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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Big Changes to Trust Taxation Could be Coming

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

Dear Clients, Colleagues and Friends, One Democratic estate tax policy proposal must be carefully watched when debate on the Biden tax plan begins: the potential changes to the grantor trust rules embedded in the Sanders ‘For the 99.8 Percent Act.’ This proposal would add new Section 2901 to the Code and would change grantor trust taxation in four important ways.  If you, as grantor, formed an irrevocable trust to remove […]

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What you need to know about giving money to your grandchildren

If you are a grandparent, you know the joys only grandchildren can bring. Giving money to your grandchildren seems only natural, whether it is a crisp twenty in a birthday card or a crumpled five for ice cream. However, what about a living trust? Though deciding to secure your grandchildren’s future by leaving them your assets is a noble endeavor, you are certainly being very noble, but what you’ve set […]

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California Estate Gift and Generation-Skipping Transfer Tax Proposal

California Estate, Gift and Generation-Skipping Transfer Tax Proposal

Dear Friends, Colleagues, and Clients, On March 25, 2019, the California Senate introduced Senate Bill No. 378 (SB-378). SB-378 proposes an estate, gift and generation-skipping transfer tax of 40%, an amount equal to the tax imposed at the federal level.[1] This tax would include a lower $3.5 million basic exclusion for individuals and $7 million for married couples (which shall not be adjusted for inflation.) Additionally, the taxpayer is allowed […]

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Client Alert

No Good Deed Goes Unpunished: The Do-Over Trust

1998: You’ve accumulated some sizable estate assets, and you and your lawyer create an irrevocable dynasty trust for your baby son to protect his legacy and provide him a long-term financial safety net. You are a thoughtful and loving parent… 2018: A lot has happened in 20 years. The business world has changed, and the path to independent adulthood lies obscured in your child’s generation’s new definition of success: do […]

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Client Alert

How Will the Recent Tax Changes Affect Your Estate Plan?

There have been a number of recent changes in tax reform that you will want to take into consideration this year. As part of the “Tax Cuts and Jobs Act” signed by the Trump Administration in 2017, there will be new requirements for estate plans starting in 2019. However, for many high-income earners, these changes will likely be given a warm welcome. One of the biggest changes is the exemption […]

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IRS Form 1099

The California Independent Contractor May Have Just Gone the Way of the Dinosaur

Dear Friends, Colleagues, and Clients, No good deed goes unpunished! Unemployment is at the lowest rate in decades. Many Californians work from home or have part time assignments where they are hired by businesses to work on a project by project basis as an outside contractor. Service businesses, such as the legal and accounting industries have especially embraced this new work medium in a significant way along with high tech […]

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Client Alert

Primary Residence Can Be Transferred Between Generations

In California, real property is reassessed at market value if it is sold or transferred. If the property has been in the family for a long time, the resulting tax hike can be dramatic. Thanks to two voter-approved constitutional amendments, property transferred between parents and children, or grandparents and grandchildren if both parents are dead, do not have to be reassessed and the property tax increase will be minimal – […]

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Client Alert

Is It Worth It To Create A Family Limited Partnership?

Trusts are valuable tools to protect your estate. However, trusts do not allow you to protect your assets while you are still alive. In order to secure what is rightfully yours and protect your assets, you will need to begin thinking outside of the box. Many individuals and couples turn to Family Limited Partnerships (FLPs) as an advanced asset protection measure to do so. Here is a brief overview of […]

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