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 huge burden on loved ones left behind. If you die without a Will in North Carolina, you lose control over a number of important decisions. North Carolina’s default statutes provide what happens upon your death, regardless of your particular situation or circumstance: (1) Intestacy laws […]
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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 privacy. A simple Will is part of the probate process and its terms are public. On the other hand, the terms of a revocable trust are private and confidential. Just as important (and maybe more so in a world where digital crimes are more prevalent), […]
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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 giving. For 2018, the annual exclusion is $15,000 per child. This is applied on a per-donee basis and can be leveraged by making gifts to multiple donees. For example, if an individual makes $15,000 gifts to 5 donees, he or she may then exclude $75,000 […]
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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 questions that we receive from our clients regarding FLPs. (1) What is an FLP? An FLP is a limited partnership in which all the partners are family members or entities created by or owned by family members. A limited partnership is a business entity that […]
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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 owner of a vacation home relax whenever he rents out the house to vacationers. Often an important starting point is the use of a Limited Liability Company (“LLC”). Below, we highlight some major aspects. Reduced Liability This is a big one. Imagine someone is staying […]
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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 classification of choice for most non-real estate businesses. The fact that it offers a single level of tax versus “double taxation” in C corporations has mostly been the deciding factor. Now, while C corporations still expose their owners to double tax (first on corporate income […]
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