Written by Jim Worthington on December 16, 2018
Most wills have special provisions covering what estate and trust lawyers call tangible personal property. The best way to describe it is that it includes anything that is not permanently affixed to real estate and that can be touched. This isn’t a precise legal…Read More
Written by Jim Worthington on December 1, 2018
The IRS has recently issued three significant updates. They include a Revenue Procedure, a Notice, and Proposed Regulations.
The first, Rev. Proc. 2018-57, released Nov. 15, 2018, provides the inflation-adjusted numbers for various tax exemptions, limits, etc. Four major ones for trusts and estates matters include:
Written by Jim Worthington on November 18, 2018
Last week’s post discussed gift-giving in general with a promise to look more closely at gifts to charity. Gifts to charity aren’t governed by the gift tax rules but by the income tax rules. Essentially, giving to charity is deemed so socially valuable that Congress encourages it by allowing…Read More
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