On December 22nd, President Donald Trump signed the 2017 Tax Reform Act into law doubling the estate and gift exclusion, and generation-skipping transfer (GST) exemption amounts. This is the most significant tax reform since 1986.
Continue reading 2017 Tax Reform Act Creates Estate Planning Opportunities →
After spending nearly a decade at our office on Kietzke Lane, Alliance Trust Company of Nevada has moved to a wonderful new location in downtown Reno. Our new office is in what is known as the “Museum Tower,” the former American headquarters of Porsche.
We founded Alliance Trust Company in 2005 and have experienced steady growth since. Our previous office space simply could not accommodate our growing business. We visited several attractive properties, but ultimately we knew the Porsche Building was where we needed to be.
The New York Times “Room for Debate” opinion pages recently asked Alliance Trust Company in Reno to comment on the Panama Papers and the advantages of and lawful usages of shell companies. In this piece, Alliance notes that the vast majority of these companies are used legally, providing a layer of security and privacy for international families in an increasingly dangerous world.
Continue reading The Government of Kazakhstan Knows my Retirement Account Balance? →
Nevada Incomplete Non-Grantor Trusts (or, “NINGs”) are growing in popularity and usage across the country. NINGs provide the grantor of the trust asset protection and the potential to minimize local and state income taxes on investable/intangible assets. As this NASDAQ.com Article on NINGS, these types of trusts are not for everyone.
Continue reading Awareness of NING Trusts Growing Nationally →
A sad but familiar statistic was just released by CNBC this week, detailing that 38% of millionaire families in the US do not have an estate plan. That means four of ten people reading this article have not taken the simple steps needed to protect their family’s future. The article cites a variety of well-worn excuses, from the contact changes to the federal estate tax threshold to the natural reluctance to plan for and talk of your own demise. The consequences of inaction are devastating to those left behind. From the expense and hassles of probate, the courts naming guardians for minors, and to the very likely possibility that some or all of your assets are taken from the next generation by creditors, predictors, and ex-spouses. The reality is that with a little planning, these negative can be turned into a positive – leaving behind a legacy that helps many generations to come. It is an old adage, but highly appropriate with this news. The four often reading this article – all financially successful people – haven’t planned to fail, they have failed to plan. Nevada has the best trust laws in the country and has many estate planning strategies to better protect your family and potentially trim taxes. You do not have to be a resident of Nevada to establish a Nevada trust. For more information, call Alliance Trust Company in Reno at 775-297-4000.
Many people are beneficiaries of family trusts that have antiquated terms and provisions that no longer make sense. Yet many people also believe that they are “stuck” with the terms of the trust and that they simply have to live with the terms regardless of moving forward. This is not true. Certain states, including Nevada, allow for modifications to be made to even an irrevocable trust. Modifications can be made to extend the term of the trust, change the situs of the trust, and add or modify powers of appointment. As this recent Forbes magazine article points out, you might even save taxes for the trust as part of this process. Nevada is considered to have some of the best trust laws in the country and has very flexible statutes for modifying trusts. For more information, call Alliance at 775-297-4000.
Many people believe that once a trust becomes irrevocable, there is nothing you can do to change and fix outdated family trust provisions. That is not correct. Certain states, including Nevada, have “decanting provisions” which allow for modifications of irrevocable trusts by shifting the assets from the old trust and into a new, modernized trust. The new trust may have stronger asset protection and/or tax advantages. The process leaves the unwanted trust provisions behind, like leaving sediment behind in decanting wine. Decanting can be done quickly in Nevada, at a minimal cost. Alliance Trust Company will be co-presenting a presentation at the Gathering in San Diego at the end of the month. If you are looking at options to modify an irrevocable trust, you have a lot of options in Nevada you may not have in your home state. Nevada is considered to have some of the best and most flexible trust laws in the country and is considered one of the most favorable jurisdictions for decanting. Please call Alliance Trust Company at 775-297-4000 for more information.
A trust is an important part of almost every estate plan. A trust is a much more cost-effective way to transfer property from one generation to the next. A typical estate plan will include a packet of documents, including a revocable living trust and will, a financial power of attorney and an advance healthcare directive. Together these documents make sure that your affairs are properly managed by someone you trust if you become incapacitated or pass away. The advantages of a trust as opposed to a simple will are numerous: your assets are transfer outside of probate (privacy), they are transferred faster and the administrative burdens on loved ones is minimized. But what if you don’t have an obvious family member to serve as trustee? A corporate trustee, such as Alliance Trust, can perform the same functions, utilizing a team of people with decades of experience to settle your estate. In this article, tips for selecting a good corporate trustee are listed. Alliance Trust in Nevada offers trustee services in Nevada, which offers some of the best laws in the country for trusts and estate planning.
The Wall Street Journal and numerous other media outlets are reporting that the State of the Union address on Tuesday will outline a proposal by the President to effectively increase estate taxes. In the proposal, appreciated assets in an estate would not receive an updated or “stepped up” tax basis on death. Only a small amount of gains suggested as $200,000 in portfolio assets and $500,000 in a primary residence would be shielded from tax. Although these numbers may seem large, ask many families what their tax-cost basis is in desirable places to live, such as Silicon Valley and other parts of California, and you will see that this proposal would capture many more families with a taxable event on death even without a formal change to the estate tax rules. There are many estate planning strategies that can help families facing estate tax burdens. Some of the best strategies use Nevada Trusts – the best state for asset protection and tax minimization. Please call Alliance at 775-297-4000 for more information.
Alliance Trust appeared in the New York Times over the weekend, discussing the issue of “perpetual trusts.” The link to the article is here. Trust law in the United States evolved from England, which via case law established the “Rule Against Perpetuities” in 1682. This law, refined by future cases, effectively limited trust duration to approximately 90-100 years. Recently, many states and foreign countries have either repealed the rule or have extended the duration of trusts far beyond the legal relic of the rule. Nevada trusts can last for as long as 365 years. Alliance discusses how a Nevada court would react to another court asserting jurisdiction over a Nevada trust, and how Nevada protects its trust and estates industry. Alliance has worked for years with the legislature to enhance and protect what many consider to be the best trust laws in the country. If you have questions as to how a Nevada trust could benefit you and your family for generations to come, call Alliance Trust Company- at 775-297-4000.
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