This month’s Alert examines the continuing uncertainty with the Estate and Gift Tax and the unique, limited-time opportunities which are available now. The Congressional “Super Committee” failed to reach bipartisan agreement in structuring a deficit reduction plan. This means that unless Congress takes action in 2012, there will be automatic budget cuts totaling $1.2 trillion over ten years, beginning in January 2013. Given that 2012 is an election year, both parties will be weighing whether it … [Read more...] about Fate of Estate and Gift Taxes Remains Uncertain – But, Many Planning Options Remain Available For Now

Elder law is an increasingly important area of law for clients. This month’s Alert examines a Wisconsin case concerning an Irrevocable trust which was included as an available asset for Medicaid purposes. The Alert also examines what they could have done differently to achieve a better result. Lucille Hedlund and her husband, Clarence, transferred the majority of their assets to their three children in 1991. The same day that Lucille and Clarence transferred the assets to their children, the … [Read more...] about Wisconsin Appeals Court Holds Assets of Irrevocable Trust are Available for Medicaid Eligibility Purposes

This month's Alert examines the IRS’ recent release of instructions regarding how to ensure portability of the applicable exclusion amount at the death of the first spouse. Many surviving spouses may see an estate tax return at the death of the first spouse to be unnecessary. This alert shows why advisors should document that they advised the filing of an estate tax return.The executor of the estate of a married decedent dying in 2011 and 2012 can carry forward the unused portion of the amount … [Read more...] about IRS Issues Instructions for Estate Tax Returns for Decedents Dying in 2011 and 2012

Clients occasionally attempt do-it-yourself estate planning. Sometimes they use software assistance, borrow from others’ documents, or amend their professionally prepared documents themselves. This month’s Alert looks at one such story and the havoc it wrought. In the end, the client’s goals were not achieved and her loved ones were pitted against each other in court. On occasion, a client will try to take matters into their own hands and amend their estate plan themselves. The reason is a … [Read more...] about A “Do-It-Yourself” Mystery: The Case of the Neighbor Girl and the Well-Meaning Widow

The estate tax law is a moving target, both at the federal and state level. This month’s Alert examines a case which illustrates how the changing laws can result in unintended results in your plan. Now, more than ever, it is important to review your estate plan periodically to ensure the outcome you want.The amount that can be distributed to children and other non-charitable beneficiaries free from federal estate tax at death is a constantly changing target. In 2000, this amount was $675,000. In … [Read more...] about Failure to Review Estate Plans Periodically Can Lead to Unintended Consequences

This month’s Alert examines the Obama Administration’s 2012 budget proposal and how it might affect estate, gift, GST, and income taxes. Further, the Alert looks at how our tax system compares to other developed countries. The Department of Treasury “General Explanations of the Administration’s Fiscal Year 2012 Revenue Proposals” presumes several important changes in the estate, gift, and generation-skipping transfer taxes. These changes include: Restoring the 2009 estate, gift, and GST tax … [Read more...] about 2012 Budget Proposal Includes Permanent Estate and Gift Tax Reforms

Nowadays, a growing number of consumers attempt to prepare estate planning and other documents of legal significance without professional assistance. These do-it-yourselfers are penny-wise and pound-foolish. This Alert examines several cases in which the decedent attempted to create or modify his own estate plan, with disastrous results.A growing number of consumers are attempting to prepare estate plans themselves. They use paralegal services or companies such as LegalZoom.com, LawDepot.com, … [Read more...] about Doing It Yourself Can Sometimes Lead to Disaster

IRAs and Qualified Plans are an increasing portion of our clients’ wealth. The advantages of the income tax deferral are well-known. This month’s Alert looks at developments regarding the creditor protection such plans provide, not only for the contributor, but also for those who inherit them. The federal government and most states extend creditor protection to IRAs and other retirement accounts. The extent of this protection has been clear with regard to IRAs and other retirement accounts … [Read more...] about Creditor Protection Extended to Inherited IRAs by More Courts

Elizabeth Taylor died recently with a $1 billion estate. This month’s Alert focuses on her estate, her philanthropy, and various advanced estate planning techniques with a charitable component. Read this month’s Alert to find out how charitable giving can help you and your clients meet estate planning goals.   Hollywood legend Elizabeth Taylor will be remembered for many things: her stunning violet eyes, her multiple marriages, her film accomplishments, and the success of her perfume and … [Read more...] about Elizabeth Taylor’s Estate Could Exceed $1 Billion – Much of It Could Benefit AIDS Charities

This Alert examines how a tax-deferred annuity may not be the best solution for senior clients. It demonstrates how a single premium immediate annuity, or “SPIA” may be a better alternative for clients, especially if the client is in a lower tax bracket than the children who will inherit it. Often seniors invest in tax-deferred annuities as a safe, tax-deferred investment to pass on to their children. But many seniors are in relatively low income tax brackets. Often the annuity salesman does … [Read more...] about Annuity Maximization