GRATs and Grandkids: Grantor Retained Annuity Trusts are a great technique to leverage gifts to children without gift tax. They’re not used for grandchildren (skip persons) because you cannot allocate GST exemption to avoid the Generation Skipping Transfer tax on gifts to grandchildren until the GRAT is over and the properly presumably appreciated. If…
Succession Issues for Solos: Physicians, dentists, accountants, attorneys, etc. often practice alone – “solo”. Special planning is required in the event of your disability or death to protect your economic interests in your practice. The half-life of your solo professional practice in your absence is short. Without advanced planning the economic value you might receive…
You can’t plan properly if you’re basic assumptions about planning are wrong. You’ll never really hear what your professionals are telling you if you’re filtering their advice through faulty misconceptions. Following are some common misconceptions: “I want to avoid probate“: Many become so focused (obsessed) about avoiding probate that real planning isn’t done. Avoiding…
Home Sale Exclusion: You can exclude from gross income up to $250,000 ($500,000 joint) of gain from the sale of your principal residence. The exclusion can be claimed once every 2 years. An exception is provided if you do not meet the ownership and use tests, or the limit of one sale in two years…