Stites on Estates

Category Archives: Estate Tax Planning

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Estate Planning With Partnerships: Important New Considerations

Posted in Estate Tax Planning, Income Tax Planning, Trust Administration
Two recent acts of Congress (including the rather interestingly named Protection of Americans from Tax Hikes Act) created new audit rules for partnerships.  Normally one would not think that a change to “audit rules” would impact estate planning.  However, many estates have LLCs taxed as partnerships, or even limited partnerships or limited liability partnerships, which… Continue Reading

Florida Residency Planning for Kentuckians

Posted in Estate Planning, Florida Estate Planning, Income Tax Planning, Inheritance Tax Planning, Retirement Planning
pc10962-300x194If you are a Stites on Estates reader in a state where it’s cold in the winter, you have probably seen them: people who seem to live in your own neighborhood and golf at your club, but have a car with a Florida license plate. Who are those people? They’re the lucky ones: the Snowbirds… Continue Reading

Trust Planning for Upside Business Potential – part 3: Repeating Liquidity Events

Posted in Business Planning, Estate Planning, Estate Tax Planning
Balliste_fireingThis series on how grantor retained annuity trusts can be applied in situations with upside business potential presented an overview of how GRATs work in Part 1.  Part 2 presented a case study of how an “Entrepreneurial GRAT” could be used to substantially improve the net-of-tax risk-adjusted return for a risky venture with a new… Continue Reading

Trust Planning for Upside Business Potential – part 2: Case Study of a Long Shot

Posted in Business Planning, Estate Planning, Estate Tax Planning, Retirement Planning
GolfManAs we saw in Part 1 of this series, a grantor retained annuity trust (or “GRAT”) can be a very effective way to remove the government as a 40% silent partner in the potential upside of a business venture in several types of circumstances. In the pre-2010 regime of low estate tax exemptions, two common types of circumstances were: (a) … Continue Reading

Trust Planning for Upside Business Potential – part 1

Posted in Business Planning, Estate Planning, Estate Tax Planning, Retirement Planning
SunnydockThe pursuit of wealth has long been part of the American Dream, and a positive feature of the current $5.34 million estate tax exemption (high by historic standards) is that entrepreneurs have more “run room” before the Federal government becomes a 40% silent partner in the upside of all the work, creativity, striving, and risk… Continue Reading

Reasons to Use a Life Insurance Trust, or Keep the One You Already Have

Posted in Asset Protection, Estate Planning, Estate Tax Planning, Insurance, Life Insurance
Dory1948A decade ago, when the estate tax exemption was much lower, the irrevocable life insurance trust (or “ILIT”) was a component of many (or even most) tax-aware estate plans. It was common for physicians, attorneys, architects, engineers, and corporate executives to have insurance trusts, without necessarily knowing why that was so.  Reassured by their attorneys… Continue Reading

Using Community Foundations for More Effective Charitable Giving in Your Estate Plan

Posted in Charitable Planning, Estate Planning, Estate Tax Planning, Income Tax Planning, Nonprofit Organizations
ViewCmsImage.aspxFamilies at all levels of wealth commonly include charitable giving as a part of their estate plans.  This is gratifying for the families, and absolutely essential to maintaining and building excellence in so many civic areas, including hospitals, social services, conservation, the arts, and education. It’s also true, however, that the business cultures of the… Continue Reading