THE BREW – FEBRUARY 2024
SAVE THE DATE
SEIA INVESTMENT ROUNDTABLE
DATE Feburary 22, 2024
TIME 1:00pm – 2:00pm PST
Join us for our quarterly Investment Roundtable webinar, featuring Deron McCoy, Chief Investment Officer at SEIA, and April Rosenberry, Director of Estate, Tax, and Financial Planning at SEIA. In this session, we will delve into the most recent developments in estate planning, tax strategies, and investment trends for 2024, with a forward-looking perspective during an election year.
Topics on the agenda include:
NEW YEAR, NEW DEPARTMENT, NEW LAWS!
We would like to introduce you to SEIA’s Department of Estate, Tax, and Financial Planning. Our mission is to help protect and preserve the legacies of SEIA clients with an emphasis on tax efficient strategies. Along with the new year came new laws. Here are some of the most notable from an estate perspective:
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Estate Tax Laws As of 2024, the lifetime estate tax exemption limits increased to $13.61 million per person / $27.22 million per married couple. As currently written, the estate tax exemptions are sunsetting at the end of 2025, and, beginning in 2026, will be only $5 million per person / $10 million per married couple (with adjustments for inflation). If you are interested in advanced estate tax planning to take advantage of the high exemptions now before they are set to decrease, the time to start planning is now!The annual gift tax exclusion was also increased in 2024 to $18,000 per person, per donee. This means each person can give away $18,000 increments to as many people as desired without having to use up their lifetime estate tax exemption or pay any taxes.
Corporate Transparency Act Another law effective as of 2024 is the Corporate Transparency Act, which is aimed at preventing the use of US companies for illicit activities, such as money laundering and tax evasion. It requires certain corporations, LLCs, LPs, and LLPs (“reporting companies”) to submit a report about their beneficial ownership information (“BOI”) to the U.S. Department of Treasury's Financial Crimes Enforcement Network (“FinCEN”).The reporting requirement is far-reaching; exceptions generally apply only to companies that are already reporting information to the government (including banks, utility companies, and tax-exempt entities). In addition to small business owners, many families use LLCs and LPs to hold real estate and investments for estate & tax planning purposes. The majority of these closely-held companies will be required to file a BOI report. Failure to do so can result in significant penalties.
For the BOI report, information about each beneficial owner must be provided. Generally, a beneficial owner is an individual who either exercises substantial control over the reporting company or owns 25% or more of the reporting company. Many people assign their company to their trust for estate planning purposes. When a trust is involved, information about the trust’s trustee, and possibly the settlor and beneficiaries, must be reported.
For existing companies, this BOI report is to be submitted online at BOI e-filing starting now, with penalties imposed if there is a failure to file by 1/1/2025. However, companies created on or after 1/1/2024 must submit a BOI report soon after formation. Additional information is provided by Beneficial Ownership Information Reporting | FinCEN.gov and the Small Entity Compliance Guide. Clients are encouraged to reach out to their business attorney to understand specific reporting requirements.
With the latest developments impacting estate and tax planning, now is the time to plan strategically with your SEIA advisor. Our team is here to guide you through these changes and help you make informed decisions.
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Disclosures
Signature Estate & Investment Advisors, LLC (SEIA) is an SEC-registered investment adviser; however, such registration does not imply a certain level of skill or training and no inference to the contrary should be made. Securities offered through Signature Estate Securities, Inc. member FINRA/SIPC . Investment advisory services offered through SEIA, LLC, 2121 Avenue of the Stars, Suite 1600, Los Angeles, CA 90067, (310) 712-2323. For details on the professional designations displayed herein, including descriptions, minimum requirements, and ongoing education requirements, please visit seia.com/disclosures. SEIA does not accept time-sensitive, action‐oriented messages or transaction orders, including orders to purchase or sell securities, via electronic mail.