by Dave Duringer - Protective Law Corp | Dec 4, 2024 | Asset Protection, Blended Families, Blog, Bloodline Protection, Business Succession, Buying or Selling a Closely Held Business, Career Maintenance, Career Preparation, Charity, Creditors & Predators, Defensive Gun Use, Entity Formation, Estate Admin, Estate Planning, Estate Tax, Family Maintenance, Family Protection, Financial Mentorship, Firearm Legacy, Firearm Training, Fortune, Gift Tax, GST Tax, GunLaw.Pro, Health Planning, Honor, Incapacity Planning, Income Tax, Life, Limitation of Liability, News & Commentary, Operation & Governance, Pet Protection, Probate Admin, Property Tax, Punishment, Regulatory Compliance, Religious Faith, Retirement Planning, Spendthrift Children, Tax Planning, Trust Admin, Venture Protection, WorldExaminer.com
by Dave Duringer - Protective Law Corp | Oct 30, 2024 | Asset Protection, Blog, Creditors & Predators, Estate Admin, Estate Planning, Estate Tax, Family Protection, Fortune, Gift Tax, GST Tax, Income Tax, News & Commentary, Spendthrift Children, Tax Planning, Trust Admin
The IRS has released Revenue Procedure 2024-40, which specifies annual inflation adjustments for tax year 2025. Some highlights: Gift, estate and generation-skipping transfer tax exemption amounts: $13.99 million (up from $13.61 million) Annual gift tax exclusion (IRC...
by Dave Duringer - Protective Law Corp | Oct 30, 2024 | Asset Protection, Blog, Charity, Creditors & Predators, Estate Admin, Estate Planning, Estate Tax, Fortune, Gift Tax, GST Tax, Income Tax, Spendthrift Children, Tax Planning, Trust Admin
Charitable Remainder Trust (CRT) planning can be quite complex, and the expenses involved usually are justified only with a very large gift to charity, well north of a million. Practically speaking most of this planning is tax-driven and must be to make it feasible,...
by Dave Duringer - Protective Law Corp | Oct 27, 2024 | Asset Protection, Blog, Bloodline Protection, Creditors & Predators, Estate Admin, Estate Planning, Estate Tax, Family Protection, Fortune, Gift Tax, GST Tax, Income Tax, Retirement Planning, Spendthrift Children, Tax Planning, Trust Admin
There seems to be a misconception among some California estate planning attorneys that BDOT planning (BDOT stands for Beneficiary Deemed Owner Trust; also called a 678 trust, named after IRC §678) is inconsistent with, and should never be used with, a trust designed...
by Dave Duringer - Protective Law Corp | Oct 20, 2024 | Asset Protection, Blog, Bloodline Protection, Creditors & Predators, Dying Embarrassed, Estate Admin, Estate Planning, Estate Tax, Family Maintenance, Family Protection, Firearm Legacy, Firearm Training, Fortune, Gift Tax, GST Tax, GunLaw.Pro, Honor, Income Tax, Life, Spendthrift Children, Tax Planning, Trust Admin
At the beginning of this year, the California Uniform Directed Trust Act (CUDTA) went into effect, codified in Probate Code §§ 16600-16632. It was a long time coming, having been first proposed back in 2010 by our state bar’s trust and estate section. When it...
by Dave Duringer - Protective Law Corp | Oct 17, 2024 | Asset Protection, Blog, Bloodline Protection, Business Succession, Buying or Selling a Closely Held Business, Creditors & Predators, Entity Formation, Estate Planning, Estate Tax, Family Maintenance, Family Protection, Firearm Legacy, Firearm Training, Fortune, Gift Tax, GST Tax, GunLaw.Pro, Honor, Income Tax, Life, Limitation of Liability, Operation & Governance, Regulatory Compliance, Spendthrift Children, Tax Planning, Trust Admin, Venture Protection
Six years ago I posted this article proposing use of an advanced planning technique known as the Health and Education Exclusion Trust (HEET) to leave a dynastic legacy of firearm training. Such a trust might be called a Gun HEET. The Fall of the Republic and...
