This is a part in a series of articles I have written on various types of irrevocable trusts. What is DAPT? One of the most unique forms of irrevocable trusts is a Domestic Asset Protection Trust (DAPT), otherwise referred to as a self-settled spendthrift trust. With most irrevocable trusts, the person setting it up (the…
This is Part 2 in a two-part series about LLCs. In Part 1, I covered “Why People Should Create LLCs?” How should I setup my LLC? Once you know why you need to create an LLC, there are a number of considerations that go into how to set up your LLC to maximize asset protection….
This is Part 1 in a series I have written on the use of QSBS in estate planning. Part 2 focuses on using non-grantor trusts to further leverage QSBS in a future liquidity event. What is Qualified Small Business Stock and Why Is It Important? Shares of a “qualified small business” (as defined by the…
On July 16, 2021, Governor Gavin Newsom signed Assembly Bill 150 into law. This bill enables certain California taxpayers to write off more than the $10,000 limit placed on state and local tax (SALT) deductions — but it’s not automatic, you need to know what to do to get this relief. BRIEF HISTORY OF SALT…
A lot of people have been talking about what President Biden’s tax plan will look like and whether there’s anything we can do now. In April of this year, Biden released the American Families Plan, which essentially increases taxes on both corporations and certain individuals. Following this, the Treasury Department issued its Green Book, which…
Proposition 19 was a highly contested ballot measure during the recent election, narrowly passing with 51% approval. The proposition was marketed as a solution to benefiting wildfire victims and the elderly. However, the proposition also rips away protections against property tax changes that California residents have enjoyed for almost forty years. Proposition 19 removes a…
What to Think About When Naming Permanent Guardians Most estate planning attorneys will encourage you to set up estate plans for many reasons: to protect against probate; to plan for incapacity; to create asset protection; to further tax planning; if you have a child under the age of 18, to plan for their guardianship in…
Per Stirpes vs. Per Capita at Each Generation? Say What? While engineering your estate plan, you’re likely to come across the terms “per capita at each generation” or “per stirpes.” (No, we are not talking about stripes here. Unfortunately, your estate plan is not available in stripes, houndstooth, or gingham). Instead, these terms are options…
IRS Form 706 is commonly known as an “Estate Tax Return.” It is not well-known even by most accountants and is rarely filed. But estate planning lawyers will swear by them! So what’s the deal? Why are they so elusive to some, and yet so important to file according to others? Usually, there is a…
HOW TRUST ADMINISTRATION WORKS What happens if someone creates a trust and then dies? Now what? The person in charge is called the “successor trustee.” Being a successor trustee is an honor and privilege since the person who created the trust (the “Decedent”) trusted your judgement and character to allow you to exercise control over…
How Probate Works If your loved one has passed away and left behind certain assets, you may or may not have to go to court in order to access or inherit those assets. You can learn more about what a probate is generally and why it occurs by reading our article, What is a Probate? …
This is a common question from those who set up living trusts. First off, if you are contemplating NOT doing a trust because you plan on just owning an account in your personal name, and you figure by naming other individuals as your beneficiaries, you are fine, then please read why you should not rely…
Whether intentionally or not, some people are of the opinion that a trust is not necessary either because they have someone else named on their account or because there is a beneficiary. So can beneficiary-designated accounts or joint accounts avoid going through probate? Well, it depends. Keep reading… Avoiding Probate with Beneficiary Accounts If an…
WHAT IS A PROBATE? You may think that after your loved one passes away, everything they own will simply go to their spouse, children, siblings, or closest family members. Unfortunately, it’s not that simple. With a few exceptions discussed below, when you die, your assets will go through court. This is called probate. (For…
Many answers to questions from attorneys begin with, “It depends,” followed by a long list of rules, which themselves are followed by a longer list of exceptions. This is not one of those answers! Instead, the answer to whether you should add your child to the home deed is almost always, “Never.” There are many…
This is a part in a series of articles I have written on various types of irrevocable trusts. Understanding Bypass Trusts Prior to 2012, many married couples created joint trusts known as “A-B” trusts. The problem now is that these trusts may actually cause more harm than good. In this article, I discuss Bypass Trusts. Who…
This is a part in a series of articles I have written on various types of irrevocable trusts. It’s not the QTIP you’re thinking of! To better understand this concept, it’s advised that you first read my article about estate taxes and then my article on bypass trusts. The QTIP trust is a popularly-used strategy to…
This is a part in a series of articles I have written on various types of irrevocable trusts. Irrevocable Life Insurance Trusts Why set up an irrevocable life insurance trust (ILIT)? An irrevocable life insurance trust (referred to as an ILIT) is a type of irrevocable trust that typically is used to own life insurance policies…
Feeling in-SECURE? In January of this year, a new law came into effect known as the SECURE Act, which is the most impactful legislation affecting retirement accounts in decades. You may have read politicians applaud the bill but be very weary — what Congress cloaked under the guise of “freebies” turns out to be nothing…
What is an Irrevocable Trust? Many people often ask me, “What’s an irrevocable trust?” Or some clients come ready to ask the follow-up question, “If an irrevocable trust means I cannot change it, why would anyone want to create one?” Let’s get one thing straight. No one wants a trust they can’t change. Rather, it’s…
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