Precise language is critical in estate planning documents. A lack of clarity is an invitation to litigation. An example of this is the dispute that arose after Tom Petty’s death between his widow and his two daughters from a previous marriage. In this case, it appears that his trust appointed his widow as “directing trustee,”
Estate Archives - Crawford Ellenbogen
Jan 5, 2021
Does your estate plan clearly communicate your wishes?
- By Joan Ellenbogen
- Estate
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Dec 1, 2020
Avoid these four estate planning deadly sins
- By Victor Dozzi
- Estate
- 0 Comments
According to literature, the “seven deadly sins” are lust, gluttony, greed, laziness, wrath, envy and pride. Although individuals may be guilty of these from time to time, other types of “sins” can be fatal to an estate plan if you’re not careful. Here are four transgressions to avoid. Sin #1: You don’t update beneficiary forms.
Nov 17, 2020
Estate planning and your art collection
- By Victor Dozzi
- Estate
- 0 Comments
If you’re an art collector, it’s critical for your estate plan to address your collection separately from other types of assets. You’ll want to preserve the value of your collection and avoid unnecessary taxes. Regular appraisals will give you an idea of how the collection is growing in value and help you anticipate tax consequences
Oct 28, 2020
Put pen to paper: How a letter of instruction can benefit family harmony
- By Victor Dozzi
- Estate
- 0 Comments
You may view your will as the centerpiece of your estate plan. But other documents can complement it. For example, if you haven’t already done so, consider writing a letter of instruction. Elements of the letter A letter of instruction is an informal document providing your loved ones with vital information about personal and financial
Oct 14, 2020
Why it’s important to plan for income taxes as part of your estate plan
- By Victor Dozzi
- Estate
- 0 Comments
The current federal estate tax exemption ($11.58 million in 2020) means that many people aren’t concerned with estate tax. But they should still plan to save income taxes. For example, be careful making lifetime transfers of appreciated assets. It’s true that the assets and future appreciation generated by them are removed from your estate. But
Oct 8, 2020
Don’t procrastinate if you plan to transfer ownership of your life insurance policy
- By Joan Ellenbogen
- Estate
- 0 Comments
Generally, the proceeds of your life insurance policy are included in your taxable estate. You can remove them by transferring ownership of the policy, but there’s a catch: If you wait too long, your intentions may be defeated. Essentially, if ownership of the policy is transferred within three years of your death, the proceeds revert
Sep 22, 2020
Making lifetime gifts continues to be a smart estate planning strategy
- By Joan Ellenbogen
- Estate
- 0 Comments
With the federal gift and estate tax exemption now at a record high $11.58 million for 2020, most estates aren’t taxable. But that doesn’t mean making lifetime gifts isn’t without significant benefits — even if your estate isn’t taxable under the current rules. Let’s examine reasons why gifting remains an important part of estate planning.
Aug 19, 2020
Take advantage of a “stepped-up basis” when you inherit property
- By Joan Ellenbogen
- Estate
- 0 Comments
If you’re planning your estate, or you’ve inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. Under the fair market value basis rules (also known as the “step-up and step-down” rules), an heir receives a basis in inherited property equal to its date-of-death value. For example, if your grandfather bought
Aug 11, 2020
Zeros and ones: Estate planning for your digital assets and accounts
- By Joan Ellenbogen
- Estate
- 0 Comments
Nearly everyone owns at least some digital assets, such as online bank and brokerage accounts, bill-paying services, cloud-based document storage, digital music collections, social media accounts, and domain names. But what happens to these assets when you die or if you become incapacitated? The answer depends on several factors, including the terms of your service
Jul 29, 2020
A win-win proposition: A CRT can benefit you and your favorite charity
- By Joan Ellenbogen
- Estate, Uncategorized
- 0 Comments
A charitable remainder trust (CRT) can convert assets into a stream of lifetime income, provide a current tax deduction and leave the remainder to your favorite charity. Typically, a CRT is funded with income-producing assets, such as real estate and securities. These assets may be supplemented by cash deposits. When you transfer assets to the