IRAs have become ubiquitous components of estate plans. The SECURE Act of 2019 altered the landscape for IRAs significantly by eliminating the stretch benefit for most designated beneficiaries and forcing all designated beneficiaries other than Eligible Designated Beneficiaries to use the 10-year rule for distributions. The 10-year rule was thought to operate much like the 5-year rule that existed before the passage of the SECURE Act. Recently issued proposed Treasury Regulations dispute that … [Read more...] about Just When You Thought You Understood the 10-Year Rule, Think Again
Estate Planning
What an In Terrerem Clause Can Do for You
Estate Planning practitioners field questions regarding disinheriting beneficiaries regularly. The second question often relates to what happens when that beneficiary or any other tries to have the estate plan or portions thereof overturned. An “in terrorem” or “no contest” clause usually acts as a deterrent to such beneficiaries by completing divesting them of their inheritance should they choose to initiate a lawsuit. My friend and colleague, Tereina Stidd, an estate planning expert, has … [Read more...] about What an In Terrerem Clause Can Do for You
Let’s Talk about Trusts…and Taxation
Estate planning attorneys need to understand and explain taxation of trusts in order to properly advise clients. Individual clients need to understand the implications of the plan their attorney suggests in order to properly file their own taxes. Determining whether a trust qualifies as a grantor trust or a nongrantor trust is the first step in determining tax liability for a particular year.My friend and colleague, Tereina Stidd, an estate planning expert, has written on this issue. Read on to … [Read more...] about Let’s Talk about Trusts…and Taxation
What Estate of Marion Levine Means for Life Insurance
Life insurance has long been part of Estate Plans, whether used to ensure liquidity for the estate on the death of the insured, or simply as income replacement on the death of the insured. Understanding the impact of life insurance on an estate plan has become critically important. A recent tax court case resulted in a big win for the taxpayer in a complex set of facts which could impact how you incorporate life insurance for your Estate Planning clients. My friend and colleague, Tereina Stidd, … [Read more...] about What Estate of Marion Levine Means for Life Insurance
Application of the Transfer for Value Rule to the Sale of Life Insurance
Even individuals with modest estates purchase life insurance which means that Estate Planning attorneys must understand the rules regarding taxation of life insurance. Retention of certain powers or certain transactions could cause negative income, gift, or estate tax consequences. My friend and colleague, Tereina Stidd, an estate planning expert, has a nice piece on these powers. Read on to learn more. … [Read more...] about Application of the Transfer for Value Rule to the Sale of Life Insurance
The Toll of Serving as Fiduciary
Estate Planning attorneys balance competing interests when helping clients decide who they should name as personal representative and trustee. Some of the factors that a client needs to consider are the nominee’s responsibility, financial savvy, and temperament. These factors influence the fiduciary’s ability to pay debts, expenses, claims, negotiate on behalf of the estate, and to conclude the administration of the estate or trust. While many individuals consider acting in this capacity a great … [Read more...] about The Toll of Serving as Fiduciary
Family Estate Planning Should Include the Family Business
If you own your own company, you know that running a business is a complicated venture that takes loads of planning time. Besides planning to grow and expand your business, you must also determine what will happen after your death. No Business Estate Plan If you don’t include your business in your estate plan, then it may not survive your death. If you have full or partial stake in a business, it will be considered a part of your estate upon your death. If you have not named someone to … [Read more...] about Family Estate Planning Should Include the Family Business
Planning Should Include Your Pets
When it comes to protecting your beloved pets, no one does it better than you. You love them... You feed them... You make sure they have everything they need to live a happy, healthy life. But what would happen if you were no longer around? Who would care for your pet? Would your friends and family know what foods to feed or what medications to give? How can you ensure that your pet continues to receive the love and care they need? What a Pet Trust Can Do A Pet Trust is a powerful … [Read more...] about Planning Should Include Your Pets
Shaping An Enduring Legacy
Making sure that your loved ones are provided for to your satisfaction is probably going to be your first objective when you are planning your estate. However, many people are in a position to craft a lasting legacy. This is something that can be very satisfying personally while being simultaneously beneficial to the community around you. How you would like your influence to be felt is a personal matter but we see many examples out there. The creation of a charitable foundation may be a … [Read more...] about Shaping An Enduring Legacy
How To Ensure Your Estate Plan is a Useless Mess
Tip 1: Rely on the Internet for legal advice. One of the best ways to increase the chances that your estate plan will not work is to create your own plan using the advice you find on the Internet. Anyone can post anything they want on the Internet and you have no way of determining if it's true, wise, or even legal. Though there is helpful guidance to be found, do-it-yourself resources and Internet wisdom will never be the same as the individually tailored advice an experienced and qualified … [Read more...] about How To Ensure Your Estate Plan is a Useless Mess
