countries whose borders were somewhat arbitrarily created by those same European nations. Over several centuries prior to the twentieth century, empires were built by Spain, Portugal, Britain, Holland, France, Germany, Belgium, and Italy. With regard to the functions of the law, the empire may have kept the peace—largely with force—but it changed the status quo and seldom promoted the native peoples’ rights or social justice within the colonized nation. In nations that were former colonies of European nations, various ethnic and tribal factions have frequently made it difficult for a single, united government to rule effectively. In Rwanda, for example, power struggles between Hutus and Tutsis resulted in genocide of the Tutsi minority. (Genocide is the deliberate and systematic killing or displacement of one group of people by another group. In 1948, the international community formally condemned the crime of genocide.) In nations of the former Soviet Union, the withdrawal of a central power created power vacuums that were exploited by ethnic leaders. When Yugoslavia broke up, the different ethnic groups—Croats, Bosnians, and Serbians—fought bitterly for home turf rather than share power. In Iraq and Afghanistan, the effective blending of different groups of families, tribes, sects, and ethnic groups into a national governing body that shares power remains to be seen.
Focus on various available methods of estateplanning and the federal tax consequences of transferring family wealth and property, with emphasis on Florida probate law and practice. Additional topics to be discussed in detail include: the preparation, content and use of wills, will substitutes, trusts and other similar arrangements, recent tax savings ideas and strategies, the role of life insurance and irrevocable life insurance trusts, major changes and recent developments in gift and estate tax planning, the use of revocable and irrevocable trusts, jointly-held property, ownership of family business interests, use of pension/profit sharing plans, charitable contributions/trusts and post-mortem estateplanning.
Absent a pre-nuptial agreement to the contrary, state law in non-community property states typically gives each spouse a right of election over a portion of the property of the first spouse to die. In some cases, the right of election could extend to the assets of a CRT, even if the surviving spouse is a beneficiary of the CRT. Tax practitioners have long been concerned that the spousal right of election, even if it is not exer- cised, could cause a CRT to fail to qualify under IRC §664(d). In a Revenue Procedure issued in 2005, the IRS reached just this conclusion, and set out a safe harbor that, in effect, required spousal waivers of the right of election in most cases. CRTs created before June 28, 2005, were grandfathered. In early 2006, the IRS announced that it is reconsidering the approach taken in that ruling, and extended the grandfather date indefinitely, so long as the spouse does not exer-
Intestate succession is a strategy by default and is a means of transferring your property to your heirs if you have failed to make other plans such as a will or trust. State law controls how and to whom your property is distributed, who administers your estate, and who takes care of your minor children. Without directions, your opinions and feelings are not considered. Indeed, one of your primary goals in planning your estate may be to avoid intestate succession.
LaBarge Weinstein LLP is a business law firm that has been operating for 15 successful years. We have offices in Ottawa, Toronto, Vancouver, and Waterloo and a staff of over 35 professionals. Our practice is comprised of four groups including: 1) Corporate, Commercial, and Securities; 2) Intellectual Property Commercialization and Licensing; 3) Real Estate and Debt Financing; and 4) Taxation and EstatePlanning.
In Minnesota, a divorce commences upon service of a Summons and Petition. The Summons includes a “mandatory restraining order,” ordering that neither party may dispose of any asset except: (1) for the necessities of life or for the necessary generation of income or preservation of assets; (2) by an agreement in writing; or (3) for retaining counsel to carry on or to contest the divorce. All insurance coverage must be maintained and continued without change in coverage or beneficiary designation. Your family court judge can modify these restraints, but only after a motion is filed. Months, and sometimes years, can pass between commencement of the divorce and dissolution of the marriage. After you serve (or are served) the Summons and Petition, you are still legally married. You still owe a fiduciary duty to your spouse, even if he or she is now your “estranged spouse.” Your marriage is only dissolved by a decree of dissolution granted by a judge, either after a trial or by stipulation of the parties. Absent a revised estate plan, if you die during that period of time, your estranged spouse will likely receive a greater share of your estate than you intend. To protect yourself and your assets, you should:
In addition to ensuring that a charitable remainder trust is appropriate and properly designed, questions often arise regarding the asset to be contributed. Issues can arise under contract law (e.g., whether the property is subject to a buy-sell agreement that prevents a gift), securities law (e.g., whether the shares are subject to SEC restrictions), and tax law (e.g., whether the mere transfer of the asset will trigger adverse tax consequences), just to name a few. Although a detailed discussion is beyond the scope of this chapter, §§24.25–24.28 include an overview of some common issues that arise in funding charitable remainder trusts.
