Stites on Estates

Category Archives: Income Tax Planning

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What to Do with an Estate with Foreign Assets (Even that “Little” Bank Account in Europe)

Posted in Estate Administration, Income Tax Planning, Trust Administration
This article regards estates of decedents who owned foreign assets and the tax and reporting requirements.  Many people are quite shocked to learn about the reporting requirements for foreign bank accounts, in particular.  After all, tax is typically being paid in the foreign jurisdiction, or perhaps the foreign bank accounts generate little to no income… Continue Reading

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

Overfunded 529 Plans: Avoiding Too Much of a Good Thing

Posted in Income Tax Planning, Life Cycle Estate and Financial Planning
The expense of college for children and grandchildren is a troubling issue for almost all of my clients. I think this is because at an instinctual level, long before crunching any numbers, clients know what the charts below show: college costs have gone truly exponential in the last one and a half generations, far outstripping… Continue Reading

A Critical Look at Roth IRAs: The Marshmallow Is Not Always What It Seems

Posted in Income Tax Planning, Life Cycle Estate and Financial Planning, Retirement Planning
In the late 60s and early 70s at Bing Nursery School on Stanford’s campus, Walter Mischel conducted the famous “Marshmallow Experiment” on delayed gratification. Preschoolers were offered a choice between one marshmallow or cookie right away, or two if they waited about 15 minutes. When researchers tracked down study participants as adults, they found that the… Continue Reading

Exercising Stock Options and Selling Shares: May the Odds Be Ever in Your Favor

Posted in Business Planning, Income Tax Planning, Life Cycle Estate and Financial Planning
If you have been working since the late ‘90s, you have probably collected some great stories about exercising stock options and other equity-based compensation. Some are unqualified success stories, like the time my college roommate’s father pulled up outside the college dorm in 1998 in a brand-new zippy BMW convertible (top down, naturally), and told… Continue Reading

Florida Residency Planning for Kentuckians

Posted in Estate Planning, Florida Estate Planning, Income Tax Planning, Inheritance Tax Planning, Retirement Planning
If 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

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
Families 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