Retirement plans also
offer asset protection
While going bankrupt is certainly never a business owner’s goal,
sometimes serious financial problems can force the matter. In such
cases, you’ll want to protect your assets to the greatest extent
possible. Various types of retirement plans, such as pensions, 401(k)s,
Social Security, and other benefits linked to age, illness or disability
factors are protected under bankruptcy law.
Individual retirement account (IRA) assets were previously not
protected. As a result of a recent Supreme Court ruling and new
bankruptcy law, however, creditors may no longer seize IRA assets in
cases of bankruptcy (up to a $1 million limit). Note that Roth IRA
assets may not be protected, because contributions are not deductible or
subject to the premature withdrawal penalty.
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Trusts offer a viable asset
protection strategy
Life happens. And sometimes life
can deal you a terrible blow, such as a business failure or
lawsuit. If you ever find yourself in such a situation, how
can you protect your assets — including personal ones — from
creditors and legal claims? This article explores critical
issues of offshore and domestic trusts, which protect assets
within the trust, while allowing you to retain a beneficial
interest. A sidebar offers an update on asset protection
within retirement plans.
Read more
The clock is ticking
Year-end tax planning for businesses
This brief, but timely, article asks pertinent questions
which will help you be better prepared, tax-wise, for the
end of the year. Specifically, it asks whether you’ve made
adequate estimated tax payments, taken advantage of the
Section 179 expensing election, reviewed your gains and
losses, maxed out compensation deductions, and more.
Read more
Don’t let it sneak up on
you
Preparing for the aging process
Botox injections are not a magical elixir that will stave
off old age. That’s why planning for the aging process is
essential, whether it’s for you, your spouse or a parent
facing a major illness or disability. This piece covers the
possible need for long-term health insurance and why it’s a
good idea to execute a durable power of attorney, as well as
a health care proxy and living will. It also outlines
certain deductions available for the elderly, such as
health-related modifications to a home.
Read more
When defective is
effective
Incorporating the right “defects” into a trust can save
gift and estate taxes
One of the challenges of estate planning is to minimize your
family’s gift and estate tax liability while retaining some
control over your wealth. That’s why most estate plans are
centered around the use of trusts, which allow you to remove
assets from your taxable estate during your lifetime with
some strings attached. If you incorporate the right
“defects” into a trust, you create an intentionally
defective grantor trust (IDGT). This allows you to make
additional tax-free gifts without using any of your $11,000
annual gift tax exclusion or $1 million lifetime gift tax
exemption. This article reviews the tax savings available
with IDGTs and how to comply with recent IRS guidance.
Read more
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Tax Tips
This section presents brief notes on bankruptcy and IRA
assets, the new Roth 401(k) plans, and quick corporate
tax refunds.
Read more
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