Estate Analyst—Clark v. Rameker: No Bankruptcy Exemption for Inherited IRA

By Robert L. Moshman, Esq. It is not often that the Supreme Court provides a clear rule on any aspect of financial planning (or even graces our niche with a passing reference), so these occasions call for special attention. On June 12, 2014, the Supreme Court’s decision in Clark v. Rameker clarified that an inherited IRA is not a protected retirement fund for bankruptcy purposes. Here, we analyze the decision and its impact on planning issues and review the applicable rules and caveats that apply to inherited IRAs. Note: The following discussion of IRAs is about traditional tax-deferred IRAs only…

The Joint Exempt Step-Up Trust (“JEST” Trust) Legal Document Form Package—NOW AVAILABLE FOR SALE

Thanks to the help of Alan S. Gassman, J.D., LL.M. (Taxation), Florida State Bar Certified Specialist in Wills, Trusts & Estates and Christopher J. Denicolo, J.D., LL.M. (Estate Planning), MBA, we are pleased to announce the release of The Joint Exempt Step-Up Trust (“JEST” Trust) Legal Document Form Package. This package comes complete with the following items: Data CD-ROM containing the following documents: The JEST Trust (Joint Trust) Legal Document Form which comes in a 66-page modifiable Microsoft Word document with all of the necessary provisions to implement the JEST Trust for your clients. A Client Explanation Letter to be…

Planning for Clients with Chronic Illnesses

Reproduced with the expressed written consent and permission from Robert L. Moshman, Esq., author of The Estate Analyst. To contact Bob Moshman to be included on his distribution list of his monthly newsletter, e-mail Bob at bmoshman@optonline.net. “With the waning importance of the estate tax, planning for chronic illness is an area where estate planners can do a lot of good for many people.” —Martin M. Shenkman, CPA, MBA, JD, PFS, AEP Chronic illness may be the forest that gets overlooked amidst the trees. It is all around us, affecting about one out of every two American adults. Yet, incredibly,…

Superstar Estates: Fleeting Fame, Enduring Security by Robert L. Moshman, Esq.

Reproduced with the expressed written consent and permission from Robert L. Moshman, Esq., author of the The Estate Analyst. To contact Bob Moshman to be included on his distribution list of his monthly newsletter, e-mail Bob at bmoshman@optonline.net. Actors, musicians, athletes, and Kardashians can become famous overnight, but notoriety doesn’t automatically mean financial security; sadly, it usually ends up meaning the opposite. Lottery winners and other windfall recipients often follow a similar path, even if their “stardom” is limited to local friends, neighbors, and family. Celebrity wealth can evaporate along with fleeting fame. Celebrities also attract lawsuits, moochers, and scam…

Does Comprehensive Estate Planning Really Work?

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According to estate planning and asset protection attorney, Jeffrey M. Verdon, there has been a number of court decisions involving failed asset protection planning in the last two years. In his opinion, the reason for the recent and unusual amount of cases has to do with comprehensive estate planning (with asset and lifestyle protection) and when “bad facts make bad law”. Read the full post… For more information about any of the information discussed in this Client Alert, or any other income or estate tax planning or asset protection planning assistance, please contact the Jeffrey M. Verdon Law Group, LLP…

Fiscal Cliff & Estate Planning by Martin M. Shenkman, J.D., CPA, MBA

Review Your Will, Living Trust and Plan in 2013. Congress has just concluded tax legislation as part of its effort to avert the fiscal cliff. While the Senate called it the “American Taxpayer Relief Act of 2012,’’ likely it will have a 2013 moniker. While the 157 pages have not been analyzed yet, a number of key points may be made about the impact on estate planning, bearing in mind that final legislation, interpretations, and more are to follow. For those who think estate planning no longer is relevant because they are safely under the $5 million inflation adjusted exemption…

Three of the Leading Experts in Estate Planning Field Release New Book on 2012 Year-End Planning for Clients

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Leading tax and estate planning experts, Martin Shenkman, J.D., CPA, MBA, Jonathan Blattmachr, J.D. and Robert S. Keebler, CPA, MST, AEP (Distinguished) have come together for the very first time to co-author the single most authoritative practical guide to crucial, last-minute planning for 2012. This unique book is written technical enough to assist professionals like you to understand the key planning choices and how to avoid the traps involved with each – – and written in plain-English enough for the sophisticated client who wants to better understand complex planning or needs some motivation to move ahead and do something! This…

Draft Form 706 Includes Option for Opting Out of Portability

Join us next Thursday, September 6th for a special 60-minute teleconference with nationally renowned CPA, Robert S. Keebler, on the topic of Portability and the New Form 706. For more information and to register, click here. Last Friday, the Internal Revenue Service released a draft of the new Form 706. For the first time, the form addresses the issue of portability of a deceased spouse’s unused estate and gift tax exclusion amount by providing an option for the executor to opt out of electing portability of the unused portion. Under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act…

How Will Health Care Ruling Impact Advisors?

The Supreme Court’s decision to uphold the health care overhaul could have a broad impact on wealthy investors’ wallets with a new 3.8% increase on investment income. The increase, which is one of the bill’s funding mechanisms, is set to take effect in January. “The top rate on long-term gains is 15%. Next year, we know it’s going to go up by at least 3.8%,” says Tim Steffen, director of financial planning at Robert W. Baird & Co. “For higher income individuals and couples, their investments just became more expensive.” That new rate, according to Steffen, will be imposed on…

Testamentary Planning & Administration for Blended Families

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A prospective new client contacts you about working with him. Within minutes, you learn that he wants you to also work with his partner, and that they are unmarried with each having children from prior relationships as well as one of their own together. Do you experience a thrill of excitement at having such a complex and fascinating potential couple to work with, or does this scenario strike fear in your heart? If you’re like most of the estate planners we work with, fear is the first response, and, in most instances, the prospective client is afraid as well, but…