trusts & estates
for the future
Trusts & Estates
For more than 67 years, SAX’s Trusts & Estates advisors have been dedicated to helping individuals and families safeguard, grow, and optimize their financial legacies.
Whether you’re part of the 1% or not, we’re committed to assisting you in crafting a plan that not only strengthens your wealth but also lightens your tax load.
Trust and estate planning aren’t just checkboxes; they’re crucial steps toward securing the future of your loved ones and ensuring the enduring success of your business. Given the complexity of this process, having the right partner by your side is paramount. Our team offers unparalleled expertise and personalized guidance tailored to your unique needs and aspirations.
our services include but are not limited to:
Estate Taxes
At SAX, we recognize that estate planning encompasses more than just numbers; it involves safeguarding legacies and ensuring future security.
Our team of seasoned professionals specializes in guiding individuals and families through the intricate landscape of estate taxes with precision and care.
From meticulously crafting personalized estate plans to navigating complex tax regulations, we’re dedicated to safeguarding your assets and ensuring your wishes are honored. With our comprehensive suite of services, including estate tax planning, trust administration, and wealth preservation strategies, we empower our clients to leave a lasting impact for generations to come.
Reach out for a conversation on your specific needs, including but not limited to:
- 2021 Exemption is $11.7 million per person ($23.4 mil per couple)
- Exemption is the aggregate amount that can be given away during lifetime and at death
- Under current law, this exemption will be automatically reduced in 2026
- Congress is signaling interest in reducing exemption and raising taxes
- Under current law, valuation discounts can help you transfer assets using fewer gift tax dollars – Congress is considering eliminating this valuable technique for transfers made in the future
- 2021 could be a last chance opportunity
Fiduciary & Trust Tax Compliance
Managing trusts and estates involves navigating a complex landscape of tax obligations that demand attention year-round.
As fiduciaries, we recognize the weight of your responsibilities and the necessity for precision.
At SAX, our team of seasoned trust and estate professionals is dedicated to assisting fiduciaries in meeting both state and federal reporting requirements while controlling associated costs. With a deep understanding of intricate tax laws, we strive to streamline processes, minimize risks, and capitalize on opportunities for asset protection and wealth preservation.
Our services include:
- Tax return preparation, including federal Form 1041 and related federal tax forms
- Charitable trust administration and compliance
- State and local fiduciary income tax returns in all U.S. jurisdictions, including evaluation and advice for when such filings might be required
- Income tax and estate tax minimization planning
- Evaluating options for making distributions to minimize overall tax liability
- Valuation of closely held business interests
- Communications with fiduciaries, attorneys, and other advisors to ensure that tax return filings will complement the planning
- Preparation of fiduciary accountings for trusts and estates
Wealth Transfer Strategies
Navigating the complexities of wealth transfer requires a strategic approach that goes beyond mere financial transactions.
At SAX, we specialize in crafting personalized wealth transfer strategies that safeguard your assets and secure your legacy for generations to come.
Our comprehensive suite of services encompasses asset protection, life insurance planning, estate and gift planning, and business succession. Whether you’re seeking to shield your wealth from potential risks, optimize your life insurance coverage, minimize tax liabilities through strategic estate and gift planning, or ensure a seamless transition of your business to the next generation, our team of experts is here to guide you every step of the way.
Asset Protection
Planning is important not only for estate tax considerations but also for asset protection purposes. Asset protection trusts are mechanisms available under current law in certain states that can enable individuals to remove assets from the reach of their future creditors. An individual may be able to retain access to the income generated by such assets.
Things to Consider:
- Engage qualified counsel to structure a trust that satisfies applicable state laws
- Administer the trust properly in accordance with the trust terms and state law
- Satisfy all compliance and reporting obligations
Life Insurance Planning
It’s important to evaluate life insurance coverage regularly to confirm that you have sufficient insurance in place but not too much to satisfy your insurance needs. Consider the purpose of the life insurance: Is it intended to replace your income? Is it intended to cover estate taxes? Did you buy it to care for minor children who are now grown?
Life insurance should usually be owned by a life insurance trust. Estates are taxed on their value as of the date of an individual’s death. If someone owns a policy on her own life, the value of that policy as of the moment of death is equal to the policy proceeds – all of which will be included and, potentially taxable as part of her estate.
Things to Consider:
- Life insurance trusts need to be properly administered. The Trustee should understand and satisfy fiduciary obligations.
- Transfers to the life insurance trust or premium payments are usually done through gifting which should be reported on a timely filed gift tax return.
- Current proposals being considered by Congress may change how premium payments may be made for life insurance policies owned by trusts.
Business Succession
Exiting a business, whether by selling it or by transferring it to the next generation, can be a daunting process. By putting together a structure that considers both ownership and management succession, you can move your business forward successfully.
Things to Consider:
- Create a timeline that identifies the circumstances when a succession will take place with specificity.
- Carefully construct any family succession plan that takes into account complicated family dynamics and emotions. Consider engaging a business consultant with a background in family succession plans to help navigate difficult issues.
- Formalized standard operating procedures, audited financial statements, and executed employment and vendor agreements can usually enhance the value of a business.
- Trusts used to transfer business interests to family members must be carefully drafted and properly administered in order not to disrupt the operations of the business.
- Only certain kinds of trusts are eligible S corporation shareholders.
Estate & Gift Planning
Strategic charitable giving can enable a charitably-minded individual to accomplish estate planning goals while also garnering a current income tax benefit. Ranked from basic to most sophisticated, the following is a very broad view of the categories available to prospective donors wishing to make charitable contributions:
- Annual cash donations
- In kind donations of appreciated assets
- QCDs (qualified charitable distribution) from an IRA (for beneficiary over age 70) to charity
- Testamentary bequests
- Charitable trusts
Want more information?
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