Portability-Enabled & Traditional Trusts: A Comparative Analysis of Estate Planning for Married Couples Estates
|
|
- Piers Rogers
- 7 years ago
- Views:
Transcription
1 November 2013 Volume 5, No. 3 This estate planning edition of Currents is by Tiffany N. Apel, Esq., an estate planning associate of the firm. Please contact Tiffany N. Apel at TApel@clarktrev.com or others lawyers in the Clark & Trevithick estate planning practice to inquire about the subject of this issue. Portability-Enabled & Traditional Trusts: A Comparative Analysis of Estate Planning for Married Couples Estates This article provides a general overview of the concept of portability in estate planning for married couples. It compares traditional trusts to portability-enabled trusts, bringing to light key advantages and disadvantages of both. The best choice for a particular couple depends on a variety of factors that may vary from one situation to the next. 1. INTRODUCTION: What is Portability? A. History The 2012 American Taxpayer Relief Act ( The Act ) made permanent the concept of portability, which allows a surviving spouse 1 to apply, or port, his or her deceased spouse s unused federal unified gift and estate tax exemption 2 to the surviving spouse to use against future gift or estate taxes. Prior to portability, living trusts 3 were constructed in such a way that required separate subsidiary trusts for each spouse s estate tax exemption. After The Act, however, living trusts may be more simply constructed, as the surviving spouse can utilize the entire unused exemption amount of the deceased spouse at his or her discretion without necessarily creating a so-called Bypass Trust (sometimes known as Credit Shelter Trust or Exemption Trust ). There are several important implications of constructing a portability-enabled trust. This article explores some of the more significant advantages and disadvantages of each. B. Traditional Trust Planning Below is a schematic diagram of a Traditional Family Trust. In a Traditional Family Trust, two sub-trusts are necessarily created after the death of the first spouse to die ( deceased spouse ): Survivor s Trust and Bypass Trust. As illustrated below, the Survivor s Trust is funded (assets and properties transferred to) with one-half of the community property ( CP ) and 100% of the surviving spouse s separate property ( SP ) held in the living trust estate. The Bypass Trust is funded with the lesser of the Traditional Family Trust Joint Lifetimes FAMILY 2013 Trust 1/2 CP + Survivor s SP 1/2 CP + Decedent s SP 1st Death Survivor s Trust QTIP Trust Bypass Trust 2nd Death Beneficiaries 1 Continued on next page.
2 available estate and gift tax exemption amount of the deceased spouse, or one-half of the deceased spouse s CP, plus his or her SP. If the estate is large enough such that one-half the CP and all of the deceased spouse s SP exceeds the available estate and gift tax exemption, then a third sub-trust, the QTIP 4 Trust, is also created and funded with the balance. Of these three sub-trusts, the Bypass Trust and QTIP Trust are irrevocable. The Survivor s Trust is revocable. C. Trust Planning with Portability There are two general approaches to drafting a portability-enabled trust: (1) Revocable Family Trust with Disclaimer and (2) Revocable Family Trust with a QTIP. 1. Revocable Family Trust with Disclaimer The structure of a portability-enabled trust that provides the option of the Bypass Trust is similar to the Traditional Family Trust in that, during the married couple s joint lifetimes, all assets are held in a revocable living trust. The settlors are usually the trustees and always the income and principal beneficiaries. The big difference, however, is that upon the first spouse s death, assets are not automatically divided and allocated between two different subsidiary trusts. Rather, all assets can be funded into a single Survivor s Trust, thereby giving the surviving spouse complete control and flexibility. Alternatively, the surviving spouse can choose to disclaim 5 all or part of the allocation of the deceased spouse s assets, thereby causing them to pass into a Bypass Trust, which only has the surviving spouse as the beneficiary. There are two key differences between this model and the Traditional Family Trust. First, in this model, funding of the Bypass Trust is discretionary, not mandatory. Second, under the Traditional Family Trust, the deceased spouse s share passes automatically to an irrevocable Bypass Trust and if the trust estate is large enough, to an irrevocable QTIP Trust. This structure effectively locks in the deceased spouse s share such that all assets allocated to the Bypass Trust or the QTIP Trust at the death of the surviving spouse passes to the persons named by the deceased spouse. By contrast, in a portability-enabled Revocable Family Trust with Disclaimer, the deceased spouse s share combines with the surviving spouse s share thereby making the disposition of the deceased spouse s assets freely amendable by the surviving spouse. Family Trust with Disclaimer Joint Lifetimes FAMILY 2013 Trust 1st Death 100% CP + 100% SP Survivor s Trust (portability eligible) Optional Disclaimer Bypass Trust 2nd Death Beneficiaries 2 Continued on next page.
3 2. Revocable Family Trust with a QTIP Like the two aforementioned trust approaches, in a Revocable Family Trust with a QTIP, during the married couple s joint lifetime, all assets are held in a revocable living trust whereby the settlors are usually the trustees and always the income and principal beneficiaries. However, upon the deceased spouse s death, one-half the CP and all of the surviving spouse s SP are funded into a Surviving Spouse s Trust and one-half the CP and all the deceased spouse s SP are funded into a QTIP Trust. Like the Family Trust with Disclaimer, the surviving spouse also has the option to disclaim assets of the QTIP Trust, thereby creating a third trust the Bypass Trust, or make a partial QTIP election. 6 This structure is effectively the same as the traditional family trust, but for the fact that the Bypass Trust or Non-Qualifying QTIP Trust becomes optional as opposed to mandatory. By making it optional, the survivor can choose whether to use the deceased spouse s exemption at the deceased spouse s death or port it to a later date. Another difference is that the QTIP Trust is irrevocable, protecting the deceased spouse s disposition from change. Further, with a QTIP Trust, the surviving spouse could have up to 15 months after the deceased spouse s death to decide on whether or not to make a partial QTIP election and/or claim portability, while a disclaimer must be made within nine months. Also, with a Qualifying QTIP there is a new income tax basis at the surviving spouse s death. If needed, this QTIP Trust arrangement also allows for allocation of the GST exemption by making a reverse QTIP election. This is a variation on disclaiming to a Bypass Trust, by first making a partial QTIP election. Family Trust with QTIP Joint Lifetimes FAMILY 2013 Trust 1/2 CP + Survivor s SP 1/2 CP + Decedent s SP 1st Death Survivor s Trust QTIP Trust Optional Disclaimer Bypass Trust 2nd Death Non-Marital GST Exempt Marital GST Exempt Beneficiaries 2. A COMPARATIVE ANALYSIS: Traditional Trusts vs. Portability Enabled Trusts A. The Advantages of Portability Four significant advantages of electing portability, as opposed to using a traditionally structured trust, include (1) simplicity, (2) flexibility, (3) a second step-up in basis and (4) full use of residence capital gains tax exclusion (by allocating to the Survivor s Trust). 1. Simplicity Electing portability offers administrative simplicity in that all assets are transferred together into one sub-trust, typically called a Survivor s Trust. This sub-trust is revocable, meaning the surviving spouse controls the beneficiary designation of all assets. Such unfettered access and control eliminates the complication of allocating assets to multiple sub-trusts, which can be particularly challenging in the case of illiquid assets. Furthermore, there are no irrevocable sub-trusts, 3 Continued on next page.
