Paul, I think many would benefit if you do some video’s on “What to do when a spouse dies”. I know it’s a terrible topic but one that many folks will unfortunately experience. Your measured and sound guidance could really help. Thanks for all you do.
You do such a great job of explaining these concepts, Paul. You touched upon it in this video, and maybe this is getting to much into the weeds, but I would be interested in a video along the lines of When to Consider Converting your Traditional IRA to a Roth IRA, how the conversion is executed, and what the relevant parts of the Estate Plan might look like while the conversion process is taking place.
It typically follows in line with his comments about taxes applicable to accumulator trusts with option to distribute to beneficiary outside the trust. If the grantor created the irrevocable trust before his death, then no estate taxes regardless of the amount transferred. If the special needs trust started at the death of the grantor, then its assets are in the estate of the grantor. The tax to worry about is the generation skipping tax if the beneficiary is.a Grandchild. Special needs trusts do not get a waiver on GST.
Thank you for clarification on this subject. Would you please address this hypothetical situation: Grandpa and Grandma have both set up so-called “dynasty” trusts and are each co-trustees and beneficiaries of each other’s trust and have the same successor beneficiary/trustee. Grandpa is very ill and likely to predecease Grandma. Would the income generated from the investment account in Grandpa’s trust (now irrevocable upon his death) remain a part of Grandpa’s trust and be taxed at the trust income tax rate or does the investment account maintain Grandma’s personal income tax rate as she is the beneficiary of his trust?
Paul, I think many would benefit if you do some video’s on “What to do when a spouse dies”. I know it’s a terrible topic but one that many folks will unfortunately experience. Your measured and sound guidance could really help. Thanks for all you do.
You do such a great job of explaining these concepts, Paul. You touched upon it in this video, and maybe this is getting to much into the weeds, but I would be interested in a video along the lines of When to Consider Converting your Traditional IRA to a Roth IRA, how the conversion is executed, and what the relevant parts of the Estate Plan might look like while the conversion process is taking place.
Hi Paul - looking forward your discussion on taxes and trusts.
Wow, wow, wow!!! Thank for sharing your learned and earned knowledge, wisdoms and genuineness!!
Glad to catch up; I'd hate to miss anything!
Have the bene take out the income from the Irr trust and pay likely less than 37%
Happy birthday!
may be the Trust issue isn't something the CPA would have learned unless their work is heavy on the clients who have Trust
What about a special needs trust? What are the taxes on that after the grantor dies? Thank you!
It typically follows in line with his comments about taxes applicable to accumulator trusts with option to distribute to beneficiary outside the trust. If the grantor created the irrevocable trust before his death, then no estate taxes regardless of the amount transferred. If the special needs trust started at the death of the grantor, then its assets are in the estate of the grantor. The tax to worry about is the generation skipping tax if the beneficiary is.a Grandchild. Special needs trusts do not get a waiver on GST.
Thank you for clarification on this subject. Would you please address this hypothetical situation: Grandpa and Grandma have both set up so-called “dynasty” trusts and are each co-trustees and beneficiaries of each other’s trust and have the same successor beneficiary/trustee. Grandpa is very ill and likely to predecease Grandma. Would the income generated from the investment account in Grandpa’s trust (now irrevocable upon his death) remain a part of Grandpa’s trust and be taxed at the trust income tax rate or does the investment account maintain Grandma’s personal income tax rate as she is the beneficiary of his trust?
What kind of trust are you speaking of ?