Thought Leadership Resource Center
While federal estate taxes often grab headlines, many overlook the significant impact of state estate taxes. These state-level taxes can substantially reduce the value of inherited assets, affecting the beneficiaries and the decedent’s legacy.
Illinois, where Clearwater Capital Partners is based, is one of 12 states with an estate tax. It is a uniquely difficult tax to avoid and requires careful planning to minimize.
Read MoreSending your son or daughter off to college is an exciting milestone! Here’s a checklist of important topics to cover with your college students to ensure your family is prepared for this significant back-to-school transition.
Read MoreBy 2045, it’s estimated that US households will transfer $84 Trillion in wealth. Take steps now to preserve the assets you’ve worked hard to acquire and ensure your family is equipped to build on a foundation of financial stability.
Read MoreBeing chosen as the executor of an estate can be both an honor and a major obligation depending on the complexity of the estate and a number of issues that may arise along the way. For this reason, a potential executor should make sure he or she knows what is involved before accepting this responsibility.
Read MoreCreating and maintaining an updated estate plan is among the most important gifts you can provide for your family and those who you care most about in life. However, many find addressing the sensitive questions involved with legacy planning to be uncomfortable and, because of that, they may delay organizing the proper estate-related documents until it is too late.
Read MoreThe current Federal Estate Tax exemption is approximately $24 million for a married couple (half for an Individual) inclusive of portability. Readers should note: no legislative action is needed to effectively cut the exclusion amount in half at the end of 2025. Meaning, the Tax Cuts and Jobs Act (TCJA) of 2017 automatically reverts without the need for Congressional vote.
Read MoreWealth transfer planning positions assets that will not be needed during one’s lifetime for efficient transfer to the next generation. An effective strategy transfers wealth to heirs in a financially sound and in some cases, tax-advantaged manner.
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In 2020, Presidential Candidate Joe Biden and Senator Bernie Sanders teamed up for the Biden-Sanders Unity Task Force with Recommendations for Combating the Climate Crisis and pursuing Environmental Justice. This 110-page document outlined many platform considerations, including their like-mindedness on Estate Taxes.
On Thursday, March 25th Senator Bernie Sanders officially released his proposed estate and gift tax reform legislation. This 18 page bill contains major changes to current legislation that would have serious implications for many of the families that work with Clearwater Capital.
The effective date of multiple sections of the proposed legislation is upon enactment; therefore, now is the time to consider how these changes may affect you and future generations.
Is now the right time to consider estate lifetime gifts? Yes, we believe proactive estate strategy management leads us to encourage individuals to pause and consider the following.
Wealth Management includes planning for tax expense risks which arise when one considers different policy paths over the coming years. There are always known laws and unknown possibilities. This summary is not meant to predict what may or may not happen following this election season; however, it is intended to raise awareness regarding planning opportunities which should be considered.
Read MoreDisclosures:
THIS COMMENTARY HAS BEEN PREPARED BY CLEARWATER CAPITAL PARTNERS. THE OPINIONS VOICED IN THIS MATERIAL ARE FOR GENERAL INFORMATION ONLY AND ARE NOT INTENDED TO PROVIDE OR BE CONSTRUED AS PROVIDING LEGAL, ACCOUNTING, OR SPECIFIC INVESTMENT ADVICE OR RECOMMENDATIONS FOR ANY INDIVIDUAL. ALL ECONOMIC DATA IS DERIVED FROM PUBLIC SOURCES BELIEVED TO BE RELIABLE. TO DETERMINE WHICH INVESTMENTS MAY BE APPROPRIATE FOR YOU, PLEASE CONSULT WITH US PRIOR TO INVESTING. INVESTING INVOLVES RISK WHICH MAY INCLUDE LOSS OF PRINCIPAL. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, insurance products, or to adopt any investment strategy. The opinions expressed are as of the date of writing and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by Clearwater Capital Partners to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. Past performance is no guarantee of future results. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. Investment involves risks. International investing involves additional risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. S&P 500 is a registered trademark of Standard & Poor’s Financial Services, a division of S&P Global (“S&P”) DOW JONES, DJ, DJIA and DOW JONES INDUSTRIAL AVERAGE are registered trademarks of Dow Jones Trademark Holdings (“Dow Jones”). NASDAQ-100 Index®, NASDAQ-100®, NASDAQ Composite Index® are registered trademarks of The NASDAQ OMC Group, Inc. The two main risks related to fixed-income investing are interest rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to make principal and interest payments.
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