Estate Plan Review

Friday, December 31, 2010

Press Coverage of Estate Planning this Week (December 31, 2010)

Janet Novack and Ashlea Eberling of Forbes encourage readers to review their estate planning in light of the new tax law, and for those without any estate planning to have at least a will, a power of attorney for finances, a power of attorney for health care, and a living will. They also recommend planning for state estate taxes (Vermont has its own estate tax), making gifts while you are still living, and keeping an eye on income taxes by maximizing the step up in cost basis for certain assets. See Rewrite Your Will (Dec. 31, 2010).

Deborah L. Jacobs of Forbes provides a question and answer format regarding the new portability provisions in the estate tax law. Information includes what portability is, when portability is applicable, what might happen if the surviving spouse remarries, and whether portability impacts whether a credit shelter trust is necessary. See Married Couple’s Guide to the New Estate Tax Law (Dec. 23, 2010).

Friday, May 28, 2010

Press Coverage of Estate Planning this Week (May 28, 2010)

Robert Frank of the Wall Street Journal notes a proposal to “prepay” estate taxes through “prepayment trusts” is being discussed in Congress as talks to re-instate the federal estate tax continue. Although details are scarce, one proposal would allow people to put assets into a prepayment trust for five years, pay a 35 percent capital gains tax on appreciation, then the trust assets would pass to the owner’s beneficiaries estate tax free. See Proposed Estate Tax: Pay Now, Die Later (May 21, 2010).

Martin Shenkman writes in Financial Planning that clients often defer updating their estate plans because “nothing has changed.” Shenkman points out the many life changes that occur, such as the birth, marriage or death of a family member, or a change in the client’s health or financial status. Additionally, he points out that federal and state laws are constantly changing. To say nothing has changed is “a dangerous excuse for clients to ignore vital changes that could completely undermine their intentions.” See “Nothing Has Changed” (June 1, 2010)

Friday, December 04, 2009

Press Coverage of Estate Planning This Week (December 4, 2009)

John P. Dedon writes in Virginia Business about asset protection for business owners. Included are a checklist of steps to take to protect your business and some considerations regarding personal liability. See Asset Protection for Business Owners in Uncertain Times (Dec. 2, 2009).

Ashlea Ebeling of Forbes.com reviews some estate planning mistakes by celebrities, with advice on where to avoid going wrong. Tips include updating your documents if you move, marry, divorce or have children, and choosing executors carefully. See Estate Mistakes: Where Heath Ledger and Princess Di Went Wrong (Nov. 24, 2009).

Friday, October 23, 2009

Press Coverage of Estate Planning This Week (October 23, 2009)

Laura Saunders of the Wall Street Journal points out that if the estate tax disappears in 2010, as is scheduled to happen under current law, far more people will be caught up in new rules affecting the step up in cost basis that inherited assets receive. Under current rules, beneficiaries typically receive a stepped-up cost basis equal to an asset’s value on the decedent’s date of death. If the estate tax disappears, those rules change and assets retain their original cost basis, which could make for an administrative nightmare, as well as higher capital gains taxes for far more people than are currently impacted by federal estate taxes. See Will the Estate Tax Disappear? (Oct. 22, 2009).

Julia Versau of the Northwest Indiana Times states that even in bad economic times, estate planning is important to protect assets, make sure they go to the right people, at the right time, and at the minimum trouble and expense. See Even in Bad Times, Lawyers Say Estate Planning is a Good Thing (Oct. 21, 2009).

Friday, September 25, 2009

Press Coverage of Estate Planning This Week (September 25, 2009)

Jamie Downey of the Boston Globe provides a checklist of 16 items to complete for an orderly closing of one’s estate, including incapacity planning documents, wills and trusts, naming an executor and trustee, and completing a power of attorney for finances. See Organize Your Estate in 16 Steps (Sept. 24, 2009).

Bob Carlson of KCI Investing notes a few common estate planning mistakes to avoid, including overlooking non-probate assets, failing to fund a living trust, and not completing a financial power of attorney. He also points out the importance of designating guardians, keeping a record of important financial accounts, and providing instructions to your executor or trustee.  See Avoiding Estate Planning Mistakes (Sept. 22, 2009).

