Recent News & Blog / Estate Planning
Maximize your year-end giving with gifts that offer tax benefits
As year end approaches, you may be thinking about tax strategies. One way to reduce potential estate taxes is to give cash gifts before Dec. 31 using the annual exclusion. In 2024, the exclusion amount is $18,000. We can also prepare a gift tax return for you. Contact the CPAs and tax advisors at SEK with questions.
Making defined-value gifts may benefit your estate plan
Making hard-to-value gifts, such as interests in a closely held business, can raise the concern of the IRS. To help avoid an unexpected outcome, consider making a defined-value gift. It’s a gift of assets valued at a specific dollar amount rather than a certain number of stock shares or FLP units or a specified percentage of a business entity. Contact the CPAs and tax advisors at SEK for more estate planning tips.
Don’t be afraid of probate
Few estate planning subjects are as misunderstood as probate. In basic terms, probate is the process of settling an estate and passing legal title of ownership of assets to heirs. If the deceased person has a valid will, probate begins when the executor named in the will presents the document in the county courthouse. Its biggest downside is the fact that probate is public. Contact the estate planning advisors at SEK for additional details on the probate process.
Unlock your child’s potential by investing in a 529 plan
If you have a child or grandchild planning to attend college, you may wonder about investing in a qualified tuition program or 529 plan. You don’t get a federal tax deduction for contributions, but the earnings aren’t taxed while the funds are in the program. Contact the CPAs and tax advisors at SEK to learn more.
Achieve multiple estate planning goals with one trust: A CRT
Two common estate planning goals are contributing to a favorite charity and leaving significant assets to your family under favorable tax terms. A charitable remainder trust (CRT) can help you achieve both goals. Contact the CPAs and estate planning advisor at SEK for details.
What are the duties of an executor?
A key decision you must make when drafting your estate plan is who to appoint as the executor. Your first inclination may be to name a family member. But this can cause complications. Frequently, a professional advisor whom you trust is a good alternative. Contact the estate planning advisors at SEK with your questions.
A real-life example of why a holographic will isn’t enough
Many states permit holographic wills. But while holographic wills can be cheap and easy to produce, they tend to invite challenges and interfamily conflict. Also, because an attorney doesn’t prepare them, holographic wills tend to be less thorough and often contain ambiguous or unclear language. Contact the estate planning advisors at SEK for more information.
A spendthrift trust can act as a wealth preserver
A spendthrift trust can be an invaluable tool for preserving wealth for your heirs. It prohibits a beneficiary from directly tapping its funds or transferring its rights to someone else. Instead, the trust beneficiary relies on the trustee to provide payments based on the trust’s terms. Contact the CPAs and estate planning advisors at SEK if you have questions regarding a spendthrift trust.
Estate planning for residential real estate with a qualified personal residence trust
If you own your principal residence, it may be beneficial to transfer ownership of your home to a qualified personal residence trust (QPRT). Using a QPRT, you can continue to live in the home for the duration of the trust’s term. When the term ends, the remainder interest passes to designated beneficiaries. Contact the CPAs and estate planning advisors at SEK for more details.
Filing a joint tax return for the year of a spouse’s death can be beneficial
When a person dies, his or her personal representative (called an executor in some states) is responsible for filing an income tax return for the year of death. In some cases, filing jointly can provide tax savings, such as from a lower tax rate, larger tax credits and higher IRA contribution limits. Contact the CPAs and tax advisors at SEK for more information.