by Dave Duringer - Protective Law Corp | Oct 10, 2024 | Asset Protection, Blended Families, Blog, Bloodline Protection, Business Succession, Buying or Selling a Closely Held Business, Career Maintenance, Career Preparation, Charity, Creditors & Predators, Entity Formation, Estate Admin, Estate Planning, Estate Tax, Family Maintenance, Family Protection, Financial Mentorship, Firearm Legacy, Firearm Training, Fortune, Gift Tax, GST Tax, GunLaw.Pro, Health Planning, Honor, Incapacity Planning, Income Tax, Life, Limitation of Liability, Operation & Governance, Pet Protection, Property Tax, Punishment, Regulatory Compliance, Religious Faith, Retirement Planning, Spendthrift Children, Tax Planning, Trust Admin, Venture Protection
[Central Coast residents: You can safely ignore this article because we are here to help you with comprehensive planning.] Most of our local clients prefer to have the first meeting in person at our office in Morro Bay. After that initial meeting, many of these local...
by Dave Duringer - Protective Law Corp | Sep 29, 2024 | Asset Protection, Blog, Dying Embarrassed, Entity Formation, Estate Planning, Estate Tax, Fortune, Gift Tax, GST Tax, Income Tax, Tax Planning
Estate reduction surgery may be more urgent than you think. Understandably, a lot of folks are sitting on the sidelines, waiting to see what happens in November — not only in the presidential race, but in the congressional races that will determine the balance...
by Dave Duringer - Protective Law Corp | Sep 1, 2024 | Asset Protection, Blog, Business Succession, Dying Embarrassed, Estate Planning, Estate Tax, Fortune, Gift Tax, GST Tax, Income Tax, News & Commentary, Tax Planning, Venture Protection
The American Housing and Economic Mobility Act of 2024 (AHEMA) is a giant $5 trillion tax increase now before both houses of Congress which has the potential, if Democrats end up with enough control after elections this year, to radically change estate planning. These...
by Dave Duringer - Protective Law Corp | Jul 29, 2024 | Asset Protection, Blog, Business Succession, Buying or Selling a Closely Held Business, Entity Formation, Estate Planning, Estate Tax, Fortune, Gift Tax, GST Tax, Income Tax, Tax Planning, Venture Protection
The Tax Cuts and Jobs Act (TCJA) of 2017 made several significant changes to the tax code that affect small businesses and business owners. It introduced the qualified business interest deduction, added a bonus depreciation deduction for qualifying property, and...
by Dave Duringer - Protective Law Corp | Jun 20, 2024 | Blog, Business Succession, Buying or Selling a Closely Held Business, Dying Embarrassed, Estate Admin, Estate Planning, Estate Tax, News & Commentary, Operation & Governance, Probate Admin, Tax Planning, Trust Admin, Venture Protection
In a major unanimous decision (Connelly v US) sure to cause revision of many business succession plans, the US Supreme Court earlier this month on June 6, 2024, rejected use of a corporate redemption obligation as an estate deduction. While the Court pointed out in a...
by Dave Duringer - Protective Law Corp | Mar 28, 2024 | Blog, Estate Admin, Estate Planning, Estate Tax, Financial Mentorship, Fortune, Gift Tax, GST Tax, Income Tax, News & Commentary, Property Tax, Tax Planning
My daughter, Ayn, will be heading for law school this Fall! She was offered a very nice package covering most expenses of attending the Levin College of Law at the University of Florida in Gainesville. Most estate planning attorneys like me, especially those of us...
by Dave Duringer - Protective Law Corp | Nov 12, 2023 | Blog, Estate Planning, Estate Tax, Fortune, Gift Tax, GST Tax, Tax Planning
Suppose earlier this year you read somewhere (this site, for example) that estate, gift, and generation-skipping transfer (GST) tax exemptions will drop in half in 2026, and that there is generally no clawback for gifts made before then which exceed the 2026 exemption...
by Dave Duringer - Protective Law Corp | Jun 16, 2022 | Asset Protection, Blended Families, Blog, Creditors & Predators, Estate Planning, Estate Tax, Fortune, Income Tax, Tax Planning
The Basis Optimized Trust (BOT) is an advanced option for planning that may yield better results than the more common types of irrevocable trusts, such as credit shelter (bypass) trusts, or qualified terminable interest property (QTIP) trusts, which have been the...
by Dave Duringer - Protective Law Corp | Mar 31, 2022 | Asset Protection, Blog, Bloodline Protection, Creditors & Predators, Estate Planning, Estate Tax, Fortune, Income Tax, Spendthrift Children, Tax Planning
The Beneficiary Deemed Owner Trust (BDOT) is one of several options to consider for “trusted beneficiaries” (pun intended) to whom you are open to giving some access to trust income and/or principal. (Another option might be the Beneficiary Controlled...
