Fiduciary May Face Personal Liability for Improper Administration of a Trust or Estate In Estate of Sarah O’Hare, No. 2015 IL App (2d) 2-14-0073 (June 11, 2015), Virginia O’Hare (“Virginia”), mother of Sarah O’Hare (“Sarah”), her disabled adult daughter, appealed a judgment against her in the amount of $421,621.73. Sarah was born in October 1989 with significant birth injuries. There was a medical malpractice suit that resulted in a substantial settlement, including an annuity which paid … [Read more...] about Fiduciary May Face Personal Liability for Improper Administration of a Trust or Estate

In the case In re Estate of Karter Wu (Supreme Court of Queensland, Australia), Mr. Wu created and stored his Last Will and Testament on an iPhone, along with a series of other documents, most of them final farewells. Wu’s iPhone Will named an executor and successor, set forth how he wished to dispose of his assets at death, dealt with his entire estate, and authorized the executor to deal with his financial affairs. The Will began with the words “This is the Last Will and Testament of Karter … [Read more...] about The Case of the iPhone Will

Charitable Planning Ideas   When we reflect on the blessings we have received, often we show our gratitude by our desire to contribute to our community and those less fortunate than ourselves. There are many ways that clients can “give back,” including engaging in lifetime or testamentary charitable giving. Charitable giving can not only benefit society, but it can also provide valuable income tax, gift tax, and estate tax savings. According to the Giving USA Foundation and the Indiana … [Read more...] about Charitable Planning Ideas

On January 2, 2013, Congress passed the American Taxpayer Relief Act of 2012, which extended a majority of the “Bush Tax Cuts” and fixed the amount that can be passed free of gift, estate, and generation-skipping tax for 2013 at $5.25 million per person. This amount is set to increase in the future, based on annual cost of living increases.   In his budget proposal for 2014, President Obama proposes to fix the amount that can pass free of tax at the levels which had been allowed in 2009. … [Read more...] about President’s Budget Proposal for 2014: Greater Estate Taxes, Income Taxes May Be in Your Future

In IR-2013-35 (March 28, 2013), the IRS reminded us that in most cases seniors who turned age 70½ during 2012 need to start taking Required Minimum Distributions (RMDs) from their IRAs, 401(k)s, and other retirement plans by April 1, 2013. The April date only applies to persons who are taking their first RMD. For all subsequent RMDs, the senior will need to take the distribution by December 31st of that year. Of course, seniors who do decide to delay their first distribution to the year … [Read more...] about Planning for Retirement Assets Can be Difficult

Football fans (and others) were shocked on December 1st of last year to learn about the murder of Kasandra Perkins. Perkins had been killed by Kansas City Chiefs linebacker Jovan Belcher. Jovan subsequently committed suicide at Arrowhead Stadium in front of his coach and the team general manager. The deaths of Kasandra and Jovan left their four month old child, Zoey, the subject of a guardianship dispute between Cheryl Shepherd, Zoey’s paternal grandmother, and her maternal grandparents, Rebecca … [Read more...] about Guardianship Provisions Essential To a Comprehensive Estate Plan

Last month, we let you know that Congress let the United States go off the fiscal cliff, only to come to the rescue in the early morning hours of January 2, 2013, with the passage of the American Taxpayer Relief Act of 2012 (“ATRA”). To review, ATRA makes most of the provisions of the previous estate tax law permanent. The amount that can be passed free of gift tax and estate tax is indexed for inflation, with the figure set at $5.25 million for 2013. The maximum gift and estate tax rate was … [Read more...] about More Reasons for Clients to Review Their Estate Plans

On December 31st, the United States went off the “fiscal cliff.” But, less than twenty-four hours later, Congress passed the American Taxpayer Relief Act of 2012 (“ATRA”). ATRA makes most of the previous estate tax law permanent. The amount that can be passed free of estate tax in 2013 is $5.25 million, with annual adjustment based on the CPI. The estate tax and the gift tax remain unified, so what is used during life is not available at death. The generation-skipping transfer tax exemption is … [Read more...] about New Year’s Resolution #3 – Get My Estate Plan Reviewed

Approximately forty years into their relationship, Edith Windsor and Thera Clara Spyer were married in Canada. Two years into their marriage, Thera passed away. After Thera’s death, Edith paid estate tax of approximately $363,000 to the federal government. The reason that tax was paid is that federal law, in the form of the Defense of Marriage Act (“DOMA”), does not recognize Edith and Thera’s marriage for federal estate tax purposes. Edith was greatly upset at having to pay the estate tax, … [Read more...] about Estate Planning for LGBTQ Couples: Possible Changes on the Horizon

This month’s alert focuses on the narrowing window to lock-in the current $5.12 million estate and gift tax exemption by gifting prior to year-end. The alert also examines why it may not be possible to wait and do this planning at the last minute. 2010 Tax Law Leads to 2012 LitigationAppraisal firms all across the country have been inundated with business. They are being swamped by taxpayers attempting to implement last minute estate planning strategies prior to January 1, 2013, when the amount … [Read more...] about Last Chance for Estate Tax Savings?