Tuesday, May 29, 2018
Will the Next Generation Squander the Largest Wealth Transfer in History?
"Accenture reports that over the next 30 to 40 years, $30 trillion in assets will pass from boomers to their heirs in the U.S. alone. What many people don’t realize, however, is that 70% of those intergenerational wealth transfers will fail by the time they reach the second generation, according to The Williams Group, a financial advisory firm."
There are 3 possible ways to make inheritances and wealth transfers respected rather than squandered.
- Make Wealth a Family Discussion
- Talk to your family about the importance of financial security, and the hopes you have of what you would like them to accomplish with your money.
- Focus on Values - Not Balances
- Place the emphasis on legacy and possibly social awareness rather than the dollar amount in a transfer of wealth.
- Establish a Clear Purpose for Your Wealth
- Stipulate that certain funds must be used for particular purposes, either in a will or in a trust. Your children (and even grandchildren!) may thank you in the end.
See Jess Stonefield, Will the Next Generation Squander the Largest Wealth Transfer in History?, Market Watch, May 29, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.
May 29, 2018 in Current Affairs, Estate Administration, Estate Planning - Generally, Generation-Skipping Transfer Tax, Trusts, Wills | Permalink | Comments (0)
Planning During Terminal Illness
Diagnosis of a terminal illness is never an easy situation. There are physical implications, emotional implications of the affected spouse and family, and the financial burdens that can tag along. Financial planning during these types of circumstances falls into two different categories: during the illness when cash flow is maximized to cover the medical care and expenses that arise, and estate planning when death is closer or imminent.
If a terminally ill person is working has a large effect on their cash flow and their disability insurance through their employer. If the person has retired, depending on their age they may be able to tap into their IRAs, 401(k)s, Social Security, and other retirement accounts usually may be tapped without incurring the 10% early withdrawal penalty. Some life insurance policies have riders that stipulate pay out before death if the holder is expected to pass away within 24 months, as certified by a physician. Sales of a life insurance policy could also be used to increase cash flow, but these transactions are taxable.
See James R. Grimaldi, James A.J. Revels, and Sidney Kess, Planning During Terminal Illness, CPA Journal, May 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.
May 29, 2018 in Disability Planning - Health Care, Disability Planning - Property Management, Estate Planning - Generally, Wills | Permalink | Comments (0)
Monday, May 28, 2018
CLE on Trusts: The Ultimate Guide
The National Business Institute is holding a conference entitled, Trusts: The Ultimate Guide, which will take place Monday, June 04 and Tuesday, June 05, 2018, at the Radisson Hotel Los Angeles Midtown at USC in Los Angeles, California. Provided below is a description of the event:
Program Description
Make the Best Use of Today's Top Trusts
We've expanded on our top "Trusts 101" course to give you even more unique trust structures, sample provisions language, and reasoning for which planning tools better suit specific client situations. Understand the key structures and uses of today's top trusts and anticipate administration challenges and tax consequences. Register today!
- Get an update on the current laws and tax regs governing the trusts practice.
- Analyze all key factors in selecting the best trust option for each unique situation.
- Learn when and how IRA trusts are used.
- Define powers and duties of all trust parties to smooth implementation and prevent disputes.
- Save drafting time with sample trust language.
- Clarify who your client is to avoid conflicts of interest and other ethical violations.
- Minimize your client's tax burdens with effective use of defective trusts.
- Get practical guidance for drafting unique, single purpose trusts for pets, QDOTs for non-citizen spouses, and etc.
