Client Alerts

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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The Truth About Death & Taxes

The Truth About Death & Taxes: And how Opportunity Zone Investments can Boost Estate Planning Benefits

Dear Clients, Colleagues and Friends,  Phil has had a great year – financially at least. A successful real estate developer, his two longest-term and riskiest bets sold way over asking price, giving him a significant cash windfall. In a normal year, Phil would be spending the holidays at his beach house in Hawaii, celebrating his success with his lovely wife, their three grown children, and their seven precocious, hilarious, adorable […]

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Hope for the Best - Plan for the Worst

Hope for the Best – Plan for the Worst

Divorce Proofing Your Premarital Assets Dear Clients, Colleagues and Friends, Whoever said “money can’t buy happiness” has never paid for a divorce. Paul Tommins should know… he’s paid for two of them. His divorces – expensive as they were – came with silver linings.  Free of the daily push and pull of domestic life, Paul was able to focus on building his fulfillment business, diving headfirst into creating a corporation […]

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QPRT included in Changes to California Parent-Child Property Tax Exclusions

QPRT included in Changes to California Parent-Child Property Tax Exclusions

Qualified Personal Residence Trust (QPRT) included in Changes to California Parent-Child Property Tax Exclusions Dear Clients, Colleagues and Friends, Prop 19 Under California’s current property tax system, homeowners who are 55 and older only have a one-time opportunity to retain their existing property tax basis if they sell their existing home to purchase another home of equal or lesser value — either within the same county, or to ten other […]

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California Parent-Child Property Tax Exclusion Changes in 2021

California Parent-Child Property Tax Exclusion Changes in 2021

(Proposition 19 Passes) Dear Clients, Colleagues and Friends, Under California’s current property tax system, homeowners who are 55 and older only have a one-time opportunity to retain their existing property tax basis if they sell their existing home purchase another home of equal or lesser value – either within the same county, or to ten other eligible counties. However, California voters have tentatively approved Proposition 19, which would expand this […]

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Homestead Exemption

It’s About Time! Governor Newsom Increases CA’s Homestead Protection

Dear Clients, Colleagues and Friends, As you may have heard, California’s Governor, Gavin Newsom, recently signed into law Assembly Bill 1885 (“AB 1885”), which substantially increases the amount of equity California homeowners can protect in their primary residence effective as of January 1, 2021. Under California’s current homestead exemption, the amount of equity in a primary residence that a homeowner can protect from a judgment creditor ranges from $75,000 for […]

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Intrafamily Loans The Gift That Keeps on Giving

Intrafamily Loans – The Gift That Keeps on Giving

Dear Clients, Colleagues and Friends, Any of you who have children know that as parents, we often want to help our adult children who need a financial boost – and this assistance frequently comes in the form of a loan. Loans are an effective and common way for parents to foster a child’s independence, encourage responsibility and signal their confidence that their child can succeed on his or her own. […]

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gifting assets

Snooze You Lose! Gift Your Residence Now to Save Death Tax

Dear Clients, Colleagues and Friends, As you know, the Trump tax cuts (2017 Tax Cuts and Jobs Act) created unprecedented opportunities for individuals and families to transfer their legacies in a tax-efficient manner. These cuts allowed individuals to double their estate, gift, and generation-skipping transfer tax exemption amounts from previous levels. While the federal estate and gift tax exemption amount is currently $11.58 million per person (indexed for inflation), the […]

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