Monday, April 29, 2013
Steve Oshins' 4th Annual Domestic Asset Protection Trust State Rankings Chart Released
Nationally renowned estate planning and asset protection attorney, Steven J. Oshins, Esq., AEP (Distinguished), has just released his 4th Annual Domestic Asset Protection Trust State Rankings Chart.
Some of the Highlights:
1. South Dakota closes in on Nevada, but doesn’t quite get there. These are still the top two states.
2. Ohio comes from nowhere to jump into the first tier.
3. Alaska, Tennessee, Wyoming and Utah all make positive changes.
4. Utah remains ranked low because of its state income tax uncertainty (but is now a great state for Utah residents).
5. For the first time ever... READ MORE
Friday, April 26, 2013
Recent Decision on Bankruptcy and Inherited IRA Case Confirms Benefit of Standalone IRA Trust
Thanks to the assistance of Michelle Ward of Keebler & Associates, LLP for bringing to our attention a recent case regarding bankruptcy exemption for inherited IRAs.
The 7th Circuit Court of Appeals has reversed a district court's ruling extending bankruptcy exemption to an inherited IRA (Download Case). In Clark, the Wisconsin district court had previously reversed the bankruptcy court's decision and allowed an inherited IRA to be exempt from the bankruptcy estate. The debtors, Mr. and Mrs. Clark, filed for chapter 7 bankruptcy in 2010. Mrs. Clark had inherited an IRA from her mother in 2001. Neither Mr. nor Mrs. Clark was retired. The debtors claimed the inherited IRA was exempt under Wisconsin law and 11 U.S.C. Sec. 522(b)(3)(C). The Court of Appeals (cases Nos. 12-1241 & 12-1255) stated that by the time the Clarks filed for bankruptcy, the money in the inherited IRA did not represent anyone's retirement funds and that to treat this account as exempt would be to shelter from creditors assets that can be freely used for current consumption. The Court further stated that an inherited IRA does not have the economic attributes of a retirement vehicle, because the money cannot be held in the account until the current owner's retirement.
Given this recent decision and the diversity of decisions on this topic, caution suggests having an IRA payable to a trust rather than to a beneficiary outright to strengthen creditor protection.
Keebler & Associates, LLP assisted the Law Firm of Kavesh, Minor & Otis in obtaining PLR 200537044, approving the IRA Inheritance Trust®, the use of a standalone trust as beneficiary of IRA assets for the purpose of ensuring the stretchout of RMDs and providing added protection of IRA assets. For more information about the IRA Inheritance Trust®, click here.
Monday, April 15, 2013
Robert Keebler on President Obama's 2014 Budget Proposal
Thanks to generosity of Robert Keebler, CPA, MST, AEP (Distinguished) of Keebler & Associates, LLP, AICPA and Leimberg Information Services, we are pleased to provide to you two free podcasts to download on the subject of President Obama's 2014 Proposed Budget.
Obama's proposed budget will have a negative impact on the following planning:
- The estate tax rate would increase to 45% from today’s 40% rate.
- The gift tax exemption would be reduced to $1,000,000
- The estate tax and GST exemptions would be reduced to $3,500,000
- The GST period would be limited to 90 years from today’s unlimited period
- Current dynasty trust transactions would be grandfathered
- The IDGT trust transactions will be eliminated on a prospective basis
- Current dynasty trust transactions would be grandfathered
- Additional sales would not be protected
- The GRAT transaction will be eliminated on a prospective basis
- Ten year rule
- No zeroing out GRATs
- A Buffet rule would impact income greater than $1,000,000
- Itemized deductions would be reduced to a credit for those with income greater than $250,000
- Carried Interests capital gain treatment would be eliminated
- A special provision would eliminate the ability to retain more than approximately $3,400,000 in an IRA or pension plan.
The 90-year GST rule may require some thought and attention. Recall that for pre-1986 GST trusts any contribution after the effective date eliminates grandfather status. It may be prudent to sever/decant/reform insurance and other trusts before the end of 2013 if this provision becomes law. DOWNLOAD PODCASTS
Thursday, April 11, 2013
Does Comprehensive Estate Planning Really Work?
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...
OTHER UPCOMING EDUCATIONAL OPPORTUNITIES
2013 MDRT ANNUAL MEETING by Million Dollar Round Table
June 9-12, 2013 | Philadelphia, PA | Agenda | Register
The 2013 Annual Meeting is your source for discovering new ideas for practice management, marketing and sales strategies. This year, you’ll find more member speakers on Main Platform with stories of inspiration and motivation that will surely reinvigorate your success as a producer and as an individual. The excitement begins with Pre-Meeting Workshops and continues through the Party on the Platform closing celebration. Explore this site to learn more about the MDRT Annual Meeting, new events planned for 2013 and to see everything the beautiful city of Philadelphia has to offer. Also, don't miss estate planning attorney and Ultimate Estate Planner President, Philip J. Kavesh, will be presenting a Focus Session on June 10th at 3:30pm ET. >>MORE INFO
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AICPA ADVANCED ESTATE PLANNING CONFERENCE by AICPA
July 15-17, 2013 | Baltimore, MD | Brochure
At the AICPA Advanced Estate Planning Conference, you will receive technical training on all current aspects of estate, gift and inheritance planning. You’ll receive the expertise, training and most current information. Interactive sessions, classroom discussions and case studies provide the latest material with in-depth coverage on estate planning issues. Leave the conference prepared to effectively provide for your clients’ estate plans. >>MORE INFO
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2013 PLANNING FOR THE GENERATIONS by WealthCounsel, LLC
July 24-26, 2013 | Denver, CO | Register
The Planning for the Generations Symposium is a unique opportunity to learn from national experts, develop meaningful relationships with colleagues, and discover new ways to grow your practice. Join us in Denver where we have built a curriculum with four tracks of timely and relevant planning strategies and practice solutions. Earn CLE, CFP, CPE, Insurance and Ethics credits from a wide range of topics and presenters during these education tracks: Essentials Planning, Advanced Planning, Elder Law Planning, and Business Planning. This event is specifically designed to attract and engage all interdisciplinary professionals. Experience quality education, a unique collegial environment and arm yourself with powerful strategies to serve the needs of your clients. >>MORE INFO