From providing control over how your assets are distributed to helping manage the tax burden imposed on your beneficiaries, there are a number of potential advantages an irrevocable trust can provide. In this guide, we cover the basics of irrevocable trusts and outline reasons why you may consider utilizing one within your estate plan.
Whether you own a small business or you’re a high-level executive at an established enterprise, tax season can be one of the busiest and most stressful times of the year. After all, taxes are a crucial component of your company’s financial picture, and the decisions you make may bear implications for all of your stakeholders – from employees to clients to investors in the company.
If you don’t have a succession plan, you’re not alone: 64% of business owners over the age of 50 haven't made one. But regardless of where you are in life, it’s never a bad idea to create an estate plan or update an existing one to ensure your interests and those of your business are protected.
This blog will talk about what GRATs are and who they might be suitable for, as well as their pros and cons.
Social Security benefits play a vital role in providing or augmenting income for retirees, dependents, and those with disabilities. But, before you start applying for payments, it’s important to understand the strategies you might consider deploying to help maximize these benefits.
What education savings programs are right for you? A 529 plan is one of the most common educational investment options, but there are other choices.
HSAs offer you three potential opportunities for tax savings. Your account contributions are tax free (that is, tax deductible), the earnings in your account grow tax free, and you can withdraw funds from your HSA, tax free, so long as they are used to pay for qualified health care expenses, such as deductibles, co-payments, and hospitalization costs. (HSA funds may not be used to pay health insurance premiums.)
By taking advantage of a QCD, taxpayers can fund a charitable gift of up to $100,000 using their IRA instead of taking a Required Minimum Distribution (RMD). In addition to helping investors advance their charitable initiatives, QCDs entitle donors to income tax deductions that can lower their taxable income for the calendar year in which they’re made.
Understanding what your distribution requirements will be over the course of your retirement can help ensure that you don’t find yourself on the hook for a substantial tax penalty. Further, coming up with a plan ahead of time can help you manage your tax liability and provide you with more options for allocating your required distributions. Learn more about what every retiree should know about RMDs.
An estate plan outlines how you’d like your assets to be distributed upon your passing. It helps ensure that your wishes are upheld, your legacy is cemented, and your loved ones are cared for. It can also spare your family from unnecessary confusion, conflict, and tax burdens.