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☆ This tactic to avoid income taxes without moving to Florida could surge thanks to a 'silver tsunami'
▼ + stars: | 2024-11-02 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +8 min

Dan Griffith of Huntington Bank expects ING trusts will surge in popularity with dealmaking on the rebound coinciding with a "silver tsunami." However, Wyoming and South Dakota are also options as they do not tax trust income or capital gains and protect trust assets from creditors. "This can apply even if they don't live in a state with a state income tax." Since beneficiaries do have to pay state income taxes — if applicable — when they receive distributions. ING trusts cannot be used to defer income taxes on salaries or income from tangible assets in the state.

Persons: —, Dan Griffith, dealmaking, You've, Griffith, Bank of America's Timothy Herbst, It's, it's, Bob Lord, They're, Steve Oshins, Herbst, Oshins Organizations: Service, Huntington Bank, ING, Bank of America's, Patriotic Millionaires Locations: Florida, Texas, Nevada, York, California, North Carolina, Delaware, , Wyoming, South Dakota, Oregon, Ohio

☆ How rich Americans use life insurance to save on taxes and protect their kids' inheritance with this neat trick
▼ + stars: | 2024-09-22 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +6 min

But there is an alternative to a fire sale: They can use life insurance to foot the bill with a neat trick. Instead of owning a life insurance policy directly, they take out a policy and put it inside a trust. The irrevocable life insurance trust (ILIT) collects the death benefit, pays the tax bill, and distributes whatever is left according to the insured individual's wishes. For an ultra-rich taxpayer with a $10 million life insurance policy, using an ILIT could save $4 million in taxes. Make sure you're getting a life insurance policy that makes financial sense.

Persons: —, Sam, Robert Strauss, Weinstock Manion, Dan Griffith, Griffith, Strauss, it's, ILITs, Kate Maier Organizations: Service, Business, Huntington Bank, IRS

Bypass or credit shelter trust: Like a marital trust, married couples establish this type of trust to reduce or eliminate the estate tax for heirs. Or, you can have your trust fund managed by a corporate trustee or trust company. Trust funds — Frequently asked questions (FAQs)Can anyone set up a trust fund? However, remember that trust funds involve high fees, so only folks able to afford these expenses should open a trust fund. How long a trust fund lasts depends on the terms of trust.

Persons: Jaime Eckels, Plante Moran, Totten, grantors, Grantor, Cash, You'll, There's Organizations: Plante Moran Financial Advisors Locations: Chevron

☆ Rich collectors want to give art to their kids, but they don't want it. Here's what they can do instead, and they can save millions on taxes, too.
▼ + stars: | 2024-06-30 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +7 min

Read previewNearly 80% of wealthy art collectors want their masterpieces to stay in the family, according to a Bank of America survey. For instance, the survey found that collectors between 21 and 43 have a greater appreciation for sculptures and antiquities than older art aficionados. Rich art collectors are reluctant to address the issue, according to Rosemary Ringwald, head of art planning at Bank of America's private bank. Collectors are increasingly picking art executors or art trustees to oversee their possessions after they die, she said. The ideal executor does not have a financial interest in the art and isn't a prospective owner of it.

Persons: —, Rich, Rosemary Ringwald, Ringwald Organizations: Service, Bank of America, Business, Bank of, IRS, Bank Locations: Aspen

☆ 9 ways rich real estate owners save big on taxes from putting mansions in trusts to donating rental property income
▼ + stars: | 2024-04-25 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +9 min

The richest 0.1% of Americans own $1.8 trillion in real estate, according to the Federal Reserve. Currently, individuals and married couples can gift or bequeath $13.61 million and $27.22 million, respectively, before a 40% federal estate tax kicks in. Here are nine little-known techniques that wealthy real estate owners use to pay less to Uncle Sam:Qualified personal residence trusts, better known as "QPRTs," effectively freeze the value of a real estate property for tax purposes. With an FLP, an individual — often a parent or two parents — pools their business assets, commonly real estate or stocks. The heirs don't own the trust assets, but rather have lifetime rights to the trust's income and real estate.