The consistently growing rate of luxury home sales reflects the strength of the luxury real estate market in Collier County, and, when coupled with the predicted property appreciation, could mean good things for the future of Palm Beach County real estate in 2015. As the nation’s economy recovers in 2015, the demand for properties in Palm Beach County will likely remain strong with buyers continuing to seek out homes in this highly valued South Florida area.
To avoid the Article 27 restrictions that prohibit foreign ownership of land in the Restricted Zone, many foreigners set up legal trusts with Mexican banks. 40 These trusts, in which a bank holds title to a property in trust for a foreigner, are called “fideicomisos.” However, Article 20 of the 1973 Act restricted the duration of fideicomisos to no more than thirty years and did not provide specific guidelines concerning renewal of the trust. 41
Candidates should understand the fundamentals of the law of contract as they are applicable to insurance policies. The combination of legal principles and legislation must be familiar to the candidates. Utmost good faith principle and its implications in an insurance contract should also be known. Agency law and the law of tort with particular reference to negligence is important for the understanding of candidates.
Under current federal law, a deduction can be claimed for state estate taxes. However, as this was not the case under federal law in effect on Dec. 31, 2000, the Massachusetts estate tax must be added to the amount in the federal taxable estate in computing the Massachusetts estate tax. Note also that while Massachusetts is said to have an “exemption” of $1 million, a tax will be due even though the federal taxable estate is only equal to $1 million. Massachusetts is one of a very few states with a decoupled tax that allows a separate qualified terminable interest property (QTIP) election. If in these scenarios the federal credit-shelter trust qualified for QTIP treatment (but for which no federal QTIP election was made), a Massachusetts QTIP election for $1 million would eliminate any tax.
People often neglect to consider certain assets that they do not believe are includible in their taxable estate, which causes them to believe that they do not need to worry about estate taxes. However, certain assets, including (without limitation) life insurance proceeds, some trust interests, and retirement assets, can in fact be includible in one’s estate for estate tax purposes, depending on how such assets are held. Such often neglected assets could total several million dollars, even for the otherwise non-ultra high net worth population. This could result in a person’s estate being taxable without proper planning. In addition, as described below, state law can often step in when a person does not otherwise provide for the distribution of his or her assets upon death, which can result
practiced for a period of time in the estateplanning and probate areas. It also serves as an excellent review for individuals who concentrate their practice in the estateplanning and probate law areas and serves as a good introduction for individuals who are beginning to practice in these areas.
A will is a legal affirmation of an individual’s goal which he wishes to perform after his death. Further, it can only be revoked during his lifetime. Therefore, a Will is an imperative testamentary device whereby the testator can give away his property in accordance with his wishes. Moreover, from the above cases, we can decipher that the essential obligation of the Court is to decide the true intention of the testator from the Will itself by perusing the Will. In addition, a development which would propel the goal of the testator must be supported and as far as possible impact is to be given to the testator's intention unless any other contrary intention appears.
