Receiving an inheritance can be a meaningful and transformative experience, but it can also create challenges if not handled thoughtfully. Without a clear plan, an inheritor may struggle to manage newly acquired assets, face creditor or tax issues, or lack the financial experience needed to preserve and grow what was left to...
Category: Taxes
When Is an Estate Subject to State Death Taxes in Madison, WI?
The United States imposes a federal estate tax at death, which is based on the total value of the deceased person’s estate (everything a person owns at the time of their death) and is paid from the estate itself.
In addition to the federal estate tax, some states assess...
Plan Smart, Live More: Test Your Estate Planning IQ!
In 2025, what is the total amount of money and property you can gift during your lifetime and leave at your death to your loved ones (other than to your spouse) without owing federal estate tax?
$5 million
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How to Minimize the (Voluntary) Federal Estate Tax with Portability in Madison, WI
Most people may be surprised to learn that the federal estate tax is considered by some to be voluntary. Estate planning attorneys used to say, “You only pay if you do not plan.” The relatively recent introduction of portability provides yet another planning tool available to married couples to minimize or eliminate...
Does Your Revocable Living Trust Reduce Your Federal Estate Tax Bill in Madison, WI?
Many believe that once they set up and fund a revocable living trust, property held in the trust will completely avoid federal estate taxes after they die. In reality, a living trust does not provide any unique estate tax avoidance strategies.
The primary mechanisms for reducing estate taxes—the unlimited...
Be Careful Relying on Life Insurance to Provide for Loved Onesin Madison, WI
In an estate plan, life insurance can be used as a source of immediate liquidity for beneficiaries by offering a tax-free, lump-sum payment upon the insured’s death.
About half of Americans have a life insurance policy. The primary reason people purchase life insurance is to fund burial and other...
The Perils of Joint Property in Madison, Wisconsin
People often set up bank accounts or real estate so that they own them jointly with a spouse or other family member. The appeal of joint ownership, specifically with survivorship rights, is that when one owner dies, the other owner(s) will automatically inherit the property without it having to go through probate....
What Is a General Power of Appointment?
Your family, the economy, the law, and society can change rapidly and unexpectedly, affecting your best-laid estate plans in unpredictable ways. To achieve your estate planning goals, you need a plan that can keep up with the changes. And few estate planning tools provide more flexibility than a general power of appointment.
Corporate Transparency Act Update
Under the Corporate Transparency Act (CTA), which took effect January 1, 2024, many business entities including small limited liability companies (LLCs) and partnerships are required to file reports with the Treasury Department’s Financial Crime Enforcement Network (FinCEN). In these filings, applicable businesses must disclose important information about their entity. However, recent developments...
Navigating the Fiscal Year 2025 Greenbook: Key Trust and Estate Tax Proposals
The U.S. Department of the Treasury has released its General Explanations of the Administration’s Fiscal Year 2025 Revenue Proposals. Commonly referred to as the Greenbook, this document lays out tax proposals that would support President Biden’s policy priorities if he is reelected to a second term.
A major focus...