Even individuals with modest estates purchase life insurance which means that Estate Planning attorneys must understand the rules regarding taxation of life insurance. Retention of certain powers or certain transactions could cause negative income, gift, or estate tax consequences. The post Application of the Transfer for Value Rule to the Sale of Life Insurance appeared first on Gersh Law Offices, P.S.C. | Louisville, KY ..read more

Life insurance has long been part of Estate Plans, whether used to ensure liquidity for the estate on the death of the insured, or simply as income replacement on the death of the insured. Understanding the impact of life insurance on an estate plan has become critically important. A recent tax court case resulted in a big win for the taxpayer in a complex set of facts which could impact how you incorporate life insurance for your Estate Planning clients The post What Estate of Marion Levine Means for Life Insurance appeared first on Gersh Law Offices, P.S.C. | Louisville, KY ..read more

Estate planning attorneys need to understand and explain taxation of trusts in order to properly advise clients. Individual clients need to understand the implications of the plan their attorney suggests in order to properly file their own taxes. Determining whether a trust qualifies as a grantor trust or a nongrantor trust is the first step in determining tax liability for a particular year. The post Let’s Talk about Trusts…and Taxation appeared first on Gersh Law Offices, P.S.C. | Louisville, KY ..read more

IRAs have become ubiquitous components of estate plans. The SECURE Act of 2019 altered the landscape for IRAs significantly by eliminating the stretch benefit for most designated beneficiaries and forcing all designated beneficiaries other than Eligible Designated Beneficiaries to use the 10-year rule for distributions. The 10-year rule was thought to operate much like the 5-year rule that existed before the passage of the SECURE Act. Recently issued proposed Treasury Regulations dispute that and instead require annual distributions for any beneficiary subject to the 10-year rule. The post Jus ..read more

It’s tempting to think that by taking the time to hand-write your Will or preparing a do-it-yourself plan, you can avoid many of the issues that arise with a Will. In fact, the opposite may be true. By handwriting your Will or preparing a do-it-yourself plan, you may be creating more issues for your family. The post Estate Planning – Something You Shouldn’t Do Yourself appeared first on Gersh Law Offices, P.S.C. | Louisville, KY ..read more

Leaving assets to your adult children or other beneficiaries may seem simple. But in many situations, it can be quite tricky. For example, if you have a beneficiary with special needs, you must take special care. Read on to learn more. The post Leaving Assets Can Be Tricky – Part 3 appeared first on Gersh Law Offices, P.S.C. | Louisville, KY ..read more

Leaving assets to your adult children or other beneficiaries may seem simple. But in many situations, it can be quite tricky. Read on to learn more. The post Leaving Assets Can Be Tricky – Part 2 appeared first on Gersh Law Offices, P.S.C. | Louisville, KY ..read more

An estate plan considers not just to whom assets should go, but also how. Each beneficiary is unique and the estate plan should consider their unique situation. This article looks at a couple with three very different children and how they might leave the assets for them in three very different ways. The post 6 Important Estate Planning Considerations – Part 3: Your Kids appeared first on Gersh Law Offices, P.S.C. | Louisville, KY ..read more

More likely than not, you are already familiar with trusts. They are agreements between a trustee and the person making the trust (the grantor) that [Read more...] The post Using a Spendthrift Trust in your Inheritance Planning appeared first on Gersh Law Offices, P.S.C. | Louisville, KY ..read more

There are many different estate planning options, all of which can help you achieve your goals in preparing for the future. A living trust and [Read more...] The post The Difference Between a Living Trust and a Durable Power of Attorney appeared first on Gersh Law Offices, P.S.C. | Louisville, KY ..read more