Tag: family-member
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Estate Planning: The Clock is Ticking Use it or Lose it Before 2013
In 2010, President Obama signed a law that changed the estate, gift, and generation-skipping transfer (GST) tax rates and exemptions. These changes will end in 2012, and if new laws aren’t passed, the old tax rates and exemptions will come back in 2013. This means that people should consider using the new tax laws to…
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Foreign Investment in U.S. Real Property: Navigating Through the Income, Estate, and Gift Tax Traps
Foreign investors are investing in Florida real estate because of the great deals available. However, they need to be aware of the tax implications. The IRS considers foreign investors as nonresident aliens, and they need to be aware of federal income taxation, transfer taxation, and FIRPTA withholding requirements. This is a complex area of law,…
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Chinks in the Armor: Current Trends in Limited Liability Company Structure After Olmstead
This article is about different types of businesses and how they protect the owners’ assets from outside creditors. It explains that corporations have been around for a long time and one of their main benefits is that they protect the owners’ assets from claims against the business. It goes on to talk about how sometimes…
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Navigating the Minefield of Settlements: A Primer on Tax Issues for the Probate and Trust Litigator
In tough economic times, there are more disputes over wills and trusts. This is because more people know their rights and the legal documents are more complex. As a result, lawyers who handle these cases are seeing more business. I’ve helped these lawyers with tax issues in these cases. This article is meant to help…
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Rethinking I.R.C. §2701 in the Era of Large Gift Tax Exemptions
For individuals or couples with a net worth of $5-10 million, there are new opportunities to transfer assets and minimize taxes as the tax exemptions have increased. One way to do this is through a “freeze partnership,” which allows for transferring appreciation of assets to younger generations while keeping control and access to income. This…
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It’s 2013: Now What?
In 2011 and 2012, lawyers were advising clients about tax and estate planning opportunities to transfer up to $5 million tax-free. However, Congress passed the American Taxpayer Relief Act of 2012 (ATRA) at the beginning of 2013, making the planning efforts unnecessary in many cases. ATRA maintains the $5 million exclusion amount and other important…
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State Income Tax Planning for the Nonresident Floridian: The ING Trust
Florida is a great place to live because there’s no state income tax. Many people move here from other states and keep ties to their old state. Florida lawyers have to know about tax laws in other states to help their clients. Some people use a special kind of trust to avoid paying income tax…
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Estate Planning with Carried Interests: Navigating I.R.C. §2701
Private equity firms and hedge funds are moving to Florida to take advantage of tax savings. Fund managers control and invest in these funds to make profits. They get a share of the profits (called a “carried interest”) in exchange for their services. Other investors, like pension plans and wealthy individuals, also invest in these…
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Florida Family Trust Companies: Tax and Nontax Considerations
If a family-run investment company wants to avoid SEC regulation, it can qualify for exemptions. One way is if it only serves family members and is owned and controlled by family members. Another way is if it follows state regulations instead of SEC rules. Using a family-run investment company for family trusts can cause tax…
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Plan Ahead: Protect Your #DigitalFootprint
As the world goes paperless, digital assets like photos, videos, social media accounts, and even virtual property are becoming really important. But, not many people are planning for what will happen to their digital stuff after they die. The laws about this stuff are always changing, and different websites have different rules. So, it’s important…
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Get Your 20 Percent Deduction by Calling 1-800-888-199A
The Tax Cuts and Jobs Act was passed in 2017 and will affect how lawyers and law firms in Florida plan their income taxes in 2018. The new laws will provide tax benefits for many lawyers, but they may need to restructure their finances to take full advantage of these benefits. The article explains important…
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The Tax Cuts and Jobs Act: Still Waiting for That Postcard
President Donald Trump signed the Tax Cuts and Jobs Act into law in December 2017. It made changes to the tax system, with the goal of making it simpler. Some parts of the tax code are easier, but others, especially for businesses, are more complicated. Many of the changes will expire in 2026. So, filing…
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Demystifying the Qualified Payment Right: Structuring and Administering a §2701-Compliant Entity
Estate planners use special business entities to help families pass on their wealth without paying high taxes. They often create these entities with two types of ownership: one that gets a guaranteed return on their investment (preferred interests) and one that gets any extra profits (common interests). Older family members can give the common interests…
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Navigating I.R.C. §2036 Tax Planning with Florida Law
For many years, a common technique in estate planning has been to create a partnership or LLC to hold valuable property and then transfer ownership interests to a trust to avoid estate tax. However, the IRS may challenge these transfers as an attempt to pass untaxed wealth to future generations while still maintaining some control…
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Funding the Estate Tax: Defusing the Liquidity Time Bomb
It seems like the rules around estate taxes might be changing soon. If they do, more people might have to pay taxes on their estates when they die. As lawyers, we help our clients figure out how to pay as little tax as possible and in the least disruptive way. In this article, we talk…
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The Trust Beneficiary’s Right of Access to Information
Beneficiaries have the right to know certain information about a trust, but sometimes trustees refuse to provide it. This can lead to beneficiaries feeling upset and hiring lawyers. In some cases, the trustee may not know their responsibilities or may intentionally withhold information. This article explains what information beneficiaries can get under Florida law and…
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Estate Planning During an Election Year: Will It Be 2012 All Over Again?
2020 might be a very busy year for estate planning attorneys because the current laws that give people a big tax break on what they can leave to their family and friends when they die could change soon. The laws are set to expire in 2025, but some people think they might change even sooner,…
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IRA Accounts and Possible Stretch Reduction
In 1974, Congress created IRAs to help people save for retirement without having to pay immediate taxes on their contributions and investment gains. This is known as a traditional IRA. You can get a tax deduction for the money you put into your IRA, but only until you turn 70 and a half. You can…
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Passport Revocation for Seriously Delinquent Tax Debt
The IRS can tell the government to take away or limit your passport if you owe a lot of taxes. This law was passed in 2015 but didn’t start being enforced until 2018. This can affect anyone, not just lawyers, so it’s important to know about it. If you owe more than $50,000 in federal…
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Designing Trust Systems for Florida Residents: Planning Strategies, Things You Should Know, and Traps for the Unwary
Trusts are commonly used for estate and financial planning. They help avoid probate and protect assets. There are different types of trusts and it’s important to understand the implications before funding one. For unmarried individuals, a revocable trust is often used to avoid probate and maintain control over assets. However, in some cases, it may…
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Drafting Wills for the Remarried Spouse
Forms used for the traditional marriage are not suitable for second marriages, especially when children are involved from a previous marriage. Attorneys need to make sure that their clients have updated wills that take into account the unique circumstances of a second marriage. The estate planner should educate their client about the potential conflicts between…
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Intestacy in the Context of Estate Planning in Florida: When to Apply the Intestacy Rules and How to Avoid them
In short, a law firm and their lawyer are being sued for not properly representing their client in a case. The client claims that the lawyer didn’t try hard enough and made mistakes. The lawsuit is seeking money for the client’s losses and damages. If someone dies without a will in Florida, their property will…
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Multiple Representation in Estate Planning: Beyond Advisory Opinion 95-4, Part 2
An article discusses how a legal decision called Advisory Opinion 95-4 affects how attorneys work with married couples in estate planning. It talks about how attorneys and clients can decide on the specific responsibilities of the attorney in the engagement arrangement. Some attorneys may want the option to keep some information confidential from one spouse,…
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Drafting Trusts That Include Broad Invasion Powers
Sometimes a client might want to include a broad standard in their trust that allows the beneficiary to access the trust funds for more than just basic needs like health and education. However, there are certain restrictions on when and how this standard can be used. Marital trusts and independent trustees can still allow for…