Description
Estate Tax Planning in 2011 and 2012
This desk reference is an essential tool for estate planners wishing to take advantage of the tax planning opportunities available in 2011 and 2012 following the enactment of the 2010 Tax Relief Act.
Estate Tax Planning in 2011 and 2012, written by seasoned practitioners, describes the provisions of the new law, including:
· Opportunities to shelter a larger portion of the estate from tax
· Why it makes sense to make gifts now
· Planning for the moderately wealthy client
· Why this is the time to consider a dynasty/asset protection trust
· The continued role of life insurance
· The new portability provision and why it is not a panacea for planners
· Many examples, client letters, trust language, and more.
Detailed Estates, Gifts and Trusts Coverage Available from BNA
BNA offers a wealth of products covering Estates, Gifts and Trusts to fit your information and planning needs. In addition to this Guide, Bloomberg BNA resources include the Estates, Gifts and Trusts Portfolios and other products on the Bloomberg BNA Tax &Accounting Center, an in-depth on-line resource that brings you news coverage,developments, in-depth analysis, and the latest planning ideas, all written by the top experts in the field.
Table of Contents
Part One – The New Law and Its Direct Effects
Introduction
New Estate Tax Law Summary
Strategic Planning Requires Consideration of Probabilities
Ideas for Planners and Checklist for Helping Clients During the2011 and 2012 $5Million Exclusion Years
Client Letter
New Vocabulary
What Happens After2012?
Lookback Trusts for2012?
How the $5,000,000Estate Tax Exclusion Amount Works
What Do Clients and Advisors Need to Know About the$5,000,000 Lifetime Gifting Exclusion?
Dynasty and Asset Protection Trusts
Multiple Grantor Trust System Illustrations
What Is the Clawback and Should I Worry About It?
How Are the$5,000,000 Exclusions Affected by Inflation?
Potential Effect of Inflation on the Estate Tax Exclusion
Mrs $7,000,000 Net Worth
Mrs $7,000,000 Net Worth Frozen
How Does Portability Work?
Key Portability Points
Sample Letter to Client in Second Marriage
Well-to-Do Married Couples Will Almost Always Be Better Off Using Credit Shelter Trusts as Opposed to Portability
Portability Poems
Protective Trust Logistical Chart
Credit Shelter Trusts vs Relying on Exclusion Portability
What Are the Disadvantages of Funding a Credit Shelter Truston the First Death?
Full Funding of Bypass Trust on the First Death
The ‘‘Estate Tax Proof ’’ $15,000,000 Family
Methods of Providing a Stepped-up Basis
The GST Exemption and How Is It Affected by the New Law
Single Client’s Protective Trust Explanation Chart
What Was the 2010Loophole for Gifting to Grandchildren and What Common Mistakes Were Made?
Single Person with$15,000,000 Estate Tax & Lifetime Gifting Allowance
How Does this Planning Affect the GST Exemption of a Trust That Received a Generation-Skipping Contribution in 2010?
What About Clients Who Died in 2010?
Selected Tax Filing Deadlines
Part Two – More In-Depth Planning Under the New Tax Law
Credit Shelter Trust Alternatives for Flexibility in Planning
The Credit Shelter Trust Conversation
Executive Summary to Defective Grantor Trusts
What Is the Reciprocal Trust Doctrine?
The Asset Protection Dynasty Trust Movement and What
Estate Tax Planners Need to Know About It
Special Planning for Clients That Are Owed Significant Monies by Their Children/Trusts/Descendants
What To Do with Life Insurance That Was Acquired to Replace
Estate Tax Liability
What to Do with Existing GRATs
GRATs Are Still Great!
Should Clients Still Consider Roth Conversions if They Will Not Be Subject to Estate Tax?
Consider the QPRT
Is It Time to Gift/Buy Houses for Children and Grandchildren?
