The IRS released Revenue Ruling 2023-2 explaining that assets in a trust which is not included in the estate of the decedent don’t receive a “step-up” in income tax basis. This is the case even if the trust is taxed to the grantor for income tax purposes. This confirms the plain language of the statute and what we’ve long known. Read more to learn more about this Ruling and how to qualify for one of the biggest tax loopholes. … [Read more...] about IRS Confirms Grantor Trust Status Alone Does Not Cause a Step-Up in Basis
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Understanding the Importance of the Simultaneous Death Act
Most spouses create Estate Plans that are intertwined. The plans work well on numerous levels allowing the spouses to benefit the surviving spouse and then distributing their joint assets to their children upon the death of the survivor. Even in a second marriage situation, it’s possible for the first spouse to die to create a trust benefitting the surviving spouse for life, but then going to children from a prior relationship upon the surviving spouse’s death. What happens when two spouses die … [Read more...] about Understanding the Importance of the Simultaneous Death Act
The SECURE Act – the Gift That Keeps On Giving
The SECURE Act of 2019 altered the landscape for IRAs significantly when signed into law. Just when advisors gained a level of comfort with the SECURE Act, the United States Treasury Department issued Regulations in early 2022 requiring RMDs under the 10-year Rule in years 1-9. After realizing that many individuals were unaware of that requirement, the Internal Revenue Service responded by issuing Notice 2022-53 suspending the requirement to take RMDS in 2021 and 2022. SECURE 2.0 came at the end … [Read more...] about The SECURE Act – the Gift That Keeps On Giving
How to Protect Your Spouse in Your Estate Plan
If you are married, one of your primary estate planning objectives is likely to ensure that your spouse is protected if something happens to you. While this sounds like a fairly straightforward goal, protecting your spouse requires you to create a comprehensive and all-inclusive estate plan that can protect your spouse financially, emotionally, and legally in the event of your untimely demise or incapacity. Toward that end, the Los Angeles attorneys at Schomer Estate & Wealth Advisors discuss … [Read more...] about How to Protect Your Spouse in Your Estate Plan
Special Needs Planning: How to Use a Memorandum of Intent
When you are the parent of a child with special needs, the practical and financial challenges can be significant. This underscores the importance of establishing a comprehensive estate plan to secure your child's future. A common tool found in the average special needs plan is a Special Needs Trust (SNT). An SNT can help ensure the financial well-being of your adult child with special needs without jeopardizing your child’s eligibility for government assistance programs. If you choose to … [Read more...] about Special Needs Planning: How to Use a Memorandum of Intent
Understanding the Importance of Back-to-School Estate Planning in Los Angeles
When the month of August arrives, families in Los Angeles find themselves amidst the hustle and bustle of preparing for the upcoming school year. Amidst the flurry of new backpacks, school supplies, and class schedules, it's also an opportune time to consider an often overlooked aspect of family planning: estate planning. Why Back-to-School Estate Planning Matters Estate planning is a comprehensive process that ensures your family's well-being and financial security in the event of … [Read more...] about Understanding the Importance of Back-to-School Estate Planning in Los Angeles
The Crucial Step: The Importance of a Financial Review When Setting Up Your Estate Plan
Planning for the future is a responsibility that none of us should overlook. It's not just about accumulating wealth, but also about ensuring that it's distributed as per your wishes, effectively and efficiently. Estate planning is a powerful tool that allows you to leave a lasting legacy while providing for your loved ones. However, setting up an estate plan isn't a one-size-fits-all endeavor. It requires a deep understanding of your current financial landscape, which is why a comprehensive … [Read more...] about The Crucial Step: The Importance of a Financial Review When Setting Up Your Estate Plan
Taxes and Trust Administration
Given the popularity of trusts, there is a good chance that you will eventually decide to include a trust agreement in your comprehensive estate plan. If so, you need to understand what taxes are levied on trust assets and whether the trust and/or the beneficiaries of the trust are responsible for paying any taxes due. Toward that end, the Los Angeles trust attorneys at Schomer Estate & Wealth Advisors discuss taxes and trust administration. Understanding How a Trust Works A trust … [Read more...] about Taxes and Trust Administration
Can My Executor Also Be the Trustee of a Trust I Create?
For most people, a Last Will and Testament is the first estate planning document they create. That Will may remain as the cornerstone of their plan moving forward; however, at least trust agreement may be added to the plan as well. When you created your Will, you named someone to be the Executor of your estate. If you are now creating a trust, can the same person be the Trustee of your trust? Should the same person be your Trustee? To shed some light on the issue, the Los Angeles attorneys at … [Read more...] about Can My Executor Also Be the Trustee of a Trust I Create?
California Trust Laws: What Is Required to Create a Valid Trust?
While most estate plans begin with the execution of a Last Will and Testament, the average plan will continue to grow through the addition of various estate planning tools and strategies. Among the most popular of those additions is a trust agreement. In fact, it is not uncommon to have several trusts within a comprehensive estate plan. Given the popularity of trust agreements, the Los Angeles trust attorneys at Schomer Estate & Wealth Advisors discuss California trust laws to help you … [Read more...] about California Trust Laws: What Is Required to Create a Valid Trust?
