Tax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.
Due to annual inflation-indexing, the historically high lifetime exemption amount for gift, estate, and generation-skipping transfer taxes increased in 2023. High-net-worth people who have not yet made gifts, such as gifts of company shares, to use their lifetime exemption may wish to think about lifetime gift strategies to execute this year. This article, by an attorney with extensive experience in estate planning, discusses ideas to consider.
The charitable remainder trust (CRT) is a mainstay of estate planning. Although designed for charitable giving, CRTs can play a role in financial planning for your stock grants.
The celebrated philanthropy of Warren Buffet has prompted much interest in contributing to charities. In this article series, learn about setting up a charitable foundation, donating company stock, and navigating the related issues of taxation and securities law. Part 1 emphasizes private foundations, direct stock gifts to charities and donor-advised funds, and the issues involved in transferring stock options or restricted stock.
After you die, taxes may be owed on the value of your property. One pillar of estate planning is to transfer assets that are likely to appreciate in value, such as stock options, out of your control long before you die.
Restrictions can apply when you are funding a CRT with your company stock. These considerations dictate whether your strategy makes sense or is even possible.
In this article we discuss the use of CRTs to diversify your company stock holdings, without immediate income tax liability, while you support an institution or cause you believe in.
The celebrated philanthropy of Warren Buffet has prompted much interest in contributing to charities. In Part 2 of this article series, learn about the taxation and securities law associated with donations of company stock to charities and private foundations.
Tax planning for retirees can be more challenging that it was during their working years. You need to constantly monitor any options and company stock holdings as part of your overall portfolio. Part 3 looks at special issues that can arise after you retire, including Social Security; coordinating with required minimum distributions for IRAs and your 401(k); moving to another state; and the gifting of stock.
The grantor-retained annuity trust (GRAT) is one of the best techniques currently available for transferring company stock or other investable assets to family members with little or no estate or gift tax cost.
It's similar to the tax treatment for any gifts of stock. You may make annual gifts to any number of recipient up to the specified annual amount without any tax impact. Financial advisors often tell clients with substantial stock holding to consider making...
When you are the trustee of a grantor-retained annuity trust (GRAT), and the beneficiary during the annuity payment period, the securities law prohibition on insider trading...
Your estate-planning opportunities are more effective with company stock than with options. As a general rule, the contribution of the stock options themselves to a CRT is rather...
Be very careful, as IRS actions and new rules have essentially shut down the use of these techniques. Before recent developments, some tax planners advised...
Assuming your stock plan allows this and it did not allow you to name a beneficiary, transferring unexercised vested options to a living trust would...
Strategies
Tax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.
Want to learn more about financial planning for equity compensation? Visit our podcasts page for interviews with some of our expert contributing authors.
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