August 2009 Posts

  • US Budget Deficit Sure to Drive Tax Increases

    The White House Office of Management and Budget announced last week in its Mid-Sesion Review that the cumulative budget deficits for the upcoming 10 years are projected to be $9.1 trillion. ...
  • NC adopts law for Notice to Creditors when no probate required

    While I generally counsel my clients to avoid probate by the use of living trusts or other methods, one useful aspect of probate is the provision for publishing a Notice to Creditors. Publishing such a notice in the paper and otherwise following the law allows a decedent’s creditors’ claims to be extinguished after about three months....
  • The Time for Asset Protection Planning is Now

    Many people come to see me for asset protection advice only after some type of actual or probable liability has arisen. At that time, it is normally too late to do any meaningful asset protection, as most contemplated transfers of property could be undone as a fraudulent conveyance....
  • “First-to-Die” Life Insurance Now Available

    Second-to-die life insurance has long been used by married couples to provide liquidity to pay estate taxes at the death of the second spouse to die. Such insurance is less expensive and easier to obtain than two separate policies on the same individuals....
  • U.S. Tax Court – Single Member LLCs Not Disregarded for Gift Tax Purposes

    Unlike in the income tax and asset protection arena, single member limited liability companies (LLCs) are not disregarded for gift tax purposes. Pierre v. Commissioner, 133 T.C. No. 2 (Aug. 24, 2009). See Paul Caron’s recent TaxProf Blog entry for a brief summary....
  • Don’t Expect COLA Increases in Your Social Security Payments

    According to the Social Security fund trustees, cost of living adjustments (COLAs) in Social Security payments are unlikely in 2010 and 2011. COLAs are linked in to inflation, which has been negative in 2009, primarily due to lower energy costs. ...
  • Put Your Parents in Your Will?

    This article discusses when it might be appropriate to include your parents or grandparents in your will or living trust – generally when you are providing support for them. ...
  • Federal Estate Tax – Worst Case Scenario More Likely

    Based on inside sources in the U.S. Senate, here’s a prediction about what will happen with the estate tax. Since health care reform has consumed Congress and the Obama administration (except for drinking beer with professors and policemen), there will likely be no action on the estate tax until late December. ...
  • North Carolina Caregiver Resources

    Check out the Family Care Naivgator from the Family Caregiver Alliance. North Carolina’s page is here....
  • More on Living Wills from the Wall Street Journal

    Make Time to Create an Advance Medical Directive – I recently had the opportunity to hear a presentation by Bill Colby, the attorney who represented Nancy Cruzan’s family in the right-to-die case that went all the way to the U.S. Supreme Court. ...
  • Preparing for the End of Life

    A recent WSJ.com article discusses Advance Directives (Living Wills and Health Care Powers of Attorney) and their important role in end of life situations. I learned that Google now has a free online service for registering such documents....
  • Is Your Advisor IRA Savvy?

    Last week I attended a presentation by Ed Slott, CPA, America’s foremost IRA expert. A couple of years ago I participated in an extensive two-day training with Slott, and found him to be both informative and entertaining. ...
  • Another Lesson on What Not To Do in FLLCs

    This is from the latest edition of the GiftLaw eNewsletter: Note from Greg: Family Limited Partnerships (FLPs) were previously the preferred entity for obtaining discounts on transfers of wealth to younger family members. FLPs have largely been replaced by Family Limited Liability Companies (FLLCs). The writer of the article below often refers to FLPs even though the case involved FLLCs....
  • Children are the Most Important Thing

    There’s been a lot of coverage in the news lately about the care and custody of young children of deceased parents. First it was Anna Nicole Smith’s baby. She didn’t have a will naming a guardian for young Dannielynn....