Seven states have enacted statutes that permit a trustee with discretion to distribute principal of a trust to exercise the discretion by transferring principal to a new trust, which may have terms different than the original trust. They are Alaska, Delaware, Florida, New Hampshire, New York, South Dakota and Tennessee.
Main issues for using Decanting statutes:
1. The discretion the trustee of the first trust must have to use the
statute;
The following states will have an inheritance tax in 2009 Estates in excess of
$3,500,000: NC, VT
$3,000,000: OK (tax expires after 2009)
As long as the sole designated beneficiary is not the surviving spouse the RMD is the life expectancy of the designated Beneficiary.
Each years MRD’s is computed by dividing the prior year-end account balance by a life expectancy factor
(called the “Applicable Distribution Period” (ADP) or divisor) obtained from an IRS table,
Some of the common issues with naming beneficiaries on retirement accounts:
1) Make sure you name a beneficiary on a retirement account or estate will become beneficiary.
2) Multiple Beneficiaries on accounts can cause problems because all Beneficiaries must take the ADP of the oldest beneficiary 3) Lump sum distribution requirements- can be transfered to IRA.
We previously reported that there were no RMD (required minimum distribution) in 2009. This turns out not to be trust in at least one case. If you turned 70.5 in 2008 and did not make your RMS in 2009 as required. You must still make your RMD by April 1, 2009
The University of Miami School of Law’s Heckerling Institute will host the 43rd Annual Estate Planning Conference from January 12 –16, 2009 at the Orlando World Center Marriott Resort & Convention Center.
The Heckerling Institute on Estate Planning is the nation’s leading conference for estate planning professionals. As the largest gathering of its kind in the country, the conference is designed to meet the educational needs of sophisticated attorneys, trust officers, accountants, insurance advisors, and wealth management professionals.
This year, the Institute offers a new series of programs focusing on the estate planning and administration issues associated with retirement plan benefits. The comprehensive series will provide registrants with a thorough understanding of the planning techniques involved in this growing practice area. This year’s Institute will also address the planning issues and opportunities presented by recent economic developments, changing demographics and the prospect for wealth transfer tax legislation in 2009. Conference sessions such as “Planning for the Unknown for 2010 and Beyond” and “Estate Planning for the Next Generation of Clients” reflect these timely concerns.
Professor Gerry Beyer, author of the WIlls, Trust & Estates Professor Blog wrote an article where a Texas court admitted a copy of a will which gave most of the assets to the decedents sister instead of the children. The will had been seen shortly before the decedents death and many people had access to it. Normally, if a will was last seen in the decedents possession and cannot be found the Florida Will is presumed to have been revoked by the decedent. But his presumption can be overcome as it was in this Texas case.
I have begun seeing attorneys advertise on Craigslist. Here is the latest one in San Francisco.
This San Francisco Estate Planning Lawyer is offering a 25% off on California Estate Planning.
I have tended to take a different approach and price my services at lower fixed rate than many of the Jacksonville Estate Planning Lawyers. I am interested to find out If you would check craigslist for a lawyer ? If so please Le me know.
A common question with Florida Estate Planning is whether an adult who is adopted is considered a child. We often recomend that out clients places language in their Florida Wills or Florida Revocable Trusts that deal with these issues. The typical language deals with adopted children above or below a certain age. Most people want to consider children adopted at a young age the same as a child who is naturally born. Occasionally it is necessary for an adult to be adopted. This can happen to provide medical coverage or for other reasons. In these cases, individuals may not want to consider these adopted individuals the same as their naturally born or younger adopted children.
Gerry Beyer of the Wills, Trust & Estate professor Blog wrote an article on a Texas case where the court found that an adopted adult is not treated as a descendant. Gerry points out that this ase seems to be one where the court struggled with the facts and created bad case law to deal with the facts in the case.
Garry’s moral is one that should be used in all estate planning documents. When making gifts to classes such as “children,” “grandchildren,” and “descendants,” settlors and testators should indicate whether adopted children are included and if adopted children are included, the age by which they need to be adopted to be included in the class.
There seems to be articles misquoting the Suspension of RMDs by Congress. Congress has not suspended the 2008 RMDs. As of this time The Worker, Retiree, and Employer Recovery Act of 2008 is awaiting the President’s signature.
One of the provisions of the bill is the suspension of required minimum distributions (RMDs) for 2009 ONLY.
This applies to all RMDs from IRAs and employer plans for account owners AND beneficiaries. This temporary suspension will not affect an individual’s required beginning date. An individual who turns 70 ½ in 2008 and chooses to defer their first distribution to April 1, 2009 must still take that distribution.
Florida Estate Planning Lawyer Blog