Corporate tax inversions have been in the news lately. This is when a US corporation acquires a foreign company and moves it’s tax domicile to the country of the acquired firm, where corporate taxes are lower. In this case, drug maker Pfizer acquired Allergan and will move its tax headquarters to Ireland. It will still pay US tax rates for revenues generated in the US, but not on overseas revenues. This week Jim and John look at the idea of “retirement tax inversions”, moving to another state with lower taxes and a lower cost of living to help make ends meet in retirement. They discuss the most tax-friendly and least tax-friendly states for retirees. There are obviously other factors to consider, including weather and access to medical facilities and cultural amenities. Jim offers a case study to illustrate how this would make sense for a retired couple. The guest this week is estate planning attorney Adam Sherry, who will discuss the workings and benefits of Charitable Trusts, Remainder Trusts and Crummey Trusts.
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