We are at the precipice of what is being called “The Greatest Wealth Transfer in History,” as baby boomers are set to pass down $84 trillion to younger generations.[1] Every parent wants to see their children succeed. But some may wonder whether an inheritance will help promote or hinder the future success of their children. Famous mom Gloria Vanderbilt was staunchly against trust funds for her kids. And at least one of them applauds her decision. Vanderbilt Heiress Makes Good on “No Trust Fund” Promise Before she passed away in 2019, Gloria Vanderbilt, heiress to the Vanderbilt fortune (or at ...

On March 27, 2024, New Jersey state lottery officials announced the winning ticket of the largest lottery prize in the state’s history (8th largest in United States history) was a single ticket purchased at the ShopRite on Route 66 in Neptune Township, New Jersey. The mystery winner of Tuesday’s historic $1.13 billion Mega Millions jackpot bought only one ticket and manually chose the winning numbers — meaning the player didn’t use the Quick Pick option that randomly generates numbers.[1] Just two days later, two winners were announced to have won the Pick-6 jackpot of $30 million after matching all six ...

Suddenly coming into money can be both a blessing and a curse. Whether you just signed a multiyear, multimillion dollar employment contract, received a significant inheritance, expect a large check from a lawsuit verdict or divorce settlement, or just won the lottery, you need help from professionals to avoid negative consequences from your windfall. Below are four estate and legacy tips for those who have become suddenly wealthy to help you keep your legacy going strong, long after you are gone. fgdfgdfg Get professional help on investing: Although many of us may think differently, managing money is complicated. Whether you ...

If you have significant wealth, one of the best ways to protect your family and transfer your wealth is through a dynasty trust. However, setting one up requires considerable financial and estate planning knowledge. As experienced estate planning attorneys, we can explore all options available to protect your legacy and decide if a dynasty trust is right for you. Who Could Benefit from a Dynasty Trust? If you have worked hard to grow your money, property, or business and want to create a lasting financial legacy for your family and future generations, creating a dynasty trust may be a great ...

When you decide to create a comprehensive estate plan, there are many things to consider. One is whether to tell your loved ones about your plan and how much information to share with them. Estate planning can be a complex and sensitive matter, so your choice may depend on your unique relationships with loved ones and your family dynamics. Sharing your estate plan with your loved ones can compromise the privacy of your financial and personal information. Some people therefore prefer to keep these matters private, especially when it comes to distributions of significant amounts of money or property. There ...

You have several different options when it comes to creating the right estate plan. Some people believe that a revocable living trust is the best way to go, while others think that a last will and testament (commonly known as a will) is best under certain circumstances. Others may find that a combination of both—through the use of a testamentary trust—provides the right amount of control and protection for themselves and their loved ones. A Testamentary Trust Can Provide a SolutionA testamentary trust will own accounts and property owned by you in your sole name without beneficiary designations, upon your ...

The Countdown Begins: Will We Keep the $10 Million Exemption? The year 2026 is quickly approaching, bringing substantial changes that may affect your estate tax situation. The Tax Cuts and Jobs Act (TCJA) in 2017 significantly increased the federal estate tax exemption to $10 million adjusted for inflation. This is the amount you can gift or leave to your loved ones at your death without incurring a gift or estate tax liability. Any portion of the exemption used during lifetime reduces the total exemption amount available at death for estate tax purposes. However, the countdown has begun for the potential ...

As of January 1, 2024, a new law called the Corporate Transparency Act (CTA) has gone into effect, which may require qualifying entities (known as reporting companies) to submit certain information to the Federal government that was not previously required to be reported. The CTA is aimed at combating money laundering, tax evasion and other illicit activities, including the use of shell companies.   The failure to report can result in significant fines outlined below. What is the Corporate Transparency Act? The CTA is a law that requires business entities it identifies as reporting companies to disclose certain information about the ...

On November 9, 2023, the IRS issued Revenue Procedure 2023-34, providing the annual inflation adjustments for tax provisions to be used by individual taxpayers on their 2024 returns. The adjustments include the following: For 2024, the estate, gift, and generation-skipping transfer tax exemption amount is $13,610,000, an increase from $12,920,000 for transfers in 2023. It is important to note that if no new tax law is passed, the increased exemption amounts are scheduled to expire on December 31, 2025, which would mean a reduction in the exemption amounts to $5 million plus adjustments for inflation. The annual exclusion for gifts is ...

Last week, the House Ways and Means Committee released its proposed tax plan to fund the $3.5 trillion “Build Back Better” reconciliation program. While this proposal is less drastic than the 99.5% Act released by Senator Sanders in March of this year, it does contain significant tax increases and changes to the estate tax and gift laws. Although this is just a proposal at this point, we do anticipate a new law prior to year-end. Certain strategies that have been used by estate planning attorneys for many years may become ineffective or have their impacts significantly reduced. There is still an opportunity to benefit ...

The aggressive changes being sought after are an indication that some level of transfer tax reform is likely to be heading our way before year end. Over the past few weeks, two tax bills were introduced. The first bill, written by Senators Bernie Sanders and Sheldon Whitehouse, would make substantial changes to the extremely favorable gift and estate tax laws that we have enjoyed over the past several years. The second bill, which was authored by Senator Elizabeth Warren and others, introduced a proposal to significantly alter the “step up in basis” rules at death. Shortly before the 2020 elections, in anticipation of the ...

Happy New Year to you and your family!  Each year I send an e-mail to my clients to provide updates on any upcoming estate tax law changes, but I would be remiss if I did not take a few moments to reflect on the crazy year that was 2020. For many, the year 2020 has been a turbulent one, coming with many newly found struggles in both work and personal lives. My practice was no different. From trying to run a practice from home, to not being able to meet face to face with my clients, to learning and working with new technologies, ...

Protecting Your Assets in Advance of Possible Tax Law Changes The Federal estate tax exemption has not decreased in nearly 85 years since it went from $50,000 in 1934 to $40,000 in 1935. The opinion of most tax and estate planning experts is that this could all change very soon. The current Federal estate, gift and generation skipping transfer tax exemption is $11.58 million. It is widely believed that a Biden win in the upcoming election would result in significant decreases to the exemption. Moreover, certain tax strategies that allow us to protect even more from the estate tax (some may refer to these ...

Each year approximately four million American children will turn 18. This can be an exciting time in one’s life – from gaining legal rights and responsibilities to discovering a new sense of freedom. A child’s independence, however, can have some unexpected consequences for the parents. Once the child turns 18, parents no longer have the authority to make health care decisions or oversee assets for their child.Due to HIPAA (Health Insurance Portability and Accountability Act) laws, doctors cannot share information with the parent of someone over the age of 18 without written authorization from the child. As a parent, this leaves ...

The SECURE Act of 2019 On December 20, 2019, President Trump signed the Setting Every Community Up for Retirement Enhancement (SECURE) Act into law. The SECURE Act became effective on January 1, 2020, and includes policy changes that, amongst other things, will significantly impact retirement accounts. Below are a few of the highlights… Increase in Triggering Age for Required Minimum Distributions (RMDs) The SECURE ACT increases the age that triggers RMDs from 70½ to 72. Under the previous law, individuals had to start taking RMDs no later than April 1 of the year following the year that they turned 70½. ...