iPlan Law - Estate Planning

Stop Ghosting the Deceased

Identity thieves are adept at "ghosting" your deceased love ones by stealing their personal information and using it to perpetrate fraud. Identity thieves use this information, for example, to open new accounts, commit health care fraud, obtain tax refunds. This short briefly explains how to prevent ghosting of your loved one after a death.

Private Foundation: Build a Family Legacy of Charitable Giving

What is a Private Foundation or Private Family Foundation, and why do so many families seem to have them? This video explores those questions by considering the advantages of Private Foundations, along with some of their downsides as well as the basics to establishing a Private Foundation. Private Foundations are a type of 501(c)(3) non-profit organization funded by an individual, family, or business. Family Foundation is a term used to indicate a Private Foundation established by a family as a potentially perpetual charitable legacy. Together, Private Foundations hold over $800 billion in U.S. assets and distribute billions to charities throughout the world every year. Private Foundations offer significant IRS-approved tax benefits. Contributions to Private Foundations are tax deductible, although the deductions are limited to a percentage of the donors' Adjusted Gross Income or AGI. Donors can give appreciated assets, thereby avoiding capital gains taxes. Assets within Private Foundations grow income-tax free, although they are subject to an excise tax. Donors can structure Private Foundations so they maintain considerable control over the Foundation's investments, direction, and charitable distributions. Donors can also provide that their family members will serve on the board of directors for Private Foundations. Donors and their family members can also work for their Private Foundations, as long as their salaries are reasonable and their services are reasonable and necessary to the Foundation. Private Foundations have some downsides. Despite their name, Private Foundations are not private. For those concerned mainly with tax deductions, higher deductions are available by giving to Public Charities or Donor Advised Funds. Finally, the administrative costs for establishing and maintaining a Private Foundation can be considerable. Nonetheless, the investment is worthwhile for those who have the means and the desire to establish a lasting legacy of charitable giving.

The Complex Trust Is Pure Scam

Watch out for those who promote an irrevocable trust that allegedly avoids federal income tax. Its promoters have called this, among other things, a Complex Trust, a Pure Trust, and a Non-Grantor Irrevocable Complex Discretionary Spendthrift Trust. Be careful! This type of tax-avoidance scheme has landed people in federal prison.

QTIP Trusts for Spouses Explained

Married couples use Qualified Terminable Interest Property Trusts or QTIP Trusts to avoid estate taxes by using the estate tax exemption and the unlimited marital deduction. QTIP Trusts also provide for the survivor after one spouse passes while protecting assets for other beneficiaries after the second spouse passes. This video explains the uses of QTIP Trusts and their implications on income tax and estate tax.

Charitable Remainder Trusts Explained

This video explains the basic concepts behind Charitable Remainder Trusts or CRTs. Donors or grantors with charitable intentions use CRTs to support their favorite charities. At they same time, they gain immense income tax and capital gains tax advantages. Donors also exchange their gifts to the CRT for a stream of income that may last up to 20 years or for the lives of the noncharitable beneficiaries. Larger charities will establish and maintain donors Charitable Remainder Trusts for them. This video addresses what the donors exchange for that convenience.