Persons: Uncle Sam, Trump, Sam Walton, Wrigley, Jeff Bezos, Rich, Ron Wyden, PPLI, Jackie O, I've, Edward Renn, remarries Organizations: Federal, Business, Walmart, Biden, Blackstone, Lombard, Taxpayers, IRS Locations: Trump, Florida, Wyoming, Plenty

☆ Rich parents want to give to charity and leave more money to their kids. Here's how billionaire families do it.
▼ + stars: | 2024-01-29 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +8 min

Read previewWhen the rich give to charity, they find a way to get the most bang for their buck. If the trust assets are invested and achieve an annual rate of return of 9% a year, the CLT's remainder will be $2.1 million. Advertisement"It's a fantastic low interest rate play," said Renn. "The problem now is rates have really risen and it's to the point where some investments clearly can outperform a 4% or 5% interest rate, but others might struggle." In this interest rate environment, charitable remainder trusts (CRTs) have better odds.

Persons: —, Jacqueline Kennedy Onassis, Walton, Lance Morgan, Ed Renn, I've, Renn, Dan Griffith, Griffith, CLTs, Onassis, CLATs, Alice, Jim Walton, Rick T, Jennifer Galvagna, Michael Prinzo, they're Organizations: Service, Tax, Business, Bloomberg, Huntington Private Bank, Walmart, Bank of America Private Bank Locations: Withersworldwide, CLTs, Fayetteville , Arkansas, Israel, Palestine

☆ How the superrich, like Walmart's Waltons, get richer by using trusts to give to charity and save on tax
▼ + stars: | 2024-01-23 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +7 min

If the calculations predict that the trust's remainder interest is zero, the beneficiaries are exempt from estate tax even if the assets actually appreciate by a greater amount. If the trust assets are invested and achieve an annual rate of return of 9% a year, the CLT's remainder will be $2.1 million. Advertisement"It's a fantastic low interest rate play," said Renn. "The problem now is rates have really risen and it's to the point where some investments clearly can outperform a 4% or 5% interest rate, but others might struggle." In this interest rate environment, charitable remainder trusts (CRTs) have better odds.

Persons: —, Jacqueline Kennedy Onassis, Walton, Lance Morgan, Ed Renn, I've, Renn, Dan Griffith, Griffith, CLTs, Onassis, Jennifer Galvagna, Michael Prinzo, they're Organizations: Service, Tax, Business, Bloomberg, Huntington Private Bank, Bank of America Private Bank Locations: Withersworldwide, CLTs, Israel, Palestine

☆ Bitcoin ETFs have a key difference from their stock fund counterparts
▼ + stars: | 2024-01-12 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +3 min

The U.S. Securities and Exchange Commission pushed for bitcoin exchange-traded funds to have a key difference from major stock funds, and that decision's effect on how the funds trade will only become clear over time. The bitcoin funds that launched Thursday are using a share redemption process that turns the underlying crypto into cash. Most ETFs primarily use an in-kind redemption process, where the underlying asset does not have to be actually sold. There is some concern that using the cash-only redemption model could make the plumbing of the ETFs less efficient. Using cash-only redemption could result in ETFs that have weaker liquidity and wider bid-ask spreads, Grayscale argued.

Persons: Bryan Armour, Steven McClurg, McClurg, Jeremy Senderowicz, Vedder Price, Gary Gensler, Senderowicz Organizations: U.S . Securities, Exchange Commission, North America, Morningstar, SEC, APs, CNBC PRO Locations: bitcoin

Fabric by Gerber Life launched a new investment account for parents to invest on behalf of their kids. Gerber Life's partner brand, Fabric by Gerber Life, offers affordable term life insurance, free wills — and now a new investment account for your child. Fabric by Gerber Life has launched UGMA custodial accounts on their digital platform so you can invest for your child's future. How to open a UGMA account with Fabric by Gerber LifeOpening an account with Fabric by Gerber Life is simple and only takes about five minutes. Flexible spendingA UGMA account is a type of custodial account that permits parents/guardians to invest on behalf of a child/dependent.

Persons: —, Gerber, you'll, grantor, It's Organizations: Gerber Life, Service, Gerber, Fort Washington Investment Advisors, Social, Capital, IRS, Transportation Locations: There's

Read our review Read Our Review A looong arrow, pointing rightThe Best CD RatesTop CD Rates by TermMany of the best CD rates are offered by credit unions right now. Market LeaderAlpena Alcona Area Credit Union (7-month term) paying 7.19% APYTo open a CD at Alpena Alcona Area Credit Union, you must qualify for membership. About the Best CD IssuersAlpena Alcona Area Credit Union 7-Month CDWhy it stands out: Alpena Alcona Area Credit Union has the highest CD rate available right now. Dow Credit Union Simple CDWhy it stands out: Dow Credit Union is a solid choice if you prioritize banking with a credit union. GTE Financial Credit Union Share CertificateWhy it stands out: GTE Financial Credit Union is a good option if you're searching for a 4-year share certificate.