Who Should Attend
This basic level seminar is designed for professionals involved in drafting and administering trusts:
- Attorneys
- Accountants and CPAs
- Trust Officers
- Tax Managers
- Wealth Managers
- Financial Planners
- Nursing Home Administrators
- Paralegals
Course Content
Day One
- Key Parties, Terms, Legal Concepts
- Revocable vs. Irrevocable and Revocable to Irrevocable
- Living vs. Testamentary Trusts
- Marital/Disclaimer Trusts Post-ATRA
- Grantor Trusts
- IRA Trusts
- Medicaid-Planning Trusts
- Special Needs Trusts
Day Two
- Asset Protection Trusts: Domestic and Offshore
- Charitable Trusts
- Legal Ethics
- Trust Decanting, Modification, Dissolution, and Constructive Trusts
- Tax Deduction with Trusts
- Other Trust Structures and Issues
Continuing Education Credit
Continuing Legal Education – CLE: 12.00 *
Financial Planners – Financial Planners: 14.00
International Association for Continuing Education Training – IACET: 1.20
National Association of State Boards of Accountancy – CPE for Accountants/NASBA: 14.00 *
Professional Achievement in Continuing Education – PACE: 14.00
* denotes specialty creditsMay 28, 2018 in Conferences & CLE, Estate Planning - Generally, Estate Tax, Generation-Skipping Transfer Tax, Income Tax, Trusts | Permalink | Comments (0)
Article on Do Constructive Trusts Deter Disloyalty? [Ireland]
Andrew Hicks published an Article entitled, Do Constructive Trusts Deter Disloyalty?, Wills, Trusts, & Estates Law eJournal (2018). Provided below is an abstract of the Article:
Constructive trusts of disloyal fiduciary gain often are justified by the argument of deterrence. For there to be effective deterrence two conditions must be satisfied: first, potentially disloyal fiduciaries must be sufficiently informed, directly or indirectly, of the properties of the constructive trust; secondly, fiduciaries must respond by accurately weighing the costs/benefits of disloyalty and other options before choosing the option that maximises their self-interest. Typically one or both of these conditions will not be satisfied. Drawing upon insights from the behavioural sciences we find that fiduciaries contemplating disloyalty generally cannot be expected to be cognizant of the properties of the constructive trust therefore cannot be influenced by them. Even when known, such properties will not necessarily influence fiduciary behaviour due to the way well-informed fiduciaries are likely to perceive and process the risk their disloyalty will be detected. The deterrence gains generated by the recognition of a constructive trust therefore are likely to be negligible.
May 28, 2018 in Articles, Estate Planning - Generally, Trusts | Permalink | Comments (0)
Storm Chaser Writes His Own Obituary, Wants Ashes Shot Into Tornado
The last few years saw Jim "Mad Dog" Sellars mostly confined to his bed due to a back and heart condition, but that did not lessen his love of extreme weather and storm chasing. He never let his failing health him stop him and continued to help the National Weather Service track storms and field calls from other storm chasers across the country. Sellars passed away Tuesday and in his self-penned obituary he specified that he wanted his asked tossed into a tornado. "He was independent as the dickens," John Sellars, Jim's brother, said.
See Giacomo Bologna, Storm Chaser Writes His Own Obituary, Wants Ashes Shot Into Tornado: 'That'll Be Fun!!!!', USA Today, May 24, 2018.
May 28, 2018 in Estate Planning - Generally, Humor | Permalink | Comments (0)
Harvard Scientists Say These 5 Things Can Prolong Your Life by a Decade
A promise of adding a full decade onto one's life can be extremely enticing, but the manner is which to earn those extra years could be more difficult than a person may realize. It seems that studies are redundant with suggesting the common five habits: eat healthy, exercise, maintain a healthy weight, don't smoke, and limit alcohol consumption. If a woman is successful in adopting these customs, they could add up to 14 years to their lives and men could add 12 years.
There are ways to help these changes be more conceivable according to the National Institutes of Health. Becoming aware of your bad habits in your daily life and not taking on these challenges solo can heighten your ability to make this a permanent lifestyle transformation.
See Alessandra Malito, Harvard Scientists Say These 5 Things Can Prolong Your Life by a Decade, Market Watch, May 26, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.
