Educational Alerts
An Estate Plan Takes Care
Drafting an estate plan takes great care. There are many pitfalls in the drafting process. This article looks at how improper drafting can result in a dramatically different outcome from what the client wanted to achieve.
Celebrities Can Set A Good Example
Estate planning is much more than preparing a Will. The stories of Robin Williams, Joan Rivers, and Kasey Casey demonstrate how a comprehensive estate plan can make handling a lifetime incapacity or an unexpected death much easier for loved ones.
No Good Deed Goes Unpunished: The Continuing Saga of the Brooke Astor Estate
No good deed goes unpunished, as Philip Marshall and his brothers are disinherited for their role in stopping their father, Anthony Marshall, from financially and physically abusing his mother, Brooke Astor.
Planning for the Unexpected: A Review of Whitney Houston’s Estate Plan
With the recent death of Bobbi Kristina Brown, a review of Whitney Houston’s Will reveals some good planning and some room for improvement.
Supreme Court: Same-Sex Marriage is a Right
In this month’s e-alert, we discuss the continuing need for estate planning for LGBT couples, even in light of the United States Supreme Court’s decision in Obergefell v. Hodges.
Fiduciary May Face Personal Liability for Improper Administration of a Trust or Estate
In Estate of Sarah O’Hare, the mother of a disabled child, serving as the guardian of her estate, was found personally liable for over $400,000. The court found that she used the guardian estate funds to benefit her and other members of the family and did not administer the estate for the sole benefit of her daughter. This case demonstrates the importance of fiduciaries of all types understanding their duties to the beneficiaries who are intended to be benefitted by the funds they are administering.
Tax Court Approves Monster Crummey Trust
Annual gifts, especially through trusts with “Crummey powers,” can lead to significant estate tax savings. Read more about a recent taxpayer victory involving a “Crummey Trust” with no less than sixty beneficiaries with withdrawal powers.
Proper Planning Can Reduce Financial Sting, Even If Emotional Sting May Remain
This month’s Alert examines the case of Charles Kuralt. Kuralt lead two separate lives. Had he planned better, he could have reduced the financial turmoil left at his death. This month’s Alert explains how proper planning can reduce the financial sting even if the emotional sting remains.
Looking After the Little Details Can Pay Off
This month’s alert covers the importance of planning for tangible and intangible personal property. Often items that are little financial value are of significant sentimental value and the distribution of those items can lead to disputes among children, grandchildren and other relatives who were “promised” the items or otherwise feel entitled to them. On other occasions personal property can have significant value, such as art, collectibles, licenses and royalties. Proper planning can help reduce any problems that may arise in the distribution of this property after death.
Advance Planning for Long-Term Care is Critical
A recent New York Times article points out that some nursing homes are using guardianships to gain control of the assets of seniors in order to pay for past due medical bills. While it is sometimes appropriate for a nursing home or hospital to bring a guardianship petition on behalf of a senior, these nursing homes are using the court process as a debt collection mechanism. As we are growing older and living longer, it is vitally important for us to have proper planning in place for incapacity as well as long-term care planning. With a proper plan, the senior can qualify for government assistance to pay for long-term care costs and avoid the possibility of a guardianship being initiated by a nursing home.
State Court Decisions Not Binding on IRS
Trust reformations have become more popular to correct mistakes of the attorney and/or the trustors, especially with the adoption of the Uniform Trust Code by many states. However, just because a state court agrees to reform a trust doesn’t mean that the IRS will respect the trust reformation. In this month’s Alert, we discuss several PLRs and cases where the IRS either accepted or DID NOT accept the rulings of the state courts in reforming the trust.
Trustor’s Intent is Paramount
This month’s alert demonstrates that it is the trustee’s utmost duty to carry out the intent of the trustor/grantor. The trustee received instructions to pay college tuition for grandson but the trustee argued that the instructions failed to meet the legal requirements for a proper amendment to the trust. Upon petition by the grandson for a finding of breach of trust and fiduciary duties, the court ruled in favor of the grandson.
“Can We Talk” . . . About Estate Planning for Pets and People
This month’s alert examines the estates of Lauren Bacall and Joan Rivers and looks at the lessons we can learn from each of them.
