The increased popularity of wine has led to an increase in fine wine prices around the world. In 2013, Christie’s Auction House received a winning bid of $476,280 for a case of Romanée-Conti Grand Cru — Vintage 1978, Côte de Nuits – a world record for a case of 12 bottles of wine. Of course, you don’t have to make a winning bid to Christie’s Auction House to build a valuable wine collection. Many clients have established valuable wine collections in their homes or in storage facilities without ever participating in an auction. A client may want the collection to stay in his or her family for future generations to enjoy. A purpose trust for the wine collection may be just the tool to achieve the client’s goals. A purpose trust is created to carry out a specific objective of the person who creates the trust rather than creating a trust for the benefit of individual beneficiaries. A purpose trust can be an effective planning tool for a wine collection that is meant to be held long-term by providing some of the following benefits:
Time To Think About Your Form 990 – What does is say about your charitable organization?
It’s almost that time of year, again…time to start thinking about your non-profit’s Form 990 filing for the 2013 tax period. These information returns are due the 15th day of the 5th month after the end of an organization’s accounting period. For calendar year organizations, that date is May 15, 2014. You can obtain an automatic 3 month extension by submitting Form 8868. You can subsequently use the same form to apply for an additional 3 month extension if needed.
Members Have More Approval Rights Under New Florida LLC Act
By: Jim Hoctor
The new Florida LLC Act applies to all LLC’s formed in 2014. As of January 1, 2015, it will apply to all Florida LLC’s. Under the new Act, any action outside of the ordinary course of the LLC’s business and affairs has to be approved by the members even in a manager-managed LLC. However, this can be changed by the operating agreement. Most existing operating agreements do not deal with this. Therefore, this is one of several changes under the new act that make it important to review and update your LLC’s operating agreement.
2014 Brings Increase in Federal Estate and Gift Tax Exemption
On January 1, 2014, the federal estate tax exemption (and lifetime gift tax exemption) increased to $5,340,000 per person. This represents a $90,000 increase from $5,250,000 in 2013. Keep in mind the federal estate and gift tax exemption is “unified”. Use of federal gift tax exemption during your lifetime will reduce the amount of federal estate tax exemption remaining at your death. For example, if you give away $2,000,000 in taxable gifts during your lifetime you would likely owe no federal gift tax because you would use a portion of your lifetime federal gift tax exemption ($5,340,000 in 2004) to avoid paying federal gift tax. If you die in December 2014, however, your federal estate tax exemption amount will be reduced by the amount of lifetime federal gift tax exemption you used during your life. In our example, you have already used $2,000,000 of your exemption so you would have $3,340,000 of your federal estate tax exemption remaining to use to pass your estate to your beneficiaries free from federal estate tax.
Are You Prepared for Your Aging Parents?
Clients often ask me how and when to prepare for their aging parents. While dealing with this can be trying — emotionally and financially — you can make the process much easier if you begin to prepare before your parents face serious health problems. Some of the first steps to take include: assessing your parent’s financial situation, determining your parent’s concerns and talking about their estate planning. To find out more, click the image below.