Estate Planning Blog

Can I Give My Kids $15,000 a Year?

Chambliss: “If you have it to give, you certainly can, but there may be consequences should you apply for Medicaid long-term care coverage within five years after each gift. The $15,000 figure is the amount of the current gift tax exclusion (for 2018), meaning that any person who gives away $15,000 or less to any one individual in one particular year does not have to report the gift to the IRS, and you can give this amount to as many people as you like. If you give away more than $15,000 to any one person in a single year (other than your spouse), you will have to file a gift tax return. However, this does not necessarily mean you’ll pay a gift tax. You’ll have to pay a tax only if your reportable gifts total more than $11.18 million (2018 figure) during your lifetime.”

By On the Net|2018-11-06T14:21:14-08:00November 9th, 2018|

How to make sure your estate plan won’t cause a family fight

Market Watch: “Creating an estate plan is a gift to the people you leave behind. By expressing your wishes, you’re trying to guide your loved ones at a difficult, emotional time. All too often, though, well-meaning people do things destined to create discord, rancor and resentment among their heirs. What looks good on paper may play out disastrously in real life, says estate and trust attorney Marve Ann Alaimo, partner at Porter Wright Morris & Arthur in Naples, Florida. “People want to think everybody will be nice and do right,” Alaimo says. “Human nature is not always that way.” You can reduce the chances of family discord by doing these four things:”

By On the Net|2018-11-06T10:51:10-08:00November 8th, 2018|

Disabled daughter of ‘Dandy Don’ Meredith at center of allegations of abuse, neglect since his death

FOX: “The daughter of the late legendary football star and sportscaster “Dandy Don” Meredith dealt with abuse and neglect after her stepmother took guardianship of her trust following Meredith’s death, relatives said. Meredith, a former Dallas Cowboys quarterback, “Monday Night Football” commentator and TV pitchman who often referred to himself as “Jeff and Hazel’s baby boy,” set up a trust to ensure lifetime care for his youngest child, Heather, now 49, who was born with physical and intellectual disabilities.”

By On the Net|2018-11-06T10:02:36-08:00November 6th, 2018|

Strategies for estate planning during a divorce

JDSUPRA: “Divorce is a fact of life in America. It should come as no surprise that it can be a difficult process and can cause other aspects of a person’s life to be ignored while it is happening. It is important, though, that a divorcing individual involve his or her estate planning attorney in the divorce process to make sure that any settlement agreement and estate plan comport with post-divorce reality. In many cases, a divorce will automatically eliminate a former spouse from receiving any benefits under the other spouse’s will or revocable trust. This may not be the case in all states, though. Moreover, the divorce may not affect assets that have beneficiary designations, such as life insurance and retirement benefits (and, more commonly now, bank and brokerage accounts). Thus, a careful review of all of an individual’s assets is essential.”

By On the Net|2018-10-29T16:15:51-07:00November 2nd, 2018|

You’ve won the Mega Millions jackpot! Time to hide.

The Washington Post: “First things first: Quadruple-check your ticket after Tuesday’s Mega Millions drawing. Then do it again. Do they match the winning numbers (5-28-62-65-70, with a Mega Ball number of 5)? No? Skip to here. Yes? Lock the deadbolt and read on. Congratulations! So, you’ve done it. Beaten the odds — one in 302,575,350 — and won the largest Mega Millions jackpot in history. And it’s yours alone, so you’re almost certainly about to enjoy an astronomical spike in wealth. Now what? Before you shout from the rooftops or broadcast your excitement on social media, take a deep breath and keep some practical advice in mind. To sign or not to sign the back of the lottery ticket? There are plenty of people who will advise you to sign the back of the lottery ticket right away — including lottery officials in South Carolina, where Tuesday’s winning ticket was sold. After all, what would happen if, heaven forbid, you lost the ticket? Or worse yet, if an unscrupulous person in your life took the unsigned ticket and claimed it as his or hers?”

By On the Net|2018-10-29T15:20:43-07:00November 1st, 2018|

Oligarch a Step Closer to Losing $585 Million Divorce Battle

Bloomberg: “A Russian billionaire fighting one of the largest divorce payouts in U.K. history lost a Moscow court case where he was trying to prove that his marriage had been dissolved 16 years earlier. Farkhad Akhmedov was ordered to pay his wife Tatiana Akhmedova more than 450 million pounds ($586 million) following a London trial that he refused to participate in on the grounds that he was already divorced in Russia. Now the Moscow City Court has rejected an appeal by the businessman seeking to prove the existence of that divorce.”

