How to give your home to your children and reduce taxes
Parents can give their homes to their children at a substantial tax savings by way of a trust know as a “qualified personal resident trust” (QPRT). In creating a QPRT, parents put their home or vacation home in a trust to give it as a delayed gift (usually to their children) while retaining the right […]
Planned Charitable Giving can take a Bite Out of Taxes
Planned charitable giving can play an important role in estate, gift and income tax planning. Below are some of the more common methods of providing assets to charities. Outright gifts: This is the most common and popular form of charitable gift. A will or revocable trust includes a provision leaving a fixed dollar amount or […]
Families Can Prepay Tuition as a Way to Avoid Gift Taxes
The Internal Revenue Service recently ruled that individuals can prepay tuition of family members at private schools and colleges for a number of years as a way to cut their tax bills. This wealth-transfer technique could be a wise move for people with large estates to deal with soaring education costs and trim their federal […]
Keeping your vacation home in the family
If you own a vacation home and you want it to remain in your family for the continued enjoyment by your children and future generations, you might want to consider some special planning to avoid unnecessary conflict. For example, your estate plan could specifically cover how your vacation home is to be used and maintained […]
Blended Families can Squabble over Inheritance
More and more families have stepchildren as the result of second and third marriages, which has sparked an increase in contested wills around the country. Tension can rise when a family member who holds a family together passes away, often a parent who has children with different spouses. From an estate planning standpoint, perhaps the […]
New Medicaid Eligibility Rules Could Require Changes to Estate plans
The rules on getting help from the federal government to pay for nursing home expenses have been tightened, making it harder for senior citizens to qualify for long term care payments. With the average nursing home stay between two and three years at an average annual cost of $74,000, this could become a daunting financial […]
