Latest Updates

1. The Year End Review
Like Janus, the two-faced Roman god who lends his name to January, an annual review looks both backward and forward. Backward, to events of the past year that affect planning for the coming year; forward, to the plan itself.
2. Economic Downturns and Estate Planning
Families with declining asset values may need to revisit the assumptions made in their estate plans.
3. The Heart of an Estate Plan
Developing an estate plan involves more than understanding the tax laws. The heart of an estate plan is the proper coordination of a clients financial resources with his or her needs and objectives.
4. Tax Evasion v. Tax Avoidance
The final sales push of the year is a good time to remind ourselves of the reliable and powerful tax benefits of life insurance. But first, a few words on the propriety of minimizing taxes.
5. Final Regs Issued on EOLI Reporting Requirements
The IRS has issued final regulations, without substantive change from the temporary regulations, addressing the information reporting required on EOLI contracts.
6. Pension Plan Limitations for 2009
On October 16, 2008 the Internal Revenue Service announced cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2009.
7. Passing It on from the Inside Out
The process of managing family dynamics within an exit plan should seek to maintain respect and trust, where each family member must have an understanding of their own and other family members’ strengths and struggles.
8. President Signs the Emergency Economic Stabilization Act of 2008
While the new law’s primary purpose is to address the credit crises, it also makes many changes to the Internal Revenue Code.
9. The Transferors Basis Exception to the Transfer For Value Rule
The transferors basis exception provides that the transfer for value rule does not apply where the transferee`s basis in the policy is determined in whole or in part by reference to its basis in the hands of the transferor.
10. Limited Tax Credit for Homebuyers
Certain homebuyers may be able to take advantage of a new tax credit included in the recently enacted Housing and Economic Recovery Act of 2008.
11. The Del Boca Vista Widow
The spread of financial literacy means that planners have to work harder and think smarter. Leveraging the GST exemption is one of the most powerful tools available for this purpose.
12. Fifty-one Flowers: Current Perpetuities Law in the States
There is more variation in perpetuities law among the states than at any previous time, and this unprecedented variation presents risks and challenges for estate planners.
13. IRS Issues Final Regs for Valuation of Annuity Contracts in Roth IRA Conversions
Among the most important considerations in deciding whether to convert a traditional IRA to a Roth IRA is the amount that is includible as a result of the conversion.
14. Waiver of the 60-Day Tax-free Rollover Requirement
Does the accumulated experience of rollover waiver letters give us any basis for predicting how likely a particular client’s request is to be approved? Some situations are more favorable than others, and allow us to suggest some guidelines.
15. Charitable Gifts Of Life Insurance - Part I
The utilization of life insurance in plans for charitable giving can provide substantial tax benefits, while satisfying the taxpayer`s philanthropic inclinations and providing meaningful benefits to charitable organizations.
16. Charitable Gifts Of Life Insurance; Planning Ideas - Part II
Part II discusses planning ideas for prospective donors. Financial advisors who work with this market have often found a rich vein of new business.
17. Long-Term Care Insurance—A Desirable, Tax-Advantaged Employee Benefit
With mass retirement looming for the baby boom generation just as their projected lifespans lengthen, employers are well advised from the human resources point of view to consider making long-term care (LTC) insurance available to their employees.
18. The Just Enough Funding Technique: An Innovative New Strategy
The just enough funding technique is designed to meet a married couples estate planning objective of funding a credit shelter trust at the death of the first spouse to die only to the extent necessary or desirable to avoid estate tax at the second death.
19. Cancellation of Policy Subject to Loan Can Generate Taxable Income
The Atwood case underscores the painful income tax consequences which can accompany the lapsing or cancellation of a life insurance policy whose cash value has previously been substantially depleted through policy loans.
20. U.S. Estate and Gift Tax Consequences for Non-U.S. Citizens
A decedent who at the time of death was not a resident or citizen of the United States, may nonetheless be subject to U.S. estate tax if at the time of death he or she owned property in the United States.
21. Practical Succession Planning for the Family-Owned Business
An effectively developed succession plan provides for a smooth transition in management and ownership with a minimum of transfer taxes.
22. Power of Appointment for Future Flexibility
Powers of appointment are a valuable tool in estate plans, because they allow for future flexibility in the ultimate disposition of the donors property which is placed in a trust.
23. Crummey Powers And The Code Section 2036 Tax Trap
The discussion illustrates how easily a couple might fall into the 2036 tax trap, even while engaging in otherwise sophisticated tax saving estate planning techniques.
24. Rights Of Creditors In Insurance
If there were no insurance exemption from the claims of creditors, the purpose for owning insurance would be undermined. The financial security of an insured`s dependents would depend upon whether the insured was solvent or insolvent at the time of death.
25. Minors as IRA Beneficiaries: Help Your Clients Do It Right
Under common law minors cannot own property in their own names. This does not mean that a minor cannot inherit an IRA or be designated as the beneficiary of an IRA; it means that their are special considerations.
26. Rev Proc 2008-24 Finalizes Guidance on Partial Exchanges
What happens if only a portion of an existing annuity contract is exchanged for a new contract, while the balance of the original contract is retained? Is it a qualified exchange transaction under §1035?
27. Hedging Estate Tax Uncertainty with ILITs
The unique characteristics of life insurance make an irrevocable life insurance trust a unique hedge against both tax uncertainty and the contingency of mortality.