4 which eliminates the administrative burden of filing for tax identification numbers, annual tax returns specific to the sub-trust, and separate accounting for the sub-trusts. 2. Flexibility If portability is elected, the surviving spouse has the flexibility to decide when to use the deceased spouse s unused estate and gift tax exemption amount. For lifetime gifting purposes, the surviving spouse can use the exemption immediately by making a disclaimer or a partial QTIP election, or at any future time, provided the laws on portability have not changed. Portability is lost when a surviving spouse remarries, if the new spouse dies before the surviving spouse used the deceased spouse s unused exemption. Comparatively, in a traditional family trust, that decision to use the deceased spouse s unused exemption is made at the time the living trust is initially created and is determined under a QTIP marital deduction formula in the trust instrument. The surviving spouse has no flexibility; the sub-trusts must be created, assets must be divided and allocated, and annual tax returns must be filed for the irrevocable trusts. 3. Second Step-Up in Basis Electing portability allows the surviving spouse to keep all assets in a Survivor s Trust or a Qualifying QTIP Trust, which keeps the assets treated as part of the surviving spouse s estate. Thus, there is a second step-up 7 in basis for all assets in the trusts at the surviving spouse s death. Comparatively, under a traditional trust structure, the assets funded to a Bypass Trust are automatically excluded from the surviving spouse s estate and thus do not receive a second stepup in basis. Consequently, in electing portability, there is a step-up in basis for potentially more appreciating assets than would be eligible under the traditional family trust. 4. Full Use of Residence Capital Gains Tax Exclusion In the case of the traditional trust, there are circumstances in which the residence may be allocated in part to a Bypass Trust. When this occurs, the surviving spouse will not be able to use the full amount of the residence capital gains tax exclusion. 8 However, if portability is elected, the entire residence can remain in the Survivor s Trust, and thus be treated as part of the surviving spouse s estate, allowing eligibility for the entire residence capital gains tax exclusion amount. In this circumstance, portability can save the surviving spouse up to $250,000 in tax exclusion from capital gains tax if the residence is sold and has a capital gain. B. The Disadvantages of Portability On the other hand, electing portability has notable disadvantages, such as: 1. Risk of Losing Exemption In not using the decedent spouse s unused exemption immediately, the surviving spouse assumes the risk that the exemption may be lost in its entirety upon remarriage (if the new spouse dies before the surviving spouse) or with a future law change. 2. Taxable Appreciation When portability is elected, the appreciation realized between the deceased and surviving spouses deaths is taxable with respect to the entire estate. Comparatively, in a traditional family trust, post-death appreciation on assets and income held in a Bypass Trust is not subject to estate tax at the death of the surviving spouse. 3. No Asset Protection for Surviving Spouse Given the premise that portability enabled trusts maintain their revocability, all assets in the estate are accessible to creditors of the surviving spouse, unless those assets are disclaimed to an irrevocable trust such as a QTIP Trust or Bypass Trust. 4. Filing Requirement Even if no federal estate tax is due on the deceased spouse s death, in order to claim the portability election, the surviving spouse must prepare and file IRS Form 706 within 9 months (or 15 months if extension is timely filed), of the deceased spouse s death. 5. Portability is Not Indexed The exemption amount which can be ported is conclusively determined at the time of the deceased spouse s death and not adjusted for subsequent inflation. Thus, while the assets on which the estate tax need be paid may be appreciating in value, the amount of the available exemption ported from the deceased spouse is not. Additionally, assets in a Bypass Trust are excluded from the surviving spouse s estate no matter how much they appreciate. Therefore, in some circumstances it may be advantageous to use the ported exemption through lifetime gifting so to maximize the amount of exemption applied to the assets likely to appreciate. 6. Distribution Susceptible to Change In addition to tax planning concerns, portability-enabled trusts also require that attention be given to familial relationships. Because portability often empowers a surviving spouse to alter the final distribution of the couple s assets, the distribution that the deceased spouse expected, may change at the direction of the 4 Continued on next page.
