What Is the Impact on Clawback of New Tax Law?

What Is the Impact on Clawback of New Tax Law? image

It is not yet known how the IRS will handle things if people make gifts now that will exceed the exemption limits that are scheduled for 2026, when the new exemptions will sunset to previous levels.

The tax cuts passed late last year include provisions that double estate tax and gift tax exemption limits. That is good news on multiple fronts for many people. It means that some of them will no longer have their estates subject to the estate tax and others can gift more than previously to help decrease the size of their estates.

However, the new exemption...

IRA Trusts

IRA Trusts image

If you have significant wealth tied up in your individual retirement account, it is likely that you may not use it all before you pass away. That makes it important to designate the right beneficiary for the account and, in some cases, that might mean designating a trust.

One of the things people often overlook when they are considering estate planning, is what to do with their retirement accounts. Many people have enormous sums in their IRAs and they will not use them all during their own retirements.

Any funds left over after the account holder passes away, will go...

Preparing for Widowhood

Preparing for Widowhood image

It is unlikely that you and your spouse will pass away at the same time, so it is important to prepare for what will happen when one of you passes first, to make sure the other has what he or she will need.

One of the last things many elderly couples would prefer to think about is what will happen when one of them outlives the other. However, that will most likely be the case for all couples.

This can be a big issue to deal with emotionally. When it happens, the surviving spouse will not want to have to...

Will There Be Less Estate Planning Now?

Will There Be Less Estate Planning Now? image

With increased estate tax exemptions, many people wonder what it will mean for estate planning and whether there will be less need for them to plan. One way to figure out the answers is to look at what estate planning attorneys expect to happen.

The recently passed tax changes include a doubling of the estate tax exemptions. This has made many well-off families happy, but it has also left many of them wondering how they should respond to the changes.

People are not quite sure whether they still need to make estate plans now and if so, how their plans...

Estate Planning After Divorce

Estate Planning After Divorce image

If you get divorced, it is important that you revisit your estate plan to make sure your ex-spouse is excluded, if desired, and that what he or she would have received is distributed to someone else.

The U.S. has a high divorce rate. Nearly half of all marriages end in divorce.

The rates are even higher for second and third marriages. One of the issues concerning the high divorce rate is that people get distracted by the divorce itself and then fail to update their estate planning afterwards.

Ex-spouses are routinely left in many estate plans.

If an ex-spouse is...