Tracking IRA basis is critical for avoiding double taxation of assets, but this can be especially difficult for those who inherit retirement accounts. Reviewing the decedent's Form 8606 is an important first step, and other tax forms can also provide valuable information if this form cannot be found. To read the full article in Kiplinger, click: How Beneficiaries Can Determine IRA Basis. ...

If clients fail to consider their heirs' tax brackets when crafting estate plans, heirs could lose more money to taxes than they need to. Dividing taxable and tax-deferred accounts in accordance with the unique financial situation of each heir can lead to better results. To read the full article in Kiplinger, click: Equal Shares for Heirs? Not Unless You Take Taxes into Account. ...

Many of the biggest beneficiaries of President Donald Trump’s tax overhaul have not even been born yet.  The new law doubles the amount that can be passed to heirs without worrying about estate and gift taxes, to about $22 million for a married couple.  But the thresholds are in place only until 2025, and the ultra-rich are turning to a key tool—the dynasty trust—to secure the financial futures of their gra ...

The new tax law could affect existing estate plans, so now is a good time to review documents with clients.  Clients may need guidance in five areas, including the impact of the law on state-level estate taxes. To read the full article in Next Avenue, click: Five Questions to Ask Your Estate Planner After the New Tax Law. ...

Some planners are adding language to grantor trusts that allows trustees to pay taxes directly or to reimburse grantors.  This can dissuade grantors from turning off grantor trust status entirely, but there are certain IRS rules to consider. To read the full article in WealthManagement, click: Where are all the Grantor Trust Reimbursement Statutes? ...

The Benefits of Setting Up a Trusteed IRA Trusteed individual retirement accounts are not right for every circumstance, but they can provide additional control over assets.  For example, trusteed IRAs can help clients determine what happens to assets after the death of a beneficiary, which can be especially useful for clients who have been married multiple times.  Talk with your clients about trusteed and o ...

Estate Planning Missteps Create a Burden for Beneficiaries Mistakes such as failing to create an inventory of assets, having too many accounts or not including a see-through provision in a trust can complicate matters for beneficiaries who are left behind after a client dies.  Proactive planning can help simplify the situation for a client's loved ones. To read the full article in Kiplinger, click: Some of ...

Couples Face Many Challenges in Retirement Planning A lot can go wrong when couples plan for retirement.  Updating important documents and communicating about retirement goals and plans can help couples overcome challenges.  Rodney Brooks, columnist for The Washington Post, discusses some tips to help couples become more prepared. To read the full article in The Washington Post, click: When it Takes Two to ...