Generation Skipping Transfer Tax

Generation Skipping Transfer Tax

For high net worth individuals, estate taxes can be hefty. In the past, one strategy to reduce estate taxes was to “skip” a generation of heirs. But many people are unaware of an additional tax that could apply when transfers are made to their descendants. The generation-skipping transfer tax (or GSTT) is a federal tax on gifts and inheritance above the estate/lifetime gift exclusion. This tax prevents you from deliberately […]

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Offshore Bank Account Attorney

Offshore Bank Account Attorney

Offshore banking is a popular choice for individuals who are accumulated significant assets. Keeping these funds  in countries such as the Cayman Islands, Switzerland, or the British Virgin Islands can provide more protection than the U.S. domestic banking system. This is due to the more favorable tax laws in these jurisdictions. There are additional reasons for offshore banking in specific countries as they often offer better business environments, beneficial legal […]

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2022 Tax Changes That HNWI Should Plan Ahead For

2022 Tax Changes That HNWI Should Plan Ahead For

President Biden’s budget proposal includes a number of provisions that would enact campaign promises. If passed, it will result in key 2022 tax changes of interest to those holding significant wealth. Specifically, the proposal aims to end some of the exemptions and deferrals instituted in the Tax Cuts and Jobs Act, many of which applied to higher net worth individuals. One potential law, Build Back Better, is off the table […]

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Proactive Strategies for HNWI with Rising Tax Rates on The Horizon

Proactive Strategies for HNWI with Rising Tax Rates on The Horizon

In May of 2021, the U.S. Treasury released, “General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals.” Also known as the “Green Book,” this document provides a detailed account of the Biden Administration’s proposed tax changes beginning in 2022. With regard to tax planning for HNWI (High Net Worth Individuals), the proposal includes plans to tax the wealthy at higher rates beginning either January 2022 or possibly retroactively to […]

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How to Deposit Money into an Offshore Bank Account

How to Deposit Money into an Offshore Bank Account

Setting up an offshore account is one way to protect your assets from creditors and frivolous lawsuits. Establishing an offshore bank account in certain countries, such as Switzerland and the Cayman Islands, is also one of the tax strategies utilized by wealthy folks looking to avoid the heavy taxation system in the U.S. Account holders are required to obey U.S. tax laws by reporting information about the account and declaring […]

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$10M Gift Tax Exemption Rules

$10M Gift Tax Exemption Rules

Under a 2016 federal law, the per person gift and estate tax exemption amount was set at $11.58 million. As of 2021, a single person is now permitted to give gifts of up to $11.7 million during their lifetime without incurring any tax liability. Upon their death, the total amount of gifts they have made during their lifetime will be subtracted from $11.7 million to determine how much of their […]

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Estate Planning Before the 2024 Election

Estate Planning Before Elections

Every four years the lead-up to the presidential election ignites serious discussion about potential changes to estate planning laws. Presidential politics are generally quite different between the two major parties, and once in office, both are eager to implement laws that reflect the ideological differences between them. This is aptly demonstrated by the party’s approach to protecting and passing down wealth. Traditionally, Republican candidates advocate financial policies that favor issues […]

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IRC SEC. 1031 Exchanges on Hit List Under Proposed New Tax Laws

IRC SEC. 1031 Exchanges on Hit List Under Proposed New Tax Laws

Contact Your Congressmen and Senators Clients and Colleagues, I am reaching out to inform you that there is a particularly unfavorable proposal being considered relative to Real Estate investing. The Bill being considered would cap the amount of a 1031 exchange to a maximum deferral of $500,000 of gain. This will effectively repeal 1031 exchanges for commercial real estate. This could certainly curtail the number of sellers in the market, making it […]

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The Sanders 99.5% Act's Estate Tax Proposal

The Sanders 99.5% Act’s Estate Tax Proposal

Use it or Lose it: The Sanders 99.5% Act’s Estate Tax Proposal On March 25, 2021, Senator Sanders and the Whitehouse formally proposed a bill which would make changes to the current estate and gift tax system. This bill apparently has some support among Democratic Senators and Congressmen. While it is the hope of many that this proposed law will not be enacted, it seems best to “plan for the […]

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Big Changes to Trust Taxation Part II

Part II – Big Changes to Trust Taxation Could be Coming. Are You Prepared?

Dear Clients, Colleagues and Friends, A number of our readers contacted us to ask what ideas we had to combat this potential change. Here is one potential planning tip that allows you to have your cake and eat it too: With the possibility that the exemption will be reduced during the 2021 year and that it can be effective as of January 1, 2021, some tax practitioners are recommending that the trust receiving the $11,700,000 gift in early 2021 disclaim […]

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