5 surviving spouse. This is particularly relevant in families including children of previous marriages, as a surviving spouse may be inclined to redistribute assets favorable to the surviving spouse s children at the expense of the deceased spouse s children. Thus, giving the surviving spouse this unrestricted control may come at the expense of a distribution contrary to the expectations and wishes of the deceased spouse. C. A Comparative Analysis Given the advantages and disadvantages of each approach, the estate or tax planning professional must balance financial and familial concerns to determine which avenue is best for each couple. Consider Net Worth and Composition of Net Worth In determining whether or not to recommend a portabilityenabled trust, an analysis must be conducted on the client s net worth and the composition of that net worth. For example, if a client has a substantial net worth that will undoubtedly yield significant estate taxes, and that net worth is primarily based in real estate, then the portability-enabled trust which allows for a second step-up in real property basis is extremely advantageous. The particular situation and the specific numbers must be analyzed to determine if a second step-up in basis is greater than the tax savings of excluding assets from appreciation. As previously explained, a taxpayer who elects portability can gain a second step-up in basis on up to $5.25M 9 worth of assets. However, that same taxpayer then foregoes the benefit of excluding from estate tax the appreciation of up to $5.25M of assets. Thus, to determine which is more advantageous, the numbers must be crunched and the specific situation must be considered (i.e., consider the expected amount of appreciation, the anticipated time between deaths of spouse, etc.) Family History In addition to the extremely important tax consequences of choosing one structure over another, it is equally important to consider family social dynamics. In stratified families containing children of previous marriages, the social dynamic can play a significant role in the spouse s decision to elect portability. Specifically, if a spouse wishes to ensure the beneficiaries of his or her portion of the estate, then the spouse must elect a traditional trust or a portability-enabled Revocable Family Trust with a QTIP Trust where that spouse s assets will be irrevocably distributed to the beneficiaries of his or her choosing. Only if one spouse has ultimate trust in the other spouse, can they proceed with a portability-enabled trust. The monetary and social considerations are extremely complex, and no one formula can be ascertained for all families. All estate plans must be individually tailored to the particularities of each family s concerns and desires. Portability, if well understood, has the power to furnish families with tax savings and administrative efficiencies not previously available under the traditionally structured trusts. 1 Under Rev. Rul , the terms spouse, husband and wife, husband and wife include, for federal income tax purposes, an individual married to a person of the same sex if the individuals are lawfully married under state law. Thus, references to a spouse, husband, or wife in this article also apply to same-sex couples if lawfully married under state law, even if not residing in that state at death. 2 For the purposes of this article, reference to the exemption amount is specific to 2013, where the unified estate and gift tax exemption is $5,250,000 per person thus, $10,500,000 in the aggregate for a married couple. This is an inflation-indexed figure adjusted from year to year. 3 Living trusts are created during the settlors joint lifetimes as compared with testamentary trusts established under wills after death. Testamentary trusts may also incorporate portability. 4 QTIP means Qualified Terminable Interest Property eligible for the federal estate tax marital deduction. QTIP assets are held in a QTIP Trust. 5 For federal estate and gift tax purposes, a disclaimer must be made by the surviving spouse within nine months after the deceased spouse s death. 6 A QTIP Trust is an irrevocable trust where the surviving spouse mandatorily gets all the net income and is the sole beneficiary. The surviving spouse, as trustee, may choose to elect this marital deduction for some or all of the property allocated to the QTIP Trust. If a partial election is made, then that property will be allocated to the Qualifying QTIP Trust and get a new step-up in basis at the death of the surviving spouse. The balance of the property will be allocated to the Non-Qualifying QTIP and use up some or all of the deceased spouse s lifetime exemption. The partial election is distinguished from the reverse QTIP election made for generation-skipping transfer tax exemption allocation purposes (see text, infra). 7 Technically, there is a new basis equal to the value at the surviving spouse s death. If the value is greater than when the first spouse dies, this is called a step-up in basis. If the value is less, this is a step-down in basis. 8 The principal residence capital gains exclusion is currently $250,000. You are eligible for the exclusion if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale. Generally, you are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home. 9 Technically, there is a new basis equal to the value at the surviving spouse s death. If the value is greater than when the first spouse dies, this is called a step-up in basis. If the value is less, this is a step-down in basis. 5
6 Contact Us If you have any questions about this article, please do not hesitate to contact us. Telephone: (213) Website: Currents is intended to be educational only. It is designed to provide our clients and friends with the discussion of current topics and legal authorities as applied to those topics. Currents is not intended to constitute legal advice or provide any opinion about the application of such legal authorities to a particular circumstance, set of facts or situation. In addition, that you have received transmission of Currents does not create any relationship of attorney and client between Clark & Trevithick, PLC and you. Clark & Trevithick, PLC is a full service law firm representing clients throughout California and western states for more than three decades. Our practice includes specialization in federal and state taxation law and tax reporting compliance, as well as estate planning for owners of closely-held businesses and other high net worth individuals. We also counsel on the sale of closely-held businesses. We develop methods for transferring wealth to surviving spouses and descendants by the most efficient and tax-advantaged methods available. Our practice profile also includes corporate, real estate, litigation, creditors rights and remedies, white collar crime and employment law matters. CIRCULAR 230 DISCLOSURE TO COMPLY WITH INTERNAL REVENUE SERVICE REQUIREMENTS, PLEASE BE ADVISED THAT ANY TAX ADVICE CONTAINED IN THIS EDITION OF CURRENTS IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY THE RECIPIENT TO AVOID ANY FEDERAL TAX PENALTY THAT MAY BE IMPOSED UPON THE RECIPIENT, OR TO PROMOTE, MARKET OR RECOMMEND TO ANY OTHER PERSON OR ENTITY, ANY REFERENCED ENTITY, INVESTMENT PLAN OR ARRANGEMENT. FOR MORE INFORMATION, PLEASE GO TO Clark & Trevithick. All Rights Reserved. Unless otherwise indicated, all materials are copyrighted by Clark & Trevithick. The reproduction, modification or distribution of these materials is strictly prohibited without prior written permission. 6
By Edward L. Perkins, JD, LLM. CPE CREDIT - 1.0 Hour of Interactive Self-Study
Estate Planning After the Tax Relief Act of 2010 What to Do? By Edward L. Perkins, JD, LLM CPE CREDIT - 1.0 Hour of Interactive Self-Study FIELD OF STUDY - Taxation PROGRAM LEVEL - Intermediate PREREQUISITE
More informationADVANCED PLANNING CONCEPTS IN LIGHT OF THE AMERICAN TAXPAYER RELIEF ACT (October 11, 2013)
ADVANCED PLANNING CONCEPTS IN LIGHT OF THE AMERICAN TAXPAYER RELIEF ACT (October 11, 2013) By: Phoebe Moffatt, Attorney CERTIFIED AS A SPECIALIST IN ESTATE AND TRUST LAW STATE BAR OF ARIZONA BOARD OF LEGAL
More informationBypass Trusts: Obsolete Bygones or Too Good to Pass Up?