Federal Court: Disclaimed Property Available to Pay Tax Lien
This month we examine how the lack of proper estate planning left an inheritance exposed to payment of tax liens assessed against a son. The estate’s attempt to argue that the son’s share was not available because of mom’s desire that lifetime advancements to the son be repaid or, in the alternative, that the son had disclaimed his inheritance, did not convince the federal court that the IRS could not collect against the son’s share of the estate.
Do-It-Yourself Estate Plans: Unintended Results
Download educational eAlert template A in Microsoft Word format Download educational eAlert template B in Microsoft Word format With the rise of companies such as Legal Zoom, TotalLegal, LawDepot, and DoYourOwnWill.com, more and more consumers are attempting to create their own estate plans without the assistance of a lawyer.
Failure to Divide Trust Cost over $400,000
This month’s alert provides a cautionary tale. It shows how failure to administer a trust according to its terms can cost the remainder beneficiaries hundreds of thousands of dollars in taxes, even when everyone agrees that the way the trust was administered was what was intended by the surviving trustor.
Supreme Court Rules on Bankruptcy Protection of Inherited IRAs
While many people plan out their vacations in great detail, they may be forgetting to address what to do if the unexpected happens while their out of town. Find out how setting an estate plan in place, even a basic one, can minimize your worries about those “what if’s,” and enjoy that vacation you’ve been dreaming of.
Planning for Retirement Assets Can be Difficult
This month’s Alert examines the rules regarding distributions from IRAs and retirement plans. In particular, it examines reasons to make a trust the beneficiary and rules regarding who is the measuring life for minimum required distribution purposes.
Guardianship Provisions Essential To a Comprehensive Estate Plan
This month’s Alert examines two high-profile cases which illustrate the importance of naming guardians for minor children.
More Reasons for Clients to Review Their Estate Plans
This month’s Alert examines how the “fiscal cliff” legislation could result in changes for estate plans. Depending on the couple, it might mean they could simplify their plan. However, there are many non-tax reasons that they may want to keep a more complex plan.
New Year’s Resolution #3 – Get My Estate Plan Reviewed
This month’s Alert discusses how the “fiscal cliff” legislation impacts your clients’ estate plans.
Estate Planning for LGBTQ Couples: Possible Changes on the Horizon
This month’s Alert gives an overview of developments affecting estate planning for same-sex couples. It recounts how recent elections approved same-sex marriages in several states. It also examines several cases which address the constitutionality of bans on same-sex marriage, including the Defense of Marriage Act.
Last Chance for Estate Tax Savings?
This month’s alert focuses on the narrowing window to lock-in the current $5.12 million estate and gift tax exemption by gifting prior to year-end. The alert also examines why it may not be possible to wait and do this planning at the last minute.
2010 Tax Law Leads to 2012 Litigation
This month’s Alert focuses on the increased trust litigation arising from the unintended consequences of the temporary repeal of the estate tax in 2010.
Use It Before You Lose It” Planning Equally Applicable to LGBTQ and Unmarried Partners
In this month’s alert we examine how your clients, including LGBT clients and unmarried partners, can remove over $5 million free from estate tax and how this opportunity may be vanishing soon.
Tax Break Extension Legislation Excludes Estate Tax; Act Now to Lock In $5.12 Million Exclusion Amount
The estate tax exclusion is scheduled to revert to $1 million at year-end from the current level of $5.12 million. This Alert examines the current political landscape concerning the estate tax and suggests taking advantage of the current, historically-high exclusion amount before it’s too late.
IRS Issues “Portability” Guidance
The Alert this month examines “portability” and the steps necessary to take advantage of it under newly-released regulations.
Planning Blunder Leads to Increased Income Taxes
This month’s Alert examines the importance of proper IRA beneficiary designations. The Alert examines a case in which the stretch of IRA distributions was not maximized because of the beneficiary designation.
His, Hers, or Ours? – Estate Planning for Blended Families
With more than half of marriages ending in divorce, an increasing number of families are “blended families.” The Alert this month examines the unique issues faced in planning for blended families.
Millions in Tax Savings Available to Clients Who Act Quickly
This month’s alert examines the current, perhaps short-lived, opportunity for clients to give away millions of dollars during their lifetime without a gift tax. Unless the law changes, this narrow window will close at year-end.