by Dave Duringer - Protective Law Corp | Apr 9, 2019 | Estate Planning, Estate Tax, Tax Planning
Using quantitative analysis, we’ll show that the grantor’s choice is almost always clear: If her two-year GRAT is funded with marketable securities and is underwater at all prior to the first annuity date, she should cut her losses and start a new GRAT. That...
by Dave Duringer - Protective Law Corp | Feb 4, 2019 | Estate Planning, Estate Tax, News & Commentary, Property Tax, Tax Planning
While the estate tax is a perennial boomerang, Warren’s wealth tax tomahawk chop flies in the face of the Constitution’s prohibition on unapportioned scalping: The Constitution prohibits federal direct taxes that are not apportioned by population,...
by Dave Duringer - Protective Law Corp | Nov 1, 2018 | Estate Planning, Estate Tax, Tax Planning
[UPDATE 30 September 2024 — The Fall of the Republic and likelihood of reduced exclusions from death tax are leading to renewed interest in this technique. While there remains little guidance, if used conservatively it should work for extremely large...
by Dave Duringer - Protective Law Corp | Jan 25, 2018 | Archived, Asset Protection, Estate Planning, Estate Tax, Family Protection, Firearm Legacy, Income Tax, Tax Planning
When it comes to taxes and gun control, it’s hard to keep up with Sacramento and DC. One way is to have your estate planning attorney on speed dial. A smarter way is to have that attorney draft with flexibility in mind, so you can have peace of mind. We’ll focus...
by Dave Duringer - Protective Law Corp | Dec 27, 2017 | Estate Planning, Estate Tax, Gift Tax, Tax Planning
Under either formulation of purpose, that is, the “unified” approach or the “fairness” approach, in issuing its regulations, the IRS would be compelled to use the basic exclusion amount in effect the time of the decedent’s death for purpose of computing the...
by Dave Duringer - Protective Law Corp | Dec 23, 2017 | Asset Protection, Estate Planning, Estate Tax, Gift Tax, Income Tax, Tax Planning
The Tax Cuts and Jobs Act((In both the House and Senate versions, the bill was called the “Tax Cuts and Jobs Act.” Due to a last-minute change in response to a procedural issue, the official title was changed to “To provide for reconciliation pursuant to titles...
by Dave Duringer - Protective Law Corp | Dec 21, 2017 | Estate Planning, Estate Tax, Firearm Training, Tax Planning
The expected new Tax Cut and Jobs Act (not the official title anymore, but i’m sticking with it) doubles the applicable exclusion amount for estate tax but reverts to current law on January 1, 2026. That sunset provision reminds me of this funny old video...
by Dave Duringer - Protective Law Corp | Nov 4, 2017 | Estate Tax, Tax Planning
So far, the House GOP’s proposed tax plan avoids the carryover basis regime that would have been necessary if it would have imposed a capital gains tax at death to replace the estate and generation skipping transfer taxes, as the Trump campaign seemed to favor....
by Dave Duringer - Protective Law Corp | Jul 22, 2017 | Estate Admin, Estate Planning, Estate Tax, Income Tax, Probate Admin, Tax Planning, Trust Admin
Rev. Proc. 2017-34 SECTION 1. PURPOSE This revenue procedure provides a simplified method for certain taxpayers to obtain an extension of time under § 301.9100-3 of the Procedure and Administration Regulations to make a “portability” election under §...
by Dave Duringer - Protective Law Corp | May 15, 2017 | Archived, Estate Planning, Estate Tax, Gift Tax, Income Tax, Tax Planning
The tenuousness of the President’s plan raises a whole host of additional questions. These include: (1) whether the President’s plan would be coupled with a step-up in basis at death versus carryover basis (carryover basis would effectively increase total taxes...
by Dave Duringer - Protective Law Corp | May 15, 2017 | Archived, Estate Planning, Estate Tax, Gift Tax, Income Tax, Tax Planning
The election of Donald J. Trump to the presidency and Republican control of both houses of Congress make estate tax reform extremely probable in the next two years. However, given the new administration’s other proclaimed priorities, including the repeal of...
