How to incorporate retirement benefits into an estate plan

Article Abstract:

Retirement benefits need to be considered when planning an estate because unused benefits are incorporated as assets with income and transfer tax consequences as well as a 15% penalty tax on excess accumulations. The use of a traditional planning formula with a qualified terminable interest property trust and a discretionary credit trust can have negative consequences such as the trust being unable to roll over the funds into an individual retirement account. Also, if the spouse is the direct recipient, the 15% tax can be deferred.

Retirement planning, Transfer taxes

---

Allocating a client's GST exemption most effectively

Article Abstract:

Several planning techniques can maximize the value of the $1 million exemption to the tax on generation-skipping transfers (GSTs), or even protect amounts greater than $1 million. These include dividing a single trust into separate trusts so the GST exemption is not wasted on non-skip persons, making a reverse QTIP election, and allocating the exemption to assets likely to appreciate, such as life insurance. GST planning with charitable lead trusts and planning to avoid the estate tax inclusion period are discussed.

Public Finance Activities, Tax Deductions & Exemptions, Estate Planning, Trusts, Funds, Trusts, and Other Financial Vehicles, Tax deductions, Trusts (Law), Tax exemption, Tax exemptions, Allocation (Taxation), Tax allocation, Generation-skipping trusts

---

Final GST tax regulations make important changes

Article Abstract:

The final generation skipping transfer tax regulations are a significant improvement over proposed regulations issued by Treasury and the IRS. The new regs apply to most generation skipping transfers occurring after 10/22/86, and some occurring before this date. The new regs' definitions of direct skip and taxable distribution, as well as guidance on allocations, valuation and estate tax inclusion issues are discussed in detail.

Similar abstracts:

• Abstracts: Incorporating dynamic efficiency concerns in merger analysis: the use of innovation markets. The misapplication of the innovation market approach to merger analysis
• Abstracts: The new government initiative on trade practices regulation in telecommunications - another failure. A bombshell on unconscionable conduct
• Abstracts: New developments in Mexican transfer pricing law. Proposed regulations on classification of computer software transactions
• Abstracts: IRS provides guidance for SIMPLE IRAs. DOL amends plan asset regulations to accommodate small employers adopting SIMPLE IRAs
• Abstracts: Clothier relies on its in-house rabbi. Her job is mostly fun and games

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.