Checkpoint Contents Tax News Journal Preview (WG&L) Estate Planning Journal Bypass Trusts: Obsolete Bygones or Too Good to Pass Up?, Estate Planning Journal BYPASS TRUSTS Bypass Trusts: Obsolete Bygones
More informationHow To Make A Credit Shelter Trust A Tax Free Trust
Does the American Taxpayer Relief Act Eliminate the Need for Credit Shelter Trusts? By: George L. Schoenbeck, Sosin & Arnold, Ltd. Regardless of their areas of focus, most lawyers find themselves working
More informationHow To Fund A Marital Deduction Trust
Estate Tax Relief, Income Tax Headache: Estate Planning and the American Taxpayer Relief Act Thanks to the American Taxpayer Relief Act, a married couple with a properly structured estate can pass more
More informationNew Portability Rules: A Cure for Incomplete Estate Planning
New Portability Rules: A Cure for Incomplete Estate Planning Many CPAs are involved in representing estates of decedents who died in 2011 and 2012. In dealing with such estates, it is important to focus
More informationBypass Trust (also called B Trust or Credit Shelter Trust)
Davis & Graves CPA LLP Jerry Davis, CPA/PFS 700 N Main Gresham, OR 97009 503-665-0173 jerryd@davisgraves.com www.jjdcpa.com Bypass Trust (also called B Trust or Credit Shelter Trust) Page 1 of 9, see disclaimer
More informationCOOPERMAN LESTER MILLER CARUS LLP ATTORNEYS-AT-LAW 1129 NORTHERN BOULEVARD MANHASSET, NY 11030 (516) 365-1400 FAX: (516) 365-1404 www.clmclaw.
irect Di COOPERMAN LESTER MILLER CARUS LLP ATTORNEYS-AT-LAW 1129 NORTHERN BOULEVARD MANHASSET, NY 11030 (516) 365-1400 FAX: (516) 365-1404 www.clmclaw.com CLIENT MEMORANDUM NEW YORK CITY OFFICE 767 THIRD
More informationMinimum Distributions & Beneficiary Designations: Planning Opportunities
28 $ $ $ RETIREMENT PLANS The rules regarding distributions and designated beneficiaries are complex, but there are strategies that will help minimize income and estate taxes. Minimum Distributions & Beneficiary
More informationThe Basics of Estate Planning
The Basics of Estate Planning Introduction The process of estate planning can be a daunting prospect. Often individuals will avoid the process altogether. Obviously, this is not the best approach since
More informationGift and estate planning: Opportunities abound
Gift and estate planning: Opportunities abound Vanguard research July 2013 Executive summary. Under federal gift and estate tax rules, individuals can potentially make significant gifts that are exempt
More informationEstate Planning 101: The Importance of Developing an Estate Plan
Estate Planning 101: The Importance of Developing an Estate Plan SAN JOSE TEN ALMADEN BLVD. ELEVENTH FLOOR SAN JOSE, CA 95113 408.286.5800 MERCED 2844 PARK AVENUE MERCED, CA 95348 209.385.0700 MODESTO
More informationThe Perils and Prospects of Portability
Gift and Estate Tax Planning Insights The Perils and Prospects of Portability Jeffrey M. Cheyne, Esq. With the passage of federal tax relief laws in recent years, the porting of unused federal estate tax
More informationEstate and Gift Tax Planning: 2013 Update
Estate and Gift Tax Planning: 2013 Update Moira S. Laidlaw, Esq. Two Depot Plaza, Suite 203 Bedford Hills, New York 10507 mlaidlaw@laidlawfirm.com Disclaimer This is an overview not a complete statement
More informationPORTABILITY INHERITING THE SPOUSE S ESTATE TAX EXEMPTION Les Raatz, Esq. Dickinson Wright PLLC 602-285-5022 lraatz@dickinsonwright.
PORTABILITY INHERITING THE SPOUSE S ESTATE TAX EXEMPTION Les Raatz, Esq. Dickinson Wright PLLC 602-285-5022 lraatz@dickinsonwright.com April 25, 2014 TABLE OF CONTENTS Pros and Cons of Portability....
More informationPortability of a Deceased Spouse s Unused Exclusion Amount
Wealth Strategy Report Portability of a Deceased Spouse s Unused Exclusion Amount OVERVIEW The concept informally known as portability is now permanent as a result of the enactment of the American Taxpayer
More informationAMBRECHT & ASSOCIATES
AMBRECHT & ASSOCIATES TAX AND ESTATE PLANNING ATTORNEYS JOHN W. AMBRECHT, JD, MBA, LLM 1224 COAST VILLAGE CIRCLE, SUITE 32 BROOKE T. CLEARY, JD, LLM SANTA BARBARA, CA 93108 PARALEGALS: (ADMITTED ALSO IN
More informationU.S. GIFT (AND GENERATION-SKIPPING TRANSFER) TAX RETURN CHECKLIST 2013- FORM 709 (For Gifts Made During Calendar Year 2013)
U.S. GIFT (AND GENERATION-SKIPPING TRANSFER) TAX RETURN CHECKLIST 2013- FORM 709 (For Gifts Made During Calendar Year 2013) ClientName: Client Number: Prepared by: Date: Reviewed by: Date: 100) GENERAL
More information2010 Tax Relief Act: Estate, Gift and Generation Tax Provisions
Estate, Gift and Generation Tax Provisions On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the 2010 Tax Relief
More informationTHE FUTURE OF ESTATE PLANNING - 2012 AND BEYOND
THE FUTURE OF ESTATE PLANNING - 2012 AND BEYOND By Edward L. Perkins, JD, LLM (Tax), CPA I. The New Estate Planning Reality A. The Return of the Federal Estate Tax, et al. 1. The Estate Tax Returns After
More informationCreating a Lasting Legacy
Picture Placeholder Creating a Lasting Legacy Strategies for effective estate and tax planning Jim Alverson, Director Wealth Planning Strategies Welcome to today s presentation This presentation (including
More informationESTATE PLANNING AND IRAs
ESTATE PLANNING AND IRAs The Selection of a Traditional IRA Beneficiary Presented by Edward Jones Trust Company This outline was intended solely to facilitate discussion regarding certain estate planning
More informationHERMENZE & MARCANTONIO LLC ESTATE PLANNING PRIMER FOR MARRIED COUPLES 2015 (New York)
HERMENZE & MARCANTONIO LLC ESTATE PLANNING PRIMER FOR MARRIED COUPLES 2015 (New York) I. Purposes of Estate Planning. II. A. Providing for the distribution and management of your assets after your death.
