Blog Archives
Full Utilization of a Donor Advised Fund
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 […]
Calculation of Minnesota Estate Tax on Non-Residents with Minnesota Property
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 […]
Minnesota Estate Taxes
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 […]
Utilizing a Tax Savings Trust for Married Clients
In order to minimize the incidence of Minnesota estate taxes following the death of the surviving spouse, a married couple residing in Minnesota who own assets in excess of $3.0M should include specific provisions in their estate plan during their joint lifetimes. Through the creation of a “Tax Savings Trust” following the first death between […]
The Step Up In the Income Tax Cost Basis
Under federal income tax law, a capital gains income tax is imposed on the difference between the price for which an investment is sold and the price for which the investment was originally purchased. For example, if Joe purchases a stock for $10, then sells it at $110, Joe will owe a capital gains tax […]