Wolters Kluwer came out with their annual inflation adjustment projections which reflect several increased thresholds and ceilings you should be aware of. The IRS is expected to release the official amount later this year.
Of particular note:
1) The trust and estate maximum income tax bracket (37%) is reached at $12,750, up from $12,500.
Thinking of creating your own Will or other estate planning documents? After all, there are lots of web sites with legal document templates available – they make it sound easy.
And of course there’s the cost savings. Why pay a Connecticut estate planning lawyer for something you can do on your own?
The answer is simple: There’s a darn good chance that do-it-yourself legal documents might end up costing you, and your loved ones, more than you think.
If it’s not tailored to where you live…
…then there’s a chance that the document template language isn’t relevant for the state or county you live in. Each jurisdiction has its own laws and regulations – and they change. Filing a document that isn’t appropriate for your state could render your papers null and void.
Think about how that could impact your loved ones after you die.
This is the time of year when children are getting ready to head off to college or moving out on their own and into the workforce.
Don’t let out of sight be out of mind!
With this rite of passage comes new challenges and responsibilities. And one of them, you may be surprised, should be to prepare estate planning documents.
While many of you may have a Power of Attorney, an Appointment of a Health Care Representative and a Last Will and Testament as part of your estate plan, how many of your children and/or grandchildren have one as well? Continue reading
A power of attorney is a document where you authorize someone, often called an agent, to act on your behalf should you no longer be able to do so. Examples include paying your bills, managing your investments. Continue reading
Nobody plans on being isolated and vulnerable. But unfortunately all too many elders in Connecticut face that phenomenon every day. The sad circumstances of 95-year-old Stan Lee, the legendary creator of Spider Man, Iron Man, and hundreds of other beloved comic book heroes and villains, can serve an illustration of the kind of issues faced by many of our older clients.
Mr. Lee had a long, prolific career as a writer, editor, film producer, and publisher. He also served for many years as the editor-in-chief and publisher of Marvel Comics. Thanks to his professional success, Mr. Lee’s wealth is currently estimated at approximately $50 million.
We wrote not too long ago about some Connecticut estate tax changes that occurred due to legislation passed in October 2017. That legislation tied the Connecticut gift and estate tax exemption to the federal exemption amount.
The federal exemption amount was, at the time that Connecticut tied it self to it, $5.49 million. Unexpectedly in December 2017, just two months after Connecticut’s change, as part of President Trump’s tax overhaul, the federal exemption amount suddenly increased to $11.18 million.
Gifting money is a nice thing to do for a friend or family member, but—as the saying goes—no good deed goes unpunished. If you’re not careful, your gift could turn out to be subject to the federal gift tax of up to 40%.
In part one of this series, we covered the annual and lifetime exclusions as well as lifetime exclusion on the first $11.2 million of your estate. We also talked briefly about the Connecticut state gift tax—the only one in the country—and which kinds of gifts are exempt from the tax.
In this second part of the series, we’re going to look at which kinds of gifts are subject to the gift tax, including gifts to minors.
Maintaining control over medical care can be challenging in the best circumstances, but we face even more layers of complexity when dealing with the physical and emotional challenges of serious, life-limiting illness or advanced progressive frailty.
Becoming a grandparent, like becoming a parent, is a life-changing experience. There’s so much to look forward to—not only the arrival of the new baby, but also the transformation of your child into a parent.
As you may recall, that journey is filled with wonder and joy, but in the whirlwind of joyous preparation (and a thousand questions about everything from car seats and baby swings to college savings plans), some things fall through the cracks.
One important thing that gets overlooked more often than it should is estate planning.