What is a Lifetime QTIP Trust? One traditional estate planning model for married couples makes use of the “AB Trust” strategy. After the first spouse dies, the “B Trust” holds an amount equal to the federal estate tax exemption (currently $5.34 million in 2014), and the “A Trust” holds the excess. The “A Trust” is…
How to Minimize Legal Fees After Death Death is a costly business. Aside from funeral expenses, legal fees can take a big chunk out of how much is left for your loved ones after you’re gone. But it doesn’t have to be this way. Careful planning can minimize the legal fees your loved ones will…
If You Die Without a Will, Does Your Spouse Inherit Your Entire Estate? If you are married and you die without a Last Will and Testament, you may mistakenly believe that your spouse will still inherit your entire estate. Not so fast. Who will inherit your estate depends on several different factors: 1. How is…
(Note: Originally published on October 7, 2014) Does Your Revocable Living Trust Reduce Your Estate Tax Bill? Many people believe that once they set up and fund a revocable living trust, property held in the trust will avoid estate taxes after they die. In reality, this may or may not be true depending on your…
(Note: Originally published on October 6, 2014) The Trust Protection Myth: Your Revocable Trust Protects Against Lawsuits WARNING: Many people believe once they set up a Revocable Living Trust and transfer assets into the Trust, those assets are protected from lawsuits. This is absolutely nottrue. While Trusts commonly provide asset protection for beneficiaries, few Trusts…
The Wealth Counselor Protecting assets against loss has become a common goal of estate planning. Asset protection trusts come in many different forms and can be used to protect property for the use and benefit of clients as well as their families and other beneficiaries. In this issue you will learn how clients can easily…
The Wealth Counselor Estate planning is not only about having a plan in place to deal with what happens after a client’s death, it is also about having a plan in place to deal with what happens if a client becomes mentally incapacitated. In this issue you will learn: What happens without an incapacity plan.…
The Wealth Counselor Trusts that continue for the benefit of a surviving spouse’s lifetime and then for the benefit of several generations have become the norm. Drafting trust agreements that will cover the administration, investment, and distribution of trust property over the span of multiple decades is challenging. In this issue you will learn how…
The Wealth Counselor A will or trust contest can derail a client’s final wishes, rapidly deplete their estate, and tear their loved ones apart. But it doesn’t have to end like this. In this issue you will learn: What a will or trust contest is Who can contest a will or trust When a will…
The Wealth Counselor Studies have shown that more than 90% of family wealth is lost by the end of the third generation. To help clients avoid this, advisors must become adept at bridging the disconnect among generations when it comes to the transfer of family wealth. In this issue you will learn: The main factors…
The Wealth Counselor Knowing the ins and outs of reducing income in view of the new tax laws will add value to your client relationships. In this issue you will learn how: Charitable trust-based planning can be used by individual clients to reduce their taxable income. Distributions, trust reformation or decanting, and investment shifting can…
The Wealth Counselor Asset protection planning is a powerful way to provide additional value to your clients. In this newsletter you will learn about seven trust-based asset protection strategies and how they can:- Protect your client’s assets from creditors, lawsuits, and divorcing spouses. – Protect client’s assets gifted to, or inherited by,…
The Wealth Counselor Only the very wealthy and those in high-risk professions need asset protection planning, right? That’s a myth. In reality, we all need asset protection. Why? Because we all can be sued and lose everything we have. A car accident, business failure, foreclosure, medical crisis, or injured tenant can result in a monetary…
The Wealth Counselor In a landmark, unanimous 9-0 decision handed down on June 12, 2014, the United States Supreme Court held that inherited IRAs are not “retirement funds” within the meaning of federal bankruptcy law. This means they are therefore available to satisfy creditors’ claims. (See Clark, et ux v. Rameker, 573 U.S. ______ (2014))…
The Wealth Counselor Many of us in the legal, financial and accounting worlds discover our new clients’ well-intentioned, yet disastrous, plans after the fact. The widow has already transferred her house into her children’s names or an inherited IRA is drained to pay for a Porsche. Observing the lost planning opportunity and the financial fallout…
The Wealth Counselor Portability laws and the opportunities they create have significantly increased advisors’ roles in estate planning. No longer is the standard credit shelter trust (with QTIP or outright distribution to spouse) the only way for married couples to plan. Now, CPAs, insurance professionals, and financial advisors have a larger and more complex role…
The Wealth Counselor In fact, their unique needs—and their growing numbers—demand attention Handing down your accumulated wealth to your children is a long-held tradition that many consider a cornerstone of the American dream. But what about those individuals who, whether by choice or due to circumstance, do not have direct descendants to whom they can…
The Wealth Counselor Many of your clients are baby boomers (now ages 50-68) moving into retirement and dealing with all the issues related to aging: elderly parents, kids in college, saving enough to last a lifetime and protecting what they have. With a dizzying array of financial instruments to choose from, complex federal and state…
The Wealth Counselor When it comes to financial and wealth planning issues, more often than not, people go to a professional they trust. They may be working with a financial planner, CPA, agent, or banker, but when trust and estate concerns arise, clients need their trusted advisor to listen to their needs and to explain…
The Wealth Counselor The signing of the American Taxpayer Relief Act of 2012 (“ATRA”) on January 2, 2013, certainly marked a transition for wealth and estate planning professionals and their clients. Before ATRA, planning was often dominated by the volatility and uncertainty of the federal estate, lifetime gift, and generation-skipping transfer (GST) tax exemptions (referred…
The Wealth Counselor Income Tax Options Run Out December 31 for Non-Grantor Trusts. Most clients and advisors have not yet caught up to the impact of soaring income tax rates on non-grantor trusts and on estates in administration. Trustees and estate administrators must be informed immediately to implement strategies to mitigate the 2013 tax rate,…
The Wealth Counselor Income Tax Options Run Out December 31 for Non-Grantor Trusts! Most clients and advisors have not yet caught up to the impact of soaring income tax rates on non-grantor trusts and on estates in administration. Trustees and estate administrators must be informed immediately to implement strategies to mitigate the 2013 tax rate,…
The Wealth Counselor Some think that trusts are used only for end-of-life planning. Trusts, however, are like wrenches: they come in a wide variety of shapes and sizes, each particularly suited to a particular need. Some are for wealth accumulation while others are for wealth preservation, and still others are designed to protect future generations. In…
The Wealth Counselor The world changes; clients’ circumstances change; motivations and interests change. As these changes occur—often gradually—“hidden” risks emerge that can significantly deteriorate future wealth if left unattended. By “hidden” risks, we mean exposures of which the client or potential client is likely to be unaware. Identifying hidden risks in an education-based marketing program…
The Wealth Counselor It is vital for each member of the advisory team to understand the roles of the other members in meeting their client’s needs. Therefore, in this issue of The Wealth Counselor, we will focus on how the estate planning attorney uses the initial interview in a blended-family situation. Blended-family clients often require…
