Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,American Academy of Estate Planning Attorneys, Inc.In the past, trusts often were drafted with little flexibility. Now, more and more, trusts tend to be drafted with more flexibility and there are even ways to change “irrevocable” trusts. This is the first of a three-part series. This first part examines ways of building flexibility into a trust. The second part examines using Trust Protectors to add flexibility to a … [Read more...]
Planning is Critical
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,American Academy of Estate Planning Attorneys, Inc.Sometimes people seem to think that if they don’t plan for death, it just won’t happen. In fact, 58% of American adults have no will, no trust, and no estate plan at all, according to a recent study by Caring.com. Unfortunately, whether you plan for it or not, death is inevitable.If you have no plan, your state of residence has a plan for you, it’s called … [Read more...]
When You Love Your New Spouse, But You Love Your Kids More
Whether You Should Disinherit Your New Spouse andHow California Law Protects Your Omitted Surviving Spouseby Magdalena A. LaBranch-GonzalesLitherland, Kennedy & Associates, APC, Attorneys at LawWhat happens if you marry your spouse after you created your estate plan but they are not mentioned in your plan when you die? California considers that person an “omitted spouse.”[i]An “omitted spouse” is a spouse who married the decedent after the estate plan was already created but … [Read more...]
What Assets Should Not be Funded into a Living Trust?
by Justin M. Kennedy, Litherland, Kennedy & Associates, APC, Attorneys at LawA Living Trust only has the authority to manage the assets titled in the name of the Trust; assets not titled in the name of the Living Trust cannot be managed by the Trust. Retitling assets into the name of the Living Trust is known as Funding.Funding your assets into the Living Trust is very important to ensure that the Trust has control over those assets. Assets properly titled in the name of the Living … [Read more...]
Estate Planning is About More Than Taxes
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,American Academy of Estate Planning Attorneys, Inc.The new tax law doubled the amount that can be passed free of federal estate taxation, at least through 2025. In 2018, an individual can pass $11.18 million free from federal estate taxation. But, estate planning was never just about estate taxation. The core of estate planning has always been about protecting your loved ones and the assets you leave them.There … [Read more...]
Gift Now or Let Them Inherit?
by Justin M. Kennedy, Attorney at LawLitherland, Kennedy & Associates, APC, Attorneys at LawRecently I met with a client, Tammy, who wanted to immediately gift her home to her son, Eugene. Even though Tammy already had a comprehensive estate plan with our office that included a Living Trust, Tammy had talked with her friends who suggested gifting the home now was in her best interests. When I asked more questions, Tammy shared that one of her friends, Mike, had died without a Living Trust … [Read more...]
Dead Hand Control: How Much is Too Much?
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,American Academy of Estate Planning Attorneys, Inc.Often, people want to continue to control their beneficiaries after death, just as they’ve done during lifetime. They want to etch in stone the exact circumstances under which distributions should be made to the beneficiaries. Sometimes they think the beneficiary will have to go to the tombstone like a confessional or ATM.The problem is the person doesn’t know … [Read more...]
6 Important Estate Planning Considerations – Part 6: Taxes
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,American Academy of Estate Planning Attorneys, Inc.This is part of a series of 6 blogs on important estate planning considerations. I’ll intersperse these blogs with other timely blogs.The first article in the series showed how an estate plan prepares one for incapacity during life and not just for the distribution of assets at death. The second article in the series focused on how an estate plan should take into … [Read more...]
6 Important Estate Planning Considerations – Part 4: Beneficiary Designations
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,American Academy of Estate Planning Attorneys, Inc.This is part of a series of 6 blogs on important estate planning considerations. I’ll intersperse these blogs with other timely blogs.The first article in the series showed how an estate plan prepares one for incapacity during life and not just for the distribution of assets at death. The second article in the series focused on how an estate plan should take into … [Read more...]
6 Important Estate Planning Considerations – Part 3: Your Kids
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,American Academy of Estate Planning Attorneys, Inc.This is part of a series of 6 blogs on important estate planning considerations. I’ll intersperse these blogs with other timely blogs.The first article in the series showed how an estate plan prepares one for incapacity during life and not just for the distribution of assets at death. The second article in the series focused on how an estate plan should take into … [Read more...]
