SECURE 2.0 Act Enhances Special Needs—See Through Trust Planning

By Edwin P. Morrow, III, J.D., LL.M., MBA, CFP®, CM&AA® and Nancy H. Welber, J.D., ACTEC Thanks to the generosity of Leimberg Information Services, we are pleased to provide you this recently published article on LISI. EXECUTIVE SUMMARY Section 337 of the Secure 2.0 Act, effective in 2023, provides a welcome, though very limited in scope, enhancement to special needs trusts designed to receive retirement benefits and qualify as see through trusts under the Secure Act provision for applicable multi-beneficiary trusts (AMBTs). The new provision provides that most charities can now be remainder beneficiaries after the death of a disabled…

SECURE Act 2.0 Offers Longer Stretch for Conduit Trusts, But Contains Traps for Surviving Spouses

By Edwin P. Morrow, III, J.D., LL.M., MBA, CFP®, CM&AA® Thanks to the generosity of Leimberg Information Services, we are pleased to provide you this recently published article on LISI. EXECUTIVE SUMMARY Section 327 of the SECURE Act 2.0, effective in 2024, will provide over $1.1 billion in new tax benefits for those in the know, but traps for the unwary. The downside is that the changes may actually be quite harmful in certain situations for surviving spouses inheriting retirement plans, causing an earlier required beginning date and higher required minimum distributions (“RMDs”) than under current law, if the new…

Why Do Nevada and Delaware Get Most of the ING Trust Business?

By Steven J. Oshins, Esq., AEP (Distinguished) We keep hearing about NING Trusts (Nevada) and DING Trusts (Delaware).  Occasionally, but much less often, we hear about WING Trusts (Wyoming) too. Nevada and Delaware clearly get the vast majority of the ING Trust business.  Wyoming seems to be the next jurisdiction to take a reasonably good chunk of the pie. Is this because these jurisdictions actually have the best laws?  Or is it simply a function of good marketing?  The words “NING”, “DING” and “WING” just roll off the tip of your tongue, eh? Let’s take a close look at ING…

Use a Flat-Fee Trust Company in a Top-Tier Trust Jurisdiction as Jurisdictional Trustee to Gain an Advantage

By Steven J. Oshins, Esq., AEP (Distinguished) Shhhhhhhhhhhhhh…I have a secret! This isn’t a secret to some estate planners who take advantage of this opportunity all the time.  But if you’re not one of them, then they’re playing checkers while you’re playing chess…as the saying goes. It’s time to put yourself on the same level as the top estate planners who maximize their clients’ tax and creditor protection opportunities day in and day out.  Otherwise, they will continue to take your clients from you and to get larger and larger net worth clients while you play in the minor leagues….

Poll Results: Which Is the Best Trust Jurisdiction?

By Steven J. Oshins, Esq., AEP (Distinguished) In a one-week LinkedIn poll conducted in March of 2023, I asked thousands of people primarily made up of estate planners and financial planners: “Which is the best trust jurisdiction?” Among 5,104 “impressions” (number of times users see the poll question), there were 123 total votes. The permitted responses were limited to Nevada and South Dakota simply because these are so clearly the two best trust jurisdictions and therefore there was no reason to dilute the votes by including additional options. Results The results were as follows: *Nevada           …

Are You Spending Too Much Time (and Money!) to Bring In New Clients?

By Philip J. Kavesh, J.D., LL.M. (Taxation), CFP®, ChFC, California State Bar Certified Specialist in Estate Planning, Trust & Probate Law I recently conducted not one, not two, but three different coaching consultations in a single week with fellow colleagues who all expressed to me the same major challenge in their practice.  If three firms, in such a short period of time, happened to share this same issue with me, then I thought there must be others out there who must be grappling with it too!  Hence, this article. All of these firms complained about spending far too much time…

Heckerling 2023 Reports from the ABA

The Phillip E. Heckerling Institute on Estate Planning is the nation’s premier conference for estate planning professionals, offering unparalleled educational and professional development opportunities for all members of the estate planning team. The 2023 Heckerling Institute was held in-person in Orlando on January 9-13 and marked the conference’s 57th year.  Over the course of the conference’s five days, numerous timely topics of interest to estate planners of all designations—including, but not limited to, attorneys, trust officers, accountants, charitable giving professionals, elder law specialists, wealth management professionals, and nonprofit advisors. As they have done for many years, the American Bar Association…

The HUGE Problem with DAPT Jurisdictions that Require Affidavits of Solvency

By Steven J. Oshins, Esq., AEP (Distinguished) At the time of this writing, there are twenty states that have enacted Domestic Asset Protection Trust (“DAPT”) statutes. However, not all of these states have superior laws.  This article describes just one of many differences among the various states’ DAPT statutes.  Specifically, it explains the Affidavit of Solvency differences among these states. What is an Affidavit of Solvency? An Affidavit of Solvency is a sworn statement that indicates that the transfer of assets an individual is about to make will not render that individual or entity bankrupt or insolvent. Attorneys generally have…

The “L” in SLAT: “Lifetime” or “Limited”?

By Steven J. Oshins, Esq., AEP (Distinguished) Some articles call it a Spousal Lifetime Access Trust, while others call it a Spousal Limited Access Trust. Which is it?  It can’t be both!  It depends upon how it’s drafted. Spousal “Limited” Access Trust When I draft a SLAT, it’s a Spousal Lifetime Access Trust because distributions aren’t “limited”.  Why would the draftsman want to limit distributions?  One of the objectives is for the settlor to be able to indirectly live out of the trust via distributions to the settlor’s spouse who can then share them with the settlor. Drafting in substantial…

Bloodline Trusts: No, No, No, No and No!!!

By Steven J. Oshins, Esq., AEP (Distinguished) People sometimes talk about so-called “bloodline trusts” – trusts that specifically disinherit anyone and everyone who doesn’t share the blood of the settlor. Although in theory this sounds like a great idea, it actually isn’t.  The problem is that it often cuts out the wrong people.  This article focuses on two specific problems with bloodline trusts. The Worst Problem of All The worst problem is the assumption that adopted children should be treated as though they are strangers. The best way to describe this travesty is by example. Assume that Client sets up…