How best to use the grandfather election for retirement plans
Article Abstract:
The benefits of the grandfather election made available to certain taxpayers with retirement plan assets over $562,500 in 1986 can be maximize by using the grandfathered amount inter vivos and not holding the funds at death. Under the election, a proportion of plan assets can be treated more favorably for income tax and estate tax purposes. Depending on age and interest rates, estate taxes may be reduced substantially by maximizing distribution of the grandfather portions during life. Such benefits must be weighed against loss of tax deferral and other factors.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1996
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Recent developments highlight plan and IRA beneficiary designations
Article Abstract:
Laws enacted in 1996, IRS guidance and court rulings permit new ways to designate qualified retirement plan beneficiaries. Distribution to the surviving spouse should not be delayed for the survivor to maintain the marital deduction when using marital trusts as beneficiaries of an IRA. The surviving spouse should usually be the primary beneficiary of the decedent's retirement plan, partly because the surviving spouse may "channel" the retirement plan funds into the deceased spouse's IRA.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1997
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Protocol coordinates death tax provisions of U.S. and Canada
Article Abstract:
The Protocol between the US and Canada enacted in 1995 will limit the instances when US citizens, US residents and Canadian residents will be subject to double taxation at death. Credits against US estate taxes will be available for Canadian income taxes paid at death. US estate taxes will only be imposed on Canadian residents to the extent that property is situated in the US. Estate taxes paid on US property will result in credits against Canadian income tax.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1996
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