Tax Relief act provides temporary certainty for your estate plan

In recent years, estate planning has been a challenge. The recently enacted Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 provides welcome certainty in regard to estate planning, but only through 2012. This article looks at the estate tax regime that has been in effect since 2001, and how the new Tax Relief act affects it. A sidebar chart lists the specific exemptions and rates in effect for 2009 through 2013 for gift, estate and generation-skipping transfer (GST) taxes.
Full Article

3 postmortem strategies that add flexibility to your estate plan

In recent years, estate planning has been complicated by uncertainty over the future of the federal gift and estate tax regime. But even when estate tax rates and exemption amounts are predictable, changing family circumstances make planning a challenge. Fortunately, there are several postmortem strategies a family can use to ensure that the deceased’s wishes are carried out. This article takes a closer look at three such strategies: disclaimers, spousal right of election and QTIP trust.
Full Article

Can a SCIN allow you to reach estate planning goals?

When creating or revising an estate plan, it’s important to consider the status of one’s health, because life span can affect certain strategies. Someone in good health doesn’t have to worry too much about the mortality risk inherent in, say, a grantor retained annuity trust. But someone whose health is on the decline and thinks they won’t reach their actuarial life expectancy should consider looking for alternatives with less mortality risk. This article considers a self-canceling installment note (SCIN) as an option.
Full Article

Estate Planning Pitfall — You’re unsure whether life insurance proceeds will be tax free

Typically, proceeds from life insurance policies are income tax free. The bigger risk is that life insurance proceeds will be subject to estate taxes. This brief article discusses how having an irrevocable life insurance trust (ILIT) hold the policy can be a highly effective way to avoid estate taxes on life insurance proceeds.
Full Article