Estate Planning

QDOTs

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QDOTs

Qualified Domestic Trust (QDOT) – A QDOT is a statutorily created trust designed to allow a non-citizen widow or widower qualify for the unlimited marital deduction. See I.R.C. §2056A. 1. Other than the citizenship requirements: A QDOT must qualify for the marital deduction as provided for in §2056. Although I.R.C. §2056A does not expressly mandate […]

2035

Nuts and Bolts of Life Insurance Trusts

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Life Insurance Trusts – The most common form of inter vivos irrevocable trust is the Life Insurance Trust (ILIT). Since the grantor of the trust has no desire to use the proceeds of this trust during his life, and because the value of the insurance at the time of the grantor’s death can be quite […]

Divorce

Estate Planning When Contemplating Divorce

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Once a divorce is final, your former spouse, and relatives of your former spouse, are generally not entitled to inherit any money from you upon your death. But what should you do during the lengthy time of your separation leading up to your divorce Ripping up a Will that gave everything to your surviving spouse […]

Asset Protection Trust

Irrevocable Trusts

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Irrevocable Trusts

There are many different types of irrevocable trusts. The most popular irrevocable trusts include: life insurance trusts; asset protection trusts; charitable trusts; trusts created upon death (such as QTIP trusts and bypass trusts); and special needs trusts. Generally, an irrevocable trust is designed to prevent its terms from being modified in the future. As a […]

Estate Tax

Japanese Inheritance Tax vs. US Estate Tax

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BRIEF OVERVIEW OF JAPANESE INHERITANCE AND GIFT TAXES vs. AMERICAN ESTATE AND GIFT TAXES NOTE: This information has been updated. The new post can be found at: http://willstrustsestates.blogspot.com/2014/08/japanese-inheritance-tax-vs-us-estate.html I. Estate Taxes A. America 1. Citizens and Permanent Residents a. Tax on Worldwide property (credit for taxes paid to foreign countries) b. Exemption of $2,000,000 in […]

401(k)

SEP IRA is a protected asset in NJ

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I was asked earlier today whether a SEP IRA is protected against creditor lawsuits. Without doing a lot of in depth research, I have found that the answer is generally yes. The answer is not the same in all states as it is dependent upon state statute. New Jersey exempts the claims of creditors from […]