The recently enacted Secure Act, eliminates the life time stretch of retirement assets for non-spouse beneficiaries, with a few exceptions. Instead, these assets will now be taxed within ten years. For the charitably minded client, one idea being touted is a charitable remainder unitrust (CRT). Based on materials I have seen, the ideal payout rate
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GRATs Can be a Home Run
Congratulations to the Nationals!
With interest rates at near record lows, it is a great time to consider a grantor retained annuity trust (GRAT). GRATs are a planning technique in the Internal Revenue Code to remove future appreciation in the asset gifted to the GRAT out of the grantor’s estate. The grantor contributes an asset…
Estate of Aaron U. Jones-Tax-affecting
The Tax Court in Estate of Aaron U. Jones upheld the use of tax-affecting in the valuation of gifts made of S corporation and limited partnership interests. The business involved timber, and the income method is typically used to value an ongoing timber business. Tax-affecting is adjusting the value to reflect an after tax value…
The Beneficiary Deemed Owned Trust (BDOT)
Some well known planners, such as Stacy Eastland, are recommending consideration of the BDOT for families with significant wealth to plan with the existing $11.2 million exemption. Most of you are aware of the Beneficiary Defective Inheritor’s Trust (BDIT), which is funded with only $5,000, and provides that all of that $5,000 may be withdrawn…
The Tax Cuts and Jobs Act-How Bad Law is Created
Spent several days in San Antonio at the TexFed Tax Institute. Most of the discussion was about the Tax Cuts and Jobs Act (“TCJA”) after two years. The main takeaway was how poorly written the law is. If you recall the law was put together in about three weeks. While the lowering of the corporate…
One Irons on My Birthday
Recently watched a show on Jack Nicklaus, and his ability to hit 1 irons. There was a segment with current tour pros attempting to hit 1 irons, and it didn’t go well.
I thought I would give it a try.
Trevino said God couldn’t hit a one iron, but Jack and I can. One…
Who’s Your Daddy-Parentage in the age of Sperm Donation and Ancestry.Com
It is happening with more and more frequency…someone knocks on the door and announces him or her self as the child of the man answering the door. DNA and the rise of Ancestry.com and the like have created this potentially awkward moment over and over again. In many cases it is a beautiful moment. I…
But Honey I Thought You Loved Me-What to do When a Premarital Agreement Isn’t an Option
I have been involved in many premarital agreement situations where the parties got upset and decided the negotiations were hurting their relationship, so they decide to drop it. In Texas, there is an option, however, for the person of means to pursue that can be done without the knowledge or consent of their fiancee.
The…
When a Charity Wants to Change It’s Mission
March of Dimes was created to deal with polio, and was left without a mission once a vaccine was developed. So with a nationwide infrastructure in place, it decided to change its mission from polio to premature children. Today, if a 501(c)(3) wants to broaden or change its mission it doesn’t need to file a…
Don’t Do DAPT
Recently, the Alaska Supreme Court in Toni 1 v. Wacker put a nail in the coffin of domestic asset protection trusts as effective creditor protection for out of state donors. After a Montana state court issued a series of judgments against Donald Tangwall and his family, the family members transferred two pieces of property to…