Take-Away:  One of the challenges in directing an IRA to be paid to an irrevocable trust on the IRA owner’s death is how to identify the oldest beneficiary of the trust whose life expectancy governs the required minimum distributions the trustee must take from the decedent’s IRA. Even more of a challenge is if there […]

Take-Away:  Sometimes how an heir receives his or her inheritance dictates if he or she will be able to keep that inheritance if creditors are circling. The Bankruptcy Code provide a ‘bright-line’ approach to what is considered property included in the heir’s bankruptcy estate. The ‘bright-line?’ Avoid passing the decedent’s assets to an heir by […]

Take-Away: Sometimes we forget why the use of a revocable grantor trust is a critical part of an estate plan. Several practical, financial and creditor advantages exist to the use of a revocable Trust over a Will went the transfer of wealth occurs on an individual’s death.   Background: A draft Will crossed my desk […]

Take-Away: As we counsel clients about estate planning over the next few years, we do so with the expectation that interest rates will continue to rise. Some conventional estate planning strategies like qualified personal residence trusts (QPRTs), grantor retained income trusts (GRITs) and charitable remainder annuity trusts (CRATs) perform well as interest rates continue to […]

Take-Away: While a trust should always contain a material purpose clause to guide the trustee, and possibly guide a probate judge as well, as to the settlor’s intent in establishing a trust, if the trust instrument confers discretion on the trustee with regard to distributions, the settlor should also supplement the trust instrument with non-binding […]

Take-Away: Yet another state court has found unconstitutional its state income taxing regime that imposes a state income tax on income accumulated in an irrevocable trust, the claimed authority to impose the tax based solely upon the residence of the trust settlor. Fielding v Commissioner of Revenue (MN July 18, 2018.) Summary: On July 18 […]

Take-Away: While we are less concerned about federal estate tax liability these days, a working knowledge of the Tax Code’s ‘string provisions’ is critically important when individuals decide to make aggressive use of today’s large tax-free gifting opportunities presented by the 2017 tax law. That said, the IRS seems to be making headway in re-asserting […]

Take-Away: Confusion was created by the 2017 Tax Act when it comes to the deductibility of trustee’s fees. The Treasury Department just released a Notice that promises some guidance on the continued income tax deductibility of trustee fees under the 2017 Tax Act. Background: The 2017 Tax Act eliminated itemized income tax deductions (sometimes referred […]

Take-away: Thirty years ago, from the unlikely source of Wyoming,  the civil law concept of the limited liability company arrived in North America.  We now find yet another civil law concept that has made its way onto the shores of North America, the Non-Charitable Private Foundation, from yet another unlikely source- New Hampshire. The LLC […]

Take-Away: When a trust is created with specific tax objectives in mind, it is critical that the trust instrument be administered according to its express terms, especially when tax objectives motivated the trust’s creation. Unlike a game of horseshoes, getting ‘close’ is not enough when it comes to administering a trust with tax objectives. Background: […]