Effective estate planning involves utilizing all the necessary tools to not only protect the assets you have but also avoid unnecessary taxes whenever possible. Intentionally Defective Grantor Trusts (IDGT) can accomplish this for individuals who hold high-value assets that have grown in value since the original date of purchase. This type of trust allows one’s assets to continue generating income while avoiding Read More

Probate often gets a bad name in regard to estate planning. Anytime the court gets involved in personal or family matters, it creates some tension about what will happen next. During the administration of an estate, California courts will supervise and, at times, dictate the transfer of assets from the decedent to heirs and beneficiaries. The court must also set deadlines for creditors to make claims against the Read More

One of the biggest necessities in life is having a plan. Life happens fast and many of us get caught up in the wave of what’s happening today before considering what’s going to happen tomorrow. Estate planning is about making sure you are covered for that unknown tomorrow so you can have peace of mind today. Much of estate planning is about dictating what will happen to your assets when you die, but other elements Read More

Business owners need to take legal steps to protect themselves from being held personally liable for the debts and actions of their business. That’s why forming corporations or limited liability companies (LLCs) is highly advantageous. Taking the step to incorporate or organize generally protects business owners from such liability, but this doesn’t always stop the creditors from “Piercing the Corporate Veil” to Read More

Trusts are the preferred mode of estate planning for most estates but not all trusts are created equally. Certain trusts generate income through the sale of assets as well as holding assets that generate interest. Proceeds from the sale of assets and income gained on assets held are both considered income that must be taxed. Those tax implications stem from the distribution of income to a beneficiary designated by Read More

We consistently recommend that all of our clients have a thorough and effective estate plan in place. Establishing legal planning documents dictating how and to whom important assets will transfer protects your legacy and your loved ones. Effective estate planning also addresses financial obstacles that can present themselves during or after the transfer of wealth, especially in large estates worth millions of Read More

The Federal Trade Commission proposed a new rule at the start of the New Year that would ban noncompete clauses, claiming the clauses lower wages and “harm competition.” This comes six months after President Joe Biden issued an executive order recommending that the FTC do exactly that. The proposed ban would not only ban noncompete clauses moving forward but also nullify any noncompete clauses that are currently in Read More

Last month, we covered how to calculate an asset’s tax basis, which plays a major role in an individual’s ongoing financial responsibilities and taxes. The long-term tax implications that derive from the tax basis of an asset can have a major impact on future planning for yourself and, in the case of business assets, your business. Cost basis is the cost to acquire a particular, and is the initial tax basis of an Read More

Maximizing your business’ tax strategies can help you avoid taxes on unrealized gains when done correctly. One benefit many taxpayers miss out on involves excluding a portion of capital gains from qualified small business stock from taxable income. The Internal Revenue Code provides extensive context for this tax deduction which can lower your income tax liability. Which Small Businesses Qualify? There are several Read More

Last month, we dove into reasons why gifting expensive assets can create financial challenges for both sides of the exchange. Even if the holidays have passed, it’s important to start 2023 with a clear understanding of the financial consequences of gifting. You should be aware of both the annual gift tax exemption and the lifetime estate/gift tax exemption when considering high-value gifts. Both of these numbers Read More