Sasha Klein, Esq., is a Partner in the Estate and Tax Planning group for Ward Damon, PL. With a passion for helping individuals and families solve their most sensitive issues, Sasha counsels affluent individuals and families in tax and estateplanning. Sasha advises on structuring wealth to achieve client goals, including protecting against risk and minimizing income, estate, gift and generation-skipping transfer taxes over multiple generations. Her experience differs from many estateplanning attorneys because she spent some of her career in-house serving as Fiduciary Counsel for wealth management firms. Such experience gives Sasha a heightened sensitivity to the Fiduciary issues that arise for families. To that end, she provides tailored advice on trustee and family governance structures to preserve business enterprises and manages potentially sensitive family dynamics. Sasha oversees these structures throughout the estate and trust administration process. Sasha also advises the firm’s fiduciary litigators on tax, trust and estate matters. Sasha loves helping individuals and families solve their most sensitive issues. Sasha holds both a post doctorate degree in tax law (LL.M.) and an Accredited Estate Planner designation, and was recently awarded “Trust Member of the Year” by the Florida Bankers Association. In addition to practicing estate/tax planning, Sasha lecturers nationally and is a frequent published author on a range of estateplanning, wealth management and tax law topics. She is the co-author of “Taking Control: Six Notable Strategies to manage Net Investment Income Tax" and "Bitcoin: Are You Ready for This Change for a Dollar," which were awarded the 2014 Excellence in Writing Award and 2015 Cover Feature, respectively, from the American Bar Association’s flagship Probate and Property magazine. She is very active in the Trust and Estate sections of the American and Florida Bar Associations, holding numerous leadership roles. She is also very active with the Florida Bankers, serving as Chair of its Legislation Committee, as well as a member of its Trust Executive Council and Government Relations Committee. Sasha earned her Juris Doctorate and Law and Business Certificate from Vanderbilt Law School.
Cash gifts to intended heirs can be used to pay the premiums of life insurance on the donor. The policy may be owned by the gift recipient. Upon the death of the donor, the life insurance proceeds can be used to pay federal estate taxes, to implement a buy-sell agreement, to pay the remaining balance of a sales contract for land purchased from the donor, or for other similar uses. Life insurance policies owned by beneficiaries are not included in the donor’s estate unless the policy was gifted within three years of the donor’s death.
Life Insurance in Estate Planning SMU Law Review Volume 15 | Issue 4 Article 6 1961 Life Insurance in Estate Planning Joe C Stephens Jr Jack Gray Johnson Follow this and additional works at https //sc[.]
Similar in structure to Capozza and Lee (1995), the Green Street Advisors (1996) approach to the valuation of REIT properties is based upon capitalizing net operating income from the property portfolio. They develop ‘economic cap rates’ that ‘equate to the unleveraged yield on a property after deducting a normalized reserve for reoccurring, capitalized leasing and maintenance costs (“cap-ex”) from real estate’ (p. 5). No details are provided about the derivation of property capitalization rates except that several factors contribute to the choice of rates including property type, location, quality and age, and expected demand growth for the property type.
Aareal Bank Group, headquartered in Wies- baden, is a leading international property specialist. We have been offering financing, advice and other services to the housing industry and the commercial property sector – for more than nine decades. We support our clients in Germany, and in more than 20 different countries across three continents, as a financing partner and service provider. Aareal Bank has built a reputation on the capital markets as an active and reliable issuer of Pfandbriefe (German covered bonds), promissory notes and debt securities.
There are additional problems that can result from a narrow-scope buy-sell agreement. If the owners have pre- sumed that only death would separate them, then there may not have been any comprehensive planning to minimize the tax consequences of a lifetime sale. Further, if there is an assumption that the survivor will use life insurance pro- ceeds (rather than company cash flow) to fund a buyout, the buyout terms de- scribed in the agreement may not cre- ate an adequate time frame to pay for a lifetime purchase if the purchase price will have to come from the company’s cash flow. Even when there is a repur- chase using life insurance proceeds, there are tax basis and alternative mini- mum tax considerations that should be considered in the plan. Finally, if there are only two owners, a good buy-sell agreement should consider methods for resolving irreconcilable differences between the owners, if and when they might occur.