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The Latest Articles and News
Due to COVID-19, the IRS Pushes Tax Deadline Back to July 15
The traditional tax day of April 15 has passed and millions of Americans are taking advantage of the three-month reprieve given by the federal government and many states in response to the COVID-19 pandemic. Depending on your individual circumstances, you might be looking to file as quickly as possible in order to collect your refund.
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What Advance Medical Directives Should I Have in Place If I’m Concerned About COVID-19?
Though it’s always been true, the COVID-19 pandemic has driven home the point that a debilitating medical condition can strike without warning. Whether you’re fighting the coronavirus or are incapacitated for some other reason, your wishes regarding medical treatment should be honored by family members and healthcare providers. An experienced attorney can help you put
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Potential Tax Effects Associated with the CARES Act Stimulus
Since March, federal and state governments have engaged in a variety of methods designed to safeguard Americans’ health and financial security in the wake of the coronavirus pandemic. At any time, taxes have a direct impact on our lives, so it’s natural that some of the key provisions of the recently passed Coronavirus Aid, Relief
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Understanding How COVID-19 May Have Affected the Value of Your Estate
The economic and personal upheaval triggered by the COVID-19 outbreak is likely to warrant a review of your estate plan, no matter how thorough you think it is. As Americans cope with health fears and financial volatility, it’s worthwhile to determine whether a will, trust, advance medical directive or other legal instrument needs to be
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How Can I Create Estate Planning Documents During the Pandemic?
Even in its first few weeks, the COVID-19 pandemic caused many people to examine or reassess what is most important to them. The need to prepare in case of an emergency or untimely death has been highlighted by the tragic losses occurring around the country. What can you do if you can’t meet with your
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Who should own your life insurance policy?
If you own life insurance policies at your death, the proceeds will be included in your taxable estate. Ownership is usually determined by several factors, including who has the right to name the beneficiaries of the proceeds. The way around this problem is to not own the policies when you die. However, don’t automatically rule
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ABCs of HSAs: How an HSA can benefit your estate plan
One health care arrangement that has been soaring in popularity in recent years has been the pairing of a high-deductible health plan (HDHP) with a Health Savings Account (HSA). The good news is that not only does an HSA provide a tax-advantaged way to pay for health care costs, but it also can help you
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Beware the GST tax when transferring assets to grandchildren
As you plan your estate, don’t overlook the generation-skipping transfer (GST) tax. Despite a generous $5.49 million GST tax exemption, complexities surrounding its allocation can create several tax traps for the unwary. GST basics The GST tax is a flat, 40% tax on transfers to “skip persons,” including grandchildren, other family members more than a generation
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Don’t overlook tax apportionment when planning your estate
If you expect your estate to have a significant estate tax liability at your death, be sure to include a well-thought-out tax apportionment clause in your will or revocable trust. An apportionment clause specifies how the estate tax burden will be allocated among your beneficiaries. Omission of this clause, or failure to word it carefully,
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Tax Reform Goals Outlined
The U.S. House Budget Committee has released a 2018 Budget Resolution titled “Building a Better America,” which aims to balance the budget within 10 years and end fiscal year 2027 with a $9 billion surplus. The deficit-neutral proposal includes a simplified tax code, lower individual and corporate tax rates, repeal of the alternative minimum tax
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The stretch IRA: A simple yet powerful estate planning tool
The IRA’s value as a retirement planning tool is well known: IRA assets compound on a tax-deferred (or, in the case of a Roth IRA, tax-free) basis, which can help build a more substantial nest egg. But if you don’t need an IRA to fund your retirement, you can use it as an estate planning
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Revised Health Care Plan
Revised health care plan to be unveiled Thursday and senators will stick around Washington to (hopefully) tackle the issue. U.S. Senate Majority Leader Mitch McConnell (R-KY) announced that a revised version of major health care legislation would be made public on 7/13 and a vote is expected sometime next week. McConnell didn’t disclose any of
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New Health Care Reform Report
The Congressional Research Service has issued a report providing a comparison of the House Republicans’ health care bill; the American Health Care Act (AHCA), passed on May 4; the Senate Republicans’ June 22 bill, the Better Care Reconciliation Act (BCRA); and the Affordable Care Act (ACA) under current law. Tables show how provisions of the
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Treasury Regulations
Tax regs listed on the chopping block under executive order. President Trump directed federal agencies to review all “significant tax regulations” issued on or after 1/1/16 that impose an undue financial burden on U.S. taxpayers or add undue complexity to the tax laws. The Treasury Department has identified eight regs that potentially qualify for burden
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Are you familiar with fraudulent transfer laws?
