Many folks have not considered holding a family meeting in a slightly more formal setting like one of your advisor’s offices. There can be many advantages to these. Confidence is an important outcome that we talk about here. Do your spouse and children know what to do if you are not there? Whether they articulate…
The 40th Annual Estate Planning Conference, held as usual in Kiawah Island, South Carolina, just concluded. Below are three takeaways we believe you’ll find useful in your practice. FLP Entities John W. Porter, an experienced tax litigator with Baker Botts LLP in Houston, Texas spoke on several topics including family limited partnership style entities. There…
We receive more calls these days from clients who have parents, spouses or other loved ones dealing with temporary and permanent incapacity. In cases where the individual does not have an updated estate plan, these can be challenging. There are court-supervised processes that enable appointed individuals to act on behalf of incapacitated persons. The problems…
Divorce is detrimental in a number of emotional and financial ways and court cases continue to add to the list. The key question in a recent case was whether a person’s interest in his ex-spouse’s retirement accounts (e.g., through Qualified Domestic Relations Orders or QDROs) are protected as “retirement funds” under the federal bankruptcy code….
The U.S. Supreme Court recently handed down an important decision declaring North Carolina’s taxation of certain trusts unconstitutional. The name of the case is: NC Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust. If you are a beneficiary of an out-of-state trust that was subject to taxation merely because a portion of the…
Why would I be interested in Qualified Opportunity Zones (QOZs)? This new tax provision was created to spur investment in certain under-performing economic areas known as Qualified Opportunity Zones. You can find a map of North Carolina’s zones here. Investing in a QOZ is one of the few opportunities in the tax code to defer…
Want to pass more wealth to grandchildren? An idea to consider while exemption amounts are high for estate tax and Generation Skipping Transfer (GST) tax is to protect old trusts from the application of the GST tax that can take a big portion of a trust’s assets before they pass to a skip person, like…
Many of our clients who come in to prepare or update their Will ultimately decide to include a Revocable Living Trust (RLT) in their estate plan after learning about the benefits it can provide. These benefits include privacy, avoiding or reducing probate fees and delays, and aiding in the management of their assets during periods…
“When is the right time to create an estate plan?” “Am I too young to write a Will?” “Do I have enough assets?” These are a few common questions clients ask when inquiring with our team. Simply put, regardless of age and assets, every adult benefits from having the proper estate planning techniques in place….
$22.8 Million is probably not a fair approximation of the exclusion amount couples have to protect property from the estate tax. For this to be true, both spouses would need to die before 2026. Otherwise, the language of the Internal Revenue Code appears to make clear that the survivor has at most only two times…
By now, you’ve likely heard that certain businesses can qualify for a 20% income deduction under the new tax law. This is true for an “active trade or business.” Earlier this year the IRS issued a proposed safe harbor setting out how rental real estate activities can qualify as an active trade or business for…
We are often asked: “I’ve been named as Executor in my mother’s Will. What does an Executor of an estate do?” First, for terminology, an Executor in certain cases can be referred to as an Administrator, but the role is very similar so we’ll combine all the terms under Personal Representative, or “PR” for short. …
Have you been avoiding the “uncomfortable” topic of your estate plan with your children? You want to do what is best for your children but perhaps you are legitimately concerned that your children are too young or busy, the conversation will be perceived as morbid or will not deliver the message you intend, or you…
As estate planning attorneys, we often get the question: “Who needs an estate plan?” The answer is: “EVERYONE!” Studies have shown that only 42% of American adults currently have an estate plan in place. For the 58% of Americans who don’t have an estate plan, dealing with intestacy laws and the probate process places a…
The passing of movie icon Burt Reynolds brings to light how certain estate planning techniques differ as they unfold. Selecting a revocable trust – versus only a Will – as Burt chose to do for the benefit of his son, Quinton, has its advantages. One that’s highlighted in the current stories about Burt’s passing is…
Gift planning can be an important component of estate planning and, if the right techniques are executed, can reduce your overall tax burden. With this in mind, it is never too early to be thinking about gifting to your children and/or grandchildren. The annual gift tax exclusion is the most commonly used method for tax-free…
A Family Limited Partnership (“FLP”) is a structure that is known for two main purposes: asset protection and tax minimization. Its ability to handle both of these important wealth generators puts it in the running as one of estate planning’s most valuable tools, if implemented and maintained properly. Below, you will find some frequently asked…
In today’s litigious society, we often have clients calling us and asking for advice on how to protect themselves and their assets from creditors and lawsuits. Many worries stem from concerns over rental properties and vacation homes (including toys such as jet skis) owned by our clients. There are several techniques that can help the…
In our last post, we detailed many of the new individual and corporate tax laws. Here we’ll take a closer look at three practical steps you should consider taking in light of these. 1. Revisit the income tax classification of your corporation or LLC. For decades now, the S corporation has been the income tax…
We plan to address the new 2017 Tax Act changes in a couple of ways. Below is a summary of many of the major provisions, both for businesses and individuals. Later, we’ll take a closer look at some practical steps you should consider in light of the new tax law. First, the corporate rate cuts…