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Considering contributing to a 529 plan for their college education, or making them your life insurance beneficiary. But when that generosity comes at the cost of depleting your own retirement savings, the prospect becomes a lot less compelling. At current levels, most American families will have absolutely zero interaction with federal estate taxes. Amorello explained: "Gifting money actually can help grandparents lessen their own net worth to lower estate taxes. Because if you're leaving behind an inheritance, but half of it is going to the estate taxes, that can be a daunting realization."

Persons: Kathryn Amorello, Don, It's, Amorello, you've, they're, we've, — Organizations: Service, Financial, Internal Revenue Service Locations: Wall, Silicon, Amorello

☆ Here are six ways the rich save big on taxes, from putting mansions in trusts to guaranteeing inheritance for future generations
▼ + stars: | 2023-08-04 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +6 min

Thanks to tax cuts made during the Trump administration, Americans can give or hand down nearly $13 million in assets without paying federal estate tax. Currently, individuals and married couples can gift or bequeath $12.92 million and $25.84 million, respectively, before a 40% federal estate tax kicks in. The heirs don't own the trust assets but rather have lifetime rights to the trust's income and real estate. Private-placement life insurance, or PPLI, can be used to pass on assets from stocks to yachts to heirs without incurring any estate tax. These trusts pay a fixed annuity during the trust term, which is usually two years, and any appreciation of the assets' value is not subject to estate tax.

Persons: Uncle Sam, Trump, Robert Strauss, Weinstock Manion, Wrigley, Jeff Bezos, Rich, Ron Wyden, PPLI Organizations: Taxpayers, IRS, Biden, Blackstone, Lombard International, Federal Reserve Locations: Cayman Islands, Bermuda, Florida, Wyoming, Plenty

BlackRock filed for a prospective spot bitcoin ETF on June 15, undeterred by the Securities and Exchange Commission's (SEC) past record of rejecting every such application. Bitcoin's market value has grown to comprise nearly half of the $1.1 trillion overall crypto market, its highest share in over two years, according to data tracker CoinMarketCap.com. Since the BlackRock filing, Invesco and WisdomTree have also reapplied for spot bitcoin ETFs after they had previous applications rejected by the regulator. Bryan Armour, director of passive strategies research for North America at Morningstar, said a spot bitcoin ETF could be a more cost-effective way for investors to trade. "It doesn't appear that most crypto ETF holders are institutional – assets are pretty spread out," he added.

Persons: Satoshi, Exchange Commission's, Satoshi Nakamoto's, Mikkel Morch, hasn't, Andrew Bond, Rick Meckler, Bryan Armour, I'd, David Wells, Medha Singh, Lisa Pauline Mattackal, Pravin Organizations: BlackRock, Securities, Exchange, SEC, Rosenblatt Securities, U.S, Cherry Lane Investments, Reuters Graphics Reuters, North America, Morningstar, MorningStar, TrackInsight, Morgan Asset Management, State, Enclave Markets, Pravin Char, Thomson, Reuters Locations: United States, U.S, New Vernon , New Jersey, J.P, BlackRock, Bengaluru

☆ Five ways the rich save big on estate taxes, from putting houses in trusts to buying offshore life insurance
▼ + stars: | 2023-05-08 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +6 min

Thanks to tax cuts made during the Trump administration, Americans can give or hand down nearly $13 million in assets without paying federal estate tax. Currently, individuals and married couples can gift or bequeath $12.92 million and $25.84 million, respectively, before a 40% federal estate tax kicks in. Private-placement life insurance, or PPLI, can be used to pass on assets from stocks to yachts to heirs without incurring any estate tax. The assets in the trust are treated as premiums, and if structured correctly, the benefit and assets in the policy are bequeathed free of estate tax. These trusts pay a fixed annuity during the trust term, which is usually two years, and any appreciation of the assets' value is not subject to estate tax.

