Preservation | Family Wealth Protection & Planning

The IRS recently released Revenue Procedure 2023-34, which outlines the annual inflation adjustments to various Internal Revenue Code provisions, including the estate, gift, and generation-skipping transfer (GST) tax exemption amounts, the gift tax annual exclusion, and the estate and trust income tax rates. The adjustments will be effective for the 2024 tax year. These figures are adjusted annually for cost-of-living increases.

Making changes to an irrevocable trust can be difficult. Even minor or administrative changes can require court approval and consent of all beneficiaries to the trust. Many states, including Missouri and Illinois, have addressed this by codifying a new role for trusts known as a “trust protector.”

What is a Trust Protector?

A trust protector is a third party with certain powers over a trust to ensure that the grantor’s wishes are effectively carried out. Generally, it is advisable that the trust protector be someone independent from the grantor and beneficiaries.

The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for April 2023. AFRs are published monthly and represent the minimum interest rates that should be charged for family loans to avoid tax complications.

The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for March 2023. AFRs are published monthly and represent the minimum interest rates that should be charged for family loans to avoid tax complications.

How many times have you prepared your income tax returns for the previous year, only wishing you knew then what you know now, so you could go back and make more advantageous tax decisions? In most cases, you are stuck with the decisions you made before the new tax year began, even though you may not have all the relevant tax information available to assist with those decisions until several months into the new tax year. Too bad, says the IRS, unless you are an estate or trust.

The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for February 2023. AFRs are published monthly and represent the minimum interest rates that should be charged for family loans to avoid tax complications.

The SECURE 2.0 Act of 2022, signed into law by President Joe Biden on December 29, 2022, makes significant changes to the administration and taxation of retirement plans. It addresses many practical concerns that surfaced after the passage of the original SECURE Act in 2019 and during the pandemic. Some of the key changes are set out below.

The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for January 2023. AFRs are published monthly and represent the minimum interest rates that should be charged for family loans to avoid tax complications.

The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for December 2022. AFRs are published monthly and represent the minimum interest rates that should be charged for family loans to avoid tax complications.

Sometimes leaving an inheritance to a loved one who has a disability can do more harm than good. Many public benefits programs have asset limitations for beneficiaries to qualify to receive assistance. If a well-intentioned relative leaves funds to a beneficiary who has a disability without having the proper safeguards in place, the beneficiary may be required to pay penalties or become ineligible to receive public benefits. There are options available to provide for such beneficiaries without compromising their eligibility for public benefits.