (k) can roll it over into a Roth IRA
The IRS has given families a little more flexibility in handling a 401 (K) and pension plans. According to an IRS announcement, children who inherit a 401 (k) or pension plan can now roll it over directly into a Roth IRA. Before, a spouse who inherited a 401 (k) or pension plan could roll it […]
Low Interest Rates create golden estate planning opportunity
The recent dip in interest rates has created a golden opportunity to save taxes while giving income-producing assets to your heirs. You can do this with a “grantor retained annuity trust,” or GRAT. It allows you to continue receiving income from the property for a number of years, and you can then give it to […]
Glitches on credit card receipts are getting companies in trouble
A new federal “identity theft” law prohibits merchants from printing more than the last five digits of a credit or debit card number on a customer’s receipt. The law is triggering a lot of class-action lawsuits against companies that haven’t updated their receipt systems. For instance, many companies still print credit card expiration dates on […]
Good news for shareholders in closely-held corporations
Shareholders in closely-held corporations have won an important estate tax battle with the Internal Revenue Service. The issue is how to place a value on a corporation that has a lot of “built-in” capital gains-meaning that if the company’s assets were liquidated, it would owe a hefty capital gains tax. In this case, a man […]
Six Ways to accidentally disinherit your children
It’s hard to imagine that someone could accidentally disinherit their own children, but it happens all the time to people who don’t regularly update their estate plan. It’s important to update your estate plan with a professional every few years, or whenever there is a significant change in your circumstances or in the tax laws. […]
Does your college student need a will?
When you send your son or daughter off to college, the last thing you’ll probably think of getting for him or her is a will. But there are a few simple legal documents that any young adult should have. Getting them takes a short time, and is definitely worth the effort. One such document is […]