On January 25, 2015, the New York Times published an article, To Collect Debts, Nursing Homes are Seizing Control Over Patients. The article focused on the trend of some nursing homes to use the guardianship process (also known as a conservatorship in some states) as a means of debt collection for seniors who owe money to the nursing homes. A guardianship or conservatorship is a legal process whereby a person is found by the court to be incapable of managing his or her affairs and a person or … [Read more...] about Advance Planning for Long-Term Care is Critical

  Federal Court: Disclaimed Property Available to Pay Tax Lien Audrey Deinlein had three adult sons, Christopher (“Chris”), Ronald Jack, Jr. (“Jack”), and Paul. At the time of her death, she owned a condominium in Kentucky with a value of $303,000. The condominium had a mortgage of $104,352. After her death and before the property’s sale, Jack and Paul had made payments reducing the mortgage balance to $87,936. The net proceeds after the sale were $198,339.56. For many years, Chris had had … [Read more...] about Federal Court: Disclaimed Property Available to Pay Tax Lien

Charitable Planning Ideas   When we reflect on the blessings we have received, often we show our gratitude by our desire to contribute to our community and those less fortunate than ourselves. There are many ways that clients can “give back,” including engaging in lifetime or testamentary charitable giving. Charitable giving can not only benefit society, but it can also provide valuable income tax, gift tax, and estate tax savings. According to the Giving USA Foundation and the Indiana … [Read more...] about Charitable Planning Ideas

In IR-2013-35 (March 28, 2013), the IRS reminded us that in most cases seniors who turned age 70½ during 2012 need to start taking Required Minimum Distributions (RMDs) from their IRAs, 401(k)s, and other retirement plans by April 1, 2013. The April date only applies to persons who are taking their first RMD. For all subsequent RMDs, the senior will need to take the distribution by December 31st of that year. Of course, seniors who do decide to delay their first distribution to the year … [Read more...] about Planning for Retirement Assets Can be Difficult

Football fans (and others) were shocked on December 1st of last year to learn about the murder of Kasandra Perkins. Perkins had been killed by Kansas City Chiefs linebacker Jovan Belcher. Jovan subsequently committed suicide at Arrowhead Stadium in front of his coach and the team general manager. The deaths of Kasandra and Jovan left their four month old child, Zoey, the subject of a guardianship dispute between Cheryl Shepherd, Zoey’s paternal grandmother, and her maternal grandparents, Rebecca … [Read more...] about Guardianship Provisions Essential To a Comprehensive Estate Plan

Last month, we let you know that Congress let the United States go off the fiscal cliff, only to come to the rescue in the early morning hours of January 2, 2013, with the passage of the American Taxpayer Relief Act of 2012 (“ATRA”). To review, ATRA makes most of the provisions of the previous estate tax law permanent. The amount that can be passed free of gift tax and estate tax is indexed for inflation, with the figure set at $5.25 million for 2013. The maximum gift and estate tax rate was … [Read more...] about More Reasons for Clients to Review Their Estate Plans

On December 31st, the United States went off the “fiscal cliff.” But, less than twenty-four hours later, Congress passed the American Taxpayer Relief Act of 2012 (“ATRA”). ATRA makes most of the previous estate tax law permanent. The amount that can be passed free of estate tax in 2013 is $5.25 million, with annual adjustment based on the CPI. The estate tax and the gift tax remain unified, so what is used during life is not available at death. The generation-skipping transfer tax exemption is … [Read more...] about New Year’s Resolution #3 – Get My Estate Plan Reviewed

Approximately forty years into their relationship, Edith Windsor and Thera Clara Spyer were married in Canada. Two years into their marriage, Thera passed away. After Thera’s death, Edith paid estate tax of approximately $363,000 to the federal government. The reason that tax was paid is that federal law, in the form of the Defense of Marriage Act (“DOMA”), does not recognize Edith and Thera’s marriage for federal estate tax purposes. Edith was greatly upset at having to pay the estate tax, … [Read more...] about Estate Planning for LGBTQ Couples: Possible Changes on the Horizon

This month’s alert focuses on the narrowing window to lock-in the current $5.12 million estate and gift tax exemption by gifting prior to year-end. The alert also examines why it may not be possible to wait and do this planning at the last minute. 2010 Tax Law Leads to 2012 LitigationAppraisal firms all across the country have been inundated with business. They are being swamped by taxpayers attempting to implement last minute estate planning strategies prior to January 1, 2013, when the amount … [Read more...] about Last Chance for Estate Tax Savings?

This month’s Alert focuses on the increased trust litigation arising from the unintended consequences of the temporary repeal of the estate tax in 2010. The estate tax was repealed for much of the year in 2010. While taxpayers with large estates benefited from the lack of the estate tax, the change in the law has caused litigation with inconsistent results. Estate planning attorneys have traditionally employed a strategy for married clients with large estates: dividing the contribute share of … [Read more...] about 2010 Tax Law Leads to 2012 Litigation