Estate Tax Exemption and Annual Gift Tax Exclusion for 2023 Official Estate and Gift Tax Limits for 2023 The Internal Revenue Service has announced new inflation-adjusted estate and gift tax limits for 2023: The estate and gift tax exemption is $12,920,000 million per individual, up from $12,060,000 in 2022. That means an individual could leave…
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Does equal mean fair in estate planning? Our clients, as parents, want to treat their children fairly and equally. Splitting assets equally among children may be easy, but is it fair or equitable? Equal and fair can be vastly different depending on the estate plan, and this is where it can become difficult because in…
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The Inflation Reduction Act of 2022 – As Proposed The Inflation Reduction Act of 2022 as Proposed – No Direct Effect on Federal Estate Taxes, Gift Taxes, or Generation-Skipping Transfer Taxes. The “Inflation Reduction Act of 2022,” which is a significantly scaled back version of the proposed “Build Back Better Act” that failed to pass…
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Planning Checklist For Those Assisting Elderly Family Members I gave a presentation a few years ago at a local assisted living facility. The topic was powers of attorney and guardianships and conservatorships. Half of the attendees were children of residents at the assisted living facility. Based on the questions that they asked me; it was…
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Estate and Long-Term Care Planning – Lessons From Baseball Another baseball season is upon us. I’m always excited about the new season because that means warmer weather has arrived in Montana and my hopes are still alive, at least for a while, that my favorite team will win the World Series. My wife Rhonda and…
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A Family Meeting Can Play a Key Role in Your Estate Planning Over the years, both Keith and I have stressed to our clients the importance of communicating your estate plan to your family. Holding a family meeting is a good way to do this. We feel so strongly that a family meeting plays a key role…
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The Value of Using Irrevocable Trusts in Medicaid Planning People often wonder about the value of using irrevocable trusts in Medicaid planning. Certainly, gifting of assets can be done outright, not involving an irrevocable trust. Outright gifts have the advantages of being simple to do with minimal costs involved, including the cost of preparing and…
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First Party Versus Third Party SNT A First-Party Special Needs Trust (SNT) and a Third-Party Supplemental Needs Trust (SNT) are used when a beneficiary would like access to extra funds without jeopardizing their eligibility for public benefits. Let’s review some key differences between these trusts. The First-Party SNT is irrevocable and is used when the…
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Gifting to a Minor with Special Needs We previously have posted blog entries about special needs planning and about gifting. Gifting money to a child with special needs can be a powerful tool for a parent or grandparent to provide support for the special needs child. However, caution must be used when making such gifts…
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If A Decedent Dies Without A Will, How Are The Assets Distributed? Each state has statutes called “Intestacy” statutes that are referred to when an individual dies without a Will. These statutes dictate intestate succession, which is how “probate” property is to be distributed to the decedent’s heirs. What is probate property, or, stated another…
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