Alerts

In 1913, Indiana joined in with almost every state in our nation by adopting an Inheritance Tax that taxed individuals receiving an inheritance upon the death of a family member or loved one. 100 years later, Indiana is now only one of only eight states that still implements an inheritance tax, as most states have repealed their inheritance tax program. In fact, Indiana is the only state in the country that still taxes children and grandchildren merely due to them inheriting assets from their parents and grandparents.

As the end of the year approaches, and individuals begin making donations to certain 501(c)(3) charities, here are four (4) tips that need to be considered:

1. IRA Distributions to a Charity

IRA owners above the age of 70½ can directly transfer (tax-free) up to $100,000 in IRA distributions to an eligible charity. Any amount so transferred is not taxable, but no deduction is available on your income tax return.

This is a great tip if you are forced to a take a Required Minimum Distribution (“RMD”) from your IRA, which would then force you into a higher tax bracket.

It can be a challenge sometimes to convince people that they need to think ahead and to implement a thoughtful estate or trust plan in the event of their death. Often the real challenge is merely setting priorities straight. Once a client sets his or her priority upon planning for the future, updating an estate or trust plan seems to be the smart thing to do for practically everyone.

New Indiana Code 29-3-3-7 now allows parents of minor children and guardians of incapacitated adults to appoint a “standby guardian” that would immediately become effective in the event of the death or incapacity of the parent or the guardian.   This standby guardian can attend to the needs of the minor child or the adult during the time that it would take to file a guardianship action and have a person appointed to replace the prior parent or guardian.   If you are a parent, or a guardian over an adult, make sure you seriously consider making use of this eff