More informationTHE USE OF LIVING TRUSTS IN ESTATE PLANNING
THE USE OF LIVING TRUSTS IN ESTATE PLANNING Margaret M. Hand Law Offices of Margaret M. Hand, PC 1939 Harrison Street, Suite 200 Oakland, California 94612 (510) 444-6044 (510) 444-7044 email@handlaw.com
More informationTax Alert Fall 2014. **Action May Be Required** The following laws were recently passed and may affect your current estate plan:
Page 1 of 6 Tax Alert Fall 2014 **Action May Be Required** Below please find an overview of several significant changes to the Federal and State Estate and Gift Tax laws. The law changes affect many estate
More informationFEDERAL AND NEW JERSEY ESTATE TAX UPDATE
FEDERAL AND NEW JERSEY ESTATE TAX UPDATE January 18, 2011 Presented by: Brian D. Reynolds, Esq. MANTELL & PRINCE, P.C. Mountain Heights Center at Berkeley Heights 430 Mountain Avenue Murray Hill, New Jersey
More informationGIFTS: THE KEY TO ESTATE TAX SAVINGS
GIFTS: THE KEY TO ESTATE TAX SAVINGS THE LAW FIRM OF ELLEN M. WINKLER 58 Atlantic Avenue Marblehead, MA 01945 Tel. 781-631-6404 Fax 781-631-7338 www.emwinklerlaw.com Estate taxes can take a significant
More informationMarital Deduction Revocable Trusts: Funding Formulas to Minimize Tax and Maximize Spousal Benefits
Presenting a live 90-minute webinar with interactive Q&A : Funding Formulas to Minimize Tax and Maximize Spousal Benefits Selecting, Structuring, and Applying Pecuniary Marital, Non-Marital and Fractional
More informationLIFE INSURANCE TRUSTS
LIFE INSURANCE TRUSTS Robert M. Mendell, JD, CPA* Robert M. Mendell, Attorney at Law, P.C. 908 Town & Country Blvd. Suite 120 Houston, Texas 77024 (713) 888-0700 Fax: (713) 888-0800 Email: rmendell@mendellgroup.com
More informationTRACY CHRISTEN REIMANN, P.C.
TRACY CHRISTEN REIMANN ATTORNEY AT LAW (ALSO ADMITTED IN NJ & DC) TRACY CHRISTEN REIMANN, P.C. 376 ROUTE 202 SOMERS, NY 10589 TEL (914) 617-8447 FAX (914) 801-5909 E-Mail: reimannlaw@optonline.net www.tcreimannlaw.com
More informationTHE ADVISOR. An Estate Planning Publication from The Law Office of Stephen Bezaire SOME CLARITY CONCERNING FEDERAL ESTATE TAXES
THE ADVISOR 2700 E. Foothill Blvd, Ste 306, Pasadena, CA 91107 (626) 585-6970 Spring 2013 An Estate Planning Publication from The Law Office of Stephen Bezaire SOME CLARITY CONCERNING FEDERAL ESTATE TAXES
More informationChapter 6. Use of the Marital Deduction in Estate Planning
Chapter 6 Use of the Marital Deduction in Estate Planning Overview The marital deduction, considered by many the most important estate tax saving device available, provides a deduction from the adjusted
More informationThe Basics of Estate Planning
The Basics of Estate Planning A White Paper by Manning & Napier www.manning-napier.com Unless otherwise noted, all fi gures are based in USD. 1 The Basics of Estate Planning A White Paper by Manning &
More informationBefore the Door Closes
Before the Door Closes With significant tax provisions set to expire at year end, planning now can capture these unique opportunities before they may disappear by Richard James and Steven Lavner The temporary
More informationEstate Tax Exclusion Portability: Policy to Planning Ideas
Checkpoint Contents Estate Planning Library Estate Planning Journals Estate Planning Journal (WG&L) Estate Planning Journal 2012 Volume 39, Number 10, October 2012 Articles Estate Tax Exclusion Portability:
More informationEstate Planning Basics. An Overview of the Estate Planning Process
Estate Planning Basics An Overview of the Estate Planning Process What Is an Estate Plan? An estate plan is a map This map reflects the way you want your personal and financial affairs to be handled in
More informationMILLER, MONSON, PESHEL, POLACEK & HOSHAW A PARTNERSHIP OF PROFESSIONAL LAW CORPORATIONS NEWSLETTER
A PARTNERSHIP OF PROFESSIONAL LAW CORPORATIONS NEWSLETTER 501 WEST BROADWAY, SUITE 700 SAN DIEGO, CALIFORNIA 92101-3563 TELEPHONE: (619) 239-7777 FAX NUMBER (619) 238-8808 April 2011 FIRM NEWS: The Ralph
More informationLegacy Conference Dec. 2-3 in Kansas City, Mo.
