A power of appointment is a legal instrument that grants an individual (the “appointee”) the authority to decide how a particular asset or assets will be distributed upon the death of the individual who created the power (the “donor”). The
Tax & Wealth Advisor Blog
Latest from Tax & Wealth Advisor Blog - Page 2
Tax & Wealth Advisor Alert: Selecting a Fiduciary – One of the Most Important Decisions in an Estate Plan
When creating an estate plan, one of the most critical decisions you will make is selecting a personal representative and trustee, also known as “fiduciaries.” A fiduciary is a person or institution entrusted with the responsibility of managing assets and…
Tax & Wealth Advisor Alert: Charitable Remainder Trusts, A Dynamic Estate Planning Tool to Reduce Taxes and Do Good
Charitable Remainder Trusts (CRTs) are a powerful tool for those looking to support their favorite causes while also securing a steady income stream for themselves or their loved ones. These trusts are essentially a way to give cash or other…
Tax & Wealth Advisor Alert: Donor-Advised Funds, a Great Way to Do Charitable Giving
Donor-advised funds, or DAFs, are a popular way for individuals to support charitable organizations they care about while also receiving potential tax benefits. A DAF is essentially a charitable investment account that allows individuals to make a tax-deductible donation and…
Tax & Wealth Advisor Alert: Qualified Personal Residence Trusts – A Planning Technique to Save the Family Home from Estate Taxes
A Qualified Personal Residence Trust (QPRT) allows a homeowner to transfer their personal residence to a trust for a specified period of time, after which the residence is transferred back to the homeowner or to a designated beneficiary. QPRTs are…
Tax & Wealth Advisor Alert: Irrevocable Life Insurance Trust, a Technique to Eliminate Estate Taxes on Life Insurance Proceeds and to Provide Liquidity to an Estate Plan
An Irrevocable Life Insurance Trust (ILIT) is a special kind of trust that is designed to own life insurance. The key characteristic of an ILIT is that it is irrevocable, meaning that it cannot be changed or dissolved once it…
Tax & Wealth Advisor Alert: Spousal Lifetime Access Trusts, A Powerful Estate Planning Tool for Complex Estates
The Spousal Lifetime Access Trust (SLAT) is a type of irrevocable trust that allows married couples to transfer assets to their spouse and other family members while removing those assets from their combined estates. This type of trust can help…
Tax & Wealth Advisor Alert: IRS Postpones $600 Payment Processor 1099-K Reporting Requirement
In a year-end gift of sorts to tax professionals, payment processing companies, and individuals pursuing eBay and other small-transaction side hustles, the IRS has delayed a new transaction reporting requirement that some believed would cause confusion among taxpayers and tax…
Home for the Holidays: Give the Gift of Legal Planning for your College Student
In the summer flurry of packing and planning to transition their high school student to college life, many parents overlook the legal documents that can help families in the event of a student’s financial or health emergency. As many parents…
Tax & Wealth Advisor Alert: How Joint Accounts Can Ruin Your Estate Plan
As individuals grow older, they are often inclined to add a child to their financial accounts to assist them with paying bills and managing assets. While this strategy is convenient, it can lead to financial abuse and can also derail…