Lina Storm, CLU®, ChFC®, MBA

Author Archives

Estate Planning: The Cost of Waiting

Following the 2017 Tax Act, many advisors have asked how to respond to clients who say that there is no urgency in planning given the tax changes. To address this lack of urgency, consider the following:

  • the non-tax needs of the family–including liquidity to equalize gifts among heirs,
  • the preference heirs may have to buy each other out of unwanted assets, and
  • the desire to ensure long-term care for a special needs family member.

4 Charts to Help Navigate Planning for Foreign Nationals

Transfer tax planning for high net worth clients can be sophisticated. When the client is a foreign national, planning becomes even more complex due to the myriad of tax rules based on residence, citizenship, type and situs of property, and how the property is being transferred– as a gift during lifetime, or as a bequest at death.

Below are 4 general charts that help navigate through the rules. Treaty agreements between the U.S. and the non-citizen’s home country may alter or replace the general rules discussed herein.

 


Planning for a Non-Citizen Spouse: Life Insurance to the Rescue

Part of a Series on Planning for Foreign Nationals

Individuals who are residents of the United States but who are not citizens (commonly referred to as “resident aliens“) are subject to the same estate and gift tax rules as U.S. citizens. However, there are two important distinctions to consider when it comes to transfers between spouses who are not both U.S. citizens.


Foreign Nationals Spent $153 Billion in 2017 on U.S. Residential Real Estate: 4 Ways to Identity Them

The Foreign Nationals market is a large one if its appetite for all manner of U.S. real estate is any indication of size.

Consider that foreigners spent $153 billion in 2017 on U.S. residential real estate, or approximately 285,000 properties; this represents 10% of all of the U.S.’s existing home sales in 2017.  The majority of home purchases by foreigners were made in Florida, California, Texas, New Jersey and Arizona, by buyers from China, Canada, U.K., Mexico and India.  


May is Disability Insurance Awareness Month

Protecting Your Ability to Earn A Living

Anyone who is working and has financial obligations should consider disability insurance.


Top 5 Responsibilities of An ILIT Trustee: The Importance of Policy Reviews

An ILIT is an Irrevocable Life Insurance Trust, created primarily to own life insurance, and sometimes other assets. The trustee of an ILIT is the fiduciary of the trust assets. The trustee can be a family member (who is not the creator or ‘grantor’ of the trust), or an independent trustee at a bank, for example. Regardless of who is named trustee, the trustee has a fiduciary responsibility to manage assets for the benefit of trust beneficiaries.


3 Options for Dealing with Policy Loans

While conducting a policy review, advisors may uncover an older policy that has accumulated considerable cash value from which a significant loan was taken. On many of the older policies, if the loan remains, it may cause the policy to lapse prematurely. Not only will the policy lapse, but in the event the loaned policy has a gain on it, there will be taxes due. In this scenario, there are 3 options:


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