Estate Tax Provisions: Key Strategies Legacy Conference Dec. 2-3 in Kansas City, Mo. Paul Neiffer, CPA December 2 & 3, 2014 Speaker Introduction Paul Neiffer, Principal, CliftonLarsonAllen Frequent national
More informationAdvisory. Will and estate planning considerations for Canadians with U.S. connections
Advisory Will and estate planning considerations for Canadians with U.S. connections Canadian citizens and residents may be exposed to U.S. estate, gift, and generation-skipping transfer tax (together,
More informationFinal Affairs: (Estate) Planning is a Good Thing
Final Affairs: (Estate) Planning is a Good Thing Senior Ministries of the Episcopal Diocese of Newark St. Luke s Episcopal Church Montclair, NJ March 14, 2015 Lance T. Eisenberg, Esq. Berkowitz, Lichtstein,
More informationChapter 18 GENERATION-SKIPPING TRANSFER TAX
Chapter 18 GENERATION-SKIPPING TRANSFER TAX WHAT IS IT? This chapter discusses the generation-skipping transfer tax and planning with generation-skipping transfers, including the use of generation-skipping
More informationbpq^qbi=dfcq=^ka=dbkbo^qflkjphfmmfkd== molsfpflkp=lc=qeb=q^u=obifbci== rkbjmilvjbkq=fkpro^k`b=^rqelofw^qflki=
bpq^qbi=dfcq=^ka=dbkbo^qflkjphfmmfkd== molsfpflkp=lc=qeb=q^u=obifbci== rkbjmilvjbkq=fkpro^k`b=^rqelofw^qflki= ^ka=gl_=`ob^qflk=^`q=lc=omnm== E qeb=q^u=obifbc=^`qòf= John H. Turner, III Phone 804.420.6480
More informationMaking life work for estate planning
Life insurance opportunities Making life work for estate planning Financial professional s guide m A Securian Company The Tax Relief Act of 2010 significantly changed the federal transfer tax system, including
More informationRETIREMENT PLANNING FOR THE SMALL BUSINESS
RETIREMENT PLANNING FOR THE SMALL BUSINESS PI-1157595 v1 0950000-0102 II. INCOME AND TRANSFER TAX CONSIDERATIONS A. During Participant s Lifetime 1. Prior to Distribution Income tax on earnings on plan
More informationRobert J. Ross 1622 W. Colonial Parkway, Suite 201 (847) 358-5757 Inverness, Illinois 60067 Fax (847) 358-7088 Bob@RobertJRoss.com
Law Offices of Robert J. Ross 1622 W. Colonial Parkway, Suite 201 (847) 358-5757 Inverness, Illinois 60067 Fax (847) 358-7088 Bob@RobertJRoss.com ESTATE PLANNING Estate planning is more than simply signing
More informationPortability of the Deceased Spousal Unused Exclusion Amount under the Tax Relief Act of 2010. Connecticut Bar Association Estates & Probate Section
Portability of the Deceased Spousal Unused Exclusion Amount under the Tax Relief Act of 2010 Bryon W. Harmon Shipman & Goodwin LLP bharmon@goodwin.com Connecticut Bar Association Estates & Probate Section
More informationPortability or No: The Death of the Credit-Shelter Trust?
Checkpoint Contents Federal Library Federal Editorial Materials WG&L Journals Journal of Taxation (WG&L) Journal of Taxation 2013 Volume 118, Number 05, May 2013 Articles Portability or No: The Death of
More informationAdministrator. Any person to whom letters of administration have been issued to administer an intestate estate.
An Estate Planning Glossary The estate planning process is a complex one. During the course of your research into the firm to choose to handle your needs in administering your assets you will hear numerous
More informationTax Effective Cross-Border Will Planning
Tax Effective Cross-Border Will Planning Martin Rochwerg Partner Federated Press Cross-Border Personal Tax Planning February 27-28, 2012 DISCLAIMER 1. We are not U.S. lawyers or tax advisors. 2. This presentation
More information2014 CHANGES TO NEW YORK'S ESTATE, GIFT, AND TRUST INCOME TAXES (REVISED)
2014 CHANGES TO NEW YORK'S ESTATE, GIFT, AND TRUST INCOME TAXES (REVISED) Effective April 1, 2014, the 2014-201 5 budget legislation (the "Executive Budget") makes significant changes to New York's estate
More informationTax Relief, Unemployment Insurance Re- Authorization and Job Creation Act of 2010 Generation Skipping Transfer-Tax Issues Estate and Gift Tax Planning
Tax Relief, Unemployment Insurance Re- Authorization and Job Creation Act of 2010 Generation Skipping Transfer-Tax Issues Estate and Gift Tax Planning Robert A. DeVellis, Esq. Blair & Potts, PC 281 Tresser
More informationFunding Options. Life Insurance:
Living Trusts There are several disadvantages of wills. Wills go through probate and probate can be expensive. It can cause lengthy delays in the distribution of property to your heirs. Your will is open
More informationIN THIS ISSUE: March, 2011 j Planning with the $5 Million Gift Tax Exemption
IN THIS ISSUE: Federal Gift, Estate and GST Exemptions and Tax Rates New York State Gift & Estate Tax March, 2011 j Planning with the $5 Million Gift Tax Exemption By: Louis W. Pierro, Esq., Philip A.
More informationModern Estate Planning Made Easy
Modern Estate Planning Made Easy Presented March 9, 2011 By Mark J. Bradley Ruder Ware 800-477-8050 mbradley@ruderware.com Ruder, Ware, L.L.S.C. 500 First Street, Suite 8000 P.O. Box 8050 Wausau, WI 54402-8050
More informationEstate Planning After the American Taxpayer Relief Act of 2012
Estate Planning After the American Taxpayer Relief Act of 2012 By: Dean Mead P.A. 1 Matthew J. Ahearn, Esq. David J. Akins, Esq. Lauren Y. Detzel, Esq. Brian M. Malec, Esq. March 19, 2013 I. The Law Prior
More informationEstate Planning Basics
MORELLA & ASSOCIATES A Professional Corporation 706 Rochester Road Pittsburgh, PA 15237 (412) 369-9696 Fax (412) 369-9990 http://www.morellalaw.com ESTATE PLANNING What is Estate Planning? Estate Planning
More informationEstate Tax Concepts. for Edward and Tina Collins
Estate Tax Concepts for Edward and Tina Collins Joseph Davis, CLU, ChFC 215 Broad Street Charlotte, North Carolina 26292 Phone: 704-927-5555 Mobile Phone: 704-549-5555 Fax: 704-549-6666 Email: joseph.davis@aol.com
More informationPlanning your estate
Planning your estate A general guide to estate planning Policies issued by: American General Life Insurance Company The United States Life Insurance Company in the City of New York What is estate planning?
More informationRevocable Trusts WHAT IS A REVOCABLE TRUST?
