Tag Archives: Estate Planning

Estate Planning Strategies When Using Exemptions

Given the current economy and the uncertainty of today’s political climate, many in the es–tate planning field have their eyes on Washington, D.C., looking to see if dramatic changes to the current transfer tax structure could be imminent. What effect should this have on the estate planning for high-net-worth clients? Should clients act now to use their remaining exemptions by the end of 2020? Might they regret it if the estate and gift tax laws do not change?

In this article, we discuss when it makes sense for certain individuals to make transfers to use exemptions before the end of 2020. We also cover alternatives for those who would want to “unwind” the transfer if anticipated changes to the transfer tax system do not occur, similar to the situation many faced in 2012. These alternative strategies include transfers in trust providing that property disclaimed by the trustee or by the principal beneficiary will revert to the grantor.

2020 Estate Planning Challenges & Opportunities

Don’t Undermine Your 709: Key Considerations for Filing Gift Tax Returns

Why Every Estate Planner Needs to Urge All Clients to Use Their Wealth Transfer Exemptions Now

Shielding Estate Planning Against Litigation

Proactive steps can be taken now to drastically reduce the chances of your clients’ wishes being challenged. Some of the topics we will cover include:

Reducing the chances a disgruntled beneficiary will attack your client’s estate plan
Increasing the chances that the estate plan will be successfully defended using discretionary trusts, no-contest clauses, and conditional distributions
Common litigation scenarios and how to avoid them
Anticipating challenges based on dementia, lack of mental capacity, and undue influence
Dealing with beneficiaries’ spouses and divorces
Protecting against mismanagement by trustees and trust advisors
Using statements of intent and overcoming adverse presumptions

Estate Planning for the Muslim Client

Advantages of a Donor-Advised Fund as the Charitable Component of your Financial Strategy

For those who want to give back, one of the first decisions that must be made is to determine what philanthropic tools are best suited for one’s individual charitable goals and financial circumstances. One philanthropic vehicle that has skyrocketed in popularity over the past decade, is the donor-advised fund, or DAF. For nearly a century, DAFs have been offered by local community foundations. More recently, DAFs have become available through the charitable extension of wealth management organizations such as Peak Trust Company’s Donor-Advised Fund (PTDAF).

Catholic Estate Planning

Kaestner Case and State Income Taxation of Trusts

On June 21st, the Supreme Court of the United States entered its opinion in North Carolina v. Kaestner, 588 US (2019). The Kaestner case represents an extremely important decision for all estate planners, trust officers, trustees, and advisers. Although the holding is a narrow one, it is vitally important. The Supreme Court held that a state may not impose income tax on undistributed income of a trust where the trust’s only contact with the state is a beneficiary living in the state, who might have received (but did not actually receive) distributions from the trust.

The entire decision needs to be considered in planning and in trust administration. For example, the court hints that perhaps even holding meetings in a state might provide a sufficient connection to allow the state to impose state income tax on a trust. Three leading experts, Jonathan Blattmachr, Mitchell Gans, and Martin Shenkman will discuss the Kaestner opinion and provide explicit recommendations on structuring and administering trusts to avoid state tax on trust income. Mitchell and Jonathan were two of the authors of the ACTEC amicus brief submitted to the Supreme Court on which the court seems to have relied in forming its opinion.