Orsbon & Fenninger, LLP

Estate Planning and Estate Administration

704-900-3883 Phone
888-314-8134 Toll-Free

September 2017 Archives

Estate tax and gift tax exemptions may rise in 2018

Couples in North Carolina and throughout America may see their joint federal estate tax exemption climb above $11 million in 2018. It is also likely that the gift tax exemption will increase to $15,000 for 2018, which would mark the first increase since 2013. The federal estate tax exemption is indexed to inflation, and was first set at $5 million in 2011.

How to properly pass on an IRA

North Carolina residents who have an IRA may designate a beneficiary to the account or otherwise include it in an estate plan. How it is accounted for generally depends on who it is going to. It could go to a spouse, which may be beneficial because he or she can simply put the money into his or her own account. Giving the money to a spouse may also be beneficial because that person can delay withdrawals until age 70 1/2.

Risk mitigation for trustees

As an increasing number of North Carolina residents are establishing new estate plans, trusts are becoming more complex. Today's trusts contain many more assets, including entire businesses. As new trusts evolve, more litigation is occurring to test these plans. It is important that trustees understand their roles and the potential risks of litigation so that they can protect themselves.

How to pick the right successor trustee

A living trust can provide many benefits to North Carolina residents. Part of creating such a trust is naming a trustee. While this may seem like an easy thing to do, it does require some thought and planning. In many cases, the person who creates a trust will be the trustee. If the settlor is married, both spouses may be named co-trustees.