Boyes, Farina & Matwiczyk

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Monthly Archives:March 2018

Potential Problems with Siblings as Trustees

March 20, 2018

When parents create trusts, they often consider appointing one or more of their children as trustees. On the surface, it may seem like the best way to protect their legacy is to keep trust management within the family. However, this plan may backfire due to practicality or family dynamics.

Appointing two or more siblings as co-trustees could create logistical problems. Co-trustees may need to co-sign documents, or make other joint actions or decisions, which could be difficult if the siblings reside more than a few hours apart….


IRAs and the So-Called Kiddie Tax

March 6, 2018

Parents and grandparents often transfer IRAs to minor children within their estate plans. A rule called Tax on a Child’s Investment or Other Unearned Income (also known as the “kiddie tax”), was enacted to curtail transfers for the main purpose of avoiding higher taxes that would be paid by adults. The recently enacted Tax Cuts & Jobs Act (TCJA) makes subtle changes to this rule.

An IRA can be a great legacy to leave minor children. The child receives required minimum distributions, but because of her age, most of the money stays in the account and keeps earning….