The estate tax law is a moving target, both at the federal and state level. This month’s Alert examines a case which illustrates how the changing laws can result in unintended results in your plan. Now, more than ever, it is important to review your estate plan periodically to ensure the outcome you want.The amount that can be distributed to children and other non-charitable beneficiaries free from federal estate tax at death is a constantly changing target. In 2000, this amount was $675,000. In … [Read more...] about Failure to Review Estate Plans Periodically Can Lead to Unintended Consequences

This month’s Alert examines the Obama Administration’s 2012 budget proposal and how it might affect estate, gift, GST, and income taxes. Further, the Alert looks at how our tax system compares to other developed countries. The Department of Treasury “General Explanations of the Administration’s Fiscal Year 2012 Revenue Proposals” presumes several important changes in the estate, gift, and generation-skipping transfer taxes. These changes include: Restoring the 2009 estate, gift, and GST … [Read more...] about 2012 Budget Proposal Includes Permanent Estate and Gift Tax Reforms

Nowadays, a growing number of consumers attempt to prepare estate planning and other documents of legal significance without professional assistance. These do-it-yourselfers are penny-wise and pound-foolish. This Alert examines several cases in which the decedent attempted to create or modify his own estate plan, with disastrous results.A growing number of consumers are attempting to prepare estate plans themselves. They use paralegal services or companies such as LegalZoom.com, LawDepot.com, … [Read more...] about Doing It Yourself Can Sometimes Lead to Disaster

IRAs and Qualified Plans are an increasing portion of our clients’ wealth. The advantages of the income tax deferral are well-known. This month’s Alert looks at developments regarding the creditor protection such plans provide, not only for the contributor, but also for those who inherit them. The federal government and most states extend creditor protection to IRAs and other retirement accounts. The extent of this protection has been clear with regard to IRAs and other retirement accounts … [Read more...] about Creditor Protection Extended to Inherited IRAs by More Courts

Elizabeth Taylor died recently with a $1 billion estate. This month’s Alert focuses on her estate, her philanthropy, and various advanced estate planning techniques with a charitable component. Read this month’s Alert to find out how charitable giving can help you and your clients meet estate planning goals.   Hollywood legend Elizabeth Taylor will be remembered for many things: her stunning violet eyes, her multiple marriages, her film accomplishments, and the success of her perfume … [Read more...] about Elizabeth Taylor’s Estate Could Exceed $1 Billion – Much of It Could Benefit AIDS Charities

This Alert examines how a tax-deferred annuity may not be the best solution for senior clients. It demonstrates how a single premium immediate annuity, or “SPIA” may be a better alternative for clients, especially if the client is in a lower tax bracket than the children who will inherit it. Often seniors invest in tax-deferred annuities as a safe, tax-deferred investment to pass on to their children. But many seniors are in relatively low income tax brackets. Often the annuity salesman does … [Read more...] about Annuity Maximization

This month’s Alert examines how effective use of disclaimers can save millions in taxes. The Alert examines a ruling request presented to the IRS involving such a situation.   Compliments of Our Law Firm, Written By: The American Academy of Estate Planning Attorneys Often parents do not consider the potential future success of their children in structuring their own estate plan. If a child is fortunate enough to have a taxable estate (over $5,120,000 currently, scheduled to drop to … [Read more...] about Double Disclaimer Saves Millions in Estate and GST Tax

The question of whether to fund a credit shelter trust has long been a central question in estate planning. With the new tax law and it’s temporarily increased exemption, the question is all the more relevant. This month’s alert discusses a new method of adding flexibility to your clients’ trust. The FlexTrust allows an independent Trust Advisor to decide whether and to what extent the credit shelter trust should be funded. With the passage of The Tax Relief, Unemployment Insurance … [Read more...] about TRA 2010 Creates Opportunity for New Planning Strategy – The FlexTrust