The start of a New Year is a great time to plan ahead to save yourself and your loved ones time, money and stress. This easy-to-use checklist serves as a comprehensive guide for seniors, their families and caregivers as they consider all the legal, financial, personal and practical steps to proper advanced planning. We invite you to download and share this worksheet with anyone looking for an opportunity to live life to the fullest in the retirement years and prepare for the road ahead.
January 29, 2019
HAPPY NEW YEAR!
As you set goals and resolutions for 2019, organizing your affairs for peace of mind should be at the top of the priority list. Many clients and their families feel overwhelmed when they try to navigate the financial and emotional complexities of aging. We hope this Document Checklist gives you a solid foundation of helpful documents you’ll need to get your affairs in order, in the event of an unexpected health crisis. Please feel free to download and share with your family, friends and trusted advisors.
January 3, 2019
No matter where you live, you can take advantage of NH’s favorable trust laws through our Firm's NH offices.
New Hampshire is arguably the best jurisdiction in the country to establish a trust relationship, and based on our firm’s NH offices, ANY of our clients can benefit from a NH Trust.
• NH Trusts pay no State income, estate or sales taxes
• Investment growth escapes State & Federal estate taxes
• Flexible distributions to you & your family
• Enhanced asset protection from creditors
• Transparent, real-time online access to accounts
• Use your current investment advisor or self-manage your portfolio
• Low fiduciary fees of 0.1% - 0.3% per year
July 26, 2018
For those who consider two or more states to be “home,” it is important to understand the legal distinctions between residency and domicile, and the opportunity for tax savings based on where you spend your time.
Residency controls for Income Tax Purposes
The IRS allows you to choose your state of residency as long as you do not spend 183 days a year in one state. In other words, its where you aren’t, not where you are, that controls residency. This is strategic since residency controls for income tax purposes.
Domicile controls for Estate Tax Purposes
Domicile is very important for estate tax planning, and it is vital factor in order to preserve as much of your wealth as possible. Where you spend your last days can have a drastic effect on your family’s inheritance since domicile controls for estate tax purposes.
How a beloved Dog earned his bone
In February 2017, the CEO of Match.com argued in the State of New York tax court that he was a new resident of Texas after having moved there, and therefore a non-resident of New York.
New York claimed that he still owed state taxes. The CEO claimed that he did not.
While the CEO had factors showing that he had ties to both states, the deciding factor came down to his most beloved possession – his Dog – having moved to Texas. Based on this, the court found that he (and his Dog) were Texas residents and therefore was not responsible for New York state taxes. (In re Gregory Blatt 2017)
April 28, 2018
The Tax Cuts and Jobs Act (TCJA) impacts virtually all taxpayers – individuals, corporations, partnerships and other “pass-through” business entities, estates, and even tax-exempt organizations. Our goal is to cut through the hype and explain how our clients can benefit from these changes.
Business owners will benefit from a permanent 14% reduction in the corporate tax rate, from 35% down to 21%.
Self-employed taxpayers will benefit from the new 20% pass-through deduction for qualified business income from a partnership, S corporation or sole proprietorship.
The gift/estate/generation-skipping transfer (GST) tax exemptions have been doubled to $11.2 million per individual. Now, a married couple will not pay any federal estate tax unless their estate exceeds $22.4M. An individual can transfer up to $11.2 million before paying the 40% GST tax and a pair of grandparents can gift over $22.4 million to their grandchildren tax-free.
Individual tax brackets and tax rates will change for most taxpayers. In comparison to previous tax brackets and tax rates, the new rates are slightly lower and the brackets are slightly broader.
Our firm takes pride in our personalized approach to client service. Please contact us so we can understand your unique circumstances & family dynamics to tailor our advice to best meet your current and long-term needs.
10%, 15%, 25%, 28%, 33%, 35%, 39.6%
New rates under the TCJA
10%, 12%, 22%, 24%, 32%, 35%, 37%
The standard personal deductions have nearly doubled:
- $12,000 (single)
- $18,000 (head of household)
- $24,000 (married filing jointly)
Prior to this reform, about 30% of taxpayers itemized deductions on Schedule A, instead of taking the standard deduction associated with their filing status. Many of these taxpayers will now claim the higher standard deduction and therefore will not need to file Schedule A.
As always, gifting to charitable organizations can be a great way to lower one’s taxable estate, with the added benefit helping the community and preserving your legacy. The deduction for charitable contributions has been expanded so that taxpayers may contribute up to 60% of their Adjusted Gross Income.
April 28, 2018