Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. The prior article in this series examined the use of UTMA and UGMA accounts. This article will focus on 529 plans. The next article in the series will examine ABLE accounts. A 529 plan, otherwise known as a qualified tuition plan, is a tax-sheltered way of saving for education. 529 plans are sponsored by states, state agencies, or educational institutions. For a … [Read more...] about What Are 529 Plans and What Are Their Advantages?
What are UGMA and UTMA Accounts?
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. UGMA and UTMA accounts are accounts in which a custodian holds assets for a minor. An UGMA account is one under the Uniform Gift to Minors Act. An UTMA account is one under the Uniform Transfers to Minors Act. States which have such accounts have rules which can vary slightly. UGMA accounts must end when the minor reaches age 18 (or other age in the state statute), … [Read more...] about What are UGMA and UTMA Accounts?
New Tax Proposals
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. Representative Alexandria Ocasio-Cortez (D-NY), one of the new class of legislators in the House of Representatives, has suggested the rate of income taxation for high-earners be raised. She is suggesting a top rate for those making over $10 million per year be increased to 60% or 70%. She’s suggesting the proceeds could be used for a “Green New Deal” or other … [Read more...] about New Tax Proposals
Beneficiary Designations, etc., Aren’t a True Substitute for a Trust
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. TOD (Transfer on Death) designations, POD (Pay on Death) designations, and beneficiary designations can be useful in the right circumstances. Each of these tools allows for an automatic transfer to the named beneficiary at the death of the owner. But these tools can have a few shortfalls. First, if the named person predeceases the owner, typically it will not be … [Read more...] about Beneficiary Designations, etc., Aren’t a True Substitute for a Trust
The Little Things May be the Most Important
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. Often, the smallest things have the most sentimental value. Your grandmother’s silverware or your grandfather’s railroad watch could connect you to them in a special way. Your mother’s ring or your father’s Boyscout bugle could hold a special place in your heart. Your sports memorabilia could connect you to one of your children in a unique way. You may want those … [Read more...] about The Little Things May be the Most Important
Tax Tips after New Year
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. The ball has dropped in Times Square and we’ve bid farewell to 2018. But there are still a few things we can do to adjust our tax liability for 2018 before filing tax returns on April 15. First, you’ll need to organize all your tax records. That way, you’ll have some idea of what your tax liability might be. After you’ve organized your tax records, if you find you … [Read more...] about Tax Tips after New Year
Selecting an Agent
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. A Secret Agent may be very important to protecting the nation. Your Agent is just as important for your protection. An Agent is the person who makes financial decisions for you under a Financial Power of Attorney or makes medical decisions for you under a Health Care Power of Attorney. The Agent under your Financial Power of Attorney may act for you when you aren’t … [Read more...] about Selecting an Agent
Turning the Page on 2018 and Looking Forward to 2019
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. There are a few changes for 2019. Going into 2018, there were many changes because of a new tax law, commonly known as the Tax Cuts and Jobs Act, which impacted both the estate tax and the income tax. But, there are few changes heading into 2019. It appears things are relatively stable, taxwise, at least for now. Of course, the estate and personal income tax portions … [Read more...] about Turning the Page on 2018 and Looking Forward to 2019
QDRO: Not Just for Divorce Anymore
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. Transferring an ERISA account, like a 401(k), from one spouse to another can have substantial tax benefits, by delaying Required Minimum Distributions or avoiding early withdrawal penalties. However, one cannot simply transfer an account from one spouse to another under most circumstances without triggering adverse tax consequences. A Qualified Domestic Relations … [Read more...] about QDRO: Not Just for Divorce Anymore
Being Thankful and Sharing Your Blessings
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. As we gather around the Holiday table, we see the faces of our loved ones and we contemplate how grateful we are for them and for all our blessings. “We must find the time to stop and thank the people who make a difference in our lives.” – John F. Kennedy, 35th President of the United States. “If you are really thankful, what do you do? You share.” — W. Clement … [Read more...] about Being Thankful and Sharing Your Blessings