By On the Net|2018-10-29T12:39:19-07:00October 29th, 2018|

Six important tips for estate planning success

Moneyweb: “The increased Value-Added Tax (VAT) rate – announced in the 2018 National Budget – dominated headlines for weeks thereafter, but this is not the only tax change affecting consumers and investors. Many tax changes also affect estate planning and the cost of estate administration. I asked Brenthurst’s Fiduciary Services Expert, Rozanne Heystek-Potgieter, for her top tips to navigate this. We compiled a list of six important issues to consider when navigating the complex field of deceased estate administration. More importantly, we have included tips on how to prepare for the inevitable and re-evaluate your existing will, the liquidity of your estate and estate planning goals in general.”

By On the Net|2018-10-15T14:46:06-07:00October 18th, 2018|

Til Death do Us Part: Marriage and Estate Planning

Smith Admudsen: “You and your significant other are ready to take the next big step in your relationship: getting married. While this is an exciting event, it’s also one that should prompt you and your fiancé to have some serious conversations about the legal implications of the marriage. Here are a few considerations that might help you and your partner start your marriage with clear understandings.”

By On the Net|2018-10-08T14:49:49-07:00October 12th, 2018|

10 Things You Need To Know About Prenups

Forbes: “While the celebrity buzz of the week is that Justin Bieber and Hailey Baldwin were secretly married earlier this week, the even bigger news is that they may not have signed a prenuptial agreement. With Justin’s net worth estimated at $265 million and Hailey’s at $2 million, that’s a tremendous imbalance of wealth. Depending on how the marriage turns out, this could result in a big payday for Hailey down the road. While Justin and Hailey may be young and in love – and throwing all caution to the wind – no one with any substantial assets should follow their lead. Here are 10 things every person should know about prenuptial agreements.”

By On the Net|2018-10-08T14:06:01-07:00October 10th, 2018|

Why Estate Planning Is Easy And Legacy Planning Is Hard

Forbes: “Estate planning is easy. It’s finite, calculable. What happens when you die? Who gets your stuff? How much will you owe in estate taxes and how can we prevent or prepare for it? You hire a lawyer to draft a will and possibly one or more trusts that provide for what happens when you die. It’s done. Complete. You tuck your documents away in drawer or safety deposit box and sleep well at night, knowing you have taken care of your estate plan. Death is inevitable, so planning for it—while admittedly uncomfortable for some—is relatively easy. Life, on the other hand, is hard.”

By On the Net|2018-10-08T13:48:06-07:00October 8th, 2018|

What Every Spouse Needs To Know About Inheriting IRAs

Forbes: “One difficult financial task facing a surviving spouse is how to handle the individual retirement accounts (IRAs) and other qualified retirement plans. Mistakes often are made with inherited IRAs in general, whether they are inherited by spouses, children or others. Retirement accounts are treated differently than most other assets in the estate. The rules for inherited IRAs aren’t intuitive or simple, so mistakes are made. Surviving spouses have the same options with inherited IRAs as other beneficiaries. But there’s a twist to one of them, and the surviving spouse has an additional option.”

By On the Net|2018-10-01T15:00:38-07:00October 5th, 2018|

Standing and Error Correction in Probate

Wills, Trusts & Estates Prof Blog: “Estate and guardianship proceeding are in rem and decisions are binding on the world, often without personal service or direct notice. Error correction in probate is essential because incorrect decisions can adversely affect administrations for years in the future. The Texas state legislature recognizes the importance of inheritance and guardianship and progressively expanded probate jurisdiction, including granting statutory probate courts exclusive jurisdiction over probate matters, and concurrent jurisdiction with district courts over trust and other matters. Statutory probate courts even have the power to transfer cases in other courts in other courts around the state to their own court when the proceeding affects a pending administration – the power affectionately known by practitioners as the “reach-out-and-grab” power. The legislature and courts recognize the difference between a “normal” lawsuit and an ongoing, continuing estate or guardianship administration and the need to accommodate the ability to correct errors well beyond the typical thirty days after an order is signed. The first analysis in every probate proceeding is to determine the parties who have standing in an estate.”

By On the Net|2018-10-01T13:19:12-07:00October 3rd, 2018|

Frank Lloyd Wright estate owner defends weddings, seeks tax break from Orinda

East Bay Times: “The homeowner of a Frank Lloyd Wright estate defended holding weddings on the property, saying there have been “no citations for illegal parking, no DUIs, no fights, no loud quarrels, no excessive noise citations” and calling neighbors’ complaints “baseless.” “In fact, (there have been) no citations whatsoever for anything from the police,” Gerald Shmavonian said in an interview. He added there have been no traffic accidents and no injuries on the site. “Ninety percent of the people take Uber.” “It’s true that there has been no criminal activity,” said Orinda Planning Director Drummond Buckley. But the Orinda official said Shmavonian was still in violation of the city’s zoning ordinance. Orinda bans commercial ventures in residential neighborhoods.”

By On the Net|2018-09-24T14:11:17-07:00September 25th, 2018|