Below a brief glance at what you’ll find in The Estate Planner November/December 2014.
The Sec. 1031 exchange: A powerful estate planning tool
Now that the combined gift and estate tax exemption amount has topped $5 million ($5.34 million in 2014), many people planning their estates have turned their attention to income taxes. If you own highly appreciated business or investment real estate, one of the most effective tax strategies at your disposal is the Section 1031 “like-kind” exchange. With careful planning, you can use a Sec. 1031 exchange to defer capital gains taxes on appreciated property indefinitely, and even eliminate them permanently.
Should a trust’s beneficiary also be its trustee?
It’s likely that your estate plan includes one or more trusts. Do you know your options when choosing a trustee? Generally, from an asset protection standpoint, it’s ideal to name an independent, professional trustee. However, in some instances, it’s desirable to name the trust’s primary beneficiary as trustee.
Making charitable gifts with a CRT
If you’re philanthropically inclined but somewhat reluctant to make large gifts because of possible cash-flow problems, a volatile stock market or unsettled tax laws, a charitable remainder trust (CRT) may be worth consideration.
Estate Planning Red Flag: You believe all inherited IRAs are protected from creditors in bankruptcy
Until recently, it was widely believed that inherited IRAs, like other IRAs, are protected from creditors in bankruptcy. But in a June 2014 decision the U.S. Supreme Court held that an IRA inherited by the owner’s daughter was not.