S corporations must comply with several strict requirements or risk losing their tax-advantaged status. Among other things, they can have no more than 100 shareholders, no more than one class of stock, and only certain types of shareholders. In an estate planning context, it is critical...
The executor’s role is critical to the administration of your estate and the achievement of your estate planning objectives. So, your first instinct may be to name a trusted family member as executor, but that might not be the best choice. Duties of an Executor Your executor...
If you are an art collector, it is critical for your estate plan to address your collection separately from other types of assets. Investments in artwork may be motivated in part by potential financial gain, but for most collectors, the primary motivation is a passion...
Portability allows a surviving spouse to apply a deceased spouse’s unused federal gift and estate tax exemption amount toward his or her own transfers during life or at death. For 2020, the exemption amount is $11.58 million, and the IRS just announced that that amount...
Typically, an estate plan includes accommodations for your spouse, children, grandchildren, and even future generations. However, you may overlook some older family members, such as your parents or in-laws. They also may need your financial assistance and help with their estate planning. How can you best...
You may view your will as the centerpiece of your estate plan. But other documents can complement it. For example, if you have not already done so, consider writing a letter of instruction. Elements of the Letter A letter of instruction is an informal document providing your...
There are two trust types that do not require one or more human beneficiaries: charitable trusts and noncharitable purpose (NCP) trusts. A charitable trust is the more common of the two, but an NCP trust also could be a formidable tool to help achieve your...
The COVID-19 pandemic has resulted in many people borrowing from their companies’ qualified retirement plans, and the Coronavirus Aid, Relief, and Economic Security (CARES) Act provides some temporary rule changes to this loan type. However, given the risks and costs of borrowing from a retirement...
Generally, the proceeds of your life insurance policy are included in your taxable estate. You can remove them by transferring ownership of the policy, but there is a catch: If you wait too long, your intentions may be defeated. Essentially, if ownership of the policy...
What happens if illness, injury, or age-related dementia renders you unable to make decisions or communicate your wishes regarding your health care or financial affairs? Unless your estate plan addresses these situations, your family may be forced to seek a court-appointed guardian. Health care arrangements...