Articles Posted in Trusts

Artists and collectors face unique estate planning considerations. Artists and collectors should keep a comprehensive inventory of their works with detailed information about each work. A useful inventory lists the name of each work and the date it was created and fixed in a tangible medium. The medium, the dimensions, and any historical information should…

A charitable remainder trust is an irrevocable trust wherein the grantor/donor can effectively sell appreciated assets without immediate capital gains taxes, increase current cash flow, generate a current income tax charitable deduction, and ultimately reduce estate taxes. Typically, a charitable remainder trust provides that the non-charitable beneficiary (the grantor) receives payments, at least annually, during…

A durable power of attorney is a legal document that authorizes an individual to legally act on behalf of another individual. The individual granting the authority to someone else to act on their behalf is referred to as the principal, and the individual being given the authority is referred to as the agent. Executing a…

If you are a citizen or resident of the United States, you must file a gift tax return (whether or not tax is due) if you gave gifts to someone in 2020 totaling more than $15,000 (other than to your spouse). Certain gifts, called future interests, are not subject to the $15,000 annual exclusion and…

The primary reasons for making a will are: (1) to leave your property to those about whom you care in the manner and proportions you choose; (2) to choose the person(s) you want to handle your estate (i.e., executors and trustees); (3) to name a guardian for your minor children; (4) to determine how assets…

The origin of estate planning as an active force in asset conservation can be traced back to the 15th century and the English feudal system. Under that system, the primary property owner or lord of the manor, in exchange for a lifetime of faithful service and allegiance, allowed individuals to hold legal title to portions…

A testamentary trust is a trust contained in a will. A will can contain one or many testamentary trusts each serving its own unique purpose. For example, a testamentary trust can be created to manage the inheritance of a minor child, or manage the inheritance of an individual with disabilities, or even manage the inheritance…

The laws in New York formerly required people to be in the same room to sign or witness documents like wills, trusts and powers of attorney. On March 7th Governor Cuomo issued an expanded emergency order that enables us to get documents signed, witnessed and notarized 100% by video conference. No need for anyone to…

A spendthrift, of course, is a person who spends without regard to thrift. (When the word was coined, one meaning of “thrift” was “wealth,” so a spendthrift was originally one who spent his wealth.) Ordinarily, the interest held by a beneficiary in a trust is something a spendthrift can spend—an asset of the beneficiary, having…

Under the so-called three year rule, if an insured person transfers an insurance policy to an irrevocable life insurance trust, even though the insured may no longer retain any incidents of ownership, if he dies within the three year period following the transfer, the entire policy proceeds will be includable in the insured’s gross estate,…