Estate Planning News + Trends
Commonly asked questions and trending topics of discussion. Search previous topics of discussion below.
Closing Date Extension of Homebuyer’s Credit Passed
On July 2nd, President Obama signed into law a bill that extends the original homebuyer’s credit deadline for closing a sale. Previously, the law stated that the contract had to be entered into by the end of April 30th with the closing to take place by June 30, 2010. ...
10-Year Minimum GRATs Added to COBRA Legislation
With the Federal estate tax legislation stalled, Senator Robert Casey (D-PA) has added a provision to the “Extend COBRA Premium Assistance Program Act of 2010” to require a minimum 10-year term for Grantor Retained Annuity Trusts (GRATs). The bill was referred to the...
Maybe Steinbrenner Can Force Congress to Act
On July 13, 2010, former New York Yankees owner, George M. Steinbrenner III, passed away, leaving behind his wife, four children and an estate estimated to be worth $1.1 billion (Forbes). Based on this estimate, Steinbrenner’s estate is potentially saving...
Definition of the Month: Pourover Will
A Pourover Will is a document that pours all of the creator’s assets into his or her Trust at death. The Trust document then controls the distribution of the assets. Proper funding of a Revocable Living Trust during the individual’s life is important, but the...
Reporting Requirements for Foreign Trusts Shift to Grantor
On March 18, President Obama signed the Hiring Incentives to Restore Employment (HIRE) Act into law, which includes several unrelated provisions intended to generate revenue. Consistent with the increased scrutiny on foreign investments that we saw in 2009, the HIRE...
New Estate Tax Bill Introduced by Senator Bernie Sanders
Senator Bernie Sanders (I-VT) introduced an Estate Tax bill on Thursday, June 24, with a new twist: the Billionaire’s Surtax. The bill, which is co-sponsored by Senators Sheldon Whitehouse (D-RI), Tom Harkin (D-IA) and Sherrod Brown (D-OH) and would be retroactive to...
Powers of Attorney and Divorce
It is common practice for one spouse to name the other as his or her agent for health care and property, but what happens to those Powers of Attorney if the couple gets divorced? The Illinois legislature has provided a direct answer for this situation. Section 2-6(b)...
Illinois Passes New Law Allowing Tenancy by the Entirety in Trust
On April 29th, both Illinois houses passed a bill that amends the state’s joint tenancy provisions to permit revocable trusts to hold homestead property in tenancy by the entirety (see below for a brief discussion of “tenancy by the entirety”). When creating dual...
No End in Sight for Estate Tax Debate
In mid-May, Congress Daily reported that Congress was nearing a resolution on the estate tax debate, stating that an agreement between Senate Minority Whip Jon Kyl (R-AZ), Senate Finance Chairman Max Baucus (D-MT), Sen. Charles Grassley (D-IA) and Senate Agriculture...
2010 Estate Tax Update
According to Bloomberg Business Week, the House Ways and Means Committee planned to begin work in April to retroactively reinstate the federal estate tax on multimillion-dollar estates that expired on December 31, 2009. The legislation would likely extend the 2009...