Dear Garden State Trust: When should I talk to my children about their inheritances? —Thoughtful Parent Dear Thoughtful: As a general rule, sooner is better than later. An inheritance should not come as a surprise; it is something that requires preparation and planning. In that way, an inheritance may prove to be more than a…
Author: gstc
One Decade at a Time
The last decade was one of tremendous market optimism, which included the longest bull market in American history. That is because we have gone 130 months as of January 1st 2020 without a 20% or greater decline in the stock market, breaking the previous record of 113 months. Fun Fact! The terms for being bullish…
Federal Estate Tax Exemption
Dear Garden State Trust: My estate is about $10 million—do I have to worry about federal estate taxes? —Affluent, Not Rich Dear Affluent: You are close to the boundary for exposure to the federal estate tax. The exemption for 2020 has been increased to $11.58 million, which would seem to let you off the hook.…
Trust. Hard to Build, Easy to Break.
Trust is part of all brands, not just trust companies, as that is where brand loyalty comes from. Good product or service, on time delivery, truthfulness in advertising — all are part of building that trust. Unfortunately, with the chaotic digital marketplaces this trust can be broken in many ways. The most recent accusation: Fake…
Dynasty Trusts
Dear Garden State Trust: I’m intrigued by something I heard about recently, a “dynasty trust.” What is that, and how does it work? —Legacy Builder Dear Legacy: Traditionally trusts with private beneficiaries were not permitted to last forever, but had to have a determinable end date. This policy was enforced by the “rule against perpetuities,”…
Philip Roth’s Legacy
No fanfare, or announcements about the large bequests. Philip Roth worked with an estate planner to create an estate plan that would promote his wishes, and we are now learning about notable parts of it. For example, he left more than $2 million to the Newark Public Library. How much money did Philip Roth have…
Incentive Trusts
Dear Garden State Trust: The opioid crisis just hit a bit closer to home. Some friends of ours have a 20-something child who has an addiction problem. They are trying another round of rehab; maybe this time it will work. But they’ve confided in me that they don’t know what to do about an eventual…