Tax Articles

An Irrevocable Life Insurance Trust (ILIT) can help keep life insurance proceeds out of your taxable estate, reducing potential estate tax liability. By transferring ownership of a policy to an ILIT or having the trust purchase a new policy, you ensure the death benefit passes tax-free to beneficiaries. While ILITs offer significant advantages for high-net-worth individuals, they come with complexities such as gift tax considerations and loss of control, making professional guidance essential.

Intrafamily loans can be a flexible way to transfer wealth, support major purchases, and preserve family assets while offering tax advantages—when structured correctly. To avoid IRS reclassification as a gift, these loans must follow strict formalities, including charging interest at the applicable federal rate and documenting repayment terms. While financially beneficial, they carry emotional risks, so careful planning and professional guidance are essential.

Businesses that accept large cash payments have strict IRS reporting obligations. Transactions over $10,000 must be reported using Form 8300, and failure to comply can lead to steep penalties. Understanding what counts as cash, electronic filing rules, and proper recordkeeping is essential to stay compliant and avoid costly mistakes.

A quiet trust, also known as a silent trust, is an estate planning tool that keeps beneficiaries unaware of the trust’s existence until a specified age or milestone. While it can preserve motivation and protect heirs from external pressures, it may also lead to missed opportunities or resentment. For some families, an incentive trust, which rewards responsible behavior may offer a more balanced approach.

The One Big Beautiful Bill makes the Section 199A qualified business income (QBI) deduction permanent and expands income phase-in ranges starting in 2026, allowing many service-oriented businesses to claim larger deductions. It also introduces a minimum QBI deduction for eligible taxpayers and adjusts thresholds for inflation. Strategic planning, such as managing taxable income and increasing W-2 wages, can help maximize these benefits.

Owning a business with your spouse can be rewarding, but it also brings unique tax challenges that can impact your bottom line. From self-employment tax surprises to IRS partnership rules, understanding your options like electing joint venture status, forming an S corporation, or restructuring roles can help you minimize taxes and simplify compliance.

Executive Order 14247 requires the IRS to transition all tax-related payments and refunds to electronic methods starting September 30, 2025, eliminating paper checks except in limited cases. Taxpayers will need to use direct deposit, prepaid debit cards, or digital platforms for refunds and make payments through approved electronic systems, with support available for those lacking access to traditional banking.

Custodial accounts offer a flexible way for adults to manage investments on behalf of minors, allowing the assets to legally belong to the child while controlled by a custodian until adulthood. These accounts support various asset types and provide tax benefits but come with considerations regarding control and financial aid impact.

Family business owners benefit from having both an estate plan and a succession plan to ensure a smooth transition of assets and leadership. These strategies help preserve wealth, minimize taxes, and reduce potential conflicts among heirs, while supporting the financial needs of both generations.

Being named an executor of an estate is a significant honor, but it comes with complex legal and financial responsibilities. From securing death certificates and managing probate to settling debts, filing taxes, and distributing assets, the role demands careful organization and clear communication with beneficiaries. Executors must act as fiduciaries, often over the course of a year or more, ensuring every step is handled prudently and transparently.