Is it time to review your estate and succession plans?
Estate planning has taken some major turns due to recent tax law shifts. If you thought it's all about tax exemptions, think again. Even with the evolving landscape, there's a lot to address for effective estate and succession planning. Talk with your financial professional to help ensure you are up to date. New York Life Insurance Company and its agents do not provide tax or legal advice.
Balance bequests: Larger exemptions might lead to unintended overfunding of specific bequests or trusts, altering your estate's intended division.
Income tax strategy: Don't overlook income tax implications upon a surviving spouse's passing. Tailored trust arrangements can help optimize tax efficiency.
Protecting wealth: Trust planning still matters – potentially shielding your wealth from creditors, mismanagement, and other potential risks.
Adapting to changes: Laws can change. Ensure your plan is flexible enough to navigate evolving tax regulations.
State tax awareness: State inheritance and estate taxes differ, and they can pack a punch. Consider these when crafting your plan.
Review appointments: Regularly update fiduciary appointments to ensure the right individuals or entities are in charge.
Utilizing Life Insurance for Secure Estate Plans, Tax Reduction Strategies, and Asset Protection
Financial service providers play a crucial role in helping their clients achieve their estate, tax, and business succession goals, but one powerful tool that often goes underutilized is life insurance. By incorporating life insurance into their strategies, financial professionals can provide their clients with secure estate plans, tax reduction strategies, and asset protection. In his article, titled "IDITs: What Advisors Need to Know," Jeff Chadwick shares valuable insights into the utilization of intentionally defective irrevocable trusts to enhance estate planning and asset protection, and explains how IDITs can be used as a vehicle to transfer wealth and minimize taxes for your clients, while providing the necessary liquidity to address potential estate tax liabilities.
Financial professionals have a unique opportunity to leverage life insurance as a powerful tool in their clients' financial strategies and provide their clients with peace of mind, knowing that their estates are secure, taxes are minimized, and assets are protected. Remember, when it comes to building effective financial strategies, it is crucial to understand the specific needs and goals of each client. Consult with professionals and take into consideration individual circumstances before implementing any strategies.
Guide for advisors: The importance of employee retention plans
In today’s dynamic job market, keeping top talent is crucial for business owners. The “Great Resignation” reshaped the workforce, but Robert Keebler says it’s also a “Great Upgrade” – an opportunity for employers to elevate their employee retention game. In this article, Keebler describes various strategies, such as non-qualified deferred compensation plans, that can help business owners keep their key employees onboard.
Employee retention plans: A guide for employers
In today's dynamic job market, employee turnover is inevitable, but a robust employee retention program can significantly reduce the loss of key personnel and help secure an organization's success and longevity. In this article from Robert Keebler, he highlights strategies such as non-qualified deferred compensation plans that can help employers adapt to the evolving labor landscape and retain their most valuable assets – the dedicated and skilled employees that make the business successful.
Benefits and pitfalls of buy-sell agreements every advisor should know
Business entities come in all shapes and sizes, but no matter the type, each one should have a buy-sell agreement in place. This important tool helps business owners effect a smooth transition in the event of death, disability, retirement, or other circumstance that triggers a change in ownership. In this article by Rimon, PC estate planning attorney Patricia Annino, you’ll learn about the benefits and pitfalls of buy-sell agreements and how you can help your clients better protect their businesses.
Using IDITs to reduce taxes and protect assets
With the current federal transfer tax exemptions set to expire by the end of 2025, proactive estate planning is now more critical than ever. In this article, attorney Jeff Chadwick, JD, offers insights into navigating the complexities of federal transfer taxes and safeguarding estate assets with the strategic use of intentionally defective irrevocable trusts. He also provides strategies for tax efficient wealth transfer in light of potential tax law changes. Read more to learn how using IDITs can not only reduce taxes but also help ensure assets are secured for future generations.
IRA distributions to a CRT can provide asset protection and retirement income.
Although the SECURE Act eliminated the stretch IRA strategy for most designated beneficiaries, there is a strategy where IRA distributions may be coupled with a charitable remainder trust to duplicate the stretch IRA strategy. Read this article to learn how IRA distributions to a CRTs can effectively alter the SECURE Act’s 10-year payout for asset protection, estate planning, retirement income, and charitable planning purposes.
Life insurance 101: An overview of term life policies versus whole life policies.
Most people think of insurance as a basic protection tool – pay a premium, and if the worst happens, the carrier pays out a benefit. This article from The Nautilus Group® looks at how life insurance can provide more benefits than just a one-time payout and explains the difference in term and whole life policies to help consumers understand that while term coverage offers peace of mind for a while, whole life insurance can provide peace of mind for a lifetime. The Nautilus Group is a service of New York Life Insurance Company.
NQDC plans can help employers attract and retain top talent
In today’s job market, the risk of losing top performers is very real for employers. Finding suitable replacements can cause financial stress and disruption of business which may result in lost profits. An employer can gain a distinct advantage over companies competing for top talent by offering a non-qualified deferred compensation plan designed to motivate and retain the employees who are key to the company’s success. Read this article from The Nautilus Group® to learn how this valuable tool provides benefits for both employers and their key employees. The Nautilus Group is a service of New York Life Insurance Company.
History of the US estate tax
The Tax Cuts and Jobs Act was one of the most significant tax legislation acts signed into law since the Tax Reform Act of 1986. This historic timeline illustrates the fluctuations in US estate tax laws and provides an understanding of the different reasons the law has changed over the past 220+ years. Check out the full timeline for more information and important disclosures, and work with your financial professionals to keep your estate plan updated.
Potential tax reduction for married couples through Community property trust
Tax planning strategies can feel overwhelming for high-net-worth individuals, especially when it comes to managing wealth transfer and minimizing capital gains taxes. For example, did you know that a community property trust could help married couples living in common-law states access the same tax advantages offered in community property states? A CPT may allow for a "double step-up" in basis, reducing potential capital gains taxes and preserving more family wealth. Read the attached article to learn how CPTs can play a significant role in a broader estate plan and for important disclosures.
Protect your family’s estate through trusts
Estate planning involves protecting your assets and ensuring a smooth transfer to loved ones. Trusts offer a valuable solution, allowing control over assets and safeguarding them from creditors. By passing assets through trusts, you can minimize tax liabilities. This article discusses creating an effective estate plan that enhances your gift to future generations. New York Life does not provide tax or legal advice.
Gifts to charitable remainder trusts can provide tax benefits for donors
Discover the power of the Charitable Remainder Trust (CRT) for optimizing your taxes and supporting causes you care about. Convert appreciated assets into an income stream while securing future contributions to your preferred charity. Read this article from The Nautilus Group to understand how this tax-advantaged strategy works to offer immediate charitable deductions and provide income to the donor or another person. New York Life, its agents, and affiliates do not provide tax, legal or accounting advice.
Revocable living trusts: advantages, drawbacks, and misconceptions
When creating an estate plan, people are often baffled by the revocable living trust and unsure what exactly it accomplishes or why they would need one. This informative article from The Nautilus Group explains how these trusts are different from wills and describes the benefits, misconceptions, and potential drawbacks of this popular estate planning tool.
Split-dollar life insurance arrangements: Basics, advantages, and disadvantages
Split-dollar arrangements are commonly used in business contexts but also can be advantageous in other situations, for example between an asset owner and a trust or between parents and their children. This article from The Nautilus Group explains how the strategy works and the advantages it can provide when two parties share the costs and benefits of life insurance.