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Archive for October, 2017

Taxpayer Identification Numbers

Wednesday, October 25th, 2017

Frequently, there’s confusion regarding Taxpayer Identification Numbers. A Taxpayer Identification Number (“TIN”), is the number which is used to identify a taxpayer. For most individuals, it’s simply their social security number (“SSN”). For many businesses and trusts it’s an employer identification number (“EIN”). Here is a link for more information on TINs, including how to […]

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Remember to Coordinate Your Estate Plan

Saturday, October 21st, 2017

A client has many types of assets. Let’s look at a typical client. John has $1,000,000. This includes his home, worth $250,000, a brokerage account worth $400,000, and an IRA worth $350,000. John is unmarried and wants 45% to go his son, 45% to his daughter, 5% to his brother, and 5% to his sister. […]

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Irrevocable Life Insurance Trusts

Wednesday, October 18th, 2017

Irrevocable Life Insurance Trusts (sometimes referred to as “ILITs”) are a commonly used strategy designed to keep life insurance out of the taxable estate of the insured and owner. Sometimes, life insurance is purchased in large amounts. Thus, it can easily create a taxable estate where none existed prior to the life insurance. Let’s look […]

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Medicaid Planning and Trusts

Saturday, October 14th, 2017

Today’s estate planning is about more than just planning for death. Today, estate planning is about helping people prepare for difficulties during life, helping them pass their assets in the best way at death, and helping them preserve their legacy after they’re gone. Part of this planning process may be to help them plan their […]

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Credit Shelter Trusts

Wednesday, October 11th, 2017

The gold standard for estate planning has been the credit shelter trust, often called a Family Trust. With each spouse being able to pass $5 million adjusted for inflation ($5.49 million in 2017) and with federal portability without a sunset provision, questions have arisen as to whether credit shelter trust planning is still necessary or […]

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Joint, Separate, and Unmarried Trusts

Saturday, October 7th, 2017

There are different types of revocable trusts for different family situations. The first and simplest trust to understand is the unmarried trust. This revocable trust is established for one unmarried individual. It is taxed as a grantor trust because it is revocable. It may use the grantor’s social security number as the tax id number […]

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Trusts and Subtrusts

Wednesday, October 4th, 2017

A trust may be created during life, either as a revocable trust or an irrevocable trust. Or a trust may be created under a Will. Regardless of the attributes of the instrument creating the trust, different sub-trusts may be created under the trust. If the assets start in the Will, the Will could name the […]

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