The deadline to recharacterize depressed Roth IRA conversions from 2007 is fast approaching.

IRA guru Ed Slott recently urged recharacterization for advisors whose clients have executed a Roth conversion in 2007 and then seen the value of the converted assets decline.  The deadline for recharacterization is October 15. Read the rest of this entry »

This month, we examine Captive Insurance Companies, a topic that should be of interest to all business owners with annual net profits of $500,000 or more, as well as all planners who serve them. Perhaps over-hyped at times, Captive Insurance Companies (Captives) are a legitimate planning tool that offers significant benefits to clients, while also generating significant current and recurring revenue to the planning professionals who understand, implement and maintain them. An understanding of Captives allows the wealth planning team to distinguish and/or solidify itself as its clients’ trusted advisors while providing unique and valuable client services. Read the rest of this entry »

Okay, with two articles in a row about LegalZoom, you might be thinking that I’m obsessed with those folks. But, I can’t let them continue to mislead the public without saying something about it.

Maybe you’ve heard the old riddle, “How can you tell when a politician is lying? Their lips are moving.”

Well, it appears that LegalZoom’s lips are moving again. Read the rest of this entry »

Not a week goes by that someone doesn’t ask me about LegalZoom. You’ve probably seen the company’s ads promising “common” legal documents at a fraction of what an attorney would charge. That claim has helped the company grow quickly, and last year they did at least 5,000 trusts. That doesn’t even include the thousands of incorporations, trademarks, copyrights and other documents they’ve prepared for people. Read the rest of this entry »

In the past, Red Hill Law Group provided a monthly e-newsletter for the professional advisor community called “The Wealth Counselor.” In order to better serve the community of advisors and make the information more widely available, we are now posting those articles on our blog.

This “issue” examines a topic that should interest all owners of non-term life insurance policies and their advisors - Internal Revenue Code Section 1035 and its application. A 1035 exchange of life insurance policies, unlike a surrender or sale of a policy, is not an income recognition event. This can allow the policy owner, for example, to take advantage of lower insurance costs due to increased life expectancy, obtain new life insurance features and benefits, or replace a policy that is not performing at an acceptable level and do so without having to pay income taxes on the transaction. Read the rest of this entry »

This month we examine a topic that is critical to business owners and key employees - non-qualified deferred compensation (NQDC). NQDC is often a significant component of these individuals’ compensation and employers often use NQDC to try to ensure the retention of key employees. Given the flexibility of NQDC plan design and funding, it is important that all wealth planning professionals have an understanding of NQDC and its application. Read the rest of this entry »

The difference between the highest and lowest federal income tax rates is currently 35%. As a result, proactive income tax planning is important for many clients, and it is therefore important to all wealth planning professionals.

This month, we examine basic income tax rules as well as the useful strategies to defer income tax by making installment sales to grantor and non-grantor trusts. It is critical that all wealth planning professionals have a basic understanding of these rules and the ability to recognize the opportunities afforded by these strategies. Read the rest of this entry »

Studies predict that approximately 40% (2 out of every 5) of Americans reaching age 65 will need some type of long-term care (LTC). Some of your clients would prefer to stay at home, no matter what the cost. However, without proper planning, the lack of available services and the staggering price tag for full-time home health care may leave them without that option. Read the rest of this entry »

The 2000 census counted nearly 5.5 million U.S. unmarried couples sharing the same household, almost 8 times the number counted in 1970 and nearly 10% of the 60 million U.S. couple households counted. Of these, many are widows and widowers who choose not to marry for various reasons.  Surprisingly, for planners who believe that unmarried-couple planning is only for same-sex couples, it turns out that only 1% of these unmarried couples are same-sex partners. Read the rest of this entry »

This month, we address a law change that is important to all wealth planning professionals and their clients. Beginning January 1, 2008 and continuing through at least 2010, a zero tax rate may apply to long-term capital gain and dividend income that would otherwise be taxed at the regular 15% and/or 10% rates. The new zero tax rate is available to the extent that the taxpayer’s other taxable income minus exemptions and deductions is less than a specified amount. Read the rest of this entry »