Jan. 2019 Roundup for Professional Advisors

Living Trusts
A living trust costs more than a will but includes many features that are helpful during life and in estate plans.

In our roundup for professional advisors, we explore living trusts, IRS tax filing deadlines, unitrusts and IRA charitable solutions. Read below to stay in-the-know on industry news.

Roundup for Advisors

Personal Planner: Your Living Trust Choices
The living trust is becoming quite a popular estate planning strategy. It costs more than a will but includes many features that are helpful during life and in your estate. Review some of the basic principles of the living trust.

Washington News: IRS Reminds Employers and Business Owners of Upcoming Filing Deadline
In IR-2018-231, the Service reminded employers and business owners that January 31 is still the deadline to file wage statements and independent contractor forms. The Service also provided pointers to help filers ensure that these forms are filed accurately and on time.

Case of the Week: George’s “Green Gift Now” Unitrust IV
Fourteen years ago, George Green the entrepreneur funded a unitrust with the his company’s stock and then his company sold all assets to General Auto. Three years earlier, George sold a separate company. Over the years, the unitrust has grown to over $10 million. At age 88, he and his wife now would like to fund a major building at their favorite charity.

But they need to make a $2 million gift for the “Green Center.” How can they accomplish their goals? George called their CPA and asked, “What should I do now? We would like to make a $2 million gift, but the funds are in our unitrust. The unitrust is now over $10 million, and we do not need more income.”

Article of the Month: IRA Charitable Solutions – Part II
In 2017, approximately 61% of households held an individual retirement account (IRA) or other tax-deferred retirement plan and more than one-third of American households owned at least one type of IRA, according to the Investment Company Institute (ICI).

Part II of this series on IRA Charitable Solutions discusses the tax implications for the ultimate distribution of an IRA to loved ones. This article explores the use of a testamentary charitable remainder unitrust as a tax-efficient option for distributing IRAs to loved ones. Advisors who have an understanding of testamentary charitable IRA solutions will be better equipped to meet their clients’ goals for providing an inheritance and leaving a legacy.