In this vlog, Litherland, Kennedy & Associates Attorney Maggie A. LaBranch-Gonzales discusses the "step-up in basis". Home. Purchase Value: $100K. Sold: $1M. $900K in appreciation. Capital Gains taxes based on the appreciation. BUT if you didn’t sell the home and the kids inherited it at your death and then sold it, they would get an AUTOMATIC step-up in basis. This means that the new basis for the house would be it’s value at the date of your death, which is $1M in this … [Read more...] about Step-Up in Basis (VIDEO)
How Tax and Non-Tax Considerations Impact Estate Planning – Part I
Estate planning often focuses on taxes at the federal level and often overlooks issues that occur at the state level. For anyone desiring to undertake comprehensive estate planning, it’s important to understand the impact that the taxes imposed by the individual’s state of residence have on the plan as well as the character and type of assets allowed by the state. Estate Planning is complex and requires an expert in these matters to advise clients properly. Read on to learn more. … [Read more...] about How Tax and Non-Tax Considerations Impact Estate Planning – Part I
The IRS’ Annual Warning: The 2023 Dirty Dozen
As another tax season closes, it is a good time to review the list of “Dirty Dozen” tax schemes published by the Internal Revenue Service for the year. Many of these schemes peak during tax time and involve fraudsters looking for ways to steal taxpayers’ money, personal information, and data. We feel it is important to alert our clients and community to these scams and to provide advice on how to avoid them. Read on to learn more. … [Read more...] about The IRS’ Annual Warning: The 2023 Dirty Dozen
Tax Planning for 2023
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. As we start off the New Year, we need to think of…tax planning! Some years Congress tweaks the laws more than in other years. While 2022 held plenty of events: the war in Ukraine, an improved “bivalent” coronavirus vaccine addressing new coronavirus variants, the U.S. midterms elections, etc., it was a relatively quiet year for legislative changes impacting planning. … [Read more...] about Tax Planning for 2023
Is a Person Who is Not a US Citizen Subject to the Federal Estate Tax? (VIDEO)
In this vlog, Litherland, Kennedy & Associates Attorney Justin M. Kennedy discusses whether a person who is not a US citizen is subject to the federal estate tax. … [Read more...] about Is a Person Who is Not a US Citizen Subject to the Federal Estate Tax? (VIDEO)
Do I Pay Income Taxes on Living Trust Payouts?
The revocable living trust is a very versatile estate planning tool that can be the ideal choice for a wide range of people. Before we look at the taxation question, we will explain a few of the benefits so you understand why living trusts are so effective. Probate Avoidance Some people assume that the executor of a will can act independently without supervision, but this is not the case. The will must be admitted to probate, and a court would provide supervision during the administration … [Read more...] about Do I Pay Income Taxes on Living Trust Payouts?
How Do I Title Thee…Part 1
Blog Author: Tereina Stidd, J.D., LL.M. (Tax), Associate Director of Education, American Academy of Estate Planning Attorneys, Inc. It’s impossible to fully understand Estate Planning without considering the goals of the clients, along with their underlying assets. After all, many of the more advanced Estate Planning techniques depend upon obtaining discounts for assets and considering which technique to recommend based on a client’s assets. Some clients lack specific knowledge regarding not … [Read more...] about How Do I Title Thee…Part 1
