While many taxpayers may be excited about the prospect of reduced loan balances as part of Biden’s Loan Forgiveness Program, they may have questions about the potential tax consequences of that forgiveness. Under normal circumstances, creditors that discharge debt issue a corresponding Form 1099-C Cancellation of Debt to the debtor for inclusion in that year’s income. While the administration works out the kinks in the loan forgiveness plan, it’s important to understand the current provisions of … [Read more...] about Discharge of Indebtedness Income and Student Loan Forgiveness
Remarriage: Treat New Spouse Like Royalty
Blended families can be challenging in many ways. In many ways, you are forging a new path. You have commitments and responsibilities from your prior relationship, such as your children. Now you are taking on new commitments and responsibilities in this new relationship, such as your new spouse. Often, issues arise when spouses enter a marriage where there are children from a prior relationship. Typically, you want to care for the new spouse without leaving out your children. The best … [Read more...] about Remarriage: Treat New Spouse Like Royalty
Why You Need to Consult With an Estate Planning Attorney
Most people don’t look forward to estate planning. Instead, they want to make the right decisions today so that they’re protected tomorrow. If this sounds familiar, you must consult with an estate planning attorney. If you don’t consult with an attorney, one of two things will happen: You’ll continually put off estate planningYou’ll attempt to get by with DIY estate planning Either way, you’re inviting trouble. However, when you sit down with an attorney, you position yourself for … [Read more...] about Why You Need to Consult With an Estate Planning Attorney
What Could Go Wrong With DIY Estate Planning?
Do-it-yourself (DIY) estate planning sounds like everything you’ve been looking for. You want to create an estate plan on your own terms, and you assume that this is the easiest way of doing so. While it’s an option that many people consider, there’s a lot that can go wrong. And if that happens, it puts you, your family, and your assets at risk in the future. Here are three of the biggest drawbacks of DIY estate planning: 1. Lack of knowledge No matter how much you read online, you’ll … [Read more...] about What Could Go Wrong With DIY Estate Planning?
Lessons from Patagonia
Estate planning often encompasses, at least in part, business succession planning. Many individuals own family businesses with the idea of passing the business on to the next generation. Of course, the bigger the business, the more complex that endeavor becomes. Yvon Chouinard recently made headlines when he donated 98% of his $3 billion company to an Internal Revenue Code Section 501(c)(4) organization. The move saved him millions in taxes, furthered his family’s political agenda, and embodies … [Read more...] about Lessons from Patagonia
Unmarried Partners
There are currently about 17 million people living with unmarried partners in the U.S. This includes both same-sex and different-sex couples. The number of unmarried couples living together nearly tripled in the past wo decades. Sometimes it seems that married couples get all the advantages. They can file a joint income tax return. They can give each other an unlimited amount of property without gift or estate tax. They can draw on each other’s social security benefits. However, in some … [Read more...] about Unmarried Partners
Should I Leave Everything to My Spouse?
You and your spouse live your lives as one. You’ve been together for years. It seems the simple solution is to just leave everything to each other upon your deaths. Unfortunately, in this situation, the simplest solution may not be the best. First, if you leave everything to your spouse, they will be estate taxed on it at their death. If together you have more than $1 million, or expect to have that much by the time you both die, that could be a problem, depending upon the year you … [Read more...] about Should I Leave Everything to My Spouse?
The Intersection of Asset Protection Planning and Estate Planning – Part II
As part of the Estate Planning process, an attorney explores numerous topics with the client to help create a unique plan tailored to the client’s circumstances. Many estate plans use a trust as the centerpiece of the plan. Some clients want to explore asset protection and let the attorney know they want to consider offshore planning. Sometimes, offshore planning works, but often it causes additional issues. Read on to learn more. … [Read more...] about The Intersection of Asset Protection Planning and Estate Planning – Part II
The Intersection of Asset Protection Planning and Estate Planning – Part I
As part of the Estate Planning process, an attorney explores numerous topics with the client to help create a unique plan tailored to the client’s circumstances. Many estate plans use a trust as the centerpiece of the plan. Inevitably, clients want to understand the degree, if any, of asset protection that will result from the creation of a trust. There are numerous ways to achieve asset protection planning for a client. Read on to learn more. … [Read more...] about The Intersection of Asset Protection Planning and Estate Planning – Part I
Estate Planning Misconceptions: Is Estate Planning for Me?
Many people ask themselves "is estate planning for me?" and think that estate planning is just for other people. Here are some common estate planning misconceptions: Estate planning is just for older people. While the elderly need to do estate planning, so do those who are younger. Unfortunately, death and disability can strike at any age. Estate planning is for anyone who wants to have a smooth transition in such an event.Estate planning is only for people who are married. While … [Read more...] about Estate Planning Misconceptions: Is Estate Planning for Me?
