WRMarketplace


Some Good News in 2020: This is the Year for Charitable Contributions

This WR Marketplace was created exclusively for Mehnaz Haq by experts at Baker & Hostetler LLP and the AALU/GAMA staff. WR Marketplace #20-13 was written by Michael P. Vito, Counsel, and Lindsay R. DeMoss D’Andrea, Staff Attorney, Baker & Hostetler LLP. The AALU/GAMA WR Newswire and WR Marketplace are published by the AALU/GAMA as part...

Intergenerational Legacy Planning Opportunities in the Wake of the COVID-19 Crisis

Statutory “hurdle rates” published by the IRS remain attractively low and, coupled with depressed asset values in many sectors, create opportunities for clients and their advisors to amplify the benefits of intergenerational legacy planning using loans between grantor trusts with different GST tax attributes, leveraged sales to grantor trusts that are exempt from the 40%…

Deferring Compensation to Conserve Cash During the COVID-19 Economic Crisis

While a number of companies have cut compensation to employees due to the economic damage caused by the COVID-19 pandemic, other companies withless dire business conditions may still need to deal with shorter-term cash constraints. Companies looking to defer current cash payments to top-paid employees could consider several strategies, including (1) deferring current 2020 salary…

Free Fallin’ – Plummeting Interest Rates Create Opportunities During Turbulent Times

Planning approaches tied to certain statutory “hurdle rates” established monthly and published by the IRS have become particularly attractive under today’s market conditions, particularly as the benefits of the low rates are further amplified by severely depressed asset values. As a result, clients and their advisors may consider revisiting intra-family loans, grantor trust installment sales,…

Harnessing the Pandemic Pandemonium: Focus on Spousal Lifetime Access Trusts

SLATs represent one of the most effective approaches available to families seeking to transfer assets to lower generations while leaving themselves an escape valve if they experience future declines in their remaining net worth. SLAT assets can be accessed, if needed, through distributions to the spousal beneficiary. The spouse also can serve as the trustee…

When Opportunity Knocks: Planning for the Harmonic Convergence of High Volatility, Low Interest Rates, and a Looming Sunset

The Tax Cuts and Job Act (“TCJA”) temporarily doubled federal gift, estate, and generation-skipping transfer (“GST”) tax exemptions. As a result, individuals can transfer up to $11.58 million (and married couples can transfer twice that amount) to their heirs without federal transfer taxes. After December 31, 2025, the exemption will revert to $5 million (adjusted…

SECURE Act Expands Opportunities for “Open MEP” 401(k) Plans

Topics: SECURE Act

A “multiple employer plan” (“MEP”) is a retirement plan offered by a single plan provider to the employees of multiple unrelated employers. Before the SECURE Act, MEPs were not broadly available to smaller employers. Recent Department of Labor (“DOL”) proposed regulations would have permitted 401(k) and other defined contribution MEPs to be offered by certain…

Highlights from the 54th Annual Heckerling Institute on Estate Planning

Topics: Estate planning

The 54th Annual Heckerling Institute on Estate Planning (the “Institute”) focused on the ongoing effects of the Tax Cuts and Jobs Act (“TCJA”), including: (1) legal and regulatory developments concerning life insurance; (2) benefits and burdens of grantor and non-grantor trust status; (3) planning considerations for migratory clients; (4) state income taxation; (5) implications of…