Aligning Client Lifestyle, Dreams And Legacy Goals With Wealth Objectives

Private Wealth:  “Wealth management firms typically emphasize applying a personal touch in how they serve clients, driven by a sincere concern for their well-being, and a desire to build long-term relationships. And to a significant extent, the industry has delivered solutions that work for both clients in the mass market, generally defined as individuals and households with below $1 million in net worth, and to the upper echelons of the high net worth, broadly defined as those who have more than $20 million in net worth. The former is usually supported by a spectrum of small, independent financial advisor businesses, while the latter continues to be dominated by an assortment of white shoe family offices and Wall Street institutions. But this also means there is an “overlooked millionaire” segment of the wealth management market, comprised of individuals and families with between $2 million to $20 million in net worth, who have more complex needs than the mass market, but simply aren’t worth the time and attention of the top players in the industry.

2018-07-16T12:49:01-07:00July 19th, 2018|Estate Planning, Tax Planning, Wills|

The Uncertainty of Taxes When it Comes to Death

Accounting Today:  “Although there is a great deal of truth in Benjamin Franklin’s oft-quoted maxim that the only certainties in life are death and taxes, the timing of death and the amount of taxes owed are not certain, observed Joyce Beebe, a fellow at Rice University’s Center for Public Finance.“The Tax Cuts and Jobs Act of 2017 leaves the federal wealth transfer tax system in place, but temporarily doubles the exclusion amount for estate and gift taxes to $11.18 million per individual or $22.36 million per married couple until the end of 2025,” she said. “In 2026, absent congressional action, the base exclusion amount will revert to $5 million, indexed for inflation.”

2018-05-14T16:10:05-07:00May 17th, 2018|Estate Planning, Tax Planning|

6 Pet-Related Tax Deductions

Think Advisor:  Can pet owners claim their dog or cat on their taxes? The answer is yes  but only in specific instances. Embrace Pet Insurance compiled a list of six potential tax deductions for pet owners though some may have been affected by the tax overhaul. ThinkAdvisor spoke with Leon LaBrecque, managing partner and CEO at LJPR Financial Advisors, about these potential pet deductions and which are still relevant under the new tax law.

2018-05-14T16:02:33-07:00May 15th, 2018|Estate Planning, Planning for Pets, Tax Planning|

Wealthy Americans Must Act Now To Take Advantage Of Gift Tax Exemption

CNBC:  “If you're a wealthy American who's planning to hire an estate or trust attorney later this year, here's a thought: Good luck. You're going to need it.

That's because the transit of Venus of estate planning is passing through, and by the New Year it is likely to be gone.

It's the lifetime gift-tax exemption of $5.12 million, paired with a similar estate-tax exemption. And it means that through the rest of this year, parents can pass along assets valued up to that amount to their heirs – maybe a house, maybe a stock portfolio, maybe part of the family business – without paying a single penny to Uncle Sam.”

2017-10-07T11:14:47-07:00June 13th, 2012|Estate Planning, Estate Tax, Gifts, Tax Planning|

Using A 529 Plan With Your Estate Plan

Village Life:  “Now that another school year is drawing to a close, your young children are a step closer to the day when they’ll be heading off to college. Of course, as you’re probably aware, higher education doesn’t come cheap — and the costs seem to continuously climb. You can help your children — or even your grandchildren — meet these expenses by investing in a 529 plan. And this college savings vehicle offers estate-planning benefits.”

2012-05-11T11:12:32-07:00May 11th, 2012|Estate Planning, Tax Planning|

How Billionaires Avoid Taxes

Forbes:  In 2010 Max R. Levchin, chairman of social review site Yelp, sold 3.1 million shares of Yelp held in his Roth individual retirement account. Most of the $10.1 million he received was profit. But Levchin, a 36-year-old serial entrepreneur who started PayPal with ­billionaire Peter Thiel in 1998, won’t ever have to pay a penny of income tax on those gains. That’s because all earnings in a Roth IRA are tax free so long as its owner waits until age 59 1/2 to take money out.

Moreover, Securities & Exchange Commission filings show Levchin still has 3.9 million shares of Yelp, now trading near $22, in his Roth. So it appears his tax-free “retirement” kitty is worth at least $95 million—and maybe a lot more. We don’t know, for example, if Levchin’s Roth owned stock in social app company Slide, which he started in 2004 and sold to Google for $182 million in 2010. If Levchin doesn’t spend his mega-Roth in retirement, he can leave it to his kids or grandkids, who can, under current law, stretch out income-tax-free growth and withdrawals for decades.

Continue reading how billionaires avoid taxes.

2012-03-28T10:17:50-07:00March 28th, 2012|Tax Planning, Trusts|
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