Estate tax changes and the upcoming election
10/6/2016 | Kaplin Stewart Blog
Many Pennsylvania residents are paying close attention to this year’s general election, including watching the presidential debates. Some voters are concerned about proposals made by Democratic candidate Hillary Clinton to change existing estate tax rules. If those changes were to come to fruition, some of the nation’s wealthiest families would face a significant estate tax hike. Currently, estates that are worth up to $5.45 million are exempt from estate taxes. Any wealth accumulated beyond that point is subject to a […]
Estate tax savings option could be coming to an end
8/19/2016 | Kaplin Stewart Blog
Some Pennsylvania families have been able to enjoy a profitable estate planning option that involves transferring interests in a family-controlled business. That option may be coming to a close, however, with the announcement of proposed regulations that the IRS would like to employ. Should those proposals become law, this opportunity for families to reduce their estate tax and gift tax obligations could be severely limited. Currently, family members can transfer interests in a family-controlled business under a discounted valuation plan. […]
Wise gifting can reduce both capital gains and estate tax
1/1/2016 | Kaplin Stewart Blog
With the right attention to detail, Pennsylvania families can save a great deal on taxes. This is true in regard to income taxes, and also other types of taxation. The creative use of gifting can help multiple generations avoid excessive capital gains and estate tax burdens. This form of gifting is sometimes referred to as “upstream gifting.” It involves making a gift of real estate to an older relative. This effectively removes the property from the estate of the original […]
IRS may limit an estate tax planning option
7/1/2015 | Kaplin Stewart Blog
Many Pennsylvania families are aware of the benefits of creating a family-owned limited liability corporation or family limited partnership. These business structures allow one generation to pass wealth down to another without incurring a heavy tax burden. This strategy, however, may soon be limited or eliminated by the Internal Revenue Service, leaving many families waiting to see where their next estate tax planning moves should fall. The benefits of a family limited partnership lie in the tax discounts given for […]
A generation-skipping trust can eliminate estate tax
5/29/2015 | Kaplin Stewart Blog
When a Pennsylvania family has concerns over how their wealth will be passed on after their death, a number of solutions are available. One is the creation of a generation-skipping trust, which allows a family to pass wealth down to their grandchildren while also providing value to their adult children. This type of trust also protects the wealth from the estate tax, which is a big draw for many families. When creating a generation-skipping trust, adult children can be granted […]
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