Estate Planning

The Underworld Froze Over: Estate Tax Repeal is Here!

Honestly, I don't think anyone really saw this coming. Even the nerdiest of the Tax Law and Accounting nerds didn't think that Congress would actually allow the Estate Tax to be repealed. But Congress has. It's gone!

The Problem

First, the good news: If you (1) have a large estate (over $3.5 M), (2) you live in Utah (where we have no state inheritance taxes), and (3) you die in 2010 and before Congress changes the law, then all of your estate will pass to your heirs/beneficiaries free of Estate and Generation Skipping Transfer Taxes (GSTT), even without planning. Hooray!

Now the bad news: If your estate consists of a significant amount of property that has appreciated above what you originally paid for it

Are Bill Gates & Warren Buffett Walking Dead Men?

Many of my clients have heard me quip about how Bill Gates and Warren Buffett should be worried beginning New Year’s Day, 2010 because of the large target that Congress has placed squarely upon their backs. Now, to be honest, there is most likely no actual, physical threat to their lives because they have probably done appropriate estate planning. But this quip helps me to illustrate a point about Estate Taxes. On New Year’s Day 2010 – unless something happens within the next few weeks over in Washington D.C. – the Estate Tax or “Death Tax” will go away in a puff of smoke. In other words, as the laws currently stand, any one individual who dies in 2010 owning over $3.5 million worth of property will not have to pay Uncle Sam 1 red cent in estate taxes.

For the sake of illustration, let’s assume that Mr. Gates died “intestate” (i.e. without any wills or trusts in place) and that he wasn’t married.

Joint Ownership as an Alternative to Estate Planning (Part 2)

Blog Post by Melissa Platt, Esq.

It’s finally here—the long-awaited second installment in this two-part article on joint ownership! As a brief refresher, we’re talking here about the serious unintended consequences of using joint ownership (to be technical, joint tenancy with rights of survivorship or JTWROS) as a replacement for estate planning.

Example: Mom adds the name of trusted adult Son to her checking and savings accounts to allow Son access to these accounts to pay bills. Mom and Son have an understanding that when Mom dies, Son will distribute the money in the accounts to all the siblings equally. (Or Mom could also add Son’s name to the title of her home, CDs, money market accounts, brokerage accounts, etc.)

"Trust Mill" Fined $6.4 Million

The Ohio Supreme Court recently slapped a $6.4 million penalty upon two companies, American Family Prepaid Legal Corp. and Heritage Marketing and Insurance Services Inc., for the illegal practice of law (running a "Trust Mill") in that state.  These companies have also been banned from ever operating in Ohio again.

What is a "Trust Mill?"  Trust Mills are typically made up of individuals who sell insurance, annuities or other types of high-commission financial products.  

Joint Ownership as an Alternative to Estate Planning (Part 1)

Joint ownership is commonly thought to be an easy alternative to estate planning. Perhaps you (or your parents) have kicked around the idea of adding the name of a trusted adult child on a checking account or the title to your home. The thought is that as Mom (or Dad) gets older, the

What Michael Jackson Has Taught Us All (Part 3)

Blog Post by Melissa Platt, Esq.

Lesson #3: Every family with children must put into place a plan that specifies what should happen to their children, both in the short-term and the long-term, in the case of a parent’s death or incapacity.

Michael Jackson’s untimely death is another heartbreaking reminder that we never know when or how we’ll die. Responsible parents can no longer afford to think, “That won’t happen to me,” or “I’ll get around to it later.” Whatever you may think about MJ as a person, it’s undeniable that he was a devoted father.

What Michael Jackson Has Taught Us All (Part 2)

Blog Post by Melissa Platt, Esq.

Lesson #2: Your estate plan must be updated regularly to keep up with your changing life. An estate plan that is done once, stuck on a shelf, and never looked at again will not be effective when your family needs it. Your circumstances and your assets change, so it is critical to have an on-going relationship with your lawyer so that your estate plan can reflect those changes.

Unfortunately for his family, MJ did not update his estate plan to reflect his changing circumstances. When Michael’s will was signed in 2002, Debbie Rowe (Michael’s ex-wife and disputed biological mother of two of his children) had surrendered her parental rights.

What Michael Jackson Has Taught Us All (Part 1)

Blog Post by Melissa Platt, Esq.

I’m sure we all have some memories associated with Michael Jackson Some of my memories include watching the music video “Thriller” for the first time, attempting the “moon walk,” and wondering what Disneyland’s “Captain EO” was all about. And now the King of Pop’s legacy includes several valuable lessons on estate planning as well.

Lesson #1: It’s not about the documents. In my opinion, one of the reasons why you do estate planning with an attorney is to have someone take you by the hand, advise you through the decision-making process, and guide you around potential pitfalls. Why else would you pay an attorney thousands of dollars for documents that you can get for a few hundred dollars (or less) online or from an office supply store?

Platt Law Teams Up With Wealth Counsel

I'm pleased to announce that Platt Law has teamed up with Wealth Counsel, a national organization of Estate Planning attorneys whose primary purpose is to educate and support other estate planning attorneys around the U.S. with respect to the highly technical and complex aspects of estate planning.

CNBC Interview with Fellow Personal Family Lawyer, Alexis Neely

Fellow Personal Family Lawyer, Alexis Martin Neely was recently interviewed on CNBC's "On The Money" program on the essentials of estate planning.  Her advice here is solid.

 

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