Here's a brief glance at what you'll find in the September/October issue...(see PDF link below)
Pension payouts: What's the best option?
One tough decision that retirees face is choosing the best option for receiving payouts from a pension plan. Would a lump-sum payment be the best option, or would it be better to go with an annuity? If the latter, is it better to go with single life or joint life? What about combining a single-life pension payout with a life insurance policy? As this article explains, the answers depend on such factors as the beneficiary's and spouse's actuarial life expectancies, current health conditions and family medical histories, along with current financial needs and the possible desire to provide a spouse with a continuing source of current income. A sidebar shows how a breakeven analysis can assist the decision-making process.
Shopping for tax savings
Relocating a trust to a tax-friendly state
If a trust is subject to high state income taxes, it may be possible to change its residence - or "situs" - to a state with low or no income taxes. But not all trusts are the same - nor are state laws. This article explains which types of trusts may be good candidates for relocation, along with the factors that states use in determining a trust's state of "residence" for tax purposes. It also discusses the steps involved in moving a trust.
Take care of a loved one who has special needs with an SNT
Special needs trusts (SNTs) benefit children or other family members with a disability that requires extended-term care or that prevents them from being able to support themselves. This trust type can provide peace of mind that a loved one's quality of life will be enhanced while not disqualifying him or her for Medicaid or Supplemental Security Income (SSI) benefits. This article examines what an SNT can and cannot pay for, and explains the language that it should contain to ensure it doesn't disqualify the beneficiary from government benefits and will protect the assets against creditors' claims.
Estate Planning Red Flag: You have an interest in or authority over a trust that holds foreign accounts
During the last few years, the IRS has stepped up its enforcement of the Report of Foreign Bank and Financial Accounts (FBAR) rules. To discourage taxpayers from hiding foreign accounts, these rules require U.S. citizens, residents and entities to file annual returns disclosing financial interests in, or signature authority over, foreign bank and investment accounts with an aggregate value of more than $10,000. This article explains who is subject to FBAR reporting requirements and the kinds of interests that must be disclosed.