Litherland, Kennedy & Associates, APC, Attorneys at Law

Charitable Planning Ideas When we reflect on the blessings we have received, often we show our gratitude by our desire to contribute to our community and those less fortunate than ourselves. There are many ways that clients can “give back,” including engaging in lifetime or testamentary charitable giving. Charitable giving can not only benefit society, but it can also provide valuable income tax, gift tax, and estate tax savings. According to the Giving USA Foundation and the Indiana Lilly … [Read more...] about Charitable Planning Ideas

Adult children with disabilities often qualify for government assistance. Some of these assistance programs are needs based. Others are not. Many adult disabled children receive Supplemental Security Income, or “SSI.” Qualification for SSI requires that the child have less than $2,000 in countable resources and have income below guideline levels (in addition to being found to be unable to engage in gainful employment by the Social Security Administration). The maximum SSI benefit will be $721 … [Read more...] about Planning for Children with Special Needs

Joseph “Pop” Preuschoff acquired the Preuschoff Ranch, a 2,345 acre cattle ranch in Madera, California in the early 1900s. Joseph had a daughter, Mary Valen Alen. Mary had a son, Joseph. Joseph inherited a 13/16th interest in the ranch at his mother’s death. Joseph married three times and had six children, four by his first marriage and two by his second marriage. His Will left his four children by his first marriage small gifts and left the bulk of his estate, including the ranch, to his two … [Read more...] about Tax Court Says Taxpayer Cannot Have it Both Ways

Some clients have the view that an inheritance should be left outright and unencumbered to children and other beneficiaries, because they don’t want to be perceived as “ruling from the grave.” Leaving an inheritance in trust for a child or other beneficiary can sometimes be viewed as ruling from the grave, but, depending on the terms of the trust, the child or other beneficiary can have substantial control over the inheritance without losing the benefits a gift in trust can provide. If an … [Read more...] about Protecting an Inheritance as Opposed to Ruling from the Grave

New Rules for Same-Sex Couples Bruce and Bill were married under the laws of New York, where same-sex marriage is legal. Bruce was offered an executive position at Wal-Mart and the couple moved to Arkansas. Same-sex marriage is banned by a state constitutional amendment in Arkansas. Thus, Bruce and Bill’s New York marriage is not recognized by the state of Arkansas and they are considered legal strangers under Arkansas law. In United States v. Windsor, the United States Supreme Court held that … [Read more...] about New Rules for Same-Sex Couples

Estate of Hurford: a Taxpayer’s Tale of Woes In Estate of Thelma Hurford v. Commissioner of Internal Revenue, T. C. Memo 2008-278, Judge Holmes wrote: It is a truth universally acknowledged that a recently widowed woman in possession of a good fortune must be in want of an estate planner. Thelma Hurford had devoted her life to family and friends, leaving the management of finances to her husband Gary. When he died suddenly, she had to learn what they owned and decide what to do with it. While … [Read more...] about Estate of Hurford: a Taxpayer’s Tale of Woes

On June 26, 2013, the Supreme Court ruled in U. S. v. Windsor (“Windsor”) that Section 3 of the federal Defense of Marriage Act (“DOMA”) is unconstitutional as a deprivation of the equal protection of persons that is guaranteed by the Fifth Amendment of the Constitution. DOMA is the federal law which defines marriage as only between a man and a woman. Section 3 disallowed federal recognition of a same-sex marriage which is valid under a state law. DOMA was enacted by large majorities in both … [Read more...] about U. S. Supreme Court Rules DOMA Unconstitutional: Estate Planning for LGBTQ Couples Just Got Easier – and More Complicated

In a case of first impression relating to Bankruptcy Code Section 548(e)(1), the court in In re Huber, 201 B.R. 685, 701 (Bankr. Rptr. W.D.WA. May 17, 2013) held that an Alaska self-settled trust offered no protection with respect to claims of the grantor’s creditors in bankruptcy. The grantor of an Alaska Domestic Asset Protection Trust (“DAPT”) was a lifelong resident of the state of Washington who had conducted business in Washington for decades. In 2008, when the grantor transferred his … [Read more...] about Bankruptcy Court Delivers Unfavorable Ruling Relating to Alaska Domestic Asset Protection Trusts

In IR-2013-35 (March 28, 2013), the IRS reminded us that in most cases seniors who turned age 70½ during 2012 need to start taking Required Minimum Distributions (RMDs) from their IRAs, 401(k)s, and other retirement plans by April 1, 2013. The April date only applies to persons who are taking their first RMD. For all subsequent RMDs, the senior will need to take the distribution by December 31st of that year. Of course, seniors who do decide to delay their first distribution to the year … [Read more...] about Planning for Retirement Assets Can be Difficult

Football fans (and others) were shocked on December 1st of last year to learn about the murder of Kasandra Perkins. Perkins had been killed by Kansas City Chiefs linebacker Jovan Belcher. Jovan subsequently committed suicide at Arrowhead Stadium in front of his coach and the team general manager. The deaths of Kasandra and Jovan left their four month old child, Zoey, the subject of a guardianship dispute between Cheryl Shepherd, Zoey’s paternal grandmother, and her maternal grandparents, Rebecca … [Read more...] about Guardianship Provisions Essential To a Comprehensive Estate Plan