If there was ever any doubt, the U.S. Tax Court has recently clarified that the sole member of a single member LLC can, in certain circumstances, be held liable for the employment tax liability of the entity.

Clients of means can benefit significantly from a Qualified Personal Resident Trust (QPRT), but your firm needs to set up this valuable estate planning tool accurately and correctly. A QPRT can reduce your client’s taxable estate, but if your client lives beyond the initial trust term, all sorts of concerns arise. Wealth Docx® QPRT software ensures potential mistakes don’t occur. 

In our last post, we considered how swap powers were a strategic way to minimize tax liabilities on assets in trusts. Recall that swap powers grant the right to substitute—or swap—property of equal value in a trust. This adjusts the cost basis of the property to the FMV at the time of death.