Written by Jim Worthington on November 11, 2018
As the year-end holidays approach, many of us are thinking about giving gifts to our family, friends, charities, and even our employees. Tax law has rules that affect this generosity.
In the tax law, a gift is marked by “detached and disinterested generosity.” The person who makes the gift,…Read More
Written by Jim Worthington on November 7, 2018
DAPTs are trusts established under the laws of a state such as Delaware, Nevada, South Dakota, Tennessee, Ohio, or Alaska that allows self-settled spendthrift trusts. Historically, one could not protect one’s own assets from one’s own creditors by transferring them to a trust. Over the past 20 years, however, a number…Read More
Written by Jim Worthington on October 29, 2018
Last week’s post discussed the differences between revocable and irrevocable trusts. This week, we turn our attention to types of irrevocable trusts. There are too many to describe here but some of the most popular follow:
- GRATs are trusts in which a grantor gives an asset away but retains…Read More
Written by Jim Worthington on October 21, 2018
The simplest way to explain the difference is that a revocable trust is one you can change and an irrevocable trust is one you can’t change. To be more precise, an irrevocable trust is one you can’t change easily. In states like Kentucky that have adopted the Uniform Trust…Read More
Written by Jim Worthington on October 14, 2018
October is National Cybersecurity Awareness Month and lawyers should be paying attention to the need to protect their clients’ data. In fact, the Kentucky Bar Association released Ethics Op. E-446 on July 20, 2018, affirming the lawyer’s ethical duty to do so. This opinion follows American Bar Association Formal…Read More
Written by Jim Worthington on September 30, 2018
Clients often ask how frequently they should review their estate planning documents. The answer varies. One should review them after any major events in a family’s life, such as a birth, marriage, change of employment, retirement, divorce, or death.
After the birth of a child, it is very important to nominate…Read More
Written by Jim Worthington on September 22, 2018
The preceding two articles talked about getting appointed by the probate court and marshalling the estate assets and paying creditors’ claims. This article will discuss paying taxes, paying the beneficiaries, and closing the estate.
Estates must pay income taxes if they receive $600 of income in a fiscal year….Read More
Written by Jim Worthington on September 16, 2018
Last week’s article covered admitting a will to probate and getting appointed by the court. Once the personal representative is appointed, what does he or she do?
The first step is to go online (during the week as the website shuts down for the weekend) and obtain a Taxpayer…Read More
Written by Jim Worthington on September 9, 2018
Recent articles have discussed how to use trusts to avoid probate and what happens in Kentucky when you die without a will. It is now time to describe the probate procedure itself. Because probate involves too many steps to cover in one sitting, this article is the first…Read More
Written by Jim Worthington on September 2, 2018
We’ve learned that the Queen of Soul herself, Aretha Franklin, died without a will. For those of you wondering what that means for her family, the answer to that question depends on where she was a resident when she passed.
This article will answer the question for some hypothetical Kentuckians. The…Read More