The Tax Cuts and Jobs Act temporarily doubled the amount which can be given free of tax. However, that amount reverts to the permanent, undoubled amount in 2026. The estate tax ordinarily includes prior taxable gifts and then applies the exclusion to the total. However, in 2026 or later, this could result in a tax on amounts which weren’t taxable when gifted. This issue is the “clawback.” New Proposed Regulations resolve this issue. Read on to learn more.Proposed Regulations Address … [Read more...]
Being Thankful and Sharing Your Blessings
Thanksgiving is a time for sharing. This article examines ways for giving effectively, both to loved ones or to charity. It examines the use of 529 plans and ABLE accounts for loved ones. It examines gifting of appreciated assets to charity and bunching charitable deductions for the most bang for the buck. Read on to learn more.Being Thankful and Sharing Your Blessings … [Read more...]
QDRO: Not Just for Divorce Anymore
Transferring an ERISA account, like a 401(k), from one spouse to another can have substantial tax benefits, by delaying Required Minimum Distributions or avoiding early withdrawal penalties. However, one cannot simply transfer an account from one spouse to another under most circumstances without triggering adverse tax consequences. A Qualified Domestic Relations Order or “QDRO” avoids those adverse consequences. While a QDRO is most commonly used in a divorce context, divorce is not a … [Read more...]
What is the Maximum VA Aid and Attendance Benefits Amount?
Aid and Attendance is a benefit that veterans and their spouses can receive from the Veterans Affairs and can be awarded in addition to the basic pension that veterans receive. However, you must first be eligible for that basic pension. VA aid and attendance benefits are available for qualified individuals who need financial assistance to pay for in-home care, assisted living facility costs, or nursing home expenses. This article will provide you with some basic information about VA aid and … [Read more...]
Giving Back
Giving back provides many benefits, whether in life or at death. The article explores ways of giving back and some of the tax benefits available, both during life and at death. The article provides a couple strategies to maximize the tax benefits, such as grouping deductions and doing a charitable IRA rollover.Giving Back … [Read more...]
How Are Trusts Taxed?
Trusts are useful vehicles both during life and after death. This article examines how trusts are income taxed. Grantor trusts are taxed to the grantor, regardless of whether the income is distributed to them. Nongrantor trusts are separate taxpaying entities but get a deduction for distributions to beneficiaries. Read the article to learn more.How Are Trusts Taxed? … [Read more...]
Can a “No Contest” Clause Help to Avoid Orange County Probate Litigation?
There are several reasons someone might decide to challenge whether a will is valid. The most common reasons are whether the will was properly signed, whether the person who made the will had the legal capacity to do so, and whether there is any suspicion that the person was unduly influenced or induced to create the will. In those situations, the will may be contested in probate court. Although these grounds may be challenging to prove in court, having to deal with these issues is something … [Read more...]
Can You Help Me With Medi-Cal Asset Protection?
Eligibility for Medi-Cal benefits requires that you have a limited amount of countable assets. Even so, exempt assets may be subject to recovery by Medi-Cal after the death of the recipient. For these reasons, many clients are concerned about Medi-Cal asset protection and particularly whether they will be able to keep or sell their homes after a spouse receiving Medi-Cal benefits passes away. If you are faced with this situation, the Schomer Law Group is here to help.Understanding the Basics … [Read more...]
Using Dynasty Trusts to Protect Your Estate For Generations to Come
For those with great wealth and the desire to control and protect the family assets for generations, while seeing to it that the generations that follow are required to pay as little taxes as possible, our Los Angeles estate planning attorneys recommend a dynasty trust. Why? Because a dynasty trust can essentially last forever. While the trust goes on for generations and generations, the assets in that trust, with proper planning, can continue to grow while your heirs are protected from estate … [Read more...]
Naming a Trust as Beneficiary of an IRA
Whom should you name as the beneficiary of your IRA or Qualified Plan? Sometimes, it can be best to name a trust for your intended beneficiary. Read on to see the protections a trust can offer that a direct designation of the individual would not.Naming a Trust as Beneficiary of an IRA … [Read more...]
