Trusts consist of a grantor, a trustee, and at least one beneficiary. The grantor creates the trust, then funds it by transferring assets to it. We may not think of trusts as profit centers, but some trusts do generate income. This, of course, leads to the question, “Do trusts pay income taxes?” Whether they do or...

With an eye toward reducing their potential federal estate tax, Malcolm and Helen began reviewing their estate plan. As they discussed options with their estate planning attorney, they learned about the annual gift tax exclusion. The Annual Gift Tax Exclusion According to current IRS guidelines, individuals may make gifts of up to $15,000 per person (as...

Portability technically means something that can be easily moved or carried. The term can be used in several contexts. For example, software portability means the software is easy to transfer to another computer. Portability of retirement and pension funds indicates that a worker may transfer retirement funds when taking a new job.  In Florida, homeowners may...

Not every state collects estate taxes. However, the federal estate tax potentially applies to everyone, though not everyone will have to pay federal estate taxes. The best time to worry about estate taxes is while you are working on your estate planning. You and your estate planning lawyer may be able to lower or eliminate your...

It’s important to keep our estate plans current. Experiencing a major life event, like a birth or death, may affect some or all of your estate planning documents. When laws change, your plans may need some attention also. The tax reform that became law in December 2017 will probably affect your income tax strategies. Deductions you...

Rachel held her newborn granddaughter, Sophia, and dreamed of her future. She saw her celebrating all the “firsts” – first birthday, first day of school, first date. Rachel smiled as she imagined Sophia proudly accepting her diploma from the college of her choice. Her smile faded as she next saw Sophia buried under a mountain of...

American taxpayers have made one message clear: it’s time for tax reform. Congress and President Biden have raised hope that relief is on the way. But it also leaves taxpayers wondering what effect the proposed tax reform will have on estate planning. Tax Reform When most people think of tax reform, they think of lowering income...

We often give presents to celebrate a special event or please a significant other. Sometimes gifts serve a specific purpose, like lowering your potential estate tax burden. Let’s look at some ways to legally reduce your federal estate tax through gift-giving. First, it’s important to understand how estate taxes are calculated. Florida does not have an...

The federal estate tax is an infamous, though oftentimes misunderstood, aspect of estate planning and probate. Recent years have seen significant changes made to estate tax laws, including the permanent addition of portability in 2013.  There is now an exemption that eliminates the federal estate tax obligation for most low and middle income people Below we...