May 2018 Roundup for Professional Advisors

Professional Advisors and Clients
Many clients seek guidance from professional advisors regarding retirement, investments, tax planning and charitable giving.

In our roundup for professional advisors, we explore options to bypass the estate tax, the IRS “Paycheck Checkup”, charitable remainder trusts and more. Read below to stay in-the-know on industry news.

Roundup for Advisors

Personal Planner: Bypass the Estate Tax
The American Taxpayer Relief Act of 2012 created permanent rules for federal estate planning. These principles are helpful in creating estate plans, since there now is reasonable certainty. There are a variety of options to bypass the estate tax, including a bypass trust, rights of a surviving spouse and gift tax exemptions. Learn about the different bypass options, and rules and regulations for each.

Washington News: Two-Income Families Benefit from “Paycheck Checkup”
In IR-2018-124, the Service offered a “Paycheck Checkup” for families with two incomes. The IRS Withholding Calculator on www.IRS.gov helps couples with two or more sources of income to adjust their withholding amounts. Many two-income families will be able to change or reduce withholding due to the passage of the Tax Cuts and Jobs Act (TCJA).

Case of the Week: Exit Strategies for Real Estate Investors, Part 13
Karl is a successful real estate investor who bought and refurbished a building in a great area. Once the building was completed, Karl was contacted by a company expressing interest in purchasing the property. After learning the benefits of a FLIP CRUT, Karl wanted to move forward. But, Karl wondered what reporting requirements were imposed upon the charitable done or Charitable Remainder Trust trustee in such a situation since an appraisal and IRS Form 8283 were required.

Article of the Month: Overview of Life Income Gifts — Part II
Many clients seek guidance from professional advisors regarding retirement, investments, tax planning and charitable giving. These clients are often concerned with maintaining their standard of living and looking for a way to support their favorite charitable organizations. Charitable Remainder Trusts are a split-interest gift which offers life income options to clients during the trust term and benefits a charity at the end of the trust term.

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