Whenever a client wants to cap gift tax exposure, planners should consider using a defined-value clause implemented by use of an escrow trust. A defined-value clause limits the quantity of assets gifted or sold until a final determination of value...
Many estate-planning attorneys have used total return trusts to cope with falling yields in an effort to balance the income beneficiary's need for income against the remaindermen's need for growth. In a low interest rate environment...
A dynasty trust can offer significant benefits, but achieving these benefits is not simple. Crafting a well-constructed dynasty trust requires the planner to clear hurdles presented by various provisions of tax and trust law, including not only...
It's been a stable of estate planning for many years to have an irrevocable life insurance trust own life insurance. But advisors are careful to warn clients that if they transfer an existing policy to such a trust and die within three years of...
Lawyers get requests for powers of attorney all the time, and they're easy to churn out and then forget. But beware. Powers of attorney also are very easily abused. So easily, in fact, that the Illinois docket where we practice is flooded with...
The Pension Protection Act of 2006 (PPA)1 imposes new penalties on appraisers that are deemed to have made substantial or gross valuation misstatements. These stiff penalties are articulated in new Internal Revenue Code Section 6695A (see Go to...
Asset protection planning is a moving target. Practitioners must constantly be aware of case developments and changes in the law, which must be reflected in their plans. Nevertheless, some advisors operate by rote and give every asset protection...
The star-studded movie Bobby has put the untimely death of Robert F. Kennedy back in the news of late. But really, the Kennedys, even those long-deceased, are always interesting as are their wills. And Bobby Kennedy's will is particularly...
Businesses intended to remain family-held after the death of the founder need planning that goes far beyond the orderly and tax-efficient transfer of ownership interests. For ownership transfers to succeed, owners and leaders of family firms also...
For years, practitioners have employed the estate-planning strategy known as sale to a grantor trust.1 Yet there's still substantial uncertainty and debate about one critical aspect: the detrimental income tax consequences that can result when a...
