Leimberg Services

Proving fast, frank & incisive updates on legislative changes and rulings for over two decades

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The 10-year rule does not always mean “wait until year 10.”

If the IRA owner died on or after their required beginning date, annual RMDs are required during the 10-year period.

Missing those distributions can result in penalties, making proper classification of the beneficiary scenario essential.
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Find more of @ApplebyIRA's commentary and newsletters at https://t.co/xOdRINoaNF.

#IRATips #TheIRAWhisperer #RetirementPlanning #RMD #InheritedIRA #10YearRule #TaxPlanning #FinancialAdvisors #AdvisorEducation #Leimberg #TaxStrategy

[Leimberg Services @LeimbergService]

“While a Personal Protection Order precluding the family member who is engaged in stalking behavior from being present at the home of the principal during the agent’s visit may be appropriate, consideration of other remedies, and their potential impact on the principal, may be merited.”

Sandra D. Glazier provides members with commentary on RP v. TV

🔗 https://t.co/qh6TFNAjQC

#estateplanning #taxplanner #cpa #estateplanner

[Leimberg Services @LeimbergService]

No gain recognized on a portfolio transfer to a partnership — here's what you need to know.

In PLR 202622001, the IRS ruled that transferring securities to an LLC treated as a partnership does not trigger gain recognition under Code Section 721. Bob Keebler breaks it down in our newest 60-Second Planner. 💡

🎧 Listen at https://t.co/IgBaaxdd7A

#EstatePlanning #TaxPlanning #BobKeebler #WealthPlanning #TaxLaw

[Leimberg Services @LeimbergService]

A great investment portfolio and a well-crafted trust are vital — but if the day-to-day financial details aren't safely managed, the entire plan can unravel.

Angela Vickerman, CPA and Martin M. Shenkman, Esq. break down bill payment and daily financial management services for aging and vulnerable clients — covering when these services become essential, how to structure engagements, and how to protect both the client and the professional.

Includes a practical Practitioner Checklist for attorneys, CPAs, financial advisers, and trustees.

Read the full commentary on LISI at https://t.co/wC9kmkhl65

#EstatePlanning #ElderLaw #CPA #FinancialPlanner #WealthManagement

[Leimberg Services @LeimbergService]

Win. Win. Win. 🏆

Real estate → donor advised fund → diversified investment portfolio → charitable grants → potential capital gains savings.

Rick Peck is the founder of The Philanthropy Guy® who has spent more than two decades helping professional advisors, corporations, and nonprofits turn generosity into meaningful legacy. His work spans capital campaigns, legacy planning, and equipping trusted advisors with the tools to guide clients toward purposeful giving.

Catch Rick's full webinars on LISI at https://t.co/xOdRINoaNF.

#WealthAdvisor #CharitableGiving #EstatePlanning #Investments #CPA #EstatePlanner

[Leimberg Services @LeimbergService]

"For practitioners, the first question under Washington’s new high income ‘millionaire’s tax’ (codified as Title 82A RCW) is not whether a client’s federal AGI exceeds $1 million. Rather, it is how Washington rebuilds the tax base after federal AGI is computed – and where that reconstruction creates cliffs, add-backs, sourcing surprises, and statutory limits that make familiar planning techniques unreliable. The planning risk lies less in the headline 9.9% rate, but in the manner in which Washington defines and constructs the tax base.

The broader fiscal context remains important. Federal tax cuts and rising debt-service costs have shifted more budgetary responsibility to the states, which now face increasing pressure to fund education, infrastructure, healthcare, and public safety within their own legal and political limits."

Ben Harvill provides commentary on Washington’s new tax base, identifying three fault lines practitioners need to understand as the state’s evolving approach reshapes planning, compliance, and client advisory work.

🔗 https://t.co/T5jNkpFRCm

#TaxPlanning #EstatePlanning #WealthManagement #FinancialPlanning #TaxLaw #WashingtonTax

[Leimberg Services @LeimbergService]

Roth conversions cannot be undone. 🚨

Once completed, the tax liability is fixed, regardless of market performance. Careful planning around timing, tax impact, and available cash to pay the tax is essential before executing the conversion.

#RetirementPlanning #TaxPlanning #RothConversion #RothIRA #FinancialAdvisor

[Leimberg Services @LeimbergService]

For a client who turns age 73 while still working, required minimum distributions (RMDs) from their retirement accounts are an unwelcome addition to taxable income.

Investing some IRA dollars in a qualified longevity annuity contract (QLAC) can reduce those RMDs a bit for the client’s remaining working years, and increase income in later years when (in most cases) retirement actually occurs.

But when client turns age 85, and QLAC distributions start, the resulting income boost can unduly increase those unwelcome RMDs, unless the client makes a certain election.

🔗 https://t.co/hsG6j6fg99

[Leimberg Services @LeimbergService]

A new bill wants to tax trusts over $50 million — and it comes with a brand new withholding system.

The "Fair Trusts for Fiscal Responsibility Act" could reshape high-net-worth estate planning as we know it.

