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
legal education
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
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)
