Recent News & Blog / Estate Planning
April 15 is the deadline to file a gift tax return
If you made substantial gifts of wealth to family members in 2023, you may have to file a gift tax return. The return is due by April 15 of the year after you make the gift, so the deadline for 2023 gifts is coming up soon. Generally, a federal gift tax return (Form 709) is required if you make gifts to or for someone during the year that exceed the annual gift tax exclusion ($17,000 per person for 2023 and $18,000 per person for 2024). Contact the CPAs and tax advisors at SEK for more details.
Lines may blur when it comes to estate and family business succession planning
If you own a closely held business and don’t take the proper estate planning steps to ensure that it lives on after you’re gone, you may be placing your family at risk. One challenge of transferring a family business is distinguishing between ownership and management succession. Contact the CPAs and business advisors at SEK to learn how to protect your family business and ensure the right estate planning.
Take care of a loved one who has special needs with a special needs trust
Special needs trusts (SNTs) benefit children or other family members with disabilities that require extended-term care or that prevent them from being able to support themselves. An SNT is an irrevocable trust that may provide peace of mind that your loved one’s quality of life will be enhanced without disqualifying him or her for Medicaid or Supplemental Security Income benefits. Contact the CPAs and tax advisors at SEK for more details and estate planning tips.
Addressing your elderly parents in your estate plan in 5 steps
An estate plan typically includes accommodations for your spouse, children, grandchildren and even future generations. Yet the older generation may also need your financial assistance. How can you best handle the financial affairs of parents in the later stages of life? Incorporate their needs into your own estate plan while tweaking, when necessary, the arrangements they’ve already made. Contact the CPA's and business advisors at SEK to answer your questions about estate planning for your and your parents.
Is it time to review your beneficiary designations?
Too often, people designate a beneficiary when they acquire a nonprobate asset and then forget about it. But over time, these beneficiary designations may become inappropriate or obsolete because of changes in life circumstances. So, it’s a good idea to periodically review beneficiary designations and update them if necessary. Contact the CPA's and business advisors at SEK for more information.
A power of attorney is a critical component of an effective estate plan
While much of your estate plan focuses on actions that take place after death, it’s equally important to have a plan for making critical financial or medical decisions if you’re unable to make them for yourself during your lifetime. This is why including a power of attorney in your estate plan is a must. Contact the CPA's and business advisors at SEK for additional details.
Comparing inter vivos and testamentary trusts
Trusts are used to accommodate asset transfers beyond dispositions in a will. There are two main types: the inter vivos trust and the testamentary trust. An inter vivos trust, sometimes called a “living trust,” is created during your lifetime. A testamentary trust, on the other hand, is created when the grantor passes away. It doesn’t officially become effective until the grantor’s death, and at that time it becomes irrevocable. The choice between an inter vivos or testamentary trust often depends on your estate planning objectives, including tax implications and whether you want to avoid probate or maintain control over assets. Contact the CPA's and business advisors at SEK to answer your tax questions and for more tax tips.
Where should you keep your estate planning documents?
You’ve likely put a great deal of time, effort and expense into implementing an estate plan that meets your goals. But unless your loved ones know that these documents exist, and how to find and access them, your well-laid plans can be derailed. Contact the CPA's and business tax advisors at SEK with your questions about estate planning, tax planning and other tax tips.
Individuals: Use the annual gift tax exclusion to the max
With the holidays approaching, you might be considering making gifts of stock or cash to family members and other loved ones. By using your annual gift tax exclusion, those gifts, within generous limits, can reduce your taxable estate. For 2023, the annual gift exclusion amount is $17,000 per recipient. Contact the CPA's and business tax advisors at SEK with questions.
Higher interest rates spark interest in charitable remainder trusts
If you wish to leave a charitable legacy while generating income during your lifetime, a charitable remainder trust (CRT) may be a viable solution. A CRT is an irrevocable trust to which you contribute stock or other assets. The trust pays you income for life or for a term of up to 20 years, then distributes the remaining assets to one or more charities. When you fund the trust, you’re entitled to a charitable income tax deduction (subject to applicable limits) equal to the present value of the charitable beneficiaries’ remainder interest. Contact the CPA's and business tax advisors at SEK for help in establishing your CRT or for more financial advice and tax tips.