Gone To Texas!
As of July 31, 2022, I have closed my Virginia office and moved to the Texas Hill Country. This means that I won’t be taking on any new Virginia clients. Existing Virginia clients can still call, email, or text me for support, questions, emailed copies of your documents, and the like, and I’ll continue to […]
Estate and Trust Planning in 2022: News You Can Use
The Tax Cuts and Jobs Act of 2017 (TCJA) made some significant changes to federal estate and gift tax lifetime exclusion amounts. However, the TCJA fell short of repealing federal death taxes, and leaves the door open for Congress to decrease (or increase) the exclusions, or increase (or decrease) estate and gift tax rates, at […]
It’s Back! The Tax-Free IRA Charitable Rollover
Thanks to the Protecting Americans From Tax Hikes Act of 2015 (“PATH”), signed into law on December 18, 2015, Section 408(d)(8) of the Internal Revenue Code once again provides a $100,000 annual exclusion from gross income each year for qualified charitable distributions (QCDs) made directly from a traditional IRA by donors aged 72 or older. […]
Your New Estate Planning Checklist
Fortunately (or unfortunately, if you’re not all that happy with our current estate and gift tax laws), the start of 2022 brings no significant changes to the federal or Virginia tax laws or to Virginia laws affecting estate and trust planning and administration. So instead of an update on new laws and tax rates, here’s […]
Your Estate Plan, Your Trusts, and Your Retirement Accounts
You should read this excellent short column by financial writer Arden Dale of The Wall Street Journal, “Minding Retirement Accounts in Estate Plans,” on integrating IRAs, 401(k) plans, federal employee Thrift Savings Plan (TSP) accounts, and similar retirement savings accounts into estate and trust plans. The article deals primarily with choosing primary beneficiaries in a […]
The 3.8% Net Investment Income Tax is Still Here
One little-mentioned provision of the Patient Protection and Affordable Care Act is the 3.8% net investment income tax (NIIT) that went into effect during Barack Obama’s administration. Various commentators refer to it as the “Obamacare surtax,” the “health care surtax,” or the “Medicare tax”; but whatever one chooses to call it, it is still going […]
How Old is Your Durable Power of Attorney?
When you created and signed your General Durable Power of Attorney, you did it to make sure that a person chosen by you could take care of financial and personal matters for you if you were to become incapacitated. However, as this 2016 New York Times article explains, when an Agent takes a power of […]
Sure Enough, Congress Took Away Your Kids’ Stretch IRAs
On December 20, 2019, President Trump signed into law the “Secure Act,” which eliminated the benefits of “Stretch IRAs” for non-spouse beneficiaries of IRAs, 401Ks, Thrift Savings Plans, and other qualified retirement plans. Today, rather than being able to stretch annual required minimum distributions (RMDs) over their projected lifespans, nonspouse beneficiaries of inherited IRAs will […]
Congress Procrastinates Again on Tax-Free Charitable IRA Rollovers
Once again, a special provision of the Tax Code offering older owners of individual retirement arrangements (IRAs) an advantageous way to make charitable donations, is scheduled to expire on December 31. For the remainder of 2013, a traditional IRA owner, age 70½ or over, may transfer directly, tax-free, up to $100,000 per year to an […]
Tax-Free IRA Charitable Rollovers Reinstated by American Taxpayer Relief Act (“ATRA”)
From 2006 through 2011, individuals age 70-1/2 or older were eligible to make donations of up to $100,000 directly from their individual retirement accounts (IRAs) to benefit public charities. Although they received no charitable deduction for such transfers, they didn’t have to report the distribution as taxable income, either. Result: zero tax. And, such a […]