Reaping a tax benefit requires planning

Article Abstract:

The 15% excise tax on excess distributions from a qualified plan is waived for income tax purposes only from Jan 1, 1997 through Dec 31, 1999, under the Small Business Job Protection Act. For those who are considering the removal of the distributed amount from the plan there are alternatives that are available. Making a gift to children after the distribution and tax is one, as is purchasing a single-premium life insurance policy with the funds.

Trust, Fiduciary, and Custody Activities, Estate & Tax Planning, Interpretation and construction, Laws, regulations and rules, Distribution of decedents' estates, Estate planning, Tax benefit rule

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For some clients charity should begin at home

Article Abstract:

Financial planners should become familiar with the charitable remainder trust. These trusts are often used to satisfy a client's charitable desires because they carry a strong tax advantage. Charitable remainder trusts have also been used to distribute alimony to an ex-spouse and to pay a donor's obligations. Donors can choose to have the trust distribute a fixed sum on a regular basis or pay beneficiaries a percentage of the assets.

Educational, religious, etc. trusts, Educational, Religious, Charitable Trusts, Grantmaking Foundations, Usage, Column, Charitable trusts, Charitable remainder trusts

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Model buy/sell agreements to meet IRS challenges

Article Abstract:

Financial advisers can provide a valuable service through the effective valuation of a family business and buy/sell agreements. A good strategy for advisers is to convince the owners of the family business that there is a specific valuation for the asset and to find a qualified appraiser to perform the service. The appraisal should be updated regularly and the 1990 tax law followed as a guide to buy/sell agreements.

Investment Banking and Securities Dealing, Portfolio & Funds Management, Management, Portfolio management, Valuation, Family-owned business enterprises, Family-owned businesses, Buy-sell agreements

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