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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Defective Inheritor’s Trust (BDIT), which is funded with only $5,000, and provides that all of that $5,000 may be withdrawn …
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 »
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. …
If you own real property outside of your state of residence when you die, you will have to conduct an ancillary probate in that state to transfer title to the property to your beneficiaries. In some states, like Texas, ancillary probate is a simple process of recording copies of the out of state probate in …
Texas has one of the most expansive homestead laws in the country. Homestead designation protects the homeowner from creditors claims, other than certain taxes and loans secured with the homestead. This blog post will cover the types of Texas homesteads, and who benefits from homestead designation. Types of Homesteads There are two types of …
Asset protection planning is complicated. While estate and trust law changes very slowly, debt/creditor law can be quite dynamic in comparison. Good planning needs to take the long term perspective, and avoid a cookie cutter appearance. Based on my experience, there are a few general rules I follow. Pigs get fat, and hogs get …
In my last blog post I noted that it might be a good time to reconsider discount planning with family limited partnerships (FLP). That thought has only increased over the last few weeks as the chances for tax reform dwindle. Indeed, while political predictions are a fools game, we now have to seriously consider a …
It Might Be Time to Party Like It Is 2012 With The Spousal Lifetime Access Trust Read More »
Given my experience with my mom, it is not surprising that the first topic I want to cover is who should be named trustee. The truth is that there is no single answer to that question, because trusts (which are simply vehicles where beneficiary ownership is separated from legal ownership) are created for many different reasons. …