The 4th Annual Ranking of Domestic Asset Protections Trust jurisdictions was released today, and it has Nevada as the best in the United States. Other states compete with Nevada, but have yet to match the favorable statutes in the Silver State. The rankings chart lists the key criteria and factors used to determine the rankings. If you are establishing a trust, you need to consider Nevada. Call 775-297-4684 for more information.
If you live in a high-income tax state, but cannot physically relocate to Nevada, this is an excellent strategy to save on state and city-level income taxes. The recent IRS letter ruling has just increased the visibility and popularity of this strategy. Our friends in California, Oregon, Connecticut, New York and New Jersey have already started using these strategies. If you’d like more information, please call Alliance Trust Company at 775-297-4684.
The proposed budget from the administration is out, and what has been rumored for a period of time is in print. The proposal includes rolling back the estate tax exemption levels to 2009 rates in 2018. This means that the estate tax exemption would drop from $5 million to $3.5 million, and the tax rate on taxable estates would increase from 40% to 45%. Limits on retirement account levels, often used as an estate planning strategy would also be implemented.
As this article accurately states, nothing is certain when it comes to estate planning and estate tax law. The proposed federal budget limits many techniques which can greatly benefit families. Contact Alliance Trust now to take full advantage of the laws as they currently stand. We are in Reno, Nevada at 775-297-4000.
With taxes on the wealthy increasing rapidly this year, there are strategies which can provide immediate and future tax-relief. These steps can also address important family estate issues which are often neglected until there is a family emergency or in the worst cases, it is too late to address.
As this recent article from Reuters notes, the new estate tax rules require new strategies for families. While tax minimization is often a goal of estate planning, it is not the only one. Many considerations go into an estate plan, and important issues regarding businesses, real estate and caring for children remain critical regardless of the federal estate tax level.
Some people recommend reviewing your estate on a certain schedule, say every 3-5 years. While this is better than not reviewing your plan at all, there are some key changes in life that should trigger an immediate and automatic review of your goals and plan. This article highlights some key areas: changes in family structure (births, deaths, marriage, divorce); business acquisitions or sales, inheritances; changes in health status; legal/tax law changes. The article explains in more details why each of these areas can be significant to your overall estate plan and goals.
Forbes recently updated this article detailing estate planning issues for couples. It is an excellent starting point for those newly married, or those couples who have not yet created their own estate plan.
As this recent New York Times article points out, the wild political football which was known as the estate and gift tax exemption levels are now permanently set at $5 million, indexed for inflation. While Washington D.C. can operate under a different definition of “permanent” than Merriam -Webster, for now the rules are known and aggressive gifting into trusts is a continued option. Future efforts to minimize estate discounting strategies are still being discussed in Washington, so those who expect to be subject to the tax should still act now. Call Alliance Trust Company in Nevada at 775-297-4000 for more information.
This Forbes article and the link to the Tax Policy Center demonstrate and quantify the “real incentive” to use gifting strategies before year-end. Even if a possible estate tax compromise is reached between the political parties, a strong, multi-million dollar tax-savings opportunity for many families still exists. Many Alliance clients are gifting assets into trust, which in Nevada can shield the assets from estate taxes for generations. However, time is running out – please call 775-297-4000 for more information.