Dennis Fordham, Esq., writes in the Lake County News (Lakeport, Calif.) about discretionary spendthrift trusts, also known as beneficiary trusts, and the advantages for your children in receiving an inheritance in trust, rather than outright. See Estate Planning: Protecting Your Beneficiaries’ Inheritances (Sept. 19, 2009).

Clare Schwemlein of the Chillicothe Gazette (Chillicothe, Oh.) discusses using college savings plans, known as 529 Plans, as part of your estate plan.  By making a five-year contribution up front, you can get assets out of your taxable estate quickly.  See Education Savings As An Estate-Planning Strategy (Sept. 20, 2009).

Friday, June 12, 2009

Press Coverage of Estate Planning This Week (June 12, 2009)

Elaine Morgillo writes on www.Seacoastonline.com about the hazards of nonexistent, incomplete and obsolete estate plans and offers some advice on getting your affairs in order.  See Money Matters: Don't Avoid Estate Planning (June 7, 2009).

Nolan Baker and Mark Clair write in the Toledo Free Press that 90 percent of families make mistakes on beneficiary designation forms that determine who receives proceeds from financial accounts, insurance policies and annuities.  Getting beneficiary designations right is essential, because once a person dies, it's too late.  See Beneficiary Mistakes Cost a Fortune (June 11, 2009).

Arden Dale of Dow Jones Newswires writes that states are taking different tacks in regard to estate plans that include provisions acting as a restraint on marriage.  In Illinois, a provision that denied an inheritance to a beneficiary if the beneficiary married a non-Jewish person was ruled invalid and is now before the state's Supreme Court.  In Ohio, a provision requiring a son to be married to a Jew at the time of the father's death or within seven years was upheld.  Many states have not addressed the issue directly.  See Using a Trust to Direct Family Wealth (June 10, 2009).

Friday, May 22, 2009

Press Coverage of Estate Planning This Week (May 22, 2009)

Carolyn Bigda of Money Magazine points out that the depressed economy and recent federal estate tax changes may have made your current estate plan obsolete.  She lists five important questions to ask when determining if your estate plan needs updating.  See Rethinking Your Estate Plan (May 18, 2009).

Matthew M. Wallace, Esq. writes in the Times Herald (Port Huron, Mich.) about factors to consider and questions to ask a prospective attorney if you are seeking estate planning advice.  One nugget: "Planning an estate is the equivalent of legal heart surgery. You don't go to a family doctor for heart surgery, why would you go to a general practitioner for estate planning services?"  See Planning Matters: Picking Estate Attorney Complex (May 17, 2009).

Deborah Jacobs of the New York Times includes three stories in a recent section highlighting estate planning.  First, the benefits and pitfalls of powers of attorney for finances. See Putting Your Faith in a Power of Attorney (May 21, 2009).  Second, the importance of creating a record of accounts and passwords for online financial accounts and authorizing a trusted child or friend to manage the accounts if you become incapacitated.  See When Others Need the Keys to Your Online Kingdom (May 21, 2009).  Third, the practice of adult adoption, why it's done, and what can go wrong.  See Adult Adoption a High-Stakes Means to an Inheritance (May 21, 2009).

Arden Dale of Dow Jones Newswires writes about giving away stocks as gifts.  Several factors should be considered when choosing which stocks to give, and you will need to analyze the interplay between gift taxes, estate taxes and income taxes.  See Thinking About Taxes When Giving Stock (May 18, 2009)

Friday, March 27, 2009

Press Coverage of Estate Planning This Week (March 27, 2009)

Paul Sullivan of the New York Times recounts that in tough economic times, children are more apt to argue over provisions in their parents estate plan, given that there is less to go around.  He includes general estate planning advice and some traps to avoid.  See Smaller Though It May Be, It's Time to Look At the Estate (Mar. 21, 2009).

Karen Blumenthal of the Wall Street Journal provides advice on how to discuss financial issues with your parents.  Topics might include how your parents are coping with the depressed financial markets, whether they are being pressured by telemarketers or others to purchase suspect products or other scams, and whether their estate plans need updating. For instance, some may need to lower the amount of charitable or other planned gifts in light of a smaller overall estate value.  See Mom and Dad, You're Broke (Mar. 25, 2009).