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LIFE life well vested

In Most Instances Estates Have NO Tax— Or Do They?

S

ince the increase in the Estate Tax Exemption to $11.4 million, most of us assume there is no tax. We could be incorrect. The income tax rate now is the same as the Estate Tax rate. This is especially severe since it is probably recurring, whereas the Estate Tax rate may be a one-time thing. Recent Supreme Court cases indicate this tax may be assessed for a variety of reasons. The court recently shut down an attempt by the State of North Carolina to tax the entire income of a New York trust because a potential beneficiary lived in North Carolina. That beneficiary received no money. If it had, it would have paid tax on its share. The trust would have also paid New York tax. 

we are

Proud

This raises the question of residence of the trustee. The trustee should be in a state that has no income tax. This has come up more and more at seminars in the last few years, but the recent Supreme Court case adds an exclamation point. For years, tax advisors have named the client’s oldest child as trustee without regard for their residence or income tax impact. We should rethink this practice. Of course, there are other items you must consider. There may be state inheritance tax, since their exemptions are usually much lower than the federal exemption. It would be worthwhile to discuss these items with your tax advisor. When these trusts become irrevocable, the higher tax rates apply at a much lower income amount. It would probably be beneficial to provide for this income to be distributed to the beneficiary if their rate is much lower. Sometimes, we even give the trustee the power to distribute this to a charity if we are not sure of the wisdom of the beneficiary.

PREMIUM SERVICE. PRIME PROTECTION. When it comes to insuring significant assets from luxury residences and automobiles to collections, aircrafts, yachts and personal excess liability, we understand the unique and complex needs of those that have more to protect. Our breadth and depth of potential options coupled with the meticulous analysis of policy terms and conditions has enabled us to consistently exceed our client’s expectations.

Learn more at RobinLloydlaw.com or call (772) 234-5500.

to be supporters of the 3339 Cardinal Drive

cultural council

Vero Beach, Florida 32963

P: (772) 231-2022

F: (772) 231-7444

www.veroinsurance.com

Written by ROBIN A. LLOYD, SR., J.D.

of indian river county

Come play with us at the park! Estat e P la n n in g | P ro ba t e & Trust Ad m i ni strati on | Pri vate Cl i ent Ser v i c es C o r po r a t e & B u si ness Ad m i ni strati on | Real Estate L aw

The park provides a free, clean, safe environment for dogs of all sizes to roam freely in an off-leash, fenced space, along the Indian River Lagoon. Some of the amenities include water fountains, benches and canopies.

Funding % 00 relies 1 unity m m o on c ns like donatio rs. you

Playtime is dawn to dusk, 7 days a week. Located beachside at 3449 Indian River Drive East. 5089 Highway A1A, Suite 100

Vero Beach, Florida 32963

772-234-5500

WWW.ROBINLLOYDLAW.COM

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THE VERO BEACH DOG PARK IS A FEDERAL 501(C)(3) CHARITABLE ORGANIZATION, TAX ID #46-4082134 REGISTERED WITH THE STATE OF FLORIDA, REG #CH41320. YOUR CONTRIBUTION IS TAX DEDUCTIBLE TO THE EXTENT ALLOWED BY LAW. A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL INFORMATION MAY BE OBTAINED FROM THE DIVISION OF CONSUMER SERVICES BY CALLING TOLL-FREE (800) 435-7352 WITHIN THE STATE. REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL OR RECOMMENDATION BY THE STATE.

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September/October 2019  

Gather your flock! This issue is dedicated to the beautiful islands of the Bahamas. Stunning photography by Melissa Groo of the West Indian...

September/October 2019  

Gather your flock! This issue is dedicated to the beautiful islands of the Bahamas. Stunning photography by Melissa Groo of the West Indian...