May 28, 2018 in Estate Planning - Generally, Food and Drink | Permalink | Comments (0)
Sunday, May 27, 2018
All You Need to Know About Spain's "Patrimonio" Wealth Tax
Spain has many of the usual taxes - sales tax, income tax, capital gains tax, etc. But the wealth tax takes many foreign residents by surprise. It is a national tax, but is set and regulated by Spain's different regional authorities. For non-residents that own property in Spain, only the Spanish property is taxes. Residents are taxes on their against their total assets, including real estates, business activities, savings, insurance policies, luxury personal property, royalties and interest in intellectual property. There are several allowances that can make this tax not quite a terrifying amount: pensions, normal household items, personally owned and run businesses and author’s rights are exempt, if relating to the individual’s main activity and source of income.
The wealth tax was reintroduced in 2011 during the financial crisis and was meant to only be temporary. Due to this uncommon tax, Spain has become less enticing to foreigners than other countries that provide more incentives and tax exemptions.
See Adam Neale, All You Need to Know About Spain's "Patrimonio" Wealth Tax, Olive Press, May 26, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.
May 27, 2018 in Estate Planning - Generally, Travel | Permalink | Comments (1)
Top 10 Questions to Ask Your Elder Law Attorney
Whether it be during retirement, immediately before retirement, or early in their career, it is important to see an elder law attorney to assemble one's plan's in case they are no longer in control of certain aspects of their lives. Here is a list of 10 questions to ask an elder law attorney.
- What is your experience in elder law?
- Does you practice focus on an elder law niche?
- What is the most important aspect of elder law?
- What is my biggest concern as a retiree?
- Who should have my power of attorney should dementia or illness become a problem?
- Are there any risks inherent in my current retirement plan?
- How should I approach insurance and long-term care?
- How can I make provisions for my spouse if they survive me?
- What documents do I need to have prepared for my heirs?
- How often do I need to update my documents during retirement?
See Dungan Lefevre, Top 10 Questions to Ask Your Elder Law Attorney, Tipp News Daily, May 26, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.
May 27, 2018 in Disability Planning - Health Care, Elder Law, Estate Planning - Generally | Permalink | Comments (0)
Saturday, May 26, 2018
Article on Fiduciary Remedies
Samuel L. Bray recently published an Article entitled, Fiduciary Remedies, Wills, Trusts, & Estates Law eJournal (2018). Provided below is an abstract of the Article:
This chapter offers an overview and analysis of fiduciary remedies. The remedies considered are accounting for profits, constructive trust, equitable compensation (also called equitable damages, damages, or surcharge), injunction, unwinding remedies (e.g., rescission), and supervisory remedies (e.g., instruction, removal). The chapter also considers three major unsettled questions: whether the remedial aims of fiduciary law are distinct from other fields, how to think about fiduciary remedies in light of the law/equity distinction, and the legitimacy of punishment in fiduciary remedies.
May 26, 2018 in Articles, Estate Planning - Generally, Trusts | Permalink | Comments (0)
The Deficiencies of Online Legal Services
The modern generation are definitely self-starters and "do-it-yourselfers." They attempt to find the easiest (and cheapest) avenues to the correct destination. But when it comes to websites that provide legal services and documents at a discount, they could end up paying much more than they bargained for.
Online legal services create basic, generic documents. At any time a person's needs or desires change, they will most likely need to hire an attorney to alter the existing paperwork. This actually creates more work for legal professionals.
A good note to think: a disclaimer on a popular legal service website denotes that, "[they] are not a law firm [ ] or a substitute for the advice or services of an attorney. We cannot provide any kind of legal advice, opinion, or recommendation about possible legal rights, remedies, defenses, options, selection of forms or strategies." So what are you paying for?
See Chelan David, The Deficiencies of Online Legal Services, Smart Business, May 24, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.
May 26, 2018 in Estate Planning - Generally, Technology | Permalink | Comments (0)