This is yet another story of dangerous misinformation on estate planning. Someone emailed me asking whether revocable trusts can provide asset protection. While revocable trusts can, if properly done, provide lots of protection, asset protection is not really one of them. Because you, the settlor, grantor, trustor or in English the one who set up…
Spousal Lifetime Access Trusts have become a staple of estate planning for high net worth married clients to take advantage of the bonus transfer tax exemption that is scheduled to (but may not) expire at the end of 2025. In fact, Congress may enact a $15 million permanent inflation-adjusted exemption. However, SLATs may also be…
Too often people respond to fear when making estate planning decisions. That can be a mistaken way to proceed. Unless you are facing an urgent matter that requires immediate action, taking more a deliberate and thoughtful approach is likely to be better. Too often people succumb to the seductiveness of simple minded “magic bullet” planning…
OBBBA changes how advisers should look at estate planning. Many clients will no longer face a Federal estate tax with the new $15M permanent exemption. As a result, income tax planning, and in particular maximizing income tax basis, may be a focus of increased attention. In addition to upstream planning with GPOAs, what about downstream…
This article was originally posted on Steve Leimberg’s Estate Planning Email Newsletter Archive Message #3249. The new tax laws and the permanent high estate tax exemption may have changed the calculus of what should be done with respect to existing irrevocable trusts. But the wide range of factors affecting what might be done, and the many options (and…
This article was originally posted on Steve Leimberg’s Business Entities Email Newsletter Archive Message #3174. “The risk of a reciprocal trust doctrine attack on a non-reciprocal trust doctrine plan is always a possibility. Unfortunately, there are not bright line tests on what power or aggregation of powers might suffice to deflect such an attack. The simplified…
The Corporate Transparency Act (CTA) filing deadline for the CTA is end of year 2024 and there is limited time to address filings. Under the CTA, information about the Beneficial Owners of certain ‘small’ entities must be provided to the Financial Crimes Enforcement Network (FinCEN) of the US Treasury Department. When a trust is an…
This article was originally posted on Steve Leimberg’s Business Entities Email Newsletter Archive Message #3032. The trust compilation can be used to identify ways to backstop, refine and administer the client’s estate and trust plans and could be reviewed and, as necessary, updated at each annual meeting, or even more frequently as circumstances demand. The term ‘binder’…
Originally posted on Forbes.com Introduction So, Aunt Jane just asked you to be the trustee of her trust. You were flattered and, of course, accepted. But what did you get yourself into? Too many consumers readily accept fiduciary appointments with little thought of the headaches and liability they may face. While it can…
Originally posted on WealthManagement.com A recent Chief Counsel Memorandum (CCM) issued by the Internal Revenue Service may have a chilling effect on modifications to all types of irrevocable trusts. CCM 202352018 addressed the gift tax consequences of modifying a grantor trust to add a tax reimbursement clause. The CCM’s conclusion is a departure from precedent and…