Revocable Trusts The Revocable Trust (often referred to as a Living Trust ) is a popular and effective estate planning technique used throughout the United States. Its advantages (and disadvantages) should
More informationPrivate Wealth Management Trust & Estate Insights
Private Wealth Management Trust & Estate Insights March 2011 In This Issue Taking Advantage of the Increased Gift Tax Exemption Key Takeaways: The federal gift tax exemption has risen from $1 million per
More informationWealth transfer and gifting strategies. A guide to lifetime gifts. Life s better when we re connected
Wealth transfer and gifting strategies A guide to lifetime gifts Life s better when we re connected Index 3 Introduction 4 Transfer tax basics 5 An overview of the federal gift tax system 6 Outright gifts
More informationSpousal Access Trust Makes Use of Enlarged Gift Tax Exemption
Spousal Access Trust Makes Use of Enlarged Gift Tax Exemption Properly drafted mutual trusts let couples take advantage of the $5.12 million gift tax exemption before it expires, without relinquishing
More informationEstate Planning For Everyone
Estate Planning For Everyone Boston College Shaw Society Boston College Alumni Association November 20, 2013 Michael J. Puzo, Esq. Hemenway & Barnes LLP 60 State Street Boston, Massachusetts 02109 617-557-9721
More informationEstate Planning in Decoupled States Post-ATRA
feature: By Bruce D. Steiner & Martin M. Shenkman Estate Planning in Decoupled States Post-ATRA One of the biggest challenges may be helping clients understand the complexities involved One of the more
More informationSales Strategy Estate Planning for Non-Citizens in the United States
Sales Strategy Estate Planning for Non-Citizens in the United States SINGLE LIFE SPOUSAL ACCESS TRUST: A LIFE INSURANCE ALTERNATIVE As large numbers of people from other countries settle in the United
More informationEstate Planning and Oil and Gas Leasing
July 2010 1 Estate Planning and Oil and Gas Leasing 700 Security Mutual Building 80 Exchange Street Binghamton, New York 13902-5250 (607) 723-5341 Wilbur (Bud) D. Dahlgren, Esq. Jon J. Sarra, Esq. Ryan
More informationThe Role of Credit Shelter Trusts Under the New Estate Tax Law
Page 1 of 8 Checkpoint Contents Tax News Journal Preview (WG&L) Estate Planning Journal The Role of Credit Shelter Trusts Under the New Estate Tax Law, Estate Planning Journal CREDIT SHELTER TRUSTS The
More informationThe New Era of Wealth Transfer Planning #1. American Taxpayer Relief Act Boosts Life Insurance. For agent use only. Not for public distribution.
The New Era of Wealth Transfer Planning #1 American Taxpayer Relief Act Boosts Life Insurance For agent use only. Not for public distribution. In January 2013 Congress stepped back from the fiscal cliff
More informationMEMORANDUM. Barber, Emerson, L.C. BENEFICIARY DESIGNATIONS FOR QUALIFIED PLANS
MEMORANDUM Barber, Emerson, L.C. BENEFICIARY DESIGNATIONS FOR QUALIFIED PLANS This memorandum generally explains several principles applicable to qualified plan beneficiary designations. This memorandum
More informationPlanning Update for Married Same-Sex Couples
Client Alert August 2013 Planning Update for Married Same-Sex Couples On June 26, 2013, in Windsor v. U.S., the United States Supreme Court ruled that Section 3 of the Defense of Marriage Act (DOMA) was
More informationAdvanced Markets Estate Planning for Non-Citizens in the United States
Estate Planning for Non-Citizens in the United States SINGLE LIFE SPOUSAL ACCESS TRUSTS: A LIFE INSURANCE ALTERNATIVE As large numbers of people from other countries settle in the United States (U.S.),
More informationSpousal Access Trusts Access To Cash Value Potential Through Flexible Trust Planning
SALES STRATEGY Guiding you through life. ESTATE PLANNING Spousal Access Trusts Access To Cash Value Potential Through Flexible Trust Planning The Concerns Many clients who are concerned about maximizing
More informationU.S. Tax and Estate Planning Issues for Canadians with U.S. Assets or U.S. Citizenship
U.S. Tax and Estate Planning Issues for Canadians with U.S. Assets or U.S. Citizenship May 28, 2014 Cheyenne J.H. Reese Christine M. Muckle Legacy Tax + Trust Lawyers Smythe Ratcliffe U.S. Residency Issues
More informationthe benefits of anestate Plan
the benefits of anestate Plan Supporting UC Berkeley while ensuring your personal, financial, and philanthropic goals An effective estate plan reflects your life and values. Why you need an estate plan.
More informationOverview of Different Types of Trusts
Overview of Different Types of Trusts Living Trusts The living trust is very popular in America. A living trust helps you avoid the cost and delay of probate. You can also avoid the dangers from jointly
More informationTaking Advantage of the New Gift and Estate Tax Law
product resource Taking Advantage of the New Gift and Estate Tax Law summary tra 2010 in brief Congressional debate about whether to extend tax cuts put into place during the Bush administration came to
More informationREVOCABLE LIVING TRUST
CHERRY CREEK CORPORATE CENTER 4500 CHERRY CREEK DRIVE SOUTH, SUITE 600 DENVER, CO 80246-1500 303.322.8943 WWW.WADEASH.COM DISCLAIMER Material presented on the Wade Ash Woods Hill & Farley, P.C., website
More information2012 Estate/Gift Tax Overview
Investment and Estate Planning Opportunities for High Net Worth Individuals in 2013 Presented By:, March 20, 2013 Phone: (920) 593-1701 E-mail: robert.keebler@keeblerandassociates.com Circular 230 Disclosure:
More informationStrategies for Trusts and Estates in New York Leading Lawyers on Analyzing Recent Developments and Navigating the Estate Planning Process in New York
I N S I D E T H E M I N D S Strategies for Trusts and Estates in New York Leading Lawyers on Analyzing Recent Developments and Navigating the Estate Planning Process in New York 2014 EDITION 2014 Thomson
More informationESTATE PLANNING OUTLINE
ESTATE PLANNING OUTLINE By LEONARD S. ROTH Attorney and Counselor at Law The Law Offices of Leonard S. Roth, P.C. 4265 San Felipe, Fifth Floor Houston, Texas 77027 (713) 622-4222 Board Certified in Tax
More informationAdvanced Designs. Pocket Guide. Spousal Lifetime Access Trusts (SLATs) with Life Insurance AD-OC-795B
Advanced Designs Pocket Guide Spousal Lifetime Access Trusts (SLATs) with Life Insurance AD-OC-795B This material is not intended to be used, nor can it be used by any taxpayer, for the purpose of avoiding
More informationIRA PLANNING ALTERNATIVES Carl S. Rosen
BROAD AND CASSEL ATTORNEYS AT LAW SPRING/SUMMER 1999 BOCA RATON FT. LAUDERDALE MIAMI ORLANDO TALLAHASSEE TAMPA WEST PALM BEACH CHARITABLE LEAD TRUSTS CAN PROVIDE GREAT BENEFITS Kenneth Edelman A Charitable
More informationPresentations also allow you to add an introductory note specifically for the client receiving the presentation.
