As most individuals realize, creating an Estate Plan that includes a Revocable Trust, pour-over Will, Property Power of Attorney, Health Care Power of Attorney, Living Will, and Health Insurance Portability and Accountability Act Authorization provides benefits both during life and at death. During life, the plan gives directions regarding your finances and medical care if you become incapacitated or are otherwise unable to articulate your preferences. At death, the plan provides instructions … [Read more...] about Common Mistakes in Estate Planning – Part I
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Planning for the “Silver Tsunami”
Estate Planning practitioners often counsel clients regarding whom they should name as fiduciaries in addition to advising them how to structure a plan to provide maximum protection and flexibility for their beneficiaries. Those beneficiaries often include a spouse and children, but when the client survives their spouse and children, never had a spouse or children, or is estranged from their loved ones, practitioners may need to think outside the box to create an Estate Plan. In the aftermath of … [Read more...] about Planning for the “Silver Tsunami”
Discharge of Indebtedness Income and Student Loan Forgiveness
Shortly after signing the Inflation Reduction Act into law, President Biden announced his plan to use executive action to cancel up to $10,000 of student loan debt for borrowers under certain income thresholds and an additional $10,000 for borrowers who received Pell Grants. Some support this action, while others condemn it and threaten lawsuits. While nothing is certain until the ink is dry, let’s assume that forgiveness occurs and an estimated 43 million borrowers receive this relief. For the … [Read more...] about Discharge of Indebtedness Income and Student Loan Forgiveness
Lessons from Patagonia
Individuals whose net worth exceeds a few million dollars often have charitable goals. Some, like Bill and Melinda Gates, create foundations to further those goals. Others, like the late Paul Newman, use foundations to receive profits related to a specific endeavor and to ensure distribution to charitable causes. Others, like MacKenzie Scott, Jeff Bezos’ former wife, give outright to charitable groups and organizations. While others, like Warren Buffett, create initiatives (The Giving Pledge) … [Read more...] about Lessons from Patagonia
What’s Estate Planning Got to do with Interest Rates – Part I
It’s hard to look anywhere these days without seeing something about interest rates or inflation. All of us know that inflation hovers at a forty-year high and we feel that impact every time we go to the grocery store or gas pump. While these represent direct ways that interest rates impact us, interest rates have an indirect impact on Estate Planning practitioners as well. Many advanced Estate Planning techniques derive their value from the prevailing interest rate. Certain techniques work best … [Read more...] about What’s Estate Planning Got to do with Interest Rates – Part I
The Intersection of Asset Protection Planning and Estate Planning – Part I
Some clients arrive to meet with their Estate Planning attorney with an article in hand claiming that a particular firm, company, or other attorney creates “bulletproof” asset protection vehicles, often involving some form of “asset protection trust.” This puts the attorney in the awkward position of reviewing the article, then explaining why the method advertised may not have the intended result, and that the attorney will not undertake such planning because these schemes rarely work and come … [Read more...] about The Intersection of Asset Protection Planning and Estate Planning – Part I
The Inflation Reduction Act
After more than a year of debate over the provisions of the “Build Back Better Act,” President Biden signed the newly titled “Inflation Reduction Act” (the “Act”) into law on Tuesday, August 16, 2022. While the Act represents a scaled back version of the Build Back Better Act, it embodies the goal of reshaping the U.S. economy after the pandemic. Fortunately for Trust and Estate Practitioners, the Act did not make any changes to the estate and gift tax. Instead, the Act focused on climate, … [Read more...] about The Inflation Reduction Act
Understanding Undue Influence – Part II
Some clients worry that certain beneficiaries will challenge their Estate Plan after death. Sometimes it’s because they have structured their plan to favor one beneficiary over another. Other times, it’s because they have left assets in a trust and named an individual other than the beneficiary of the trust to serve as Trustee of the trust. Occasionally, it’s because they have disinherited their family members in favor of a charity or individuals to whom they are unrelated. No matter the reason, … [Read more...] about Understanding Undue Influence – Part II
Understanding Undue Influence – Part I
Sometimes clients have concerns about whether their Estate Plan could withstand a challenge after their death. If the plan deviates from the equal treatment of all beneficiaries in the same class, then that may cause a client to worry about how best to protect the plan. Often the unequal treatment results because one beneficiary took on a caregiver role as the testator aged. Perhaps a niece or nephew stepped in when the client’s children were out of state. Regardless of the reason, many a … [Read more...] about Understanding Undue Influence – Part I
Death and Your Digital Footprint
Most individuals understand the need to dispose of their tangible and intangible assets upon their death and use either a Will or Trust to accomplish that. Although it’s clear that these documents govern the disposition of tangible and intangible assets, it’s not as clear that a personal representative or trustee can use the provisions of these documents to obtain access to digital assets. Thankfully, companies that host digital platforms have begun to address this issue. In mid-December, Apple … [Read more...] about Death and Your Digital Footprint
