When considering different estate planning strategies and which direction to take, it’s important to consider the impact on basis. “Basis” is the benchmark used for income taxation. What does income tax basis have to do with estate planning? Property included in your taxable estate at your death gets a “step-up” in basis to its value at your death. (Certain property like IRAs don’t get this step-up.) However, when you gift an asset, the basis generally goes with the asset. Let’s say you … [Read more...] about Income Tax Basis in Estate Planning – Part 2
Basis
Basis is Important in Estate Planning
When considering different estate planning strategies and which direction to take, it’s important to consider the impact on basis. “Basis” is the benchmark used for income taxation. What does income tax basis have to do with estate planning? Lots! Property included in your taxable estate at your death gets a “step-up” in basis to its value at your death. (Certain property like IRAs don’t get this step-up.) This article will lay the groundwork on basis. What is it? When is it adjusted? … [Read more...] about Basis is Important in Estate Planning
Back from South Carolina
Last week it was my privilege to make two presentations at the annual state meeting and retreat of the South Carolina chapter of the National Academy of Elder Law Attorneys. The first presentation I gave discussed the ins and outs of trusts as beneficiaries of IRAs and retirement plans. Trusts can be used to protect the assets from various risks, such as creditors, divorce, the beneficiary’s own mismanagement, and even Medicaid (by using a Special Needs Trust). If a trust is structured properly, … [Read more...] about Back from South Carolina
Importance of Basis in Medicaid Planning
In this video blog, Associate Director of Education, Steve Hartnett, discusses the importance of basis in Medicaid planning. Medicaid Planning is complicated and involves many issues, including income tax basis. Stephen C. Hartnett, J.D., LL.M. Associate Director of Education American Academy of Estate Planning Attorneys, Inc. 9444 Balboa Avenue, Suite 300 San Diego, California 92123 Phone: (800) 846-1555 www.aaepa.com … [Read more...] about Importance of Basis in Medicaid Planning
