5 IRS Penalties You Want to Avoid8 Tax Terms You Should KnowThe Gift Tax Made SimpleAre Political Contributions Tax Deductible?Estates and Trusts More in Estates How Can I Protect My Inheritance From Taxes?The Gift TaxThe Gift Tax Made SimpleWhat is a Schedule K-1 Form 1041: Estates and...
Traditional estate planning tools, including trusts; Comments from estate-planning lawyer and accountant James Lange, regarding the use of an immediate annuity instead of a spendthrift trust; Recommendations for individuals who still own life-insurance; What individuals can do to avoid costly probate, ...
Trusts are subject to certain taxes, however, including the Inheritance Tax Periodic Charge, which is payable every ten years following the creation of the trust. Although this charge is 6%, loopholes are used to avoid these charges, usually taking the form of a relief put in place to protec...
You can set up a CLAT during your lifetime or at your death. Both corporations and individuals may establish lead trusts, which is useful when you need to take appreciated assets out of a business tax free. If you are the beneficiary, then you will receive an immediate and sizeable income...
Some types of trusts help minimize taxes or qualify for government benefits. How does a trust work Here’s an overview of how a trust works, which may not be as complicated as you think: Create a trust agreement The trustmaker, called thegrantor, trustor, orsettlor, creates the trust by...
Trustees play an important role in the administration of trusts. So it is essential to choose someone qualified and capable of handling the task. It is also important to note that you do not have to limit your choices. In some cases, it may be advisable to name a possible successor in ...
While this type of trust protects assets from estate taxes on the death of the first spouse, the assets don’t become part of the surviving spouse’s estate, so they’ll be subject to taxes upon that spouse’s death. Qualified terminable interest property trusts ...
Traditional estate planning tools, including trusts; Comments from estate-planning lawyer and accountant James Lange, regarding the use of an immediate annuity instead of a spendthrift trust; Recommendations for individuals who still own life-insurance; What individuals can do to avoid costly probate, ...
Using Life Insurance Trusts to Avoid Taxation A second way to remove life insurance proceeds from your taxable estate is to create anirrevocable life insurance trust(ILIT). To complete an ownership transfer, you cannot be the trustee of the trust and you may not retainany rights to revoke the...
A gift in trust is a viable method to avoid taxes on gifts that exceed the annual gift tax exclusion limit. Gift givers can give gifts in excess of the annual exclusion without paying taxes by establishing a special type of trust, such as aCrummey trust. A gift to a Crummey trust allows...