By Steven J. Oshins, Esq., AEP (Distinguished) Different states have different rules as to what creates a “resident trust” that is subject to taxation in that state. States may tax a trust based on the residency of the settlor or testator, based on whether there is a resident trustee or beneficiary or whether there is administration in that state, or for a combination of these factors and/or other similar factors. So it isn’t as easy as simply situsing a trust in a state with no state income tax. You have to look at the state taxing statutes that may apply….
The Inheritor’s Trust: How I Want to Inherit from Mommy and Daddy
By Tiffany A. Oshins The term “Inheritor’s Trust” was service marked at the Patent & Trademark Office by my Daddy (Steve Oshins), my Grandpa (Richard Oshins) and another attorney (Noel Ice) in 2003. They abandoned the service mark in 2006 after the Patent & Trademark Office determined it to have become a term of common usage. Despite the abandonment of the service mark, the estate planning industry continues to use the term. As a potential future inheritor, I would like to receive all gifts and bequests from Mommy and Daddy in an Inheritor’s Trust. This article will explain this concept…
The New IRC 199A Pass-Thru Business Deduction: Applying the 28.57% Magical W-2 Formula
By Steven J. Oshins, Esq., AEP (Distinguished) The greatest opportunity business owners received from the Trump Tax Act is the new IRC 199A pass-thru business deduction. This deduction allows certain taxpayers to deduct 20% of their Qualified Business Income. However, not every taxpayer can receive this deduction, so estate planners have a huge opportunity to exploit the new statute by educating themselves with the details of the new statute. For a married couple with taxable income of no more than $315,000 (adjusted for inflation) and for an unmarried individual with taxable income of no more than $157,500 (adjusted for inflation),…
The SECURE Act: Everything You Need to Know (and How to Advise Your Clients!)
On December 20, 2019, President Trump signed a spending bill which had attached to it a piece of legislation that much of the estate, tax and financial world has been anxiously awaiting for an update on called the “Setting Every Community Up for Retirement Enhancement Act of 2019” (or “SECURE Act”). The SECURE Act went into effect January 1st, 2020 and is set to dramatically impact retirement planning for you and your clients! As many are aware, the most important provision of the SECURE Act to impact our clients and the planning we do for them includes the elimination of…
Top Six Opportunities to Use a Corporate Trustee
By Steven J. Oshins, Esq., AEP (Distinguished) Corporate Trustee A corporate trustee is generally either a bank trust department or a trust company. The employees at these companies have been trained to know how to administer trusts, how to account for their actions and to deal with beneficiaries. They are licensed and bonded and therefore there is often recourse if something goes wrong. The Argument for Corporate Trustees Individuals will often neglect to take care of their responsibilities such as paying bills on time or following the rules required by the language in their trust agreements. Individuals also sometimes steal. …
The 2010-2019 All-Decade Estate Planning Awards
By Steven J. Oshins, Esq., AEP (Distinguished) This past decade has arguably seen more changes in the estate planning industry than ever before. This article will highlight many of these changes by handing out awards in a number of different categories. #1. MOST SUBSTANTIAL CHANGE IN THE LAW AWARD WINNER: SUBSTANTIAL INCREASE IN ESTATE TAX EXEMPTION. The change in the law that has been the most significant was the substantial increase in the federal estate tax exemption. No other change in the law played such a prominent role in the way estate planners plan since this essentially turned estate tax planners…
The Spousal Lifetime Access Trust
By Steven J. Oshins, Esq., AEP (Distinguished) Imagine that there is a type of trust that you can set up where you can transfer assets and not only protect them from creditors and estate tax, but also have access to them through your spouse. No, this is not a hypothetical world where there are rainbows and unicorns! This world really does exist! This trust is often called a Spousal Lifetime Access Trust, or “SLAT” for short. Most people are aware of the completed gift version where estate tax avoidance is the primary motivating factor. However, there are really two different…
Steve Oshins: Interview About the 2019 State Rankings Charts and State Income Tax Chart
By Steven J. Oshins, Esq., AEP (Distinguished) While at the WealthCounsel Symposium in Boston, we at The Ultimate Estate Planner (“UEP”) had the opportunity to sit down and interview nationally-known estate planning and asset protection attorney, Steve Oshins (“SJO”). The interview consisted of a number of questions related to his State Rankings Charts and State Income Tax Chart. UEP: Please tell us about your charts and where they can be accessed. SJO: I currently have four charts. Three of the charts rank the states that have the best Domestic Asset Protection Trust laws, Dynasty Trust laws and Decanting laws, respectively. …
The Kaestner Case and the New Emphasis on Using Non-Grantor Trusts to Save State Income Tax
By Steven J. Oshins, Esq., AEP (Distinguished) Estate planners are constantly looking for additional ways to save taxes for their clients. One often-overlooked concept is to use trusts to save state income taxes, especially for those clients who reside in a state with a high state income tax. Ironically, income tax savings is generally the most appreciated work we do for our clients given that they can personally enjoy the savings, but yet the planning opportunities are frequently missed. Different states have different rules as to what creates a “resident trust” that is subject to taxation in that state. States…
2019 ABA Heckerling Reports from 53rd Annual Heckerling Institute
For the past 22 years, the American Bar Association Section of Real Property, Trust and Estate Law with the permission of the University of Miami School of Law, releases several extensive reports highlighting the various lectures and proceedings of the Heckerling Institute, one of the nation’s largest estate planning conferences, held every year in January. This week in Orlando, Florida, the 53rd Annual Heckerling Institute on Estate Planning took place. To view, download and access these extensive reports (which are still being updated and added), see below. Further, at the above website, you can also access reports from prior Heckerling…