Bob Keebler breaks it down in 60 seconds.
🔗 https://t.co/NY2QSeNEbf

[Leimberg Services @LeimbergService]

A guardian racks up legal fees. The court puts the decision on hold. The ward passes away. Now what? 🤔

Miller v. Williams tackles two big questions — whether unresolved guardian fees can be claimed against a decedent's estate, and whether a probate court has jurisdiction to hear a quantum meruit claim for those fees.

Spoiler: the answer to both is yes.

Sandra D. Glazier provides members with commentary on the case: https://t.co/KoIpnv3eid

#EstatePlanning #ProbateLaw #Guardianship #ElderLaw #TrustsAndEstates

[Leimberg Services @LeimbergService]

One of the most expensive IRA mistakes is rolling over an RMD. These amounts are not eligible for rollover, and doing so can trigger excess contribution penalties that compound each year. A simple check before processing the transaction can prevent a costly error.

#IRATips #TheIRAWhisperer #RetirementPlanning #FinancialAdvisors #TaxPlanning #RMD #IRAErrors #AdvisorEducation #Leimberg #TaxStrategy

[Leimberg Services @LeimbergService]

For Ultra-High Net Worth families, maintaining a voice in the management of irrevocable trust assets is a common challenge — and a private trust company may be the solution. But should it be licensed or unlicensed?

Jim Weller of Greenway Family Office Services breaks down the key differences and what planners need to consider.

🔗 https://t.co/wr7n5cH9Ym

#EstatePlanning #TrustPlanning #WealthPlanning #FinancialPlanner

[Leimberg Services @LeimbergService]

The IRS granted relief when an accountant prepared but did not file a gift tax return allocating GST tax exemption.

Bob Keebler breaks it down in our newest 60 Second Planner. 💡

➡️ https://t.co/UZdMqoVKE8

[Leimberg Services @LeimbergService]

S corporations can be useful — but they're not a one-size-fits-all solution.

Many taxpayers form S corps to reduce Social Security and Medicare taxes by taking distributions instead of wages. But there are countervailing factors that don't always make it worth it.

Bruce Steiner of Kleinberg, Kaplan, Wolff & Cohen breaks down the many considerations that go into deciding whether to elect S status in our newest Business Entities newsletter.

Bruce is a longtime LISI contributor and has been quoted in Forbes, the Wall Street Journal, the New York Times, Bloomberg, CNBC, Fox Business and more.

🔗 https://t.co/39hv5N8tKt

#SCorporation #TaxPlanning #BusinessEntities #EstatePlanning #BusinessTax #CPA #FinancialPlanner #WealthManagement

[Leimberg Services @LeimbergService]

An IRA contribution can be recharacterized to the other IRA type to correct eligibility or tax-planning decisions. The transaction must be completed by the tax filing deadline, including extensions, and must include net income attributable. When done properly, the contribution is treated as if it were originally made to the receiving IRA.

@ApplebyIRA is a LISI contributor and CEO of Appleby Retirement Consulting — an IRA expert with 20+ years of experience and 500+ articles.

Find more of Denise’s commentary and newsletters at https://t.co/xOdRINoaNF.

#IRATips #TheIRAWhisperer #RetirementPlanning #TaxPlanning #IRAContributions #Recharacterization #RothIRA #TraditionalIRA #AdvisorEducation #Leimberg #TaxStrategy

[Leimberg Services @LeimbergService]

⚠️ The "Infinite Banking Concept" sounds appealing — but do your clients understand the risks?

The recent Sawyer v. Commissioner case is a wake-up call. When a policy lapses, tax-free loans can become a major tax liability at the worst possible time.

Jennifer Lollar & Linas Sudzius of Advanced Underwriting Consultants break down the case and what it means for clients considering this strategy.

📱Available now in our Financial Products Planning Newsletter: https://t.co/QktlogcdXS

#InfiniteBanking #LifeInsurance #TaxPlanning #FinancialPlanning #InsurancePlanning #EstatePlanning

[Leimberg Services @LeimbergService]

Wall Street has been using long-short tax loss harvesting for years. Trust and estate advisors should be too.

Brad Dillon (a16z Perennial | Andreessen Horowitz) and Arielle Lederman (AdvicePeriod) bring this strategy to the T&E world in the latest LISI Income Tax Planning newsletter — and why it deserves a seat at the table when clients have concentrated positions or low-basis assets.

🔗 https://t.co/TNtwyLo0So
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[Leimberg Services @LeimbergService]

LISI contributor Linda Kotis — a former estate planning attorney at an AmLaw 200 firm — left private practice and hasn’t looked back. Traveling. Creating. Learning something new. And yes, still growing her retirement savings.

Linda shares her top ten benefits of retiring in 2025.

🔗 https://t.co/SbECdE231N

[Leimberg Services @LeimbergService]

Missed RMDs on inherited IRAs can create serious compliance exposure — and when records are incomplete, knowing how to reconstruct them the right way is critical.

🔗 https://t.co/6upFwkncCQ

[Leimberg Services @LeimbergService]

A family wanted to give their business to charity. The IRS came back with a $10 million bill.

Now it's going to trial.

The Cummings v. Deloitte case is a cautionary tale of what can go wrong when charitable planning meets closely held business transfers.

🔗 https://t.co/BslszplLZA