January 1, 2024, marked exactly two years until the planned reduction by half of the current Applicable Exclusion Amount (“AEA”). The AEA is the amount that an individual can pass to anyone either during their life or at death before imposition of a transfer tax. For those needing a refresher, the Tax Relief Act of 2010 set the AEA at $5 million (adjusted for inflation) and the Tax Cuts and Jobs Act of 2017 temporarily doubled that amount to $10 million per person ($20 million per couple), as … [Read more...] about Do You Want to Discuss Dynasty Trusts?
The View from Heckerling 2024
Last week, I attended the 58th Annual Heckerling Institute on Estate Planning (“Heckerling”) held in Orlando, Florida. Nationally renowned speakers take the stage and give attendees legislative updates, tips on estate planning techniques, and answers to their submitted questions. As the Associate Director of Education for the American Academy of Estate Planning Attorneys (“Academy”), I attend this annual conference so that I can share what I learned there with the Members of the Academy. The … [Read more...] about The View from Heckerling 2024
There’s No Better Way to Say “I’ll Be There for You” than with an Estate Plan
Matthew Perry was probably best known for his role as the sarcastic, neurotic, and always witty, Chandler Bing on the hit-tv show, Friends. He died suddenly at the age of 54. He was unmarried, had no children, and was survived by his parents, five half-siblings, and legions of fans. His Estate Plan differs from many of the cases that this blog examines because there likely won’t be a huge fight in court over his substantial fortune at least in part because he created a Revocable Trust and, as of … [Read more...] about There’s No Better Way to Say “I’ll Be There for You” than with an Estate Plan
What “Sue,” the Tyrannosaurus Rex Skeleton, Teaches us about Estate Planning
A few weeks ago, someone suggested that I write about the family dispute about the Tyrannosaurus Rex, “Sue,” and the fortune the family received from her sale. I was intrigued because my son has been obsessed with dinosaurs for as long as I can remember. I had a vague recollection of hearing about Sue many years ago and I found the case engaging. For the unaware, in 1990 fossil hunters discovered the remains of a tyrannosaurus rex on the Cheyenne River Reservation property owned by Maurice … [Read more...] about What “Sue,” the Tyrannosaurus Rex Skeleton, Teaches us about Estate Planning
Estate Planning with Entities
Estate Planning attorneys have long recommended the use of closely held entities such as family limited partnerships (“FLPs”) and limited liability companies (“LLCs”) to provide flexibility in allocating rights to profits and capital, to shift income and property appreciation from one generation to the next, and to provide asset protection. Individuals transfer assets to the entity in exchange for membership or partnership interests, which provide management control and income distribution … [Read more...] about Estate Planning with Entities
Estate Planning Lessons from the Movies – Part II
Recently, a headline titled “Eight Lessons from Killers of the Flower Moon” caught my eye, and the idea for this two-part blog took hold. The article talked about the movie titled “Killers of the Flower Moon” that received critical acclaim for its depiction of the plight of the Osage Indian Tribe. The article focused on the many real-life Estate Planning lessons that we can learn from watching the movie. The first part, Estate Planning Lessons from the Movies – Part I, of this two-part series, … [Read more...] about Estate Planning Lessons from the Movies – Part II
Tax Planning for 2024
As 2023 draws to a close and the New Year dawns, we need to think of…tax planning for 2024 and beyond! Some years Congress tweaks the laws more than other years. While 2023 held plenty of surprises, it was a relatively quiet year for legislative changes impacting tax planning. Still, even in a quiet year, some things change due to inflation adjustments, etc.Estate Tax PlanningApplicable Exclusion rises from $12.92 million in 2023 to $13.61 million in 2024.GST Exemption rises from … [Read more...] about Tax Planning for 2024
The Seedier Side of the Holiday Season
It’s my favorite time of the year. Temperatures fall and spirits rise as we approach the holiday season. While we count down the days to year-end and enjoy gathering with our loved ones, it’s a great time to remind ourselves and our loved ones about the seedier side of the holiday season: scams. Scams run the gamut in ingenuity and range in form from charity scams to debt collection scams and from grandparent scams to imposter scams. Each scam has its own unsavory elements, but the grandparent … [Read more...] about The Seedier Side of the Holiday Season
Estate Planning Lessons from the Movies – Part I
I like to draw inspiration for my blogs from articles and other blogs that I read. Anytime those sources pull from real life, it piques my interest. After all, Estate Planning focuses on real life and the most real and inevitable part of life, death. Earlier this week, a headline titled “Eight Lessons from Killers of the Flower Moon” caught my eye, and the idea for this blog took hold. The article talks about the movie titled “Killers of the Flower Moon” that hit theaters late last month to … [Read more...] about Estate Planning Lessons from the Movies – Part I
It’s a Great Time to Consider a Donor Advised Fund
Charitable gifts offer a great opportunity to reduce income tax liability. When a taxpayer makes a charitable contribution, typically they get an offsetting charitable income tax deduction. Unfortunately, that offsetting deduction doesn’t always end up reducing the total tax burden. To take a charitable income tax deduction, the taxpayer needs to itemize their deductions. If the charitable contribution and other itemized deductions don’t exceed the standard deduction amount, then it makes sense … [Read more...] about It’s a Great Time to Consider a Donor Advised Fund
