Dynasty Trusts

Friday, March 11, 2011

Press Coverage of Estate Planning this Week (March 11, 2011)

Laura Saunders of the Wall Street Journal reports that the Administration's proposed 2012 federal budget would place limits on the length of Generation Skipping Transfer (GST) tax exemptions to 90 years. She states that chances of passage are slim, but if you are interested in creating trusts that exempt large sums from GST taxes over many generations, now may be the time to put the plan in motion. See Dynasty Trusts Under Attack (Mar. 5, 2011).

Elizabeth Ody of Bloomberg writes about another estate planning method that may become restricted in the near future. Ody writes that Grantor Retained Annuity Trusts (GRAT) have been used by some estate planning attorneys to pass investment gains from children to their parents or grandparents to allow a better quality of life in the parents’ final years. The goal is to allow the transfer without dipping into the child’s lifetime gift-tax exemption. See GRATs Let Children Pass Millions to Mom or Granny Free of U.S. Gift Taxes (Mar. 9, 2011).

Friday, November 12, 2010

Press Coverage of Estate Planning this Week (November 12, 2010)

Teresa McUsic writes in the Star-Telegram (Dallas) about how the holidays are an opportune time to discuss finances with elderly parents, many of whom appreciate assistance with finances from people they know and trust. Questions to consider include: who is the parent’s advisor, where are their assets invested, and is the advisor willing to have the client’s children take part in financial discussions and decision-making? McUsic lists other questions that you may want to address. See Holiday Can Be An Ideal Time To Talk to Your Parents About Their Finances (Nov. 11, 2010).

Asher Rubinstein of Forbes reviews estate planning strategies to consider before the end of 2010. His list includes considering a dynasty trust or a Charitable Remainder Trusts (CRT), and making gifts while gift tax rates are historically low. See Estate Planning Moves To Consider Before 2010 is Done (Nov. 10, 2010).

Paul Sullivan of the New York Times reviews the basics of special needs trusts, which are designed to protect the inheritance of a disabled person who is receiving, or expected to receive, government assistance for basic living expenses. One primary challenge, Sullivan states, is administering them correctly, because money cannot go directly to the disabled person, and cannot be spent on certain living expenses. See Exploring Trusts For The Disabled (Nov. 5, 2010).

Friday, May 08, 2009

Press Coverage of Estate Planning This Week (May 8, 2009)

William Edy of news-press.com discusses a type of trust designed to protect an inheritance over several generations, with asset protection features to guard against your children's divorcing spouses and creditors.  He also compares this trust against a simple will to demonstrate how your children would fare under each scenario.  See Elder Law: Dynasty Trusts Can Protect Children and Grandchildren (May 3, 2009).

Greg Roberts recounts in the Aiken Standard advice regarding wills, specifically what to avoid when making a will.  See Mistakes to Avoid When Making Your Will (May 3, 2009).

Kelly Greene of the Wall Street Journal answers a reader's question regarding finding useful information for planning a funeral in advance.  She also includes some pointers on what to do, and what to avoid.  See Planning for Your Funeral: Here's a Guide for Smart Shopping (May 2, 2009).