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...]
When and Where You Die Matters
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,American Academy of Estate Planning Attorneys, Inc.The federal estate and gift tax exclusion is set “permanently” to $5 million, adjusted for inflation. However, if you die between now and the end of 2025, the exclusion is doubled to $10 million, adjusted for inflation. Its inflation adjusted to $11.4 million in 2019. But, the federal estate and gift tax is the same regardless of where you live when you die. You could … [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...]
Attorneys Justin M. Kennedy and Magdalena A. LaBranch-Gonzales Selected as 2019 California Rising Stars
Attorneys Justin M. Kennedy and Magdalena A. LaBranch-Gonzales have been selected to the 2019 California Rising Stars list. This is an exclusive list, recognizing no more than 2.5 percent of the lawyers in the state.Super Lawyers, part of Thomson Reuters, is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The annual selections are made using a patented multiphase process, which results … [Read more...]
New Estate Tax Proposal
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,American Academy of Estate Planning Attorneys, Inc.A new proposal regarding estate taxes has been introduced in the U.S. Senate. S.B. 309, the “For the 99.8% Act,” is sponsored by Senator Bernie Sanders (I-VT). The bill would exempt the first $3.5 million of an individual’s estate from estate taxation. (Under current law, the exemption is $5 million, doubled to $10 million through 2025, and is adjusted for … [Read more...]
State Income Taxation
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,American Academy of Estate Planning Attorneys, Inc.In this article, I’ll explain state income taxation in general.Everyone knows (or should know) that the federal government taxes the income you earn. But, depending where you live and how you earn money, states may tax your income, too.States run the gamut in the income taxation of individuals. Seven states don’t tax you at all: Alaska, Florida, Nevada, South … [Read more...]
ABLE Accounts
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,American Academy of Estate Planning Attorneys, Inc.This is the third article in a series. The first article focused on the use of UTMA / UGMA accounts. The second article focused on 529 plans. This third article focuses on ABLE accounts. ABLE accounts are like Section 529 plans. But, while 529 plans are for education expenses, ABLE accounts (under Section 529A) are for qualified disability expenses.While a 529 … [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 Are 529 Plans and What Are Their Advantages?
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,American Academy of Estate Planning Attorneys, Inc.The prior article in this series examined the use of UTMA and UGMA accounts. This article will focus on 529 plans. The next article in the series will examine ABLE accounts.A 529 plan, otherwise known as a qualified tuition plan, is a tax-sheltered way of saving for education. 529 plans are sponsored by states, state agencies, or educational institutions. For a … [Read more...]
What are UGMA and UTMA Accounts?
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,American Academy of Estate Planning Attorneys, Inc.UGMA and UTMA accounts are accounts in which a custodian holds assets for a minor. An UGMA account is one under the Uniform Gift to Minors Act. An UTMA account is one under the Uniform Transfers to Minors Act. States which have such accounts have rules which can vary slightly.UGMA accounts must end when the minor reaches age 18 (or other age in the state statute), … [Read more...]
