Some well known planners, such as Stacy Eastland, are recommending consideration of the BDOT for families with significant wealth to plan with the existing $11.2 million exemption. Most of you are aware of the Beneficiary Defective Inheritor’s Trust (BDIT), which is funded with only $5,000, and provides that all of that $5,000 may be withdrawn …
Spent several days in San Antonio at the TexFed Tax Institute. Most of the discussion was about the Tax Cuts and Jobs Act (“TCJA”) after two years. The main takeaway was how poorly written the law is. If you recall the law was put together in about three weeks. While the lowering of the corporate …
The Tax Cuts and Jobs Act-How Bad Law is Created Read More »
Recently watched a show on Jack Nicklaus, and his ability to hit 1 irons. There was a segment with current tour pros attempting to hit 1 irons, and it didn’t go well. I thought I would give it a try. Trevino said God couldn’t hit a one iron, but Jack and I can. One was …
It is happening with more and more frequency…someone knocks on the door and announces him or her self as the child of the man answering the door. DNA and the rise of Ancestry.com and the like have created this potentially awkward moment over and over again. In many cases it is a beautiful moment. I …
Who’s Your Daddy-Parentage in the age of Sperm Donation and Ancestry.Com Read More »
I have been involved in many premarital agreement situations where the parties got upset and decided the negotiations were hurting their relationship, so they decide to drop it. In Texas, there is an option, however, for the person of means to pursue that can be done without the knowledge or consent of their fiancee. The …
But Honey I Thought You Loved Me-What to do When a Premarital Agreement Isn’t an Option Read More »
March of Dimes was created to deal with polio, and was left without a mission once a vaccine was developed. So with a nationwide infrastructure in place, it decided to change its mission from polio to premature children. Today, if a 501(c)(3) wants to broaden or change its mission it doesn’t need to file a …
Recently, the Alaska Supreme Court in Toni 1 v. Wacker put a nail in the coffin of domestic asset protection trusts as effective creditor protection for out of state donors. After a Montana state court issued a series of judgments against Donald Tangwall and his family, the family members transferred two pieces of property to …
Proposed regulations were issued in November under Code Section 2010 addressing the possibility of “clawback” when the temporary high exemption amount reverts to pre TCJA levels (adjusted for inflation). The good news is that the proposed regulations state that clawback will not occur if one fully uses his or her exemption amount prior to sunset. …
In theory conservation easements are simple- a landowner grants a perpetual easement on a portion of his land for a charitable purpose and gets an income tax deduction for the reduction in value to the land encumbered by the easement. Many wealthy landowners have successfully done conservation easements. However, they have been highly abused over …
Proposed regulations on Qualified Opportunity Funds (QOF) were released at the end of October. The regulations are complex, and a complete analysis is beyond the scope of a blog post. However, there are some interesting provisions to note: There was some confusion over whether the deferred gain had to be recognized 12/31/2026 if the property …