Twelve mistakes executors make: 1. Executor delay. 2. Paying estate funds out too early. 3. Failing to make the portability election. 4. Not following the terms of the will. 5. Failing to supply all asset information. 6. Failing to communicate. 7.. Confusing probate and nonprobate assets. 8. Not collecting estate funds in an estate account. 9. Getting help from friends instead of professionals. 10. Ignoring claims against the estate. 11. Self dealing. 12. Handling tangible assets under your own terms. For prospective law firm clients who want to schedule a free 30 minute initial phone call wit ..read more

There are many mistakes being made when homeowners attempt to leave their home to another as part of their estate planning legal program. A bequest of a home to another can be complicated. Items that need to be addressed when one attempts to leave a home to another include whether the bequest of the home is subject to any liens and encumbrances, or whether the residuary assets will be used to pay the mortgage on a home left to another. A common omission from a bequest of a home is a provision that the bequest of the home includes any household items and personal effects, such as appliances, fu ..read more

While traditional estate planning is still important, there are a number of trends developing in estate planning for 2021 and beyond. Traditional estate planning that is still prevalent today includes designating how your assets will be left behind to loved ones - either outright or in trust. Trusts appear to be more commonly used today to accomplish people's objectives of keeping assets in the bloodlines, preserving assets from being squandered due to a beneficiary's poor management skills or spending habits, reducing government interference in the estate, and then also providing for who will ..read more

Business owners pour their hearts and souls into their businesses. Often, when a business owner dies, surviving family members, business partners, and employees are thrown into a state of disarray. Estate planning for the business owner can minimize those problems. Issues initially inquired about when business owners engage in estate planning include the structure of the business, the existence and terms of any organizational documents, and whether co-owners of the business exist. Business owners who have business partners often put buy-sell agreements to pre-arrange for the purchase and sale ..read more

Revocable Living Trust trends in 2021 lean toward consumers being more aware of potential estate tax changes, as well as trends toward reducing or avoiding probate, and providing for unique assets like crypto-currency, digital assets, and social media accounts. For prospective law firm clients who want to schedule a free 30 minute initial phone call with Paul Rabalais, go to: https://go.oncehub.com/Paul8 This post is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read on this site. Using this site or communicati ..read more

Lots of new tax proposals out there under the new administration and Congress. One of the suggested tax proposals is to eliminate the step up in basis rules. If the step up in basis rules remain, older Americans will continue to own those assets because the step up in basis rules discourage one from realizing those gains. They will pass those assets along to the next generation at the new stepped-up basis, allowing significant capital gain to go untaxed. If the step up in basis rules are repealed, we will likely see more sales of appreciated assets since it will not be possible to pass along a ..read more

A number of people have asked me recently whether a new estate tax law could be made retroactive back to January 1, 2021. If the President and Congress change legislation to reduce the estate and gift tax exclusion amount, the question seems to be, "When does that legislation take effect.? Some might argue that estate tax legislation that is passed during 2021 should take effect on January 1, 2022. Others might argue that estate tax legislation reducing the estate tax exclusion amount will take effect for death that occur after the date that the legislation is passed. While some question wheth ..read more

It's kind of a weird time for the estate and gift tax in early 2021. Here's what we know: the estate tax exemption amount has been increased from the 2020 $11.58 million level to the 2021 $11.7 million amount. The $15,000 gift tax annual exclusion amount was not increased to $16,000 for gifts made in 2021 - it remained at $15,000. Barring legislative change, the Tax Cuts and Jobs Act will sunset in five years which will, generally, cut the estate tax exemption amount in half. Here's what we hear: Biden wants to reduce the estate tax exemption amount - perhaps to $3.5 million. He may also want ..read more

Estate planning is the process of arranging one's affairs, through legal, financial, and medical documentation, so that trusted family members or loved ones can make decisions for you that are in your best interest when you cannot make your own decisions. Estate planning also includes arranging affairs so that when you pass away, there is an efficient and orderly transfer of your life's belongings and values to future generations and other loved ones. Health care documentation that is included in one's estate planning program includes, but is not limited to, a HIPAA Authorization, a Health Car ..read more

What confuses the public is that there are so many different kinds of trusts out there. And occasionally, you may see a reference to a "QTIP Trust." In general, a QTIP trust can help married couples accomplish three things: (1) Avoid estate tax; (2) Provide for the well-being of the surviving spouse; and (3) Protect the heirs or beneficiaries of the first spouse to die. For prospective law firm clients who want to schedule a free 15 minute initial phone call with Paul Rabalais, go to: https://go.oncehub.com/Paul8 This post is for informational purposes only and does not provide legal advice. P ..read more