Is your Trust a Parachute or merely a Safety Net?
There is a wonderful recent story about a Minnesota family that has baptized 27 babies over three generations with a baptismal gown made from the World War II parachute that saved grandpa’s life! I’m always coming up with analogies for trusts and often use...US Supreme Court Rejects Use of Corporate Redemption Obligation as Estate Deduction
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...Seven Types of Gun Trusts
Here is a quick overview of seven major types of gun trusts: Trust Mill NFA Trust: This is a “simple” (sometimes shockingly simple) “cookie-cutter” type boilerplate trust designed for purchase of firearms and/or suppressors regulated under the...Advisors Panic over Corporate Transparency Act (CTA)’s Orwellian Reporting Requirements
Did you ever put off studying for a final, until the night before the final? That’s pretty much how the planning community is feeling about the Corporate Transparency Act (CTA), which will go into effect January 1, 2024. Congress passed the devilish law several...SECURE 2.0 Act, You, and Your IRA Beneficiaries
On December 29, 2022, President Biden signed the Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0 Act). The previous SECURE Act in 2020 made several changes to retirement planning: It increased the required beginning date (RBD) for required...CRPA Mag Must Retract Erroneous Bulletin Slamming Gun Trusts
The March/April 2023 edition of the bimonthly magazine “California Firing Line”, published by the California Rifle & Pistol Association (CRPA), includes an “Information Bulletin” at pages 19-24 entitled Firearm Estate Planning —...California Gun Trust Planning
Presentation by Attorney Dave Duringer clears up confusion over California Gun Trust Planning. What is a Gun Trust? Is a Gun Trust Effective? Is a Gun Trust Necessary? Is a Gun Trust Recommended? YES! Every California gun owner should have one! A regular trust might...Critique of “California Gun Laws” (2023 edition)
Last year I wrote this scathing review of Michel & Cubeiro’s 2022 edition of their popular book “California Gun Laws”. Actually, my harsh criticism was limited to the portions touching on estate planning. As far as I knew, the rest of the book...Died Suddenly #DiedSuddenly
[Hi it’s me Dave Duringer — no, I didn’t “die suddenly” (a concerned relative thought I did because this post came up on google in a way that gave that impression). No one in my family took the clot shot, although a distant cousin of mine...Use a Grant Deed to Fund Your Trust (NOT a Quitclaim)
Even simple estate plans can fail if the revocable trust is not properly funded, especially with all real estate owned by decedent. If the decedent’s real estate is not properly transferred to trust, then unless there are other viable options (like an expensive...Critique of “California Gun Laws” (2022 edition)
This critique of the 2022 (9th) edition of “California Gun Laws” by C.D. “Chuck” Michel and Matthew D. Cubeiro is not a critique of the entire book, but only a small portion consisting of two sections, Section 3 (“Operation of Law”...Mortgage Lenders Stop Funding Loans in Trust
UPDATE: After a week of turmoil, looks like the mortgage bond market has stabilized a bit and mortgage loans on properties held in trusts are again saleable in the secondary market. Sanity has returned for now, at least while the market is taking whatever...Share Your Cryptocurrency Passwords
For years, cryptocurrency owners have focused on coin security. Many of our clients protect their coins and accounts from online hackers through offline storage and complex passwords that are memorized but never written down. A recent Canadian bankruptcy filing...Insolvent Estates of Wealthy Decedents
Insolvent estates happen and are full of minefields for all involved: Begin With a Plan When faced with such an estate, the advisor should meet with the executor and together they should set out a plan for success. The plan should include a beginning inventory...Rev Proc 2017-34 simplifies getting extension for portability election
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 §...Yes, a Firearm Safety Certificate is required for trustees and agents!
