As the cost of education continues to increase, funding a 529 Plan can provide invaluable investment and gifting opportunities for education-focused families. Cash gifts to 529 Plans grow income tax deferred if used for qualified education expenses. Contributions to a...
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Posts for 'Tax Planning'
Thinking Across Tax Systems: Income Tax vs. Estate and Gift Tax
Many clients understand the basic concepts behind the income tax and estate and gift tax systems. What is less intuitive is how these two regimes interact, and sometimes conflict, when planning across a lifetime. Both tax systems seek to tax economic gains, but they...
Automatic GST Allocation: Helpful Shortcut or Costly Mistake? Five Challenges Posed by Automatic Allocation
The Generation-Skipping Transfer (GST) tax was created to prevent families from avoiding estate taxes by transferring wealth directly to grandchildren. While automatic GST allocation rules were introduced to simplify the process, they can create unintended consequences. From inflexible allocations to mismatches with estate planning goals, relying on these defaults without careful oversight can lead to wasted exemptions and unexpected tax liabilities. Understanding the risks is key to preserving wealth across generations.
Duly Noted: Planning with Intrafamily Loans
I. Overview of Promissory Notes Promissory notes are commonly used within the Private Client Services practice at Wilchins Cosentino & Novins LLP, as financially established clients may want to help their adult children purchase a home or encourage entrepreneurial...
How to Leave Your Estate to Your Grandchildren
Thinking of including your grandchildren in your estate plan? Discover key strategies and considerations, from tax implications to trusts, to help you achieve your estate planning goals.
Meet Taylor Ferrara
Taylor Ferrara is an attorney in the Private Client Services practice. As a trust and estate lawyer, she describes herself as a natural problem solver, assembling estate plans like puzzles to meet her clients' unique needs. Taylor did not set out to become an...
Qualified Charitable Distributions as Part of an Effective Plan
Effective tax and estate planning often includes a plan for charitable giving. We help families and high net worth individuals develop charitable planned giving strategies. For assistance and counsel on establishing a charitable plan, please contact our attorneys in...
What You Need to Know About the Massachusetts Millionaires Tax
On November 8, 2022, Massachusetts voted to amend its state constitution and authorize the “Millionaires Tax”. As a result, Massachusetts taxpayers who receive more than $1 million in taxable income in a year will be subject to an additional 4% tax on income in excess...
“Use It or Lose It”: Making the Most of Your Estate Tax Exemption
Overview On November 2, 2017, in an unprecedented gesture of fiscal generosity, Congress passed the Tax Cuts and Jobs Act and increased the federal unified gift and estate tax exemption (“federal exemption” or “exemption”) from $5.49 million to $11.18 million and...
Anticipated Changes Affecting Estate Planning & Gifting
Effective January 1, 2023, both the Lifetime Federal Estate and Gift Tax Exemption and Annual Gift Tax Exclusion Amounts are expected to increase. This change presents an opportunity to capitalize on the historically high Estate and Gift Tax Exemption amounts and to...
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