☆ Here's how rich Americans give homes and country houses to their children and save big on estate tax
▼ + stars: | 2023-05-07 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +6 min

They can stay in the home during the trust, and any appreciation is exempt from gift and estate tax. The federal estate tax exemption, however, will be cut in half at the end of 2025, barring further legislation. This rent allows parents to transfer more wealth to their heirs free of gift tax. In short, the grantor was able to give a property worth $1.8 million, but only pay gift tax on $422,600. The rental payments are not subject to gift tax.

☆ How the rich have their cake and eat it too by using trusts to give to charity, collect cash, and save on taxes at the same time
▼ + stars: | 2023-02-18 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +6 min

Charitable remainder trusts give annual payments, and whatever is left at the end goes to charity. Grantors get a bigger upfront deduction because a higher rate assumes the trust assets will grow faster and more will be left to charity when the term ends. With a charitable remainder annuity trust (CRAT), the annual income is determined at the outset when the trust is funded. The second type, charitable remainder unitrusts (CRUT), are more popular in Sheehan's experience but also more complicated. If you select a payout percentage that is too high, the trust remainder might not be enough to pass muster with the IRS.

☆ Heinz, Waitrose, and hundreds of other brands' Royal Warrants became void after the Queen died. Now, they have to prove the royal family uses their products to get them back under King Charles III.
▼ + stars: | 2022-11-28 | by ( Britney Nguyen | ) www.businessinsider.com time to read: +3 min

Hundreds of brands had a Royal Warrant to use the royal coat of arms on their products, but it became void after the Queen died. The brands, including Waitrose and Heinz, can keep using the royal coat of arms for another two years. They will have to reapply under King Charles III and prove the royal family uses their products. There are approximately 850 Royal Warrants held by about 750 companies or individuals, according to The Royal Warrant Holders Association, which also noted that that number changes frequently. As the new reigning sovereign, King Charles III will have the power to review and grant the Royal Warrants.

☆ Responding to yet another Trump lawsuit, New York's attorney general says he's still committing fraud
▼ + stars: | 2022-11-03 | by ( Rebecca Cohen | Laura Italiano | ) www.businessinsider.com time to read: +5 min

New York Attorney General Letitia James responded to Donald Trump's new lawsuit filed against her Wednesday night. James alleged Trump is still committing fraud and is "seeking to put assets beyond this Court's reach." Trump accused the attorney general of abusing her power by investigating him and his family. Kevin Wallace, a lead prosecutor in the James lawsuit against Trump, told a judge that the AG is still "seeking an injunction against ongoing fraudulent activities by the Trump Organization." Trump's lawsuit on Wednesday is the latest legal action he's taken against James, who he has frequently railed against and accused of being corrupt.

☆ Here's how uber-rich pass wealth to heirs tax-free when markets are down
▼ + stars: | 2022-10-10 | by ( Greg Iacurci | ) www.cnbc.com time to read: +1 min

But for the uber-rich, it may offer a route to lower estate taxes down the road. That's because one type of trust gives them better odds of shifting some wealth to their children, grandchildren or other heirs tax-free when markets are down — but a subsequent rebound is expected, according to estate planners. Afterward, any investment growth passes to their heirs and the owner gets back the principal. The investment growth becomes a tax-free gift to heirs. Absent growth, the asset simply passes back to the owner without a transfer of wealth.

☆ Heinz, Waitrose, and over 800 other brands lost rights to use the royal coat of arms on products after the queen died. Now they must prove the royal family uses their products to get it back.
▼ + stars: | 2022-09-14 | by ( Britney Nguyen | ) www.businessinsider.com time to read: +2 min

Heinz, Waitrose, and hundreds of other brands have to redesign products with the royal coat of arms. The brands had a Royal Warrant to use the coat, but it became void after Queen Elizabeth II died. Now, they have to reapply under King Charles III, by proving the royal family uses their products. Products from around 875 brands feature a royal coat of arms on them that is now void, according to the Royal Warrant Holders Association. The Royal Warrant is granted for up to five years, and can be reviewed for renewal the year before it expires.

A trust fund shelters a person's assets from probate and allows them to choose how and when their assets are distributed to their heirs. Depending on the type of trust fund, one or more of these parties may be responsible for paying income taxes and/or estate taxes. A revocable trust can be altered throughout the grantor's life, while an irrevocable trust cannot. In some revocable trusts, a single person can act as the grantor, beneficiary, and trustee during their lifetime. If the income beneficiary is a charity, the trust will receive an income tax deduction.

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