I am often asked by professional fiduciaries whether they need to have a Firearm Safety Certificate (FSC) for the work they do. Professional fiduciaries are subject to the same penal code as lay fiduciaries so the answer is yes, generally, fiduciaries (whether...Does a Thicke Living Trust Work Better? We Shall Soon See
The trusts I draft are usually pretty thick, thicker than clients expect. But no matter how thick the trust, the plan can fail if spouses are not in agreement on the underlying character of the property (separate or community). This might have been the case with the...Beware The Constructive Trust When Relying On ‘Informal’ Estate Distributions
In Georgia, generally, a constructive trust cannot be imposed on real property based solely on a broken verbal promise to hold or transfer the land for the benefit of another. However, a broken verbal promise may give rise to a constructive trust if it was...A Case for Tennessee PFTCs
Tennessee recently updated its private family trust company (PFTC) laws in 2016 to expand both the family clients and family office employees that they can serve. These changes can help ultra-high-net-worth (UHNW) families and family offices meet their needs....Residual liability in the trust context of excluded fiduciaries
Some states by statute have introduced into their trust jurisprudence the concept of the excluded fiduciary: In the case of a trust the terms of which allocate fiduciary functions between the trustee and, say, a trust protector, the trustee is an excluded...How to Explain the Value of a Trust Protector to Your Clients
As an attorney, you understand the value of a trust protector for an irrevocable trust. While “set in stone,” the trust still needs someone to watch over it and ensure it can adapt to changes in the law and/or resolve differences between trustees and...Antemortem Probate? RIDICULOUS! “Living Trust” is better, more probative, etc.
Wow, what a ridiculous idea — ante-mortem probate! I have two simpler words that offer a better solution: “LIVING TRUST” What better way to gauge a testator’s true intent than a trust arrangement the testator lives with day in and day out,...Basis Consistency and Reporting for Property Acquired from a Decedent
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...The Biggest Lie in Life Insurance
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...Tailoring the Trust Protector’s Role
The Bespoke Trust Protector – Tailoring the Protector's Role from Matthew McClintock WealthCounsel VP Matt McClintock has been at the forefront in this cutting edge planning area — adapting the age-old concept of trust protector, commonly used in...Could you be David Bowie’s lovechild? Deadline looms to claim share
According to the article, Bowie admitted to being “incredibly promiscuous” — yikes, bad planning or no planning here to avoid pretermitted child claims. Anyone who believes they are David Bowie’s secret love child should make their case...Who’s Charging What for Trust Services?
A survey of fees charged by some major trust companies. Fees and minimums vary quite a bit. Trust fees are headed higher according to our pricing survey completed this week. Some firms work strictly from a rate card. Others decide what your client will pay when...Executors Personally Liable for Tax Liabilities of Estate Under Federal Priority Statute, 31 U.S.C. 3713
This is an appeal of summary judgment by the personal representative (the “PR”) of an estate. The lower court found the PR to be personally liable under the federal priority statute, Section 3713, for tax liabilities due from an insolvent estate. Under the...Account Transcript, Substitute for Estate Tax Closing Letter
With certain exceptions and prior to June 1, 2015, the IRS issued an ETCL for every estate tax return filed. After that date, the IRS changed its policy and only issued such a letter upon formal request by an estate and not sooner than four months after the...Current Political Violence Highlights Importance of Private Trust Planning
By now, hopefully most people are aware that probate avoidance is one of the core benefits of a properly drafted and funded revocable trust, even one done by a trust mill that lacks the sort of comprehensive planning we do. Why is probate bad? Well, one of the...Income Sprinkling to Minimize Tax Liability
Income sprinkling is often a good strategy to avoid such high tax rates. In such a scenario, the income accumulated in a trust is distributed before December 31st of the year, and it is counted as income for the beneficiary. Unless the beneficiary is also in...Repeal and Uncertainty Impacts Estate Administration
Good advice in this article, but much of the uncertainty can be removed with thorough, comprehensive planning with an eye toward flexibility. For example, in our planning (http://Protect.LIFE), we offer not only the current flexibility of the Clayton election,...Massive Art Forgery Ring Reinforces Need for Vigilance Among Buyers
Conduct due diligence. Always ask questions and conduct research to find out about the work of art’s history, as well as exhibition and literature citations prior to purchase. Ideally, a buyer should be able to trace the history of the painting all the way back...World’s oldest man Mbah Goto celebrates what he claims to be his 146th birthday
He has outlived all 10 of his siblings as well as his four wives, the last of whom died in 1988. All of his children have also died, and now he is survived by his grandchildren, great grandchildren, and great-great grandchildren. Source: World’s oldest...New Transfer on Death Deed; An Alternative to a Living Trust ?
