Trusts & Estates Roundup: Transfer Tax, Family Limited Partnerships, Permitted Heirs, Beneficiary Designations, and More
For your reference, here’s a roundup of recent trusts, estates, and tax advisories to help with the various aspects of your 2012 planning.
Please note that we’re only too willing to accept generous gifts - selfless as we are, we’ll do whatever is necessary to help your achieve estate planning deadlines. Just saying:
- $5,120,000 Lifetime Gift Tax Exemption Expiring Soon (Loeb & Loeb LLP)
“To understand the impending deadline, a little history is in order. Former President George W. Bush signed a number of tax cuts into law in 2001 and 2003. The ‘Bush Tax Cuts’ would have expired on January 1, 2011, but Congress and President Barack Obama, after a contentious debate at the end of 2010, extended the Bush Tax Cuts until January 1, 2013. The extensions included a new element, an unexpected increase in the estate tax, gift tax, and generation-skipping transfer tax exemptions to $5 million in 2011 and $5,120,000 in 2012…” Read on»
- Less Than 9 Months Left To Make $10 Million Of Tax-Free Gifts (Chuck Rubin):
“To use up part or all of his or her gift tax exemption, a donor must make a completed gift of the assets, either outright or through a trust that is irrevocable, and without a retained interest. This may not be an attractive option if there is a concern that the donor may need the gifted funds in the future. Donors should be aware, however, that there are methods that may allow them to both take advantage of their gift tax exemption and retain some access to the transferred assets…” Read on»
- April 2012 - Transfer Tax Alert (Abrams Febsterman):
“The Tax Relief Unemployment Insurance Reauthorization and Job Creation Act of 2010 created an unprecedented opportunity to substantially reduce or eliminate the potential estate tax liability for certain taxpayers… but time is critical. Pursuant to the current law, strategies employed to take advantage of this opportunity must be structured and implemented before 2013.” Read on»
- Have You Checked Your Beneficiary Designations Recently? (McNees Wallace & Nurick LLC)
“Beneficiary designations are forms that are routinely completed for life insurance policies, retirement accounts and even some bank and investment accounts. The forms say who will receive the asset upon the asset owner’s death. When a beneficiary designation is in place, it generally controls the disposition of the asset it is associated with, regardless of what one’s will or other estate planning document says. As part of a periodic review of your estate plan, it is vitally important to review all of your beneficiary designations…” Read on»
- Can I write my children and/or spouse out of my will? (Davis Brown):
“Children have no ‘right’ to inherit from their parents, but there are certain assumptions in place that protect the children. For instance, children born or adopted after the execution of a will (referred to as ‘pretermitted heirs’) typically receive a share of the estate. Some wills specifically provide for this by defining the term ‘children’ in the will to include any children born to or adopted by the testator after the date of the will. Including such a statement saves a couple from needing to change their wills every time a child is born…” Read on»
- Family Limited Partnerships: Still a Useful Estate Planning Tool (Manatt):
“In previous newsletters, we have discussed the benefits associated with family limited partnerships. The recent case of Estate of Kelly (March 2012) offers another example of how family limited partnerships can be used in business and estate planning…” Read on»
- When A Trust Specifies How It May be Modified, A Modification Made Differently Is Not Valid (Kronick Moskovitz)
“[Recently] a California Court of Appeal considered a challenge to changes made to a trust by one of two settlors to the trust, when the trust itself specified that any changes must be made through a written instrument signed by both Settlors. The court ruled that Probate Code Section 15402 specifies that if the trust provides for how it may be amended, then that method must be used to amend the trust and changes made differently are not valid… “ Read on»
- Estate Planning In 2012 (Bryan Cave)
Excellent, 13-page update: “We are in the midst of very volatile times which, at least for a foreseeable future, although no one knows for how long, can provide opportunities to achieve these goals in particularly beneficial and tax-efficient ways. This is the result of the present low interest rates and the drop in value of most types of assets, which allows clients to engage in some estate planning that may not be available when interest rates rise and values are driven higher….” Read on»
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Additional trusts & estate planning updates here»