by Dave Duringer - Protective Law Corp | Apr 7, 2017 | Asset Protection, Estate Planning, Estate Tax, Gift Tax, Tax Planning
In this matter, the draftsman failed to include language prohibiting the trustee from issuing a note, other debt instrument, option or other similar financial arrangement in satisfaction of the annuity obligation as required by § 25.2702-3(d)(6) of the Gift Tax...
by Dave Duringer - Protective Law Corp | Apr 6, 2017 | Asset Protection, Estate Planning, Estate Tax, Tax Planning
Sacramento is at this moment plotting to bring back the estate tax here. Also, you might own property, or plan to retire, in one of these states. Do you have a flexible estate plan? Reforms being debated by Congress could repeal the federal estate tax with...
by Dave Duringer - Protective Law Corp | Mar 31, 2017 | Estate Admin, Estate Tax
Recently, in Estate of Kollsman v. Commissioner (T.C. Memo. 2017-40), the U.S. Tax Court held that an art collector’s estate significantly underreported the value of two artworks for estate tax purposes. The problem: the estate relied on appraisals by an...
by Dave Duringer - Protective Law Corp | Mar 27, 2017 | Estate Tax, Tax Planning
The trust rules have evolved over the last eight decades. For one thing, depending on the state, a trust created now for David’s own grandchildren and beyond may never need to terminate.It could theoretically run forever, eternally beyond IRS reach if run...
by Dave Duringer - Protective Law Corp | Mar 23, 2017 | Archived, Estate Tax, Gift Tax, Income Tax, Tax Planning
In short, the ground has been laid for quick action in the House of Representatives the moment the health care debate concludes. Source: Tax Reform Bill On the Front Burner
by Dave Duringer - Protective Law Corp | Mar 23, 2017 | Charity, Estate Tax, Income Tax, Tax Planning
Charitable planning coordinated with dissolution planning merits serious examination. The work involved is well worth the effort to assure divorcing parties have maximized the use of all marital assets in a tax-efficient manner. The four techniques are...
by Dave Duringer - Protective Law Corp | Mar 23, 2017 | Archived, Estate Planning, Estate Tax, Gift Tax, Income Tax, Tax Planning
The loss of income tax revenue would be the product of income tax saving strategies that would become viable in the wake of gift tax elimination. For example, without a gift tax, the use of a “straw taxpayer” would likely become a prevalent income tax planning...
by Dave Duringer - Protective Law Corp | Mar 23, 2017 | Archived, Estate Tax, Gift Tax, Tax Planning
Even though in our current environment, paying gift taxes could save estate taxes, and is therefore a rational strategy, our clients won’t view it this way if, this year or next, the estate tax is repealed. And this is so, even if the estate tax is repealed...
by Dave Duringer - Protective Law Corp | Mar 12, 2017 | Archived, Estate Planning, Estate Tax, Gift Tax, Income Tax, Tax Planning
Senate Majority Leader Mitch McConnell (R-Ky.) on Thursday poured cold water on the Trump administration’s goal of completing tax reform by the August recess. Source: McConnell: Tax reform unlikely by August | TheHill
by Dave Duringer - Protective Law Corp | Mar 7, 2017 | Archived, Estate Tax, Tax Planning
In estate planning these days, there is uncertainty and there is UNCERTAINTY. Over the last few years we’ve gotten pretty good at developing techniques to deal with uncertainty, but the UNCERTAINTY surrounding the proposed regulations related to 26 USC §...
by Dave Duringer - Protective Law Corp | Mar 3, 2017 | Archived, Estate Admin, Estate Planning, Estate Tax, Gift Tax, Income Tax, Probate Admin, Tax Planning, Trust Admin
Significant coverage was devoted at the recently concluded 51st Annual Heckerling Institute on Estate Planning in Orlando, Fla. to the Internal Revenue Service’s proposed regulations (proposed regs) concerning basis consistency and reporting for property...
by Dave Duringer - Protective Law Corp | Feb 26, 2017 | Asset Protection, Estate Planning, Estate Tax, Family Protection, Tax Planning, Trust Admin
Valid point, especially now that the estate tax beast so rarely bites and may soon be destroyed. The article points out a few reasons for having life insurance, but omits some important ones such as estate creation for young families. Thus, the biggest lie in...
