AT Clarity Legal Group encourage our clients to ask questions before making any transfer of wealth, even the relatively small gifts. One of the advantages of having a relationship with experience estate planning attorneys in the ability to bounce ideas off the professionals of the firm before making these transfers.
For those of you with children or grandchildren under twenty-four years of age you need to take care to understand the tax consequences of setting up a trust or other investment vehicle for your child or grandchild. This is a tricky area of the tax law which could result in that child could incurring taxes at a rate much higher than anticipated. The Kiddie Tax was enacted to prevent parents from transferring investments to the name of their child or children to take advantage of that child’s lower tax rate. Read on to learn more.