Orsbon & Fenninger, LLP

Estate Planning and Estate Administration

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October 2017 Archives

What to know about estate taxes in 2018

In 2018, residents of North Carolina, along with the rest of the country, will have a $5.6 million federal estate tax exemption. This is an increase from $5.49 million in 2017. Couples may choose to combine their individual exemptions, which means that they have a total exemption of $11.2 million. However, couples will need to tell the IRS that this is what they want to do.

When an asset protection trust may make sense

North Carolina residents who are looking to do what's best for their children may be interested in creating a spendthrift trust. This may be especially useful for those who may not have had experience handling money who may otherwise be inheriting a lot of it at once. Such trusts can either be created while a person is still alive or triggered upon a person's death.

Estate tax rules withdrawn by the Treasury Department

Small business owners in North Carolina may breathe a sigh of relief upon learning that the proposed valuation rules for family businesses will be withdrawn by the Treasury Department. The rules were proposed in August 2016 and would have greatly limited discounts in value that business owners claim in order to pass their businesses on while minimizing their estate and gift taxes.

Do you really need a special needs trust for your child?

You may already know that your special needs child cannot have assets over a certain amount in order to receive benefits from the government. This limitation may make it seem difficult to plan for your child's future. Fortunately, an estate-planning tool that could work for you and your child does exist.

The various types of trusts

North Carolina residents may take advantage of a variety of trusts as part of their overall estate plan. For instance, a testamentary trust is one that is included in a will. The will spells out which assets the trust is to hold after the testator passes away, and they do not avoid probate. However, it may avoid the cost of trying to create and fund a trust while still alive.