Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. The “Kiddie Tax” is a tax on the “unearned” income of a child. In other words, it applies to the child’s income from interest and dividends, but not from wages from a job like their paper route or McDonald’s. The Kiddie Tax has been around since 1986 and applies to the unearned income of a child over a certain small amount. In 2019, that amount is $2,200. Prior to … [Read more...] about Kiddie Tax is Worse Than Ever
Staying Current on Estate Planning
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. Estate planning is a complicated area of the law. It’s the nexus of several substantive areas of law, including taxation, property law, family law, and other substantive areas. The American Academy of Estate Planning Attorneys held its semi-annual conference in May in Atlanta. The members of the Academy learned the latest developments in the law and estate planning … [Read more...] about Staying Current on Estate Planning
Modifying an Irrevocable Trust
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. In the past, trusts often were drafted with little flexibility. Now, more and more, trusts tend to be drafted with increased flexibility and there are even ways to change “irrevocable” trusts. This is the third part of a three-part series. The first part examined ways of building flexibility into a trust. The second part examined using Trust Protectors to add … [Read more...] about Modifying an Irrevocable Trust
Trust Protectors Add Flexibility
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. In the past, trusts often were drafted with little flexibility. Now, more and more, trusts tend to be drafted with increased flexibility and there are even ways to change “irrevocable” trusts. This is the second part of a three-part series. The first part examined ways of building flexibility into a trust. This second part examines using Trust Protectors to add … [Read more...] about Trust Protectors Add Flexibility
Making Trusts More Flexible
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. In the past, trusts often were drafted with little flexibility. Now, more and more, trusts tend to be drafted with more flexibility and there are even ways to change “irrevocable” trusts. This is the first of a three-part series. This first part examines ways of building flexibility into a trust. The second part examines using Trust Protectors to add flexibility to a … [Read more...] about Making Trusts More Flexible
When and Where You Die Matters
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. The federal estate and gift tax exclusion is set “permanently” to $5 million, adjusted for inflation. However, if you die between now and the end of 2025, the exclusion is doubled to $10 million, adjusted for inflation. Its inflation adjusted to $11.4 million in 2019. But, the federal estate and gift tax is the same regardless of where you live when you die. You could … [Read more...] about When and Where You Die Matters
Planning is Critical
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. Sometimes people seem to think that if they don’t plan for death, it just won’t happen. In fact, 58% of American adults have no will, no trust, and no estate plan at all, according to a recent study by Caring.com. Unfortunately, whether you plan for it or not, death is inevitable. If you have no plan, your state of residence has a plan for you, it’s called … [Read more...] about Planning is Critical
New Estate Tax Proposal
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. A new proposal regarding estate taxes has been introduced in the U.S. Senate. S.B. 309, the “For the 99.8% Act,” is sponsored by Senator Bernie Sanders (I-VT). The bill would exempt the first $3.5 million of an individual’s estate from estate taxation. (Under current law, the exemption is $5 million, doubled to $10 million through 2025, and is adjusted for … [Read more...] about New Estate Tax Proposal
State Income Taxation
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. In this article, I’ll explain state income taxation in general. Everyone knows (or should know) that the federal government taxes the income you earn. But, depending where you live and how you earn money, states may tax your income, too. States run the gamut in the income taxation of individuals. Seven states don’t tax you at all: Alaska, Florida, Nevada, South … [Read more...] about State Income Taxation
ABLE Accounts
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. This is the third article in a series. The first article focused on the use of UTMA / UGMA accounts. The second article focused on 529 plans. This third article focuses on ABLE accounts. ABLE accounts are like Section 529 plans. But, while 529 plans are for education expenses, ABLE accounts (under Section 529A) are for qualified disability expenses. While a 529 … [Read more...] about ABLE Accounts