Firm Name Team Name (if one) CPA Planner Name, Credentials Title Street Address City, NY 13160 Phone number xext # Alternate phone # address@email.com website URL Estate Tax Presentations also allow you
More informationAMERICAN JOURNAL OF FAMILY LAWYERS PRE & POST NUPTIAL AGREEMENTS GENERAL ESTATE PLANNING ISSUES
AMERICAN JOURNAL OF FAMILY LAWYERS PRE & POST NUPTIAL AGREEMENTS GENERAL ESTATE PLANNING ISSUES BETH S. COHN, ESQ. JABURG & WILK, P.C. 3200 N. Central Avenue, Suite 2000 Phoenix, Arizona 85012 Direct Dial
More informationBARBER EMERSON, L.C. MEMORANDUM ESTATE FREEZING THROUGH THE USE OF INTENTIONALLY DEFECTIVE GRANTOR TRUSTS
BARBER EMERSON, L.C. MEMORANDUM ESTATE FREEZING THROUGH THE USE OF INTENTIONALLY DEFECTIVE GRANTOR TRUSTS I. INTRODUCTION AND CIRCULAR 230 NOTICE A. Introduction. This Memorandum discusses how an estate
More informationEstate Planning Basics
THIS IS AN ADVERTISEMENT Estate Planning Basics Prepared by: John D. Meyers, Jr., Attorney at Law John D. Meyers, Jr., PSC 277 E. High Street, Suite 100 Lexington, Kentucky 40507 859-381-1316 email: john
More informationHow To Plan For A Modern Day Family
TOPIC: What, Me Worry? Using Life Insurance to Simplify Legacy Planning and Minimize Conflicts for Blended Families. MARKET TREND: Families today often involve former and current spouses, children from
More informationBenefits Of An Irrevocable Life Insurance Trust
1 Benefits Of An Irrevocable Life Insurance Trust CHAPTER OVERVIEW Life insurance is the only asset that Congress has bestowed with most favored tax status. 1 No other investment provides the potential
More informationOPTIONAL BASIS ADJUSTMENTS
I. INTRODUCTION OPTIONAL BASIS ADJUSTMENTS As a general rule, a partnership s basis in property is its cost, or in the case of contributed property, the property s adjusted basis in the hands of the contributing
More informationEstate Tax Overview. Emphasis on Generation Skipping Transfers
Estate Tax Overview Emphasis on Generation Skipping Transfers 1 A Brief History - 1916 The Revenue Act of 1916 (39 Stat. 756) created a tax on the transfer of wealth from an estate to its beneficiaries,
More informationE S T A T E P L A N N I N G
E S T A T E P L A N N I N G HANDBOOK Practice Limited to Trusts, Estates, & Elder Law First National Bank Building, Second Floor 135 Section Line Road, Suite C2 Hot Springs, AR 71913 Phone: 501-525-4401
More informationGifting: A Property Transfer Tool of Estate Planning
MontGuide Gifting: A Property Transfer Tool of Estate Planning by Marsha A. Goetting, Ph.D., CFP, CFCS, Professor and Extension Family Economics Specialist; and Joel Schumacher, Extension Economics Associate
More informationAdvanced Document Drafting for the Elder Law Attorney David J. DePinto, Esq., LL.M., CPA, CELA Elective Share Elective Share Issues for Non-Ill Will
Advanced Document Drafting for the Elder Law Attorney David J. DePinto, Esq., LL.M., CPA, CELA DePinto Law Associates, P.C. 445 Broad Hollow Road Suite 230 Melville, New York 11747 (631) 249-8200 ddepinto@depintolawpc.com
More informationThe New Tax Relief Act: How Will You Be Impacted?
STRATEGIC THINKING The New Tax Relief Act: How Will You Be Impacted? The President signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 ( the Act ) on December 17th,
More informationTAX RELIEF ACT UPDATED DECEMBER 29, 2010
2010 TAX RELIEF ACT UPDATED DECEMBER 29, 2010 TAX RELIEF, UNEMPLOYMENT INSURANCE RE-AUTHORIZATION, AND JOB CREATION ACT OF 2010 INTRODUCTION On December 17, 2010, President Obama signed the much-anticipated
More informationEstate Planning Strategies Using Life Insurance In Times of Estate Tax Uncertainty
Estate Planning Strategies Using Life Insurance In Times of Estate Tax Uncertainty This has been prepared by the Marketing Staff of Prudential to assist our producers. It is designed to provide general
More informationWhen an Irrevocable Trust Is Not: Giving New Life to Insurance Trusts
When an Irrevocable Trust Is Not: Giving New Life to Insurance Trusts by Kevin B. Rack Must have independent trustee Take advantage of annual exclusion of $14,000 per beneficiary Requires annual letterwriting
More informationBASIC ESTATE PLANNING AFTER THE TAX RELIEF ACT OF 2010 ( ACT ) NOVEMBER 2, 2011. David L. Higgs Husch Blackwell LLP
BASIC ESTATE PLANNING AFTER THE TAX RELIEF ACT OF 2010 ( ACT ) NOVEMBER 2, 2011 David L. Higgs Husch Blackwell LLP Basic Estate Planning After the Tax Relief Act of 2010 ( Act ) The Act was passed and
More informationEstate Planning for IRAs, 401(k)s, and other Retirement Plan Assets
Estate Planning for IRAs, 401(k)s, and other Retirement Plan Assets Our Attorneys Kevin B. Rack, J.D., LL.M. [TAXATION] Nathan R. Olansen, J.D., CPA, LL.M. [TAXATION] Jennifer L. Moccia, J.D., LL.M. [ESTATE
More informationFederal Estate Tax. MontGuide
Federal Estate Tax by Marsha A. Goetting, Ph.D., CFP, CFCS, Professor and Extension Family Economics Specialist; Joel Schumacher, Extension Associate Economics Specialist, Department of Agricultural Economics
More information