A primary goal of your estate plan is to transfer wealth to your family according to your wishes and at the lowest possible tax cost. However, if you have creditors, be aware of fraudulent transfer laws. In a nutshell, if your creditors challenge your gifts, trusts or other strategies as fraudulent transfers, they can quickly
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Senate Health Care Bill
A U.S. Senate vote on health care has been moved to after the Fourth of July recess. And the Congressional Budget Office (CBO) has issued a score of the Senate’s draft bill, the “Better Care Reconciliation Act of 2017” (BCRA). The CBO projected that, over the next 10 years, enacting the BCRA would reduce federal
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Are your retirement savings secure from creditors?
A primary goal of estate planning is asset protection. After all, no matter how well your estate plan is designed, it won’t do much good if you wind up with no wealth to share with your family. If you have significant assets in employer-sponsored retirement plans or IRAs, it’s important to understand the extent to
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Tax Reform
President Trump’s budget would restrict eligibility for two credits. President Trump’s budget proposal for the 2018 fiscal year, titled “A New Foundation for American Greatness,” aims to cut approximately $3.6 trillion in government spending over the next decade. Some of the cuts would be attributable to eligibility changes relating to the earned income tax credit (EITC)
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Alimony Deduction – Get it in writing
A taxpayer who pays alimony to an ex-spouse per a written divorce or separation agreement can generally deduct the agreed-upon alimony on his or her tax return. In one case, a taxpayer made an oral agreement to pay his ex-wife substantially more than he was required to pay per the written agreement, out of his
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Will we see tax reform in 2017?
Next up for House Republicans in Congress: tax reform. After the lengthy health care debate, the Republican-controlled House of Representatives will now turn their focus to tax reform, hoping to reach agreement before year end. However, new uncertainties about what the final tax package will contain may make it an uphill battle, mainly over policy
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Worried about challenges to your estate plan? Make it no contest
Estate planning is all about protecting your family and ensuring that your wealth is distributed according to your wishes. So the idea that someone might challenge your estate plan can be disconcerting. One strategy for protecting your plan is to include a “no-contest” clause in your will or revocable trust (or both). What’s a no-contest
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White House Tax Proposal
White House tax proposals. The Trump administration is calling for a large decrease in the corporate tax rate from 35 to 15%. The proposal is NOT formal legislation but is an outline composed of broad principles. It also cuts the top rate on pass-through businesses, including sole proprietorships, from 39.6% to 15% and makes other
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Acquaint yourself with the Roth IRA as an estate planning tool
If your estate plan calls for making noncash gifts in trust or outright to beneficiaries, you need to know the values of those gifts and disclose them to the IRS on a gift tax return. For substantial gifts of noncash assets other than marketable securities, it’s a good idea to have a qualified appraiser value
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Estate Planning Seminar – November 10
On November 10th at the Rolling Hills Country Club, attorney Eric S. Parkhurst will be presenting a seminar with Sunflower Bank and Betts Consulting on Estate Planning. The two hour seminar will begin at 6:00 pm and if you are interested in attending, please RSVP to Mr. Parkhurst directly by emailing him at eparkhurst@beverdye.com.
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