Educational Alerts

Planning for Retirement Benefits: Get it Right the First Time

Jan 31, 2017

Retirement assets are a large part of most Americans’ total wealth. The key to maximizing and maintaining that wealth is to keep the assets in the retirement accounts for as long as possible. However, that alone will not shield the retirement assets from the creditors of beneficiaries. Read more to find out how to gain maximum deferral of income taxes as well as protection from the creditors of beneficiaries.

Read More

Advance Planning for Long-Term Care is Critical

Jan 26, 2017

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.

Read More

State Court Decisions Not Binding on IRS

Jan 26, 2017

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.

Read More

Do-It-Yourself Estate Plans: Unintended Results

Jan 26, 2017

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.

Read More

Estate Tax Repeal in 2017?

Dec 30, 2016

President-Elect Trump has proposed repealing the estate tax and replacing it with a capital gains tax for taxpayers with more than $10 million in assets. Passage of such a proposal remains uncertain for many reasons. Whatever the outcome, having an estate plan reviewed by a knowledgeable estate planning attorney will be crucial once it becomes clear the direction that Congress and the President intend to take.

Read More

Ambiguities Can Lead to Litigation

Oct 31, 2016

Probate litigation commonly involves an argument over what the decedent intended and what a phrase in a Will or trust means. Ambiguities in estate plans of celebrities are often the subject of litigation, often because millions of dollars are at stake. But emotions, greed, and other human frailties leading to litigation are just as prevalent in litigation between families of lesser means. A properly drafted and funded estate plan, combined with the clear communication of your intent and reasons behind decisions being made can greatly reduce the possibility of litigation involving your estate.

Read More

Protect Against Creditor Claims – Even Tax Liens

Jul 29, 2016

Many individuals are interested in protecting their own assets and their children’s inheritances from creditors and divorcing spouses. If properly drafted and correctly administered, an irrevocable trust can protect against even the enforcement of an IRS tax lien.

Read More

Don’t Rely on Government Officials for Information about Medicaid Planning Options

Jun 30, 2016

Failing to plan in advance for long-term care expenses can deplete a senior’s estate rapidly. Be careful where you get your long-term care planning information. Medicaid regulations vary from state to state, so even what may appear to be a reputable internet site may steer you in the wrong direction because what may work in one state may not in another state. Even the officials who run many State government agencies responsible for Medicaid often have incorrect information.

Read More

Electing Portability Treatment

May 30, 2016

Failing to make an election of portability on a timely-filed estate tax return for the first deceased spouse can be a costly mistake. Not only could it result in additional estate tax liability potentially in the millions of dollars being owed on the death of the surviving spouse – it could also result in IRS filing fees and legal fees in excess of $9,000, if relief form the IRS is sought.

Read More

Fixing David Bowie’s Will

Apr 30, 2016

The untimely death of David Bowie left many of his fans in shock. It appears that Mr. Bowie wanted to keep things fairly simple, dividing the majority of his estate between his wife and two children. Read further to learn more about David Bowie’s estate plan and how it could have been drafted differently to provide additional benefits.

Read More

Will Invalid Due to Undue Influence

Mar 14, 2016

Seniors often want to reward caregivers for services by giving the caregiver a gift or bequest. Because a caregiver is in a position of power and trust, such gifts or bequests are often scrutinized and found to have been induced by undue influence. Such was the case with Eva Barnes and her caregivers, Michelle and Dennis Wells.

Read More

New Year’s Resolution Checklist

Dec 31, 2015

A review of their estate plan should be one of your client’s New Year’s resolutions. The following checklist should be of assistance in making sure your client’s financial house is in proper order.

Read More

Celebrities Can Set A Good Example

Nov 05, 2015

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.

Read More

Fiduciary May Face Personal Liability for Improper Administration of a Trust or Estate

Jun 30, 2015

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.

Read More

IRS Approves Spousal Rollover of IRA Payable to Testamentary Trust

Mar 31, 2015

The Internal Revenue Code and Treasury Regulations concerning trusts as beneficiaries of retirement plans and IRAs are fraught with traps and contradictions. It seems sometimes the exceptions to the rules outnumber the rules themselves. This month’s E-Alert discusses a recent Private Letter Ruling stating that a spousal rollover of an IRA is not available when the beneficiary of the IRA is a trust, but then stating the exception under which a spousal rollover may be available. It is another example of how careful planning is crucial when dealing with retirement assets.

Read More

Looking After the Little Details Can Pay Off

Feb 28, 2015

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.

Read More

Trustor’s Intent is Paramount

Oct 31, 2014

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.

Read More

Failure to Divide Trust Cost over $400,000

Jul 31, 2014

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.

Read More

Benefit Charity and Save Taxes Too

Jun 03, 2014

This month’s e-alert shows readers how a charitable remainder trust can be used to eliminate the 3.8% surtax, defer income taxation of assets, provide an income stream to the grantors, and benefit charity.

Read More

IRS Grants Relief for Late Election of Portability

Mar 31, 2014

This month’s Alert examines a new IRS release concerning portability. The Alert shows how taxpayers who thought they had missed their opportunity to elect portability on the first spouse to die’s estate tax return now have another chance

Read More

The Case of the iPhone Will

Feb 28, 2014

This month’s Alert examines how a "Will" might be in various different forms, like on an iPhone. The Alert also discusses how it may be prudent to use other devices to avoid probate.

Read More

Charitable Planning Ideas

Jan 22, 2014

This month’s Alert focuses on charitable giving. Often, people like to think of charitable giving at year-end. In addition to year-end giving for income tax purposes, a client may wish to think about including charitable giving in their estate plan to capture income, gift, or estate tax savings. Whenever they do the giving, charitable giving is a great way to give back to the community!

Read More

Planning for Retirement Assets Can be Difficult

Mar 29, 2013

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.

Read More

More Reasons for Clients to Review Their Estate Plans

Jan 31, 2013

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.

Read More

Estate Planning for LGBT Couples: Possible Changes on the Horizon

Nov 30, 2012

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.

Read More

Last Chance for Estate Tax Savings?

Oct 31, 2012

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.

Read More

Tax Changes for 2012

Jan 31, 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.

Read More

IRS Issues Instructions for Estate Tax Returns for Decedents Dying in 2011 and 2012

Sep 30, 2011

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.

Read More

A "Do-It-Yourself" Mystery: The Case of the Neighbor Girl and the Well-Meaning Widow

Aug 31, 2011

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.

Read More

Doing It Yourself Can Sometimes Lead to Disaster

May 31, 2011

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.

Read More

Creditor Protection Extended to Inherited IRAs by More Courts

Apr 29, 2011

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.

Read More

Annuity Maximization

Feb 28, 2011

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.

Read More

TRA 2010 Creates Opportunity for New Planning Strategy - The FlexTrust

Jan 31, 2011

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.

Read More

Page Tools

  • Share this page SHARE
  • Print Friendly and PDF