by Dave Duringer - Protective Law Corp | Feb 26, 2017 | Archived, Estate Planning, Estate Tax, Tax Planning
The arguments set forth in this Bloomberg article for keeping the death tax are weak (compare this other recent Bloomberg article pointing out the role inheritance plays in keeping whites richer than blacks), but the article comes close to making an important point so...
by Dave Duringer - Protective Law Corp | Feb 25, 2017 | Estate Planning, Estate Tax, Tax Planning
The name is Wiener, of course. SACRAMENTO, Calif. (CN) – Warding against the possibility of Congress nixing a lucrative federal estate tax, a California lawmaker on Tuesday announced a measure to ask voters to approve a mirroring state version. Source: Calif....
by Dave Duringer - Protective Law Corp | Feb 25, 2017 | Estate Planning, Estate Tax, Gift Tax, Income Tax, Tax Planning
In Private Letter Ruling 201707008 (released Feb. 17, 2017), the Internal Revenue Service ruled that a wife wouldn’t recognize gain or loss from her husband’s transfer of property to a trust for her benefit under a proposed divorce settlement agreement....
by Dave Duringer - Protective Law Corp | Feb 25, 2017 | Asset Protection, Estate Planning, Estate Tax, Income Tax, Tax Planning
Utility indeed, especially with added flexibility of the Clayton election and other precautionary provisions. Many of our married clients have structured their estate plans to apply the federal estate tax exclusion amount to create a trust for the benefit of their...
by Dave Duringer - Protective Law Corp | Feb 10, 2017 | Asset Protection, Business Succession, Career Preparation, Estate Planning, Estate Tax, Family Maintenance, Family Protection, Income Tax, Tax Planning, Venture Protection
This article raises important points — plan for the long-term and don’t let taxes direct the planning over more important goals — plus it’s a good review of the many benefits of life insurance. But as I’ve previously noted, the...
by Dave Duringer - Protective Law Corp | Feb 9, 2017 | Asset Protection, Estate Planning, Estate Tax, Gift Tax, Income Tax, Tax Planning
Article authored by my friend Brian Dooley, a top international tax expert: Before leaving the United States or any of its possessions permanently or for an extended amount of time, all U.S. resident aliens and nonresident aliens (with certain exceptions) must...
by Dave Duringer - Protective Law Corp | Feb 8, 2017 | Asset Protection, Estate Planning, Estate Tax, Income Tax, Tax Planning
In fact, some attorneys see repeal as potentially being a boon for their businesses, especially if the tax is replaced with a capital gains tax such as the one proposed by President Donald Trump on the 2016 campaign trail. Source: Wealth Planners Are Not Afraid...
by Dave Duringer - Protective Law Corp | Jan 29, 2017 | Asset Protection, Estate Admin, Estate Tax, Probate Admin, Tax Planning
Prince’s estate has until Saturday to file an estate tax payment for the late rock superstar, and the taxes are expected to ultimately swallow nearly half the estate’s estimated $200 million value, meaning a likely windfall of roughly $100 million for the...
by Dave Duringer - Protective Law Corp | Jan 28, 2017 | Archived, Estate Tax, Tax Planning
While it is true that there is uncertainty in tax planning now (there always is) and there is a distinct possibility that the estate tax will be repealed and we should of course urge our clients to update after such a major change, it is not true that we cannot...
by Dave Duringer - Protective Law Corp | Jan 28, 2017 | Archived, Asset Protection, Estate Planning, Estate Tax, Income Tax, Tax Planning
Think I’m noticing a trend here. A few months ago, IRS finally came out in support of using Clayton election for portability planning, after years of silence led to suspicion otherwise, and now years after repeal of 1022, the IRS decides to issue regs...
by Dave Duringer - Protective Law Corp | Jan 27, 2017 | Archived, Asset Protection, Estate Planning, Estate Tax, Income Tax, Tax Planning
“Estate freeze” is a term that’s so commonly tossed around in the estate planning community that it’s actually become fairly useless shorthand, as it can be used to describe such a wide variety of techniques. However, as discussed by Jeffrey N. Pennell in his...
by Dave Duringer - Protective Law Corp | Jan 23, 2017 | Archived, Asset Protection, Estate Planning, Estate Tax, Income Tax, Tax Planning
Most agreed the new Republican regime in Washington may get rid of the long-loathed estate tax (this year levied at a top rate of 40 percent on assets above the exemption of just under $11 million for a married couple). Yet, it will almost certainly be replaced...
