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
Estate Planning
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
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
The SECURE Act – the Gift That Keeps On Giving
On July 14, 2023, the Internal Revenue Service (“IRS”) released an advance copy of Notice 2023-54 (the “Notice”) that provides relief to plan administrators, payors, plan participants, IRA owners, and beneficiaries in connection with the change in required beginning date for required minimum distributions (“RMDs”) under §401(a)(9) of the Internal Revenue Code (“Code”) regarding RMDs for 2023. The Notice warns that final Regulations relating to RMDs yet to be issued will apply beginning on … [Read more...] about The SECURE Act – the Gift That Keeps On Giving
National Make-a-Will Month
I can’t believe that it took me leaving private practice to hear about “National Make-a-Will Month.” Apparently, in addition to being the month when many students (mine included) return to school, August is National Make-a-Will Month. As an Estate Planning professional, I think having a month dedicated to encouraging individuals to make a Will is spectacular! I support this idea and will do my best to spread the word and encourage others to do the same.According to a recent study conducted … [Read more...] about National Make-a-Will Month
Gen X – This One’s for You (Really Every Generation Should Read This)
Some of my favorite COVID-related memes focused on the fierce independence and “can-do” attitude of Generation X, also known as the latch-key generation. While those traits served us well during COVID (we spent our youth practicing social distancing) those traits would be detrimental if exercised during the Great Wealth Transfer. For those unaware, financial analysts predict that the biggest shift in wealth will occur over the next two decades as Baby Boomers die and their wealth shifts to … [Read more...] about Gen X – This One’s for You (Really Every Generation Should Read This)
What Independence Day Teaches Us About Estate Planning
Anyone who has seen my house at Christmas knows that tops the list as my favorite holiday. We deck the halls, make cookies, exchange presents, look at light displays, and revel in the Christmas spirit as long as possible. Christmas in July seems like a great idea except, we can’t do that until Independence Day has passed! As some have discovered, the 4th of July means almost as much to me as Christmas. Very different holidays celebrating very different things, but both are important. Now you … [Read more...] about What Independence Day Teaches Us About Estate Planning
529 Plans – The “Holy Grail” of Estate Planning
Ah, summer…it’s here! The time for barbeques, baseball, beaches, and … Internal Revenue Code (the “Code”) Section 529 plans (“529 plans”)? Yes! As we enjoy the lazy days of summer, let’s get a jump start on thinking about the new school year, which means now’s the perfect time to look at your Estate Plan, especially as it relates to educational goals for your children, grandchildren, and other loved ones. As they say, it’s never too early to start planning. A 529 plan, otherwise known as a … [Read more...] about 529 Plans – The “Holy Grail” of Estate Planning
