In a landmark opinion, the Supreme Court rules today that states cannot ban same-sex marriage. The majority opinion in the 5-4 decision was written by Justice Anthony Kennedy. Today’s ruling overturned a decision from the Sixth Circuit Court of Appeals in Cincinnati, which said states had legitimate reasons for maintaining the traditional definition of marriage.
“No union is more profound than marriage, for it embodies the highest ideals of love, fidelity, devotion, sacrifice, and family. In forming a marital union, two people become something greater than once they were,” Kennedy wrote. “As some of the petitioners in these cases demonstrate, marriage embodies a love that may endure even past death.” (more…)
The 7520 rate for July has increased to 2.2%.
The July 2015 Applicable Federal Interest Rates can be found here.
According to area newspaper the St. Louis Post Dispatch, one of St. Louis’ wealthiest families, that of Enterprise Holdings founder Jack Taylor, is making some very large charitable donations this week–a total of $92.5 million to 13 cultural institutions and charities, most local to St. Louis.
In light of this, we thought now would be a good time to remind everyone of some of the basic income tax deductions available for gifts to charities.
Section 170 of the Internal Revenue Code (the “Code”) governs income tax deductions for charitable contributions. In the case of an individual making a cash gift to a Section 501(c)(3) organization classified as a “public charity” (such as churches, schools, hospitals, and governmental units), the gift is deductible for federal income tax purposes so long as the aggregate gifts do not exceed fifty percent (50%) of the taxpayer’s adjusted gross income (“AGI”) for the taxable year. (more…)
The trailers for the newest installment in the Mission: Impossible franchise, Mission: Impossible Rogue Nation, are being released and, as always when we see actors performing daredevil stunts, it makes us think about life insurance. Hazard (I use the term loosely, in light of what these guys do) of the job, I guess. So, once again, we thought we’d remind everyone about the use of life insurance trusts to reduce estate tax by re-posting the blog we wrote in after seeing his stunts for Ghost Protocol.
And, for your viewing pleasure, share another video of Mr. Cruise’s stunts. (I’m starting to think Tom Cruise or Mission: Impossible should start sponsoring our blog!)
It’s true, it is possible to transfer life insurance proceeds to your beneficiaries without having to pay estate tax on those proceeds. An insured can create an irrevocable trust that is designed to be the owner and beneficiary of a life insurance policy on the insured’s life. The only amount that the insured would end up paying transfer tax on (or allocating unified credit to) would be the amount the insured transfers to the insurance trust to pay the premiums on the policy. If the amount contributed to the trust does not exceed the annual exclusion amount allowable to each of the beneficiaries of the trust, and if the trust is designed to give the beneficiaries crummey withdrawal rights (the right to withdraw any such contributions to the trust over the period of 30-45 days after the transfer), the insured/grantor would not have to use any of his or her unified credit or pay any gift tax on these transfers, either. (more…)