The Charitable Lead Annuity Trust Revisited
The planets are in perfect alignment in 2012 for the creation of a lifetime Charitable Lead Annuity Trust, commonly known as a “CLAT.” In simple terms, the CLAT is a split-interest trust created during the donor’s lifetime. The lead interest, which may be for a term of up to 20 years, pays a designated charity or charities a fixed annuity
“PORTABILITY” UNDER TRA 2010
The “Tax Relief, Unemployment Insurance Reauthorization & Job Creation Act of 2010” (“TRA 2010”) was enacted on December 17, 2010 and generally extends the provisions of the 2001 Economic Growth and Taxpayer Relief and Reconciliation Act (“EGTRRA”) through 2012. Of particular significance is the increase in the estate, gift & generation skipping transfer tax exemptions to $5 million and a
IS YOUR WILL “SELF-PROVING”?
If your New Jersey Will was executed before 1978, there is a very good chance that it is not “self-proving,” which means that it cannot be admitted to probate without an affidavit of one of the witnesses to its signing. Needless to say, it can be very difficult or impossible to comply with this requirement where, as often happens, witnesses
WHAT HAPPENS TO MY PET(S) AFTER I DIE?
As any pet lover can tell you, this is a question fraught with emotion. Most pet owners probably assume that family or friends will take over the care of a pet after your death or disability, but this is not a given. In fact, many pets are abandoned after an owner’s death or disability. Recognizing the need for a vehicle
PLANNING STRATEGIES SUGGESTED BY TRA 2010
Since gifting does not remove the gifted assets from the tax base for estate tax purposes under TRA 2010, the total estate and gift tax is the same whether or not gifts are made. However, appreciation of and income on the gifted assets is removed from the gross estate. And tax savings can be further increased if the grantor gifts
TRAPS FOR THE UNWARY UNDER TRA 2010
In addition to portability, TRA 2010 brings with it changes to both the gift and estate tax calculation methods, the details of which are beyond the scope of this article. However, one anomalous feature of the new methods, known as the “clawback” issue, deserves special mention. What happens if the Applicable Exclusion Amount is reduced after the decedent has made