Aretha Franklin: Following in Prince’s Footsteps to Pay Millions in Death Taxes

Aretha Franklin: Following in Prince’s Footsteps to Pay Millions in Death Taxes

By

Ethan R. Okura

A little over two years ago I wrote about Prince, the music recording legend, and how he passed away without a will. I detailed some of the problems that his estate would face—and is still facing to this day—on account of not adequately preparing. As of April, 2018, Prince’s six heirs had not received one red cent, while the bank acting as executor of the estate and its team of lawyers read more

Estate Planning Update 2018

ESTATE PLANNING UPDATE FOR 2018

By:

Ethan R. Okura

Happy New Year! The following is the 2018 update of important numbers used in estate planning and Medicaid planning in Hawai‘i.

How much money and property can a person have at the time of death without paying estate taxes?

At the end of 2017, Congress passed a new tax bill, which the president signed into law. We will discuss some of the income tax changes in detail in next month’s column. One of the main impacts of this new law, however, read more

Everything You Need To Know About The New Proposed Tax Changes

Everything You Need To Know About The New Proposed Tax Changes

By

Ethan R. Okura & Carroll Dortch

On November 2, 2017, the Tax Cuts and Jobs Act was released. It is a Republican-sponsored bill from the House of Representatives that is intended to simplify the tax code. There are quite a few changes that this bill brings to the table and we’ll look at some of them here.

The change that is most relevant to estate planning is a proposal to eventually eliminate the estate tax, as was the read more

(ALMOST) EVERYTHING YOU NEED TO KNOW ABOUT CHARITABLE TAX DEDUCTIONS

Last year at this time I wrote an article about tax deadlines and the penalties for not filing or not paying on time.  This year I want to talk in detail about one of our most innovative and useful strategies that can help clients to save on their taxes.

This strategy is leveraging charitable deductions.  Most everyone is familiar with the idea of taking a tax deduction for cash donations to charitable organizations.  A common example is money donated to your church, school, or favorite non-profit read more

WHAT YOU NEED TO KNOW ABOUT GIFTING YOUR ASSETS

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            Most of my clients have heard that you can give away $10,000 per year to any other person without consequences.  That’s not exactly correct.  Some have heard that you should consider giving away your assets to your children or other loved ones 5 years before you might need to go to a nursing home.  Therefore, many of them believe that you should start giving $10,000 per year to each of your children and grandchildren or other loved ones. read more

2015 ESTATE PLANNING UPDATE

Here is a 2015 update on important numbers used in Estate Planning and Medicaid Planning in Hawaii.

How much money and property can a person have at death without paying estate taxes?

At the end of 2012, Congress passed a law making the exemption from estate taxes $5,000,000 (adjusted for inflation) without a built in expiration date. Taking into account inflation, the actual amount exempt from estate tax for 2015 is $5,430,000. The Hawaii Estate Tax law was previously amended to follow the Federal read more

Tax Filings, Payments & Other Considerations (April 2014)

“’Tis impossible to be sure of anything but Death and Taxes.”
– Christopher Bullock (Cobbler of Preston)

Last month I addressed the serious topic of Death and the disposition of your remains.  On an only slightly brighter note, this month’s article is focused on the main thing on everyone’s mind at this time of year:  Taxes.

Most of us have heard a variation of the quote above, “The only two certainties in life are death and taxes,” usually attributed to Mark Twain.  And almost read more

2014 Estate Planning Update (February 2014)

Here is a 2014 update on important numbers used in Estate Planning and Medicaid Planning in Hawaii.

How much money and property can a person have at death without paying estate taxes?

A little over one year ago, Congress passed a law  making the exemption from estate taxes $5,000,000 (adjusted for inflation) without a built in expiration date. Taking into account inflation, the actual amount exempt from estate tax for 2014 is $5,340,000. The Hawaii Estate Tax law was amended to follow the Federal read more

Tax Identification Numbers (September 2013)

TAX IDENTIFICATION NUMBERS

By

Ethan R. Okura

Back in June, I wrote an article on how Obamacare affects the income taxes that trusts pay.  It’s a very complicated subject (taxes always seem to be, don’t they?) and my quick summary of how it works may have left you with more questions about how trusts are taxed than you had before you read the article.  Today I’m going to explain how Tax Identification Numbers work, both for Trusts and for other business entities.

Generally, your personal Tax read more