Friday, May 07, 2010

Press Coverage of Estate Planning this Week (May 7, 2010)

Ashlea Eberling of Forbes discusses the uncertain future of the estate tax, and some measures you can take to remove some of that uncertainty, including having a contingency plan for this year in which no federal estate tax exists (yet), keeping records of the tax basis of your assets, reconsidering if your son or daughter should take on the potentially complicated role of executor in these uncertain times, and making gifts to charities and family members. See How to Protect Your Family From Estate Tax Uncertainty (May 4, 2010).

Ryan J. Foley of Bloomberg BusinessWeek reports on a Wisconsin Supreme Court case that allowed the recipient of a pay-on-death account to avoid a proportionate share of estate taxes when the deceased did not specify how the tax apportionment should occur. This case points out the need for carefully drafted wills and trusts to ensure estate taxes are apportioned as the client desires. See Court: Estate , Not Heirs, Responsible for Taxes (May 4, 2010).

Kelly Greene of the Wall Street Journal discusses the use of trusts with IRAs to ensure that children and grandchildren don’t blow the account if they inherit an IRA account while still young. These trusts must be closely integrated with specific beneficiary designations to work properly. See Leaving Your Roth IRA to the Kiddies (May 2, 2010).

Deborah L. Jacobs of Forbes sheds light on why stretching out IRA accounts makes sense, and some of the steps IRA owners can take to get the maximum value out of the their IRA for themselves and their children. See How to Stretch Out an IRA (May 4, 2010).