Federal Estate Tax – DougFreemanCPA.com

Inheriting stock or other assets? You’ll receive a favorable “stepped-up basis”

If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. How do the rules work? Under the current fair market value basis rules (also known as the “step-up and step-down” rules), an heir receives a basis in inherited property equal to its date-of-death […]

Inheriting stock or other assets? You’ll receive a favorable “stepped-up basis” Read More »

Benefits of a living trust for your estate

Assets, Estate Planning, Federal Estate Tax, Federal Income Tax, Living Trust / Douglas Freeman

You may think you don’t need to make any estate planning moves because of the generous federal estate tax exemption of $12.92 million for 2023 (effectively $25.84 million if you’re married). However, if you have significant assets, you should consider establishing a living trust to avoid probate. Probate is a court-supervised legal process intended to

Benefits of a living trust for your estate Read More »

Does your family business’s succession plan include estate planning strategies?

Estate Planning, Federal Estate Tax, FLP (Family Limited Partnership), Gift and Estate Tax, Trust, Uncategorized / Douglas Freeman

Family-owned businesses face distinctive challenges when it comes to succession planning. For example, it’s important to address the distinction between ownership succession and management succession. When a nonfamily business is sold to a third party, ownership and management succession typically happen simultaneously. However, in the context of a family business, there may be reasons to

Does your family business’s succession plan include estate planning strategies? Read More »

Don’t forget income taxes when planning your estate

Estate Planning, Estate Tax, Federal Estate Tax, Gift and Estate Tax, Income Tax / Douglas Freeman

As a result of the current estate tax exemption amount ($12.06 million in 2022), many estates no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. But now, because many estates won’t be subject to estate tax, more planning can be

Don’t forget income taxes when planning your estate Read More »

When inheriting money, be aware of “income in respect of a decedent” issues

(IRD) Income from a Descendent, Estate Tax, Federal Estate Tax, Inheriting Money, IRA, Itemized Deduction / Douglas Freeman

Once a relatively obscure concept, “income in respect of a decedent” (IRD) may create a surprising tax bill for those who inherit certain types of property, such as IRAs or other retirement plans. Fortunately, there may be ways to minimize or even eliminate the IRD tax bite. Basic rules. For the most part, the property

When inheriting money, be aware of “income in respect of a decedent” issues Read More »