Posts Tagged: AEG

I have a client who wanted to leave a dedicated “pot of money” in trust for his grandchildren.  I knew his grandchildren would not “need” the money, so I asked him why?  His answer was the essence of simplicity and love, “We think of it as a kiss goodbye from us for them.”  A simple life insurance policy inside an ILIT for grandchildren accomplishes the goal – a separate gift solely for the grandchildren and very affordable.  We don’t know how our grandchildren will fare in the world, but a kiss goodbye can certainly make their journey easier and remind them how much they are loved.

In today’s tough housing market, some first-time home buyers are looking to their parents for help. Here’s what to know if you plan to do the same.

The New York Times article can be found by clicking here.

“The Rowland case has lawyers and accountants who prepare estate-tax returns on edge. The Tax Court sided with the IRS last month, disallowing the estate from using the common planning technique known as portability.”

The WSJ article can be found by clicking here.

The Washington Report: – Wealth Transfer Edition

“A family vacation home often holds sentimental value; however, sustaining that home within the family over multiple generations presents unique challenges and requires a realistic assessment about the family’s current and future commitment to maintaining the home and a plan for managing and funding that maintenance and potential development over the long term. In addition, owning a second home at death can augment the owner’s taxable estate, especially given rapidly appreciating real estate values in recent years.”

Click here to read the full report.

The Washington Report: – Wealth Transfer Edition

“From the Desk of an Estate Planning Attorney: Buy-Sell Planning Since Connelly – What are we doing now?”   KEY TAKE-AWAYS: Post-Connelly, closely held business owners must carefully consider the practical and various tax issues associated with life insurance funded buy-sell structures.

To read the full report, click here.

The Washington Report – Business Uses Edition

Given the potential for significant adverse tax results, compensatory split-dollar programs should be reviewed by a 409A tax expert for compliance. That review should occur not only when the program is first designed, but also any time the program is modified.

To read the full report, click here.

The Washington Report: – Wealth Transfer Edition

“The purpose of this article is to remind clients that “in the midst of chaos, there is also opportunity.” Below are five estate planning opportunities, which if implemented now, can yield significant and lasting benefits.”

To read the full report, click here.

The Washington Report: – Wealth Transfer Edition

“Given the rapidly evolving legislative landscape, advisors should get in front of clients now to create a plan on how to move forward if and when we start to see more certainty regarding upcoming tax law changes. For many clients, that planning should involve a review of business succession needs, as this is a largely underserved area of planning.”

To read the full report, click here.

The Washington Report: – Wealth Transfer Edition

“Although high net worth clients under the $50 million threshold (HNW clients) may continue to implement planning, we’re seeing some hesitancy now, since they have less total gifting capacity than UHNW clients and greater concerns about giving away too much. Many HNW clients prioritize control and flexibility, often viewed by them as the ability to “undo” planning if circumstances or laws change.”

To read the full report, click here.

A basic, very good article by Lawrence D. Sprung.  Might it be a nice piece to forward and share with some of your clients?

• Estate planning isn’t about focusing on your demise; it’s about taking control and making decisions that ensure your loved ones are cared for.
• It’s a way to share your wishes and protect the people you care about most, leaving them a roadmap instead of unanswered questions.
• Without a will and a plan, state intestacy laws determine what happens to your hard-earned assets.

The full article can be found by clicking here.

From an excellent WSJ article by Ben Cohen interviewing Ron Shaich, billionaire entrepreneur; 

• “What can I do in the next three to five years that I will respect looking back from my deathbed?”
• “I imagine my body old and fragile, my breathing shallow, my life energy almost extinguished, he wrote in Know What Matters, his 2023 book.  I try to evoke the feeling I want to have in that moment – a sense of peace, completion and, most importantly, self-respect.  Then I ask myself:  What am I going to do now to ensure that when I reach that ultimate destination, I’ve done what I need to do?” 
• “I realized that the time to be having that review was not in the ninth inning with two outs.  It was in the seventh inning, the fifth inning and third inning.”

The most important question estate planners can ask their clients; If we (client, spouse, collaborative advisors) were gathered here today and you had died last night what would we be discussing?  The follow-up questions are situation and client specific.  The answers to the questions will help the advisors and the client to determine whether or not there are problems/issues that should be addressed today.  The degree to which the client is dissatisfied/unhappy with his/her current situation and the potential outcomes if premature death were to occur will determine how smoothly, quickly, and successfully the rest of the planning and implementation process moves forward.

I believe this is the most important question that we estate planners should ask every client now, not in the ninth inning with two outs.  It is the essence of what we do and, perhaps, the most productive thing we can do this year.

The WSJ article can be found by clicking here.