Planning an estate takes care and precision. There are many different ways that a plan which is not drafted appropriately may not achieve the client’s goals. The estates may be large or small. Most people understand that clients with large, complicated estates with tax issues require careful consideration and drafting of the plan. But, we’ll look at several examples of clients of more middle class means who had goals in mind whose goals were not achieved by their plan. In the first situation, … [Read more...] about An Estate Plan Takes Care

Celebrities Can Set A Good Example NOTE: The IRS has announced its gift and estate tax limits for 2016. The lifetime gift and estate tax exclusion amount is $5,450,000, up from $5,430,000 in 2015. This means a married couple can pass as much as $10,900,000 during life or at death with proper planning. The annual gift tax exclusion amount remains at $14,000. Now on to the main topic of our eAlert. Antoine de Saint-Exupéry said: “As for the future, your task is not to foresee it, but to enable … [Read more...] about Celebrities Can Set A Good Example

No Good Deed Goes Unpunished: The Continuing Saga of the Brooke Astor Estate Philip Marshall, the grandson of noted socialite and philanthropist Brooke Astor, managed to save his grandmother from the financial and physical elder abuse she was suffering at the hands of her son, Anthony Marshall. But Anthony managed to extract a bit of revenge on his sons. In 2006, Philip first noticed that his grandmother was being isolated by Anthony and that Anthony was grabbing more control over her financial … [Read more...] about No Good Deed Goes Unpunished: The Continuing Saga of the Brooke Astor Estate

Planning for the Unexpected: A Review of Whitney Houston’s Estate Plan The recent tragic death of Whitney Houston’s daughter, Bobbi Kristina Brown, creates an opportunity to review Ms. Houston’s estate plan to determine what she did right and where there was room for improvement. Whitney Houston died on February 11, 2012, at age 48. With the surge in popularity of her songs as the result of her death, various news agencies put the value of her estate at between $20 million and $115 … [Read more...] about Planning for the Unexpected: A Review of Whitney Houston’s Estate Plan

Supreme Court: Same-Sex Marriage is a Right In the 5-4 decision of Obergefell v. Hodges, 574 U.S. ___ (June 26, 2015), the United States Supreme Court ruled that the Fourteenth Amendment to the Constitution gives same-sex couples the right to marry and requires states to recognize a marriage lawfully licensed and performed in another state. While this decision settles the issue of the legality of same-sex marriage in the United States, there will be ongoing litigation for years to come, … [Read more...] about Supreme Court: Same-Sex Marriage is a Right

Fiduciary May Face Personal Liability for Improper Administration of a Trust or Estate In Estate of Sarah O’Hare, No. 2015 IL App (2d) 2-14-0073 (June 11, 2015), Virginia O’Hare (“Virginia”), mother of Sarah O’Hare (“Sarah”), her disabled adult daughter, appealed a judgment against her in the amount of $421,621.73. Sarah was born in October 1989 with significant birth injuries. There was a medical malpractice suit that resulted in a substantial settlement, including an annuity which paid Sarah … [Read more...] about Fiduciary May Face Personal Liability for Improper Administration of a Trust or Estate

Internal Revenue Code § 2503(b) allows each taxpayer to make annual exclusion gifts to any person or entity. The current amount of the annual exclusion is $14,000 annually. This means a husband and wife could give $84,000 to their three children ($14,000 x 2 x 3 children) free of gift taxes. If grandchildren were included, it could be substantially more. And these gifts are not limited to only descendants, so a taxpayer could make gifts to more distant relatives (nephews, nieces, and cousins) or … [Read more...] about Tax Court Approves Monster Crummey Trust

Proper Planning Can Reduce Financial Sting, Even If Emotional Sting May Remain  Charles Kuralt, the CBS TV Journalist and On the Road reporter said, “The love of family and the admiration of friends is much more important than wealth and privilege.” It is ironic that, when he died at age 62 of complications from Lupus, he had two families competing for his love, and more importantly, his wealth. Charles had a wife in New York, Suzanne “Petie” Baird Kuralt, and two daughters from a previous … [Read more...] about Proper Planning Can Reduce Financial Sting, Even If Emotional Sting May Remain

Clients are often so concerned about their significant assets that they overlook their tangible personal property. Unfortunately, this can sometimes lead to family disagreements and even litigation in particularly contentious situations. A member of the American Academy of Estate Planning Attorneys was conducting a trust administration for an elderly father who had died recently. The father’s trust simply stated that the trustee was to dispose of his tangible personal property with the rest of … [Read more...] about Looking After the Little Details Can Pay Off

On January 25, 2015, the New York Times published an article, To Collect Debts, Nursing Homes are Seizing Control Over Patients. The article focused on the trend of some nursing homes to use the guardianship process (also known as a conservatorship in some states) as a means of debt collection for seniors who owe money to the nursing homes. A guardianship or conservatorship is a legal process whereby a person is found by the court to be incapable of managing his or her affairs and a person or … [Read more...] about Advance Planning for Long-Term Care is Critical