Wills, Trusts & Estates Prof Blog

Robert Madden’s New Book Offers Federal Tax Planning Insights

A new tax planning book has been released by one of the top Washington, D.C., estate and probate lawyers.  Robert E. Madden has written the Fourth Edition of Tax Planning for Highly Compensated Individuals.  This book offers the reader insights and guidance on tax and estate planning.  It gives detailed analysis of recent regulatory changes and provides the reader with the tools needed to make better estate planning decisions.  Madden’s book is a good read for attorneys, accountants, estate planners, and financial advisors.  Any person seeking more knowledge about federal tax regulations should consider reading this book. 

See Thomson Reuters, Robert Madden Authors Fourth Edition Of Tax Planning Book, Blank Rome LLP, May 1, 2015. 

Emotions Should Not Get In The Way Of Smart Estate Planning

Speaking about death and what to do with the estate can be a very unpleasant topic for a lot of people.  Individuals often put off discussing estate planning issues with loved ones until the very end.  Estate planning is a lengthy process and it is a good idea to start making plans as soon as possible.  Not being prepared could cause tension and friction between loved ones.  It is a good idea to be transparent and to have a “three-year time horizon” when making a plan.  Updating an estate plan every three years is a good way to deal with changing life circumstances. 

See Sandra MacGregor, Don’t Let Emotion Sabotage Your Estate Plan, Forbes, May 15, 2015.

Special thanks to Jim Hillhouse for bringing this article to my attention. 

Battle Over Estate Of Baseball Legend Ernie Banks Continues

Since the death of Cubs great Ernie Banks there has been nothing but conflict over the estate including the voiding of a will by the probate court. Now, the executor has been ordered by the court to reveal the value of the total sales of memorabilia since his death and provide records from any joint accounts that exist. An attorney for the executor stated this was a procedural move and that the order will be complied with.

See Leah Hope, Ernie Banks estate executor must disclose memorabilia sales, joint account records, ABC 7, May 29, 2015.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.

Article On The Evolution Of Property Law In Taiwan

Yun-Chien Chang (Assistant Research Fellow, Academia Sinica) recently provided a chapter entitled, The Evolution of Property Law in Taiwan: An Unconventional Interest Group Story, For Private Law in China and Taiwan: Law and Economic Analyses, Cambridge University Press, 2016 . Provided below is an excerpt from the article:

This chapter first gives an overview of the several types of lesser property interests allowed by the Taiwan Civil Code and provides statistics as to how often property owners in Taiwan utilize these forms. The Book of Things in Taiwan Civil Code was overhauled between 2007 and 2010. This chapter coded the amendments and found: (1) 97% of the proposals by the task force (composed of property scholars and judges) were accepted verbatim by the legislature; (2) property laws in Japan, Germany, and Switzerland heavily influenced this round of amendments. The (unconventional) story behind the legal changes is that scholars and judges are the “interest group” that drives these amendments. The business world is generally uninterested in changing the abstract Taiwan Civil Code. Generally speaking, the new law, as proposed by this interest group, is more efficient than the old law, as, for instance, the new law decreases information costs for third parties in several aspects. The findings also have implications for the debate regarding the evolution of property rights and the long-term efficiency of the common law versus statutes.

Gina Rinehart’s Son Complains That Barnaby Joyce Interfered In Family Dispute

John Hancock, the estranged son of Gina Rinehart, has lashed out at the Australian Agriculture Minister Barnaby Joyce for involving himself in a family dispute.  Gina Rinehart, who is Australia’s wealthiest person, has been involved in a bitter dispute with her children over control of a $4 billion trust fund.  This story discusses some of the details of the Rinehart dispute.   Hancock claims that Barnaby Joyce intervened in the family dispute by sending an email to his younger sister, Hope, encouraging her to drop the case.

See Shalailah Medhora, Barnaby Joyce intervention in Rinehart dispute ‘dangerous,’ says John Hancock, The Guardian, May 28, 2015. 

Delaware Lawmakers Introduce Bill To Abolish Estate Tax

Republican lawmakers in the State of Delaware have recently introduced legislation that will get rid of the State’s estate tax.  The bill adheres to recommendations made by a state panel that was formed by Democratic Governor Jack Markell.  The Panel noted that the Delaware estate tax does not bring in much revenue and might actually be costing the State money by giving wealthy individuals an incentive to move elsewhere. 

See Randall Chase, Republican lawmakers introduce bill to eliminate estate tax, Washington Times, May 29, 2015.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.

The Most Famous Ongoing Estate Battles

Estate battles will be of great interest to those involved but rarely draw much attention from anyone not immediately concerned with the suit. But when the estate is that of a celebrity the interest will be intense with every fact revealed receiving much media coverage. In this article, BBC reviews a few of the most newsworthy estate disputes along with the most current updates.

See The who's who of battles for wills, bodies and legacies, BBC, May 24, 2015.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.

Article On Trust Decanting Without Gain Realization

Jason Kleinman (Herrick, Feinstein LLP) recently published an article entitled, Trust Decanting: A Sale Without Gain Realization, Real Property, Probate and Trust Law Journal, Vol. 49, Winter 2015. Provided below is an excerpt from the article:

This Article describes why decanting or modifying a trust cannot be a taxable event for trust beneficiaries. The Internal Revenue Service and trust law practitioners appear to assume the contrary and focus on determining which such events are taxable. Their perspective takes for granted that a property’s material modification gives rise to its deemed sale for tax purposes. This premise should not hold true for trusts, because a tax on gain requires the identification of an owner to derive the gain and trusts are not owned by any person. The perspective advanced in this Article should provide practitioners with a freer hand to undertake trust decantings and clarify the common law for determining when property modifications are taxable.

When Should A Person Get A QPRT?

The dismal real estate market is starting to recover from the 2008 financial crises and the Qualified Personal Interest Trust (QPRT) is making a comeback.  If done right a QPRT would allow a person to live in their home with a life estate while being able to transfer the house to a loved one at the lowest possible tax cost.  The Grantor should be careful about selecting the term of years that the trust will have.  Clients should be advised to select a term that they expect to outlive, but it should not be too short because that would bring about a lower wealth transfer.  Any person considering a QPRT should speak with an experienced estate planning attorney. 

See Kyle E. Krull, Reconsidering the venerable QPRT?, Wealth Management, May 28, 2015.

Special thanks to Jim Hillhouse for bringing this article to my attention.

Advisors Should Forge Ties With Heirs Of Elderly Clients

With the elderly population expected to grow in the future it would be good practice for financial planners to include the client’s heirs in the decision making process.  An increasing number of senior citizens are going to face issues of diminished capacity, which will make them more vulnerable to financial scams that could decimate their wealth.  It is important to forge ties with a client’s family and have a plan in place in the event that a client starts to lose mental capacity.  Financial planners should create a senior-specific program to help them advise elderly investors.

See Kenneth Corbin, With Elderly Clients, Advisers Must Involve Heirs, Financial Planning, May 28, 2015.

Special thanks to Jim Hillhouse for bringing this article to my attention.