- Posts by Jennie S. Cerrati
CounselJennie’s practice focuses on estate and wealth preservation planning, probate, trust and estate administration as well as tax matters. Jennie counsels clients in all areas of estate planning including complex gift, generation ...
1. Do I have to take my required minimum distributions (RMD) in 2020?
No. Required minimum distribution rules do not apply for 2020 for IRAs, Roth IRAs, qualified defined contribution plans, 403(b) plans and government-employer type 457 plans.
2. Does that mean my RMD in 2021 will be doubled? Is 2020 just postponed?
No. Your 2021 RMD will be calculated the exact same way as if you had taken your 2020 RMD.
Added bonus: If you turned 70 1/2 in 2019 and did not yet take your 2019 RMD, you do not have to take your 2019 or your 2020 RMD.
3. What if I already took my RMD for 2020?
If you are within the 60 ...
Many people are aware of the federal gift tax and the federal estate tax (sometimes referred to as the ‘death tax’). These are the transfer taxes which are imposed on transfers during life, by gift, or at death. In 2019, a U.S. Citizen may transfer assets valued of up to $11,400,000 during their lifetime or, to the extent not used during lifetime, upon their death without paying a gift or estate tax. The third federal transfer tax, the Generation-skipping Transfer Tax (“GST”), is often overlooked but may be of significant importance. The applicable exclusion amount for GST ...
Authored by: John M. Jolley, Sherri L. McGirt, and Jennie Cerrati
When the 2017 Tax Cuts and Jobs Act was passed, significant changes were made to the Federal Estate, Gift and Generation Skipping Tax, the most prominent of which is the increased applicable exclusion amount, which is the amount that is excluded from a decedent's gross estate for federal estate tax purposes. The applicable exclusion amount was $5.49 million for decedent's dying and gifts made in 2017. This amount is doubled for decedent's dying and gifts made after 2017 and before 2026. It is currently $11.18 million and ...
In today's digital age, we are seeing more individuals concerned about what happens to their digital assets at their death. For example, a Broadway aficionado wanting to be certain their collection of show tunes, purchased on iTunes makes it to their grandchild. Like most areas of technology, advances in digital currency and music are outpacing the legislative change, while the Courts struggle to keep up.
An increasingly popular question posed by estate planning clients is the question of who can inherit your iTunes account? The short answer is - no-one. iTunes is a service provider ...
The new federal tax law, known as The Tax Cuts and Jobs Act, that was approved by Congress and signed into law at the end of 2017, creates a benefit for individuals paying tuition for children in private or religious schools in grades Kindergarten through 12th grade. 529 Plan funds were only allowed for qualified education expenses, which was previously limited to higher education tuition, room and board, books, computers and software, but NOT for tuition for elementary through high school. The new law has added tuition for private and religious K-12 schools as an approved qualified ...
The Consumer Price Index was released by the Labor Department in August 2017. Not everyone anxiously awaits the release of these numbers but the experts have now made estimates of how they will impact estate, gift, and generation-skipping transfer taxes for 2018. These are not official numbers - the Internal Revenue Service will publish the official numbers later this year.
Transfer Tax Free Money - The cumulative amount you can pass tax-free (by gift or at death) is projected to increase to $5,600,000.00 per U.S. citizen (from $5,490,000.00 in 2017). In 2018 and beyond, a couple (U.S ...
When contemplating marriage and estate planning, frequently, individuals will enter into prenuptial (premarital) agreements to address their rights and obligations during the marriage and in the event of a divorce or death. A prenuptial agreement is a very useful tool to create a clear understanding and avoid future conflicts in either the event of divorce or death. The requirements for the enforcement of a prenuptial agreement vary from state to state, and the rules governing the rights and obligations between spouses during marriage and at death are state specific. However, in ...
On March 24, 2017 the vote to repeal the Affordable Care Act ('Obamacare') was cancelled when it became clear there were not enough Republican votes to move it past the House of Representatives. All eyes have now turned to the President's plan to reform the tax code. However, the two issues are not exclusive. Part of the strategy to focus on the repeal and replacement of Obamacare was to create savings that would further support the later tax cuts without increasing the deficit. Tax reform is still on the table and appears to be a priority for the administration and Republicans. It is likely ...
The annual federal exemption amount for the estate and gift tax has been adjusted to $5,490,000.00 per individual for 2017. This means a married couple will have a combined $10,980,000.00 in 2017. The $5,490,000.00 represents the amount that each U.S. Citizen may pass, transfer tax free, in 2017. (This is the cumulative amount that may be passed during lifetime by gift and at death without federal gift or estate taxes being imposed.) Not included in this total are annual exclusion gifts, certain gifts for education and certain gifts for medical expenses. The annual exclusion amount is ...
Over the past few years, we have seen a dramatic increase in the number of clients interested in holding assets in trust for their children. This is a trend we are noticing across the board, regardless of the size of the estate. This is not due to younger generations' lack of financial savvy or level of sophistication, but more related to the housing market bubble's bursting, uncertainty in the stock market and the fifty percent divorce rate. Parents have shown an increased concern in insulating their children's inheritance from these more prevalent pitfalls. Particularly when the ...
I was very saddened to hear of the passing of recording artist Prince on April 21, 2016. As I watched my social media accounts surge with tributes and song lyrics, I allowed myself to reminisce and feel nostalgic about the 1980s. Most recently, I was quite surprised to learn along with the rest of the world, that Prince died without a Will.
If a person dies without a valid Last Will and Testament it is known as dying "intestate." In each state there are laws which dictate how property passes when someone dies without a valid Will. These are commonly referred to as laws of "descent and ...