As you may be aware, if your child inherits your IRA, he can "stretch" out the withdrawals in order to continue the deferred tax growth for a number of years. Naming your child a beneficiary of your IRA can be a problem if: (1) your child is a minor and you don't want...
Shimada Law Blog
Basic Business Transition Planning
The most common type of business transition for small business uses a buy-sell agreement and irrevocable life insurance trusts. Below is a diagram explaining the fundamentals.
Asset Protection Benefits from Retirement Plans
I was recently talking with a CPA in my network, and he told me how he attended a continuing education seminar on how "retirement plans are the best form of asset protection available." Although retirement plans offer some asset protection, and should be a part of...
A Primer on Gift and Estate Tax
An Oregon resident must worry about federal gift tax, federal estate tax, and Oregon estate tax. Federal estate tax is assessed at 40% of a person's taxable estate over $5.34 (2014 number-adjusts for inflation). So if an Oregon resident has a $10 million taxable...
What is the Difference between a Revocable Trust and an Irrevocable Trust?
The phrase "Revocable Living Trust" has three parts that need to be discussed.First, a "Trust" in this context is an arrangement between three parties: the Grantor (sometimes called "Settlor" or "Trustor"), the Trustee, and the beneficiary. The Trustee is the legal...
Who can be Trustee of my Irrevocable Trust?
Irrevocable trusts are complex and have endless variations. The following flow chart is meant to be a general guideline for the average irrevocable trust (if there is one) with an Upjohn Clause*, designed to keep assets out of the settlor's estate.
What is Asset Protection?
Many people are familiar with the phrase "asset protection" but are not aware of exactly what it is or how they can benefit from it-so I'll tell you a little about it.Creditors gravitate towards debtors that have substantial assets because if the debtor has no assets...
Avoiding Probate Without the use of Trusts
Probate is a court process whereby the court oversees the administering of the decedent's estate. Probate is meant to give the decedent's creditors a chance to make a claim on the decedent's property, and then to clear the title after the creditors have had sufficient...