From a respected WealthCounsel colleague: The Good: The new TOD Deed Will be simple to use; Will be less expensive than creating a Living Trust; Will eliminate the time and expense of a probate; Will remain revocable during the lifetime of the grantor; and, Will...#AssetProtection: #EstatePlanning Attorney to Use Time Travel in New Post-Mortem Planning Service
Wouldn’t it be nice to be able to go back and fix an estate plan before death or incapacity of the grantor? Protective Law Corporation will be very pleased to offer such post-mortem estate planning, and we will add it to our pricing sheet just as soon as the...#AssetProtection: Ten Reasons Estate Conflicts May Be Increasing
Whether it’s just perception or not, it does seem like there seems to be more fighting regarding estate plans. Here are 10 reasons why. Source: Ten Reasons Estate Conflicts May Be Increasing | Wealth Management In other Asset Protection news… Estate Sales:...Video: Gunpocalyptic Gun Trust Planning — Where There’s a Will, There’s a Way
Post-Gunpocalypse gun trust planning for California firearm legacy.
#AssetProtection: A Wine Tale – Proper Storage
By following these simple steps, the collector would have avoided the above condition disaster, the collection would have merited the six-figure purchase offer, and his children would have benefited from their father’s thoughtful collecting. Source: A Wine Tale...Photo Gallery: Eleven Long-Running Celebrity Estate Battles
Poor estate planning often leads to bitter fighting that can last years. Here are 11 high-profile examples of long-running estate conflicts, many of which could have been avoided with a little foresight. Source: Photo Gallery: Eleven Long-Running Celebrity Estate...Photo Gallery: Top 10 Executor Mistakes
Executors are bound by a bewildering array of responsibilities and duties. Here are 10 common pitfalls to avoid. Source: Photo Gallery: Top 10 Executor Mistakes | WealthManagement.com If attacked, do you want to be Victor or Victim? At SacredHonor.US, we hate it when...Whistleblower Ties Northern Trust to NHL Fraud Scheme
OK, scratch Northern Trust: The New York Daily News was recently approached by a whistleblower named Aaron Mascarella, a former vice president of lending at the bank, with a series of potentially damning secret recordings that suggest that Northern Trust executives...Another Ruling Eases Concern Over Trust Funding
Continuing a recent trend liberalizing rules on trust funding, yet another California court case has deemed a trust to be funded with real property even in the absence of a deed expressly referring to the trust: Carne v. Worthington If attacked, do you want to be...Robin Williams Estate on Entertainment Tonight – YouTube
Widow vs. children. This happens more commonly than decedents expect before they die. Perhaps a total return unitrust would have worked here. If attacked, do you want to be Victor or Victim? At SacredHonor.US, we hate it when people die embarrassed. And at Protect.FM,...Whitney Houston Estate on Entertainment Tonight – YouTube
Whitney Houston’s estate in the news again — death of her daughter and failure to update her plan means assets are back in Whitney’s estate. If attacked, do you want to be Victor or Victim? At SacredHonor.US, we hate it when people die embarrassed....IRS Allows Late QTIP and Reverse QTIP Elections, Allocation of GST Exemption
This content is for members onlyLana Meisner, wife of Eagles member Randy Meisner, is killed in gun accident – LA Times
BTW, there is no such thing as a “gun accident” — this was a negligent discharge. Stop a moment and think whether your family is trained at least in the basic rules of gun safety. I can tell you it is very common for family members with absolutely no...When Buying a House Becomes an Estate Planning Horror Story: One Family’s Fight
Unfortunately, even a simple, seemingly trivial mistake can turn an otherwise careful transfer of an asset (like a house) into a horror story – and you may not even realize you’ve made a mistake until it’s too late. One Arkansas family currently faces big consequences...IRS Apparently Not Requiring Form 8971 Where 706 Filed for Portability Only
The instructions for Form 8971 (report of final estate value for assets to be distributed) are not exactly clear on whether the form must be filed where an estate tax return (706) is filed merely for porting deceased spousal unused exclusion amount (DSUEA): The filing...
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