Succession planning is often the most complicated piece of the estate-planning puzzle. While tax planning has specific statutory rules and court precedents that must be followed to achieve a successful outcome, there are no official rules in succession planning and, often, no perfect solutions.
Trusts & Estates Articles
Imagine your client has an identical twin who acts just like him, likes and dislikes all the same things, shares his precise values and goals and reacts and makes decisions in the exact way your client does…this isn’t just your client’s twin, but your client’s clone…wouldn’t this immortal being be the perfect candidate to serve as trustee of your client’s trusts?
Stephen discusses lapsing 2012 estate planning opportunities for large estates holding businesses and real estate. Stephen also explores some of the lesser-reported implications of the Obama administration’s 2012 proposed budget.
A choice of law provision in a trust agreement, as is the case with any contract, may not be enforceable against persons who are not parties to the agreement. This point was recently reinforced by the U.S. Court of Appeals for the Second Circuit in EM Ltd., et.al. v. The Republic of Argentina which involved the validity of a self-settled trust created outside of the U.S. by parties who have basically no connection to the U.S. in terms of domicile or residence.
On Dec. 17. 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (the Act). The Act significantly impacts the estate planning that advisors will recommend to their clients, as well as the way planners will practice now and in the future. This article, briefly describes the Act’s key estate, gift and generation-skipping transfer (GST) tax changes, since many other Trusts & Estates articles have previously covered these topics. Our focus is on the Act’s current and future influence on estate planning practices.
Throughout history, many cultures have imposed restrictions on the right of an individual to freely bequeath assets. The historical basis of forced heirship was to require land to pass down to one’s issue—frequently giving priority in distributions to the eldest son. Today, most U.S. jurisdictions permit one to freely disinherit their descendents….
Over the last few years, there have been several articles written, as well as the issuance of Private Letter Rulings, regarding the potential benefits and tax consequences of the Beneficiary Defective Inheritor’s TrustTM. Briefly, the BDIT is an irrevocable trust, which is structured to be a “grantor trust” with respect to the beneficiary and not the grantor, yet allows the trust assets to be accessible to the beneficiary in this “best of both worlds” planning approach.
Financial professionals do it. Insurance professionals do it. Actuaries certainly do it. Yet we, as tax and estate planning professionals, all too often recommend techniques and strategies without doing it. And that “it” is risk assessment.