The WRMarketplace is created exclusively for AALU members by experts at Baker Hostetler LLP and the AALU staff, led by Jonathan M. Forster, Partner, Rebecca S. Manicone, Partner, and Carmela T. Montesano, Partner. WR Marketplace #19-05 was written by Jennifer M. Smith, Counsel, Baker Hostetler LLP. The AALU WR Newswire and WR Marketplace are published…
GST
Decoding Tax Reform- Interim Update – Where We Are Now
Topics: Estate planning, Estate tax, GST, Passthrough taxation, Tax reform
Last week, the tax reform effort took major steps forward, as the House passed its version of the Tax Cut and Jobs Act (“House Bill”) and the Senate Finance Committee passed its legislative mark-up (“Senate Bill”). Yet, the Bills differ in several key areas, including: (1) estate and GST taxes, (2) the state and local…
It Can Really Last Forever: Irrevocable Life Insurance Trusts & the Generation-Skipping Transfer Tax – 4 Things to Know
Topics: Estate planning, GST, Irrevocable trusts, Trusts
The GST tax generally applies to transfers to irrevocable life insurance trusts (“ILITs”) that benefit both “skip persons” (e.g., grandchildren and more remote descendants) and non-skip persons (e.g., children). The annual GST tax exclusion and GST tax exemption are available to apply to ILITs, but the rules regarding their application are complex.
Read All About It – The Big Six’s “Unified” Tax Framework- Potential Impact & Look Ahead.
Topics: Estate planning, Estate tax, GST, Tax treatment
Change always brings opportunity. Families and advisors should remain consistent in their approach to implementing flexible life insurance and legacy planning, since planning will remain beneficial regardless of the evolving details of tax reform.