Planning for the TCJA Sunset: What Do American Families Need to Know?

Many people assume that the Federal Estate Tax won’t apply to their family based on the current ceiling and the value of their assets today. This ceiling is about to be lowered however, so there are many more American families who need to sit down with their estate planning attorney and review their options. As the Tax Cuts and Jobs Act (TCJA) of 2017 approaches its sunset in January 2026, families with substantial but not necessarily ultra-wealthy estates need to start considering their estate planning strategies. Planning that takes into account the TCJA sunset is not just for the ultra-wealthy, it is also important for affluent but not ultra high net worth American families, whose assets may grow significantly due to investment returns. For instance, a $10 million estate could potentially double every decade with a 7.3% annual return, quickly exceeding future exemption limits. Planning now ensures that families can

Preparing for the Reduction in the Estate Tax Exemption

Posted by Robert L. Arone In late May of this year, the U.S. Treasury released a publication detailing a number of the proposed tax code changes that the Biden administration would like to usher through Congress in an ambitious effort to modernize the US tax system to meet its citizens’ needs. While reasonable minds may differ strongly on the best way to stimulate the US economy and create wealth and security for the American people, one thing is certain: the need for individuals to engage in careful estate and tax planning to avoid paying more tax than necessary is not going away. The IRS publication,[1] sometimes referred to as the Green Book, outlines a number of key proposals that—if ultimately passed—have the potential to significantly shake up the estate planning world as we know it today by sidelining a number of tried and true estate planning strategies while potentially increasing the

Grandkids off to college? Tips on helping them pay

Posted by Gerald J. Turner – Many grandparents want to help their grandchildren pay for their education. However, the cost of a college education is on the rise, making funding a student’s education a real sacrifice, especially for those moving toward retirement or living on a fixed-income. College financial-aid and student loan regulations are also changing rapidly, and qualifying for need-based financial aid can be tricky. That’s why it is important for students, parents, and grandparents to be on the same page about funding a young person’s college experience. Here’s how to help the student while still getting the most out of need-based aid: 1. Take advantage of a parental 529 savings plan, but make sure it belongs to the parent or student. If you’re thinking about helping a student pay for college, then you have probably heard of a 529 plan. If a 529 belongs to the parent or

Taking Full Advantage of the 2017 Tax Cuts and Jobs Act

Posted by Robert L. Arone – Key Points to Discuss With Your Clients Like all things, tax laws are constantly changing. An important part of serving your clients is responding quickly and strategically to new developments in the tax law landscape. But at the same time, a knee-jerk reaction is rarely the best course of action—often resulting in unforeseen complications in the future. The best decisions are made by professional teams working together to analyze all angles of a situation to come up with the best strategy in response to the Tax Cuts and Jobs Act (TCJA), a historic amendment to the Internal Revenue Code of 1986. The TCJA affects many Americans in a variety of areas of life, and your clients might not be aware of what its impact will be on their long-term financial plan. Of course, this law is going on seven months old, but too many

Is There an Income Tax Time Bomb Lurking in Your Client’s Estate Plan?

Posted by Robert L. Arone – As the federal estate tax exemption has ballooned from $1.5 million ten years ago to $5.43 million today, the need for estate tax planning has drastically decreased. Instead, higher income tax rates that were ushered in under the American Taxpayer Relief Act of 2012 (ATRA) have shifted the focus of estate planning to a new frontier: income tax basis planning. In this issue you will learn what income tax basis is, how older estate plans have been deliberately designed to include an income tax time bomb, and the options your clients have to update their plans so that their heirs will receive the maximum basis. The Basics of Income Tax Basis In its simplest form, income tax basis is the cost to buy an asset, which includes the purchase price plus costs and transfer fees. Basis must be tracked because when an asset is

Estate Tax

Planning for the TCJA Sunset: What Do American Families Need to Know?

Preparing for the Reduction in the Estate Tax Exemption

Grandkids off to college? Tips on helping them pay

Taking Full Advantage of the 2017 Tax Cuts and Jobs Act

Is There an Income Tax Time Bomb Lurking in Your Client’s Estate Plan?

How Can We Help?

© 2024 by Orsi Arone Rothenberg Turner, LLP. All rights reserved.

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Estate Tax

Planning for the TCJA Sunset: What Do American Families Need to Know?

Preparing for the Reduction in the Estate Tax Exemption

Grandkids off to college? Tips on helping them pay

Taking Full Advantage of the 2017 Tax Cuts and Jobs Act

Is There an Income Tax Time Bomb Lurking in Your Client’s Estate Plan?

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How Can We Help?

© 2024 by Orsi Arone Rothenberg Turner, LLP. All rights reserved.

Attorney Marketing by Bardorf Legal Marketing

Have A Question?