California Supreme Court Weakens Protection for Spendthrift Trusts

By Edwin P. Morrow III, J.D., LL.M. (Tax), CFP®, CM&AA® In Carmack v. Reynolds (Frealy), released March 23, 2017, the California Supreme Court, asked by the Ninth Circuit to clarify a point of California law applicable to an ongoing bankruptcy case on appeal, held that California law does not limit a bankruptcy trustee to 25% of distributions from a third-party created spendthrift trust, but includes any past distributable amounts “due and payable”. Most estate and tax professionals were probably unaware that a bankruptcy trustee could even include 25% of a trust’s distributions in a bankruptcy estate, much less more.  Under most…

7 of the Most Common Life Settlement Situations

By Daxton Fryer, Senior Life Settlement Broker A life settlement can be a great alternative to accepting the insurance company’s surrender value, if any, for a policy that is about to be lapsed or surrendered. While there are many reasons a policy may be terminated, certain scenarios are the most common. Keeping an eye out for these situations is one more way for you to help your clients. 1. The sale of a business or other illiquid asset.   A policy bought for a buy-sell agreement or estate liquidity may become unnecessary. Compounding the problem is that the business was typically paying for…

The Strange Case of Dr. Jekyll and Mr. Oshins – Chapter III (First-Tier Trust States)

By Steven J. Oshins, Esq., AEP (Distinguished) Testing his theory that in every man dwells a good and an evil force, the reserved Dr. Jekyll develops a formula that separates the two, turning him into an argumentative estate planning attorney named Mr. Oshins who tells it like it is.  Dr. Jekyll soon realizes he is becoming addicted to his darker self as he unleashes his opinions on the estate planning industry. In Chapter II, Dr. Jekyll tackled the issue of whether Foreign Asset Protection Trusts are better than Domestic Asset Protection Trusts.  In Chapter III, Dr. Jekyll tackles the issue…

What Can You Sell to Existing Clients?

By Philip J. Kavesh, J.D., LL.M. (Taxation), CFP®, ChFC, California State Bar Certified Specialist in Estate Planning, Trust & Probate Law In last month’s newsletter, I discussed an often overlooked marketing strategy that many estate planning attorneys are missing – – bringing back in existing clients for a review of their plan.  The topic seems to have resonated quite a bit with our readers and my fellow colleagues, several of whom took us up on our offer to schedule a consultation with our Executive Director, Kristina Schneider, to go over how to put together a review process in place for…

Reviewing a Life Insurance Policy: The Owner as a Pilot

By Jason Oshins, Financial Advisor, MBA The role of a pilot is not limited to take-off and landing.  Even while flying on autopilot, the pilot still must monitor the flight.  The same can be said of the owner of a life insurance policy.  The owner must monitor the insurance. Typically, life insurance is owned by an Irrevocable Life Insurance Trust (ILIT), a revocable trust, or outright by the insured.  When owned by an ILIT[1], the death benefit is out of the grantor’s estate and thus not subject to either estate tax or income tax.  When owned by a revocable trust[2]…

Supreme Court: No ERISA Protection for “Church-Affiliated” Retirement Plans Run by Hospitals, Health Care Facilities

By Edwin P. Morrow III, J.D., LL.M. (Tax), CFP®, CM&AA® On June 5, 2017, the Supreme Court issued a unanimous ruling in Advocate Health Care Network v. Stapleton concerning whether ERISA applies to church affiliated non-profits that run hospitals and health care facilities: click here to view. It may erode certain retirement plan protections for employees of many hospitals and health care facilities loosely connected to churches, though the Court did not decide other arguments that may yet ultimately apply ERISA to them. The Employee Retirement Income Security Act of 1974 (ERISA) generally obligates private employers offering pension plans to adhere…

One Simple, Yet Powerful Marketing Strategy Many Estate Planners Are NOT Utilizing!

By Philip J. Kavesh, J.D., LL.M. (Taxation), CFP®, ChFC, California State Bar Certified Specialist in Estate Planning, Trust & Probate Law Lawyers and other professionals often cringe at just hearing the word “marketing”.  The idea of marketing their practice feels cheesy, unprofessional, and perhaps even “below” them.  However, it doesn’t have to be. In fact, marketing is a basic necessity of any business, whether you call your plans and strategies for bringing in revenue to your company “marketing” or not.  If you are not doing some type of marketing, then how are you getting clients in the door?  If you’re…

Klabacka v. Nelson: Nevada Supreme Court Makes Historically Significant DAPT Ruling

By Steven J. Oshins, Esq., AEP (Distinguished) One of Nevada’s advantages has always been that it is the only top-tier Domestic Asset Protection Trust (“DAPT”) jurisdiction that has no statutory exception creditors, meaning classes of creditors that can bust through a DAPT despite the DAPT’s protection from creditors.  Practitioners from competing states have suggested that Nevada DAPT laws are “too protective” and therefore won’t work as advertised. However, on May 25, 2017, the Supreme Court of the State of Nevada, in a unanimous opinion, issued a written ruling for Klabacka v. Nelson, 133 Nev. Advance Opinion 24 (May 25, 2017)…

The Strange Case of Dr. Jekyll and Mr. Oshins – Chapter II (Foreign vs. Domestic APTs)

By Steven J. Oshins, Esq., AEP (Distinguished) Testing his theory that in every man dwells a good and an evil force, the reserved Dr. Jekyll develops a formula that separates the two, turning him into an argumentative estate planning attorney named Mr. Oshins who tells it like it is.  Dr. Jekyll soon realizes he is becoming addicted to his darker self as he unleashes his opinions on the estate planning industry. In Chapter I, Dr. Jekyll tackled the issue of whether Uniform Acts are good or bad.  In Chapter II, Dr. Jekyll tackles the issue of which are better –…

Effectively Managing Your Boss’ Busy Calendar

By Kristina Schneider, Executive Assistant Whether your boss is an estate planning attorney, CPA, financial advisor or life insurance agent, chances are, he or she has an overwhelmingly busy calendar.  From client meetings, phone calls, seminar presentations, conferences and CE programs to numerous projects to be completed, goals to be reached, and endless obligations to be met. How do you organize, prioritize and manage it all while getting everything scheduled and done? Ask for Assistance with Prioritizing First, ask for assistance in prioritizing your tasks (and your boss’ tasks).  Thankfully, most executives acknowledge that their assistants are juggling several tasks…