October

Bloomberg Tax projects that the basic exclusion amount for decedents dying in 2023 and the generation-skipping transfer tax exemption amount for 2023 will be $12,920,000 (up from $12,060,000 in 2022). The annual exclusion amount for gifts made in 2023 is projected to be $17,000 (up from $16,000 in 2022).

You’re probably familiar with the role of a board of directors (BoD). A board of advisors (BoA) usually is formed by informal action. The advisors don’t have the fiduciary duties or potential liabilities inherent in a board of directors. A CEO can handpick who serves, and no shareholder or board of directors’ approval is required. The advisors are governed by contract with the business.

An Intentionally Defective Grantor Trust (IDGT) is a type of grantor trust, which means the grantor pays the income tax earned by the trust. When you hear the term “intentionally defective,” you may think the trust is broken or somehow ineffective. An IDGT is a trust that is “defective” only because it is ignored for income tax purposes. The IDGT is very effective by helping beneficiaries avoid gift and estate taxes.