“Dad, it’s so cold outside. Why can’t we live in a warmer state like Grandma and Grandpa?” This past week, a few of my clients called me from their winter residences in Florida and Arizona. In addition to their own estate planning matters, we discussed the significant temperature differential between our respective locations. On a […]
“Our new constitution is now established and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.” Benjamin Franklin’s letter to Jean-Baptiste Leroy, 1789. For many of us, the end of the calendar year could not come soon enough. Between the social unrest, political […]
Do your givin’ while your livin’ so your know’n where its goin’. Unknown Poet and Estate Planner Many of my clients share with me their pleasure in seeing their family use and enjoy gifts made by them. Whether it is paying for a nice dinner out with the family (remember those days?), a vacation adventure […]
In last month’s update, I shared how our family has documented our memories of the 2020 pandemic. One of my lasting memories will be of the virtual learning assignments for our children. As the self-appointed physical education teacher, I took it upon myself a few weeks ago to create an obstacle course in our front […]
A “Grantor Retained Annuity Trust” (“GRAT”) is a planning strategy used to transfer wealth without necessarily using any federal gift tax exemption. Under this strategy, a donor irrevocably transfers assets to an irrevocable trust, but purposely retains a fixed annuity amount for a fixed period of years (called the “annuity period.”) While the donor will […]
If you have read any of Malcom Gladwell’s books, or listen to his podcasts, you are acquainted with various examples of the law of unintended consequences. Gladwell demonstrates how well-intentioned efforts to solve societal problem might actually prove to be an impediment to success. In the 1990’s, Australian lawmakers enacted legislation requiring Australian children to […]
The implementation of a Donor Advised Funds is at an all time high. Vanguard reported a 45% increase in new DAF accounts in the fourth quarter of 2017, with more than 80% of the gifts comprising non-cash assets, such as appreciated securities. Likewise, Schwab has reported a 59% increase in the number of new DAF […]
Under current law, the manner of calculating a Minnesota estate tax liability sometimes yields surprising results. If a non-resident of Minnesota dies with real property or business assets in Minnesota, and if this “non-resident” owned assets total assets in excess of the Minnesota estate tax exemption of $3.0 million, then some Minnesota estate taxes are […]
Back in 2017, Governor Mark Dayton signed a Minnesota tax bill into law that, among other items, specifies the Minnesota estate tax rate and estate tax exemption amounts. Minnesota residents with significant assets should be aware of these exemption amounts and why so-called “Credit Shelter Trust” planning (also known as A/B Planning or “Credit Shelter […]