Double Disclaimer Saves Millions in Estate and GST Tax
This month’s Alert examines how effective use of disclaimers can save millions in taxes. The Alert examines a ruling request presented to the IRS involving such a situation.
Tax Changes for 2012
This month’s Alert reviews the inflation adjustments applicable to federal taxation in 2012. It examines changes in the estate, gift, and generation skipping transfer taxes, as well as income taxes.
Income from Trust Excluded in Determining Alimony Payments
This month’s Alert examines when the income of a trust may be considered available to creditors. The Alert examines a case involving the availability for purposes of determining alimony.
Fate of Estate and Gift Taxes Remains Uncertain – But, Many Planning Options Remain Available For Now
This month’s Alert examines the continuing uncertainty with the Estate and Gift Tax and the unique, limited-time opportunities which are available now.
Wisconsin Appeals Court Holds Assets of Irrevocable Trust are Available for Medicaid Eligibility Purposes
Elder law is an increasingly important area of law for clients. This month’s Alert examines a Wisconsin case concerning an Irrevocable trust which was included as an available asset for Medicaid purposes. The Alert also examines what they could have done differently to achieve a better result.
IRS Issues Instructions for Estate Tax Returns for Decedents Dying in 2011 and 2012
This month’s Alert examines the IRS’ recent release of instructions regarding how to ensure portability of the applicable exclusion amount at the death of the first spouse. Many surviving spouses may see an estate tax return at the death of the first spouse to be unnecessary. This alert shows why advisors should document that they advised the filing of an estate tax return.
A “Do-It-Yourself” Mystery: The Case of the Neighbor Girl and the Well-Meaning Widow
Clients occasionally attempt do-it-yourself estate planning. Sometimes they use software assistance, borrow from others’ documents, or amend their professionally prepared documents themselves. This month’s Alert looks at one such story and the havoc it wrought. In the end, the client’s goals were not achieved and her loved ones were pitted against each other in court.
Failure to Review Estate Plans Periodically Can Lead to Unintended Consequences
The estate tax law is a moving target, both at the federal and state level. This month’s Alert examines a case which illustrates how the changing laws can result in unintended results in your plan. Now, more than ever, it is important to review your estate plan periodically to ensure the outcome you want.
2012 Budget Proposal Includes Permanent Estate and Gift Tax Reforms
This month’s Alert examines the Obama Administration’s 2012 budget proposal and how it might affect estate, gift, GST, and income taxes. Further, the Alert looks at how our tax system compares to other developed countries.
Doing It Yourself Can Sometimes Lead to Disaster
Nowadays, a growing number of consumers attempt to prepare estate planning and other documents of legal significance without professional assistance. These do-it-yourselfers are penny-wise and pound-foolish. This Alert examines several cases in which the decedent attempted to create or modify his own estate plan, with disastrous results.
Creditor Protection Extended to Inherited IRAs by More Courts
IRAs and Qualified Plans are an increasing portion of our clients’ wealth. The advantages of the income tax deferral are well-known. This month’s Alert looks at developments regarding the creditor protection such plans provide, not only for the contributor, but also for those who inherit them.
Elizabeth Taylor’s Estate Could Exceed $1 Billion – Much of It Could Benefit AIDS Charities
Elizabeth Taylor died recently with a $1 billion estate. This month’s Alert focuses on her estate, her philanthropy, and various advanced estate planning techniques with a charitable component. Read this month’s Alert to find out how charitable giving can help you and your clients meet estate planning goals.
Annuity Maximization
This Alert examines how a tax-deferred annuity may not be the best solution for senior clients. It demonstrates how a single premium immediate annuity, or “SPIA” may be a better alternative for clients, especially if the client is in a lower tax bracket than the children who will inherit it.
Double Disclaimer Saves Millions in Estate and GST Tax
This month’s Alert examines how effective use of disclaimers can save millions in taxes. The Alert examines a ruling request presented to the IRS involving such a situation.
TRA 2010 Creates Opportunity for New Planning Strategy – The FlexTrust
The question of whether to fund a credit shelter trust has long been a central question in estate planning. With the new tax law and it’s temporarily increased exemption, the question is all the more relevant. This month’s alert discusses a new method of adding flexibility to your clients’ trust. The FlexTrust allows an independent Trust Advisor to decide whether and to what extent the credit shelter trust should be funded.