Anatomy of the Child’s Homestead Irrevocable Trust
Part Three – For Clients When Estate Tax Planning Will No Longer Be the Tail Wagging the Dog
If I Am Married What Are My Options for a Revocable Trust?
Exhibit A –Conference Agenda for Updating the Family Estate Plan
Exhibit B –Demonstrating the Use of Limited Partnership or LLC Vehicles for Annual Gifting with Discounts and Asset Growth
Exhibit C – Sample Letter Advocating Appropriate Umbrella
Liability Insurance
Authors
Kenneth Crotty
Partner
Gassman, Bates & Associates, P.A.
Clearwater,FL
A partner at the
Clearwater, Florida law firm of Gassman, Bates & Associates, P.A., where he
practices in the areas of estate tax and trust planning, taxation, physician
representation, and corporate and business law, Mr. Crotty has co-authored
several handbooks that have been published in BNA Tax & Accounting, Steve
Leimberg’s Estate Planning and Asset Protection Planning Newsletters and Estate
Planning Magazine.
Christopher Denicolo
Partner
Gassman, Bates & Associates, P.A.
Clearwater,FL
A partner at the Clearwater, Florida law firm of
Gassman, Bates & Associates, P.A., where he practices in the areas of
estate tax and trust planning, taxation, physician representation, and
corporate and business law, Mr. Denicolo has published several articles in various
publications, including BNA Tax & Accounting, the Florida Bar Journal and
the LISI Network.
Alan Gassman
Partner
Gassman, Bates & Associates
Clearwater,FL
Admitted to Bar, 1983, Florida.
Education: Rollins College (B.A., with distinction, 1980); University of
Florida (J.D., with honors, 1982; LL.M., Taxation, 1983).Listed in: Florida Trend's 2004 "Top 1.8% of the Best Lawyers in
Florida"; Who's Who in American Law, 1991-1998; Who's Who in America,
1998; Who's Who in Science and Industry and Law and Leading Lawyers. Mr.
Gassman has received an AV rating in Martindale-Hubbell Directories, based upon
confidential colleague survey, which is the highest rating available.Author: Articles published in Journal of Asset Protection:
"Implementing Asset Protection Strategies to Protect the Medical
Practice," Nov./Dec. 1996 and "Tax Planning for Offshore Trust
Arrangements," July/Aug. 1997; Articles published in Medical Staff
Counselor: "Structuring Group Medical Practices: Shareholder and
Partnership Agreements," Fall 1992 and "Structuring Group Medical
Practices: Tax Planning Aspects; Articles published in Estate Planning Magazine
"The 10 Most Common Mistakes that Estate Planners Make in Asset Protection
Matters"; and over 200 more articles.Member: Board of Advisors, Journal of Asset Protection (1994-1997), Law
& Leading Attorney, 1996-2000. Contributing Author, Leimberg Information
Services (LISI). President, Pinellas County Estate Planning Council, 1994.
Fellow, American Bar Foundation. Member, National Association of Estate Planers
& Councils.Continuing Education Programs: Co-Chairman and Presenter of the Florida
Bar's annual Physician Representation Seminar, and Vice Chairman and Presenter
of the Florida Bar's annual Wealth Conservation Seminar. Mr. Gassman's outlines
on Asset Protection In the Estate Plan, Physician Disaster Avoidance, and What
Every Doctor Should Know About Asset Protection have and continue to be
presented each year at numerous continuing education and professional seminar
conferences, including the ALI-ABA Sophisticated Planning Techniques Seminar in
Boston, Massachusetts, The Midwestern Estate and Tax Planning Conference in
Indianapolis, Indiana, The Florida Society of Osteopathic Physicians and
numerous Estate Planning Council presentations throughout the State of Florida.(Board Certified Wills, Trusts and Estates Lawyer, Florida Bar Board of
Legal Specialization and Education).Practice Areas: Estate Planning; Health Law; Tax Planning; Corporate Law;
Business Law.