As we gather with our family, friends, and loved ones to celebrate Thanksgiving, let’s take a moment to savor the food and our time together. This time of the year offers a special opportunity to show our loved ones just how much we care. We can do this in any number of ways, including gifting.Let’s make this year the year we give gifts that benefit both the recipient and the donor. Annual exclusion gifts provide a benefit not only to the recipient but also to the donor. Annual per donee … [Read more...] about Don’t Be a Turkey – Take Advantage of Your Annual Per Donee Exclusion Amount
Understanding the Interplay of State Estate and Inheritance Taxes with Federal Estate Tax
Most folks know that the federal government imposes an estate tax on estates with total assets that exceed $12.92 million in 2023. The Internal Revenue Code (“Code”) Section 2010 calls that amount the “Applicable Exclusion Amount” (“AEA”) and adjusts it for inflation annually. Even if individuals do not have that number etched in their memory, they understand that they need not worry about estate taxes at the federal level unless their estate includes assets well into the millions. Some might … [Read more...] about Understanding the Interplay of State Estate and Inheritance Taxes with Federal Estate Tax
The Horrors of Dying Intestate
October brought fall, pumpkin-spiced everything, and macabre things. Ghosts, ghouls, and goblins may Monster Mash through your mind; however, when I think of something truly terrifying, it’s dying without an estate plan…it’s the trick in Trick or Treating. Although everyone knows that they should treat their family to a comprehensive Estate Plan, many folks experience feelings of superstition and dread when considering planning for the end of their life, as if by planning for death, they invite … [Read more...] about The Horrors of Dying Intestate
What We Can All Learn from Diller v. Richardson
When I was in private practice, I often commented that Estate Planning attorneys serve as true counselors and advisors for our clients. Clients call on their Estate Planning attorneys to fill many roles in addition to the ones for which they hire us. It’s a natural evolution of the attorney/client relationship. After all, clients trust us with their secrets, desires, and goals. We know the inner workings of their family, including who has creditor issues, who spends too much, who has health … [Read more...] about What We Can All Learn from Diller v. Richardson
The Magic of Grantor Trusts
An earlier blog examined “grantor trusts” and how they are an income tax issue, not an estate tax issue. Here’s a link to that prior blog, IRS Confirms Grantor Trust Status Alone Does Not Cause a Step-Up in Basis.As the prior blog indicated, grantor trusts may be drafted so they are not included in the taxable estate of the grantor for estate tax purposes, yet they are still taxed to the grantor for income tax purposes. These “intentionally defective grantor trusts” can be very powerful … [Read more...] about The Magic of Grantor Trusts
Exploring the Many Issues Surrounding the Estate and Trust of Richard Blum – Part II
If you live or work in the Trusts and Estates world, you have heard of Richard Blum, billionaire investment banker and late husband of Dianne Feinstein, the Senior United States Senator from California (“Dianne”). Anyone who consumes the news needn’t look far to catch a headline regarding Dianne. Recent articles indicate that her daughter, Katherine Feinstein (“Katherine”), acting as Attorney-in-Fact for Dianne, has initiated a third lawsuit in as many months against the Trustees of the Marital … [Read more...] about Exploring the Many Issues Surrounding the Estate and Trust of Richard Blum – Part II
Exploring the Many Issues Surrounding the Estate and Trust of Richard Blum – Part III
If you live or work in the Estate Planning universe, you have heard of Richard Blum, billionaire investment banker and late husband of Dianne Feinstein, the Senior United States Senator from California (“Dianne”). Anyone who follows the news needn’t look far to catch a headline regarding Dianne. Recent articles indicate that her daughter, Katherine Feinstein (“Katherine”), acting as Attorney-in-Fact for Dianne, has initiated a third lawsuit in as many months against the Trustees of the Marital … [Read more...] about Exploring the Many Issues Surrounding the Estate and Trust of Richard Blum – Part III
Exploring the Many Issues Surrounding the Estate and Trust of Richard Blum – Part I
If you live or work in the Trusts and Estates world, you have heard of Richard Blum, billionaire investment banker and late husband of Dianne Feinstein, the Senior United States Senator from California. Anyone watching the news with any regularity knows that Dianne has had her fair share of press lately. Recent articles indicate that her daughter, Katherine Feinstein, acting as Attorney-in-Fact for Dianne, has initiated a third lawsuit in as many months against the Trustees of the Marital Trust … [Read more...] about Exploring the Many Issues Surrounding the Estate and Trust of Richard Blum – Part I
IRS Confirms Grantor Trust Status Alone Does Not Cause a Step-Up in Basis
Earlier this year the IRS released Revenue Ruling 2023-2. That Ruling examined a common situation in advanced estate planning. The grantor had set up an irrevocable trust and had gifted assets to the trust in what was a completed gift for gift tax purposes. The taxpayer retained powers which caused the trust to be taxed to the grantor for income tax purposes but did not cause inclusion for estate tax purposes. There are several such powers, such as the power to substitute assets under Code … [Read more...] about IRS Confirms Grantor Trust Status Alone Does Not Cause a Step-Up in Basis
Understanding the Importance of the Simultaneous Death Act
Recently, I received a question about interpretation of a simultaneous death clause and whether the individual could modify the clause. At first blush, I thought it was an easy answer, but as I thought through the various issues that the question raised, I realized the underlying complexity of the question. I thought if thinking through that issue caused me to pause, then it might do the same for others. I suspect that next week’s blog will return us to recent legislation or failure of celebrity … [Read more...] about Understanding the Importance of the Simultaneous Death Act
