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
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
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
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
