28June
2018
Good Things Come from Crummey Trusts

The benefits of a Crummey trust are anything but “crummy.” This type of estate planning tool, named after the taxpayer in the first case authorizing its use, allows you to claim the annual gift tax exclusion for periodic transfers to an irrevocable trust. Background: Under the annual gift tax exclusion, in 2018 you can transfer up to $15,000 a year to as many recipients as you like without paying any gift tax $30,000 for joint gifts made by a married couple (up from $14,000 and $28,000 in 2017). To qualify for the annual gift tax exclusion, however, the gift must…

28June
2018
You May Want to Separate Real Estate Assets from Your Business

Many companies choose not to combine real estate and other assets into a single entity. Perhaps the business fears liability for injuries suffered on the property. Or legal liabilities encountered by the company could affect property ownership. But there are valid and potentially beneficial tax reasons for holding real estate in a separate entity as well. Avoiding Costly Mistakes Many businesses operate as C corporations so they can buy and hold real estate just as they do equipment, inventory and other assets. The expenses of owning the property are treated as ordinary expenses on the company’s income statement. However, when…

28June
2018
Should You Serve as Executor?

When someone asks you to serve as executor of his or her estate, it is generally meant as a compliment that he or she trusts you to serve in this important role. But don’t simply accept the role before you have given the matter serious thought. Not only does the job come with significant responsibilities, but you may find yourself in the middle of family squabbles. Before agreeing to take on the role of executor, consider the following: Understand the duties involved. They include: Locating and valuing all assets. This includes dealing with the probate court and filing all required…