Have Your Cake And Eat It Too: Tax Deferment and Lower Tax Preparation Costs By Making A 645 Election


What is a 645 Election:
The Internal Revenue Code §645 allows an irrevocable election to treat a qualified revocable trust (QRT) as part of the decedent’s estate for federal income tax purposes. The election allows tax advantages available to an estate to be available to the trust.

A qualified revocable trust (QRT) is a grantor trust under Sec. 676 (with revocation power retained by the grantor) as of the decedent’s date of death. Typical Revocable or Living Trusts are QRTs because the grantor retained the right to revoke the trust.

When the decedent has both a QRT and probate estate, the Sec. 645 election allows the trustee and the executor to combine a QRT and an estate into one tax return, filed as an estate. Even if there is not a separate probate estate, this election can be used to file the trust return (or several separate QRTS) as though the trust were an estate. Continue Reading →

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Short Answer: Yes!

long-term care photo

When it comes to Long-Term Care, a common approach is to simply hope we don’t need it:

“I am healthy now, if I get sick or have troubles down the road, my spouse or one of our children will take care of me.”

Or worse: “If that time should ever come, I will deal with it then.”

As the great Coach Vince Lombardi is credited with saying many years ago: “Hope is not a strategy.”  “Later” is often too late, and where there may once have been planning opportunities, too often we are left with crisis management when it comes to Long-Term Care. Continue Reading →

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What If There Is No Estate Tax? Do I Still Need My Trust?

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There has been talk that President-Elect Donald Trump plans to repeal the federal estate tax.  This leaves many asking whether they should continue on with their estate tax planning, wait to see what happens, or do nothing at all.

Should you spend time and energy on a Trust if there will be no estate tax?  If you already have a Trust, do you still need it?

Trusts are and will continue to be necessary tools in your estate planning with or without an Estate Tax.  Below are 10 things to keep in mind regarding Trusts in this era of uncertainty: Continue Reading →

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In light of Halloween….. we bring your attention to the “Slayer Statute”, Section 732.802, Florida Statutes, which provides that any individual who “unlawfully and intentionally kills or participates in procuring the death of the decedent is not entitled to any benefits under the will or under the Florida Probate Code, and the estate of the decedent passes as if the killer had predeceased the decedent.” Continue Reading →

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All IRAs Aren’t Created Equal

“Did you contribute to an IRA this year?”  It’s the question we’re asked at tax time every year.  If your answer is yes, irasare you sure you’re contributing to the right one?  Did you know that there are several different IRAs to choose from?  A conversation about remaining financially secure throughout retirement with someone already retired will quickly reveal that Social Security benefits aren’t enough.  Continue Reading →

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Oakstone Law
1415 Panther Lane, Suite 439
Naples, Florida 34109
Tel: 239.206.3454