This series provides insights on how estate and trust planners may capitalize on the market’s historically low interest rates, and how high net-worth families could take advantage of trust and estate planning strategies before the new administration takes office in January.

Current estate planning has focused on utilizing a taxpayer’s historically large lifetime exemption because this amount is slated to decrease under the current law in a few years (and possibly sooner by government action). When the exemption has already been used, here are two more planning techniques that will also help the taxpayer benefit from the unusually low interest rate environment.

We are currently experiencing a perfect storm for estate planning – a historically high Federal gift tax exemption coupled with depressed values, largely attributable to the pandemic.  A married couple has the ability to transfer up to $23 million out of their estate with no gift tax payable.  This exemption is scheduled to be reduced by half in five years, or sooner, through new legislation.  While taking advantage of this significant estate planning opportunity is very appealing, many people are reluctant to part with this level of assets.  Fortunately, there is a vehicle which allows for assets to be transferred to a trust, removing them from the estate, while still allowing access if needed.

If you’re charitably inclined, you may wish to consider a charitable gift annuity. It can combine the benefits of an immediate income tax deduction and a lifetime income stream. Furthermore, it allows you to support a favorite charity and reduce the size of your future taxable estate.

Anyone who is married and executed their estate planning documents years ago, when the gift and estate tax exemption was substantially lower, should review their plan to ensure that the increased exemption doesn’t trigger unintended results. It’s not unusual for older estate planning documents to include a “formula funding clause,” which splits assets between a credit shelter trust, which may benefit non-spousal beneficiaries, and the surviving spouse — either outright or in a marital trust.

In a world that is increasingly paperless, many people are becoming accustomed to conducting a variety of transactions digitally. When it comes to one’s Last Will and testament, however, only an original, signed document will do.

Large gifts made last year, such as ones made to children, grandchildren or other heirs, require filing a gift tax under certain circumstances. It is important to determine whether filing a 2018 gift tax return is required – or whether filing one would be beneficial even if it isn’t required.

It may be best to think about estate planning as more of a process than a destination. While families may have an idea of how they want their assets distributed at death, changing circumstances can necessitate making changes to even the best laid plans.

As high net worth individuals enter their retirement years, they may think that the bulk of their financial planning needs are over, when in fact a new phase of financial planning is just beginning. Even though some of these wealthy families may not have to worry about outliving their savings, there are still reasons to periodically review their financial plan.

The Tax Cuts and Jobs Act of 2017 (TCJA) is a sweeping revision of the tax code that alters federal law affecting individuals, businesses and estates. Focusing specifically on estate tax law, the TCJA doesn’t repeal the federal gift and estate tax. It does, however, temporarily double the combined gift and estate tax exemption and the generation-skipping transfer (GST) tax exemption.

Tax Partner E. Richard Baum shares his observations on non-skip beneficiaries.

A few things to consider before making any hasty cancelation decisions

How it can protect the business and the family

Estate planning is critical to generational wealth transfer and preservation strategies.

E. Richard Baum, Tax Partner, touches base on various tax traps for baby boomers such as taxes on municipal bonds, the required minimum distribution and the income level for social security taxability.

If you’re wondering who’s going to make sure your wishes are met after you die, your spouse is likely the first person you should consider.

No one would accuse IRAs of being easy to understand. The retirement accounts seem fairly straightforward on the surface, but they can get complicated, especially after you die.

Anchin Tax Partner E. Richard Baum discusses valuation discounts and how older generations may gift interest in a business to the next generation at less than the full value through buy-sell agreements and cross-purchase agreements funded using life insurance.

In this recorded webinar, Anchin Private Client assembled a panel of professionals to discuss some of the most impactful changes, share insight on common misconceptions and misunderstandings uncovered in our conversations with clients and contacts, and address questions from attendees.

Anchin Partner E. Richard Baum discusses leveraging 529 education accounts, gift tax annual exclusions, gift maximums, the tax benefits of gifting in advance, and other important considerations.

Anchin Partner E. Richard Baum discusses the role of life insurance in planning for the federal estate tax and explores the potential repercussions, should these…

Anchin, Block & Anchin LLP Partner Richard Baum discusses what advisers and clients need to know about lifetime trusts and why they've become more popular with Veronica…

Anchin, Block & Anchin LLP Partner Richard Baum talks about saving for retirement.…

Anchin, Block & Anchin LLP Partner Richard Baum talks about Baby Boomers and Retirement.…

Anchin, Block & Anchin LLP Partner Richard Baum talks about examining and updating your plan. …