Category: Thursday Thoughts

Everyone should have an estate plan which has a will, a trust, or both. Although estate plans have a way of being dismissed once created, they cannot be filed away until needed. A regular review is required. The answers to the following questions may suggest redrafting is in order. Is the estate plan still tax […]

Dear Trust Officer: I’m intrigued by something I heard about recently called a “dynasty trust.”  What is that, and how does it work? — Legacy builder DEAR LEGACY BUILDER: Traditionally trusts with private beneficiaries were not permitted to last forever, but had to have a determinable end date.  This policy was enforced by the “rule […]

To make it possible for voluntary retirement savings to keep up with inflation, the various numerical limits embedded within qualified retirement plans are indexed for inflation. The IRA contribution limit stays at $6,000 if the individual is younger than age 50 in 2019, and $7,000 if he or she attains age 50 or older in […]

(What you can do to experience happiness in old age) In no particular order: Stay outwardly focused by keeping your mind on the well-being and/or the activities of others.  If you can only do one thing, this is it. Everything below will help keep you outwardly focused. Take on volunteer jobs that will help others. […]

Dear Trust Officer: I’m financially secure, and have married for the third time. Lately, my children from the first two marriages have been asking about their inheritances. They seem to be concerned that my spouse—or perhaps a future spouse—might freeze them out. How might I allay their concerns? — THIRD TIME’S THE CHARM DEAR THIRD […]

An employee was due a $900 distribution from his employer’s qualified plan.  The plan withheld income taxes and sent the employee a check for the balance.  The distribution must be included in taxable income for the year in which the check was cut.  For unknown reasons, the employee never cashed that check, nor did he […]

A study of adult development has been carried out at Harvard for roughly the last century and is a study worth reading about happiness in retirement. It identifies characteristics and behaviors which are good predictors of happiness in retirement. Three groups have been tracked: 268 Harvard graduates born about 1920; 90 middle-class gifted women born […]

One of the major issues for keeping wealth in the family has long been the federal estate and gift tax. The tax rate today is 40%, but historically has been as high as 70%. The exemption amounts were far lower in the past than they are today. To gain control over this tax exposure, some […]

Making a direct transfer from an IRA to a charity, a long-time valuable planning strategy has become even more valuable following the enactment of the 2017 Tax Cuts and Jobs Act. This is because the higher standard deduction coupled with the $10,000 cap on the deduction for state and local taxes effectively means there will […]