BSMG Blog: Protecting the Future of Families and Businesses

Requirements to Change State of Residency

It’s Not as Easy as You Think...

Wealthy clients from high tax states will often consider moving to a lower taxed state to save taxes. These taxes may involve state income taxes and state estate taxes. You may have heard  people say “If I live for more than 180 days in a particular state, then my residence has been changed for state taxes”. This statement has a small degree of truth to it, but it is far from accurate.

The first tax to talk about are state income taxes on retirement benefits. Then, we’ll talk about state estate taxes. Finally, we’ll enumerate the hurdles to jump over when thinking about changing legal residence from the current state of residence to a new state of residence.

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Russell Towers Presented With Lifetime Achievement Award From RI Estate Planning Council

On Monday, May 1st, Russell E. Towers, JD, CLU, ChFC was presented with a Lifetime Achievement Award from the Rhode Island Estate Planning Council. 

The Estate Planning Council of Rhode Island's Lifetime Achievement Award is given to a current or previous member who has excelled in his or her respective field and demonstrated professional leadership and service to their community. 

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Five Reasons the Ultra-Affluent Will Still Need Life Insurance, Even Without Estate Taxes

With all the questions looming around what will happen if the proposed elimination of estate taxes goes through. You may be wondering if the affluent will still have a need to buy life insurance and how it will impact your life insurance sales strategies. The knee jerk reaction is that the wealthy will not have the same level of need for a life policy, however there are many reasons, other than estate taxes, why the ultra-wealthy should purchase life insurance. Forbes Insights cites some reasons from Frank Seneco, President of Seneco & Associates, on the subject matter. We have summarized and expanded these insights to offer you an opportunity for new life insurance sales strategies.

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How Changing Residency Affects State Estate Tax and Income Taxes

As the White House begins to change over its residences, let's take a look at the requirements one must take to change their state of residency and the state tax implications involved.  You may have wealthy, older age clients from high tax states considering a move to a lower taxed state to save money. This typically involves state income taxes on retirement benefits and state estate taxes on net worth/gross estates. 

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How the Election Results & Tax Reform May Impact the Insurance Industry

As the excitement over last week's election results has slowly started to fade away you might find yourself wondering how a Trump presidency will affect financial advisors? 

We've put together some important considerations that have arisen since Trump announced his tax reform proposals. Keep in mind that each of these proposed changes came out during his campaign and only time will tell whether or not they will come to fruition. Clearly, the U.S. House and U.S. Senate will merge their version of tax reform into the Trump proposals.

Take a look below and be sure to comment on any tax reform proposals that you think may become a reality in the next 4 years. 

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A Brief History of Estate & Gift Taxes

Estate and gift taxes have provided a source of revenue for the United States government for over 150 years and have had many variations. Now that we'll have a Republican president and a Republican majority in the Senate and House of Representatives, what's in store for the future of these taxes? To fully understand how Estate and Gift Taxes could be affected by the political and economic environment, let's take a look at a brief history of how these taxes have evolved. 

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Are you protecting your international clients from costly estate taxes?

In the wake of Brexit, and its impact on the global economy, we thought it fitting to share with you some key questions for current or potential foreign national clients.

Did you know that your foreign national clients may be subjected to large U.S. federal estate and gift taxes?

Foreign Nationals who do not permanently reside in the U.S. but who have assets here cannot take advantage of some of the tax provisions available to U.S. citizens and resident aliens. When a person with these circumstances, who did not plan, passes away they could owe a large estate tax bill. Talking to your clients about planning, and asking them the right questions will help to protect them and their loved ones in the future.

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Trusts Aren't Just For The Carnegies & Rockefellers

Trusts are not exclusively for the ultra-affluent. They can play a vital role in outcomes-based planning for many individuals. Behind the accumulation of wealth lie personal objectives and values as unique to your clients as their fingerprints. Whether their goal is to fund a comfortable retirement, take care of children or grandchildren or make a meaningful social impact, trusts can play a valuable role in helping them to achieve those objectives.

Advanced Planning: Grantor Trusts & the "Power of Substitution"

As important planning tools, trusts can offer your clients asset control, legacy protection, financial privacy, probate avoidance, and estate tax mitigation.

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Power of Substitution Leverages Potent Life Insurance Strategy

BSMG’s Russ Towers discusses Power of Substitution Leverages Potent Life Insurance Strategy in the August 2015 issue of insurancenewsnetmagazine.
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Why Traditional Estate Planning Is Not Enough

Despite all the time and effort that’s put into traditional estate planning, the results have been less than remarkable. Research has shown that 70% of a family’s inherited wealth is lost by the first generation of heirs, and 90% is lost by the following generation.*

A traditional approach to estate planning can be passive/aggressive—neither assertive nor interpersonal, but has a major impact on other members of clients' families without their input.

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