"This is a role that potentially has unlimited liability.” — Adam von Poblitz, head of Estate Planning at Citi Private Bank Have you been named the trustee for a close friend or family member? Did you feel honored when they asked? Well, it’s okay to feel honored, as the request does show a high level of trust and respect from your friend or family member. But think twice before accepting this “honor,” especially if there are no professionals on board as co-trustees. Trustees take on a lot of legal risk, especially for any mistakes they make, and there…
In this article, Forbes’s Deborah L. Jacobs offers an expansive look into the unique position of women in estate law, especially given current developments as of last December, and the unique necessity for women to practice proper estate planning. Among Americans 65 and older, 42 percent of women, but just 14 percent of men are widowed. Women’s longer life expectancy, combined with their tendency to marry older mates and their lower lifetime earnings means they are far more likely to see their living standards compromised in retirement if proper estate planning isn’t done. The article includes a gallery of the…
Unmarried couples are a growing part of our population, and with them the growing controversy over their legal rights as couples. If the government doesn't recognize a relationship, taxes, estate planning, buying property, and dividing assets after a breakup all get messier—and pricier. And, as Bloomberg Businessweek recently pointed out, the number of unmarried cohabiting couples has surged, meaning millions more Americans, gay and straight, are facing these issues. The U.S. Census Bureau estimates 7.5 million heterosexual couples and 620,000 same-sex couples lived together in 2010, compared with 6.7 million heterosexual couples and 476,000 same-sex couples in 2009. The lack…
We work with many qualified financial planners to assist clients with comprehensive estate and financial planning. But we don’t work with everyone, and sometimes we see unscrupulous sales methods employed that take advantage of trusting clients, particularly the elderly. Just such a case is brewing now in Indiana, where an insurance brokerage was disciplined for the unauthorized practice of law – and is now the defendant in a class-action lawsuit. According to insurancenewsnet.com, the insurance brokerage used estate planning as the hook for a lucrative business selling other insurance products, including annuities. Sadly, this is not an unfamiliar tale….
Proper planning can set your estate, your assets, and your family in line for a smooth transition but improper or incomplete planning can bring untold hardship, especially if the matter ends up in court. Courtesy of Bill Singer’s blog through Forbes, here’s another sad story to add to the file of otherwise avoidable legal woes. The entire story and Singer’s commentary are worth reading, but in essence it is the story of Financial Industry Regulatory Authority (“FINRA”) Arbitration 10-02435 (May 9, 2011), or the shortsightedness of one Newman Trowbridge, Jr, Esq.. Mr. Trowbridge opened an IRA in 1994 and named…
According to most tax experts, now is a fantastic time to give shares of a business to family members. As you may well know (if you follow this blog) 2011 and 2012 are have unique in terms of estate and gift tax planning. As one tax attorney was quoted in a recent New York Times article, “We are in the prime transfer tax situation.” However, having said that, there’s an old saying about not letting the tax tail wag the dog. While now may be the prime opportunity, tax-wise, to give away share of the family business to the next…
One of the most important, and often overlooked, aspects of estate planning is preparing for the possibility of your own incapacity – whether through illness or accident, and whether temporary or permanent. In the event that you are unable to make financial decisions – such as filing your taxes, selling property, or making investment decisions – have you given someone the legal authority to act on your behalf? You may have heard of a Durable Power of Attorney (DPOA), which is a legal document giving another person (the attorney-in-fact) the legal right to do certain things (powers) for another. A…
Since most of just finished filing our annual income tax return, we may not be in the mood to further discuss the topic of taxes … unless it’s all about avoiding them. Which is why now is a good time to turn to the topic of life insurance, taxes and your estate plan. The primary purpose of life insurance, for most people, is to replace income that would be lost should you die prematurely. The good news is that life insurance death benefits are generally received by your beneficiaries free of any federal income tax (and usually free of any…
You may need to review and/or revise your estate planning documents every three years or more frequently depending on your situation, or you may simply feel more comfortable reviewing it regularly. Ultimately, it’s up to you, but the more you review the less likely that your heirs hire an estate litigation lawyer. Reason 1: Your Will / Trust Never Goes Out Of Date With a regular review, you may decide to change things that may not be accurate anymore, or you simply desire to change things. For example, you may wish to remove one of your children from the will,…
The Wall Street Journal Online article introduces and discusses the possibilities of QPRTs or “qualified personal residence trusts” as vehicles for transferring ownership of residential houses. The article discusses the growing popularity of QPRTs as estate planning vehicles that can take advantage of low market prices on houses to maximize value against gift tax exclusions, and mentions some complications that might arise.
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