Special needs trusts: Not just for the needy

If a child or other family member has a disabling condition requiring long-term care or that prevents them (or will prevent them) from being able to support themselves, a special needs trust (SNT) might be in order. Also known as a supplemental needs trust, an SNT can enhance a family member’s quality of life without jeopardizing his or her eligibility for government benefits, such as Medicaid or Supplemental Security Income (SSI). This article describes what the trust does and the considerations involved in setting one up; it also describes an option for beneficiaries who have too much money to be eligible for Medicaid or SSI. A sidebar describes what can be done if a trust has Crummey withdrawal powers that render a beneficiary ineligible for government assistance.
Full Article

All in the happy blended family — Consider a QTIP trust or ILIT when estate planning for a blended family

No one said estate planning is easy, and this is especially true with a blended family. The good news is that there are two trust types — a qualified terminable interest property (QTIP) trust and an irrevocable life insurance trust (ILIT) — that can provide for children from a previous marriage while also taking care of one’s current spouse and any children from the current marriage. There are pros and cons to each option.
Full Article

Now’s the time to revisit your buy-sell agreement

This is a good time for owners of closely held businesses to review their buy-sell agreements, particularly their valuation provisions. The economic crisis has been tough on everyone, and many business owners have seen the value of their shares decline. If a buy-sell agreement’s terms don’t reflect current conditions, the interest may be priced too high. And this can result in higher estate taxes and hurt the business or its surviving owners. This article describes the benefits of a buy-sell agreement, but also warns against relying too casually on standard valuation formulas.
Full Article

Estate Planning Pitfall — You plan to take a retirement distribution later this year

Those who have retirement plans such as IRAs and 401(k)s must take required minimum distributions (RMDs) when reaching age 70½. This is a problem for those whose assets have taken a tumble during this recession. In response, recent legislation has allowed a suspension of this requirement for 2009, thus giving account holders a little more time to rebuild their assets in these tax-deferred vehicles.
Full Article

2009 Tax Deadlines

September 2009
15 – Corporation Extended Income Tax return due
        Trust & Partnership Extended Income Tax return due     

October 2009
1 – SIMPLE IRA Plan Establishment Deadline
15 – Third Quarter Estimated Taxes Due
        Individual Extended Income Tax return due
20 – Third Quarter Minnesota Sales Tax due
31 – Employer’s Quarterly Payroll Tax return due
        Federal Unemployment Tax return due

For additional deadlines throughout the year, click here.