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...]
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...]
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...]
Medi-Cal and Crowdfunding – Why Crowdfunding May Cost You Medi-Cal Eligibility
by Magdalena A. LaBranch-GonzalesLitherland, Kennedy & Associates, APC, Attorneys at LawCrowdfunding or fundraising websites, such as Kickstarter, YouCaring, and GoFundMe[i], are quickly becoming a popular source for donations where ordinary people may raise money from others for anything from new inventions to helping a neighbor or family member in need. Over time, crowdfunding has morphed into a platform to request finances for anything.The most significant increase may be the … [Read more...]
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...]
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...]
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...]
Good News for those interested in Medi-Cal Eligibility who have 529 Education Accounts
by Justin M. KennedyLitherland, Kennedy & Associates, APC, Attorneys at LawEffective January 1, 2019 the principal and interest of 529 education accounts (college savings plans) are exempt assets for Medi-Cal eligibility purposes (AB 1785).Let’s look at an example:Ten years ago, Margaret set up 529 education accounts for each of her four grandchildren and each year Margaret deposited $5,000 per grandchild into the 529 education accounts. Currently, these 529 education accounts … [Read more...]
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...]
SALT and Non-Grantor Trusts
by Justin M. KennedyLitherland, Kennedy & Associates, APC, Attorneys at LawAs we start a new tax year, it may be time to revisit some of the provisions of the Tax Cuts and Jobs Act, which increased the standard deduction to $12,000 per person or $24,000 per married couple. For those who do not itemize their deductions, this may be great news. However, for those who do itemize, there may be some significant tax consequences in the new law. The new law included a deduction cap of ten … [Read more...]
