Saving on Estate and Income Tax by Gift Giving

There is a lot of confusion out there, even among many of our most astute clients, concerning estate tax rates, estate tax exemptions, annual gift exemptions and lifetime exemptions. So to begin, here are the exemptions for 2016, and where applicable for 2017.

Annual gift exemptions

Annual gift exemption remains at $14,000. This means that you may give to any number of different people up to $14,000 per year without any need to report the gift, unless you make other gifts which cause you to exceed this limit. > > > Read the full article

MOVING FROM GOLD TO SILVER: BECOMING A NEVADA RESIDENT

Welcome to NevadaA gold rush motivated multitudes to migrate through Nevada on their way to California in the mid-1800’s and inspired the state’s nickname—the Golden State.  Today, a reverse relocation of sorts is happening as people trade in the Golden for the Silver State.  While its crowded roadways and bulging urban areas may partially explain this inverse exodus, California’s increased tax rates1 are surely a major factor in some residents’ decisions to leave the temperate coastal climes for a new life in the desert.  > > > Read the full article

David Grant as One of the “Notable Faces in Southern Nevada’s Financial Community.”

Estate Planning Attorney David Grant was recently featured in the February 3, 2014 issue of VegasInc Magazine as one of the “notable faces in Southern Nevada’s financial community.”

You can read the full article here http://www.vegasinc.com/business/2014/feb/03/get-financial-adviser-avoid-small-business-headach/.

Congratulations David! > > > Read the full article

The Recent Tax Act: The Bell Tolls for Thee

The English poet, John Donne, many years ago wrote, “Send not to know for whom the bell tolls.  It tolls for thee.” Donne eloquently made the case that a loss to anyone is a loss to all. Similarly, although you may not see an immediate increase in your taxes as a result of the so-called “American Taxpayer Relief Act,” the overall economic impact of the tax increases under the Act will, in some ways, impact us all. > > > Read the full article

Generation Skipping Transfer: Trusts and Taxes

I.  Overview of the Generation-Skipping Transfer Tax

  1. Reason behind the GST Tax.  The federal generation-skipping transfer (“GST”) tax is primarily designed to prevent the tax-free transfer of wealth from a grandparent to his grandchild or great-grandchild. Prior to the advent of the GST tax, families could avoid the death tax that is imposed upon each generation by skipping a generation or two on at least a portion of the wealth. 
> > > Read the full article

Donating Appreciated Stock

(Republished in part from Vegas PBS Source Magazine, October 2011)

Donating appreciated stock to charity is a sure way to generate a little tax relief for yourself.  If you do decide to donate stock, here are a few important points to consider before making your gift.

Make sure the stock has appreciated.  If the stock has fallen in value since you purchased it, you may be better off selling the stock first to generate a capital loss.  > > > Read the full article

Community Property vs. Separate Property for Estate Planning

Community Property. Community property is everything that a husband and wife own together. Nevada is a community property state. This means both the husband and wife equally own all money earned by either one of them from the beginning of the marriage until the date of separation. In addition, all property acquired during the marriage with “community” money is owned equally by both the wife and husband, regardless of who purchased it.  > > > Read the full article

What is Estate Tax Portability?

Before 2010, married couples could pass on up to two times the federal estate tax exemption by including “A-B Trusts” or “A-B-C Trusts” in their estate plan. Because TRA 2010 was a temporary law, many wondered if portability was a concept that would only work for those dying in 2011 and 2012.  We can stop wondering.  > > > Read the full article

Can a Trust Own S-Corporation Stock?

Office of Grant Morris Dodds

The Grant Morris Dodds Office

Many people ask if a trust can own S-Corporation stock.  In general, living trusts and testamentary trusts may hold S corporation stock only for two (2) years after the date of death of the grantor.  After death, the trusts become ineligible shareholders and the corporation will lose its S-election due to the Grantor’s death.  > > > Read the full article

Qualifying Domestic Trust (“QDOT”)

A Qualifying Domestic Trust, or QDOT, allows taxpayers who are not U.S. citizens to claim the marital deduction for estate tax purposes, while keeping the property in trust for other future contingent beneficiaries.  A non-citizen spouse is not otherwise eligible for the marital deduction.  QDOTs can be used when trust assets would likely be subject to the federal estate tax (married couple with taxable estate greater than $5 million), without the marital deduction otherwise being available.  > > > Read the full article