LexisNexis® Legal Newsroom
Estate Planning for the New Year

Happy New Year The end of the year and the start of a new one is the traditional time for retrospectives and predictions. In the estate world, the dominate theme in 2011 was the extraordinary asset transfer opportunities available to the wealthy. Specifically, the right to give $5 million...

Income Deduction of Estate Planning Fees

With April 15 th approaching, it reminds us of the need to file our income tax returns. When preparing estate planning documents, clients often ask, "are these estate planning fees deductible?" The cost to do a simple Will, Power of Attorney and Medical Directive are personal expenses and...

The Future of the Estate Tax?

In the last couple of weeks there has been a flurry of activity in the estate tax world. However, it simply has added to the continuing uncertainty regarding the future law. Absent new law, the $5 million exemption amount protecting taxpayers from gift and estate tax will expire at the end of 2012 and...

Virginia Self-Settled Asset Protection Trusts

Effective July 1, 2012, Virginia will be the 13 state to allow self-settled Asset Protection Trusts. Self-settled Trusts allow an individual to transfer assets to a Trust, protect the transferred assets from lawsuit and the transferor's creditors, and yet receive assets from the Trust as a beneficiary...

Properly Reporting Gifts

As 2013 approaches, there will be a flurry of activity by wealthy individuals seeking to take advantage of a gift tax exemption of $5,120,000, that will decrease to only $1 million in 2013. Taxpayers often gift closely held business interests or real estate. The gift value of this type of non-marketable...

Election Consequences

Now that the election is over, the good news for those of us who live in swing states is that we will no longer be overwhelmed with negative ads telling us the opposing candidate is despicable. For those who were hoping to see an end to the estate tax, the news is not so good. President Obama's re...

Type III Supporting Organizations - Now That The Dust Has Settled

Type III Supporting Organizations ("SO"), which are those "operating in connection with" one or more supported organizations, are treated as public charities because they support one or more public charities. ("SO" herein refers exclusively to "Type III Supporting Organizations...

John Dedon On Estate Planning: Preparing a Certificate of Trust

Clients often ask about a Trust "Certificate" or "Certification." A Trust Certificate serves as a summary of the Trust provisions, and is designed to provide third parties, such as banks, insurance companies, or financial institutions, with essential but basic information for purposes...

John Dedon On Estate Planning: Estate Planning – What a Difference a Year Makes

In contrast to this time last year, when clients were frantically gifting to save estate tax before adverse tax law changes, this year has returned to the norm, with more traditional and routine end of year planning. In December 2012, Congress at the last minute preserved the $5 million exemption...

Dedon on Estate Planning: Ringing in the New Year With Good Estate Tax News

By John Dedon In the estate tax world, 2013 ended in stark contrast to the frantic planning during 2012. 2013 marked a return to fundamental estate planning; namely, using Wills, Revocable Trusts, Powers of Attorney and Medical Directives, to protect the family assets for a surviving spouse and children...

Dedon on Estate Planning: Disposition of Tangible Personal Property in a Side Letter

A common question asked by clients preparing their Wills is how to dispose of tangible personal property upon death. For example, I am asked, "I have jewelry and a coin collection, do I need to specify how those items are distributed among my children upon my death or can I simply tell the children...

Dedon on Estate Planning: The President’s 2015 Budget: Limitations on Crummey Withdrawal Rights

President Obama’s $2.9 trillion budget for the 2015 fiscal year includes several tax increases, particularly on the wealthy, to pay for increased spending without increasing the deficit. One increase that will not be widely reported pertains to "Crummey" power limitations. (I am limiting...

John Dedon on Estate Planning – Staying Current

Attached below is a July 3, 2014 Forbes article detailing the need for clients to review and update their estate plans. Now that I have been in practice for 30 years, approximately 25 percent of the legal work that I do comes from existing clients updating their estate plans for various reasons. Why...

John Dedon On Estate Planning: Planning Not Just For The ‘Very Wealthy’

Russ Alan Prince, for Forbes, published an article on October 13, titled "The Very Wealthy Embrace Severe Disaster Contingency Planning." The article outlined how today, "the exceptionally wealthy [are] vulnerable to geopolitical instability, market volatility, career criminals, and even...

John Dedon On Estate Planning: Is It R.I.P. For IRAs?

In an October online article in The Wall Street Journal , the reporter described how Congress is examining large IRAs, and IRAs holding real estate and closely held business interests. Congress’ concern is that IRA income tax advantages are being used by the wealthy in ways beyond that contemplated...

John Dedon On Estate Planning: 1031 Exchanges And End Of Year Planning

My partner, David Lawrence, is an expert on Section 1031 tax-free exchanges involving investment real estate. His thoughts regarding end of year planning and the advantages of 1031s is below. Tax Straddling When Selling Investment Property Between now and the end of the year, taxpayers can legally...

Dedon on Estate Planning: Pets and Estate Planning

Bella - A Tribute | Anyone who has not felt the sadness and loss from the death of a pet either has never owned a pet or is devoid of humanity. My three pound Yorkie, Bella (technically, my daughter's dog, but you know how that works), had neurological issues that affected her ability to see and...

John Dedon On Estate Planning: Are Asset Discounts on Family Transfers a Thing of the Past?

Perhaps the primary estate planning strategy utilized in reducing gift and estate tax for several decades has been taking advantage of discounts for family transfers of closely held businesses and real estate interests. These same discounts also apply to marketable securities if packaged properly in...

John Dedon on Estate Planning: Buy-Sell Arrangements and Irrevocable Insurance Trusts

A common estate planning strategy for people with taxable estates is to have an irrevocable trust own life insurance, rather than owning the insurance themselves. Even with the current amount an individual can protect from estate tax at $5,340,000, some affluent taxpayers will benefit if irrevocable...

John Dedon on Estate Planning: Good news on Estate Tax Exemption

The IRS recently announced the inflation adjusted figures for gift and estate tax exemption amounts for 2016. The annual exclusion amount remains at $14,000. That is the amount that can be gifted to US citizens each year without eroding the per person exemption amount. The exemption amount increases...

John Dedon on Estate Planning: Kardashian Family Continues to Teach Estate Planning Lessons

My March 30, 2015 Post, discussed how Kris Jenner, the matriarch of the Kardashian family, was confused about the difference between 1) her Will and the role of the Executor, and 2) her Living Will and the role of the agent. In an episode of "Keeping Up with the Kardashians," Kris told her...