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Family farms present a unique estate planning problem. The family farmers often operate on a thin profit margin (we hope it’s a profit), and yet, they are worth millions of dollars. AKA, they are cash poor and land rich.

Dad needs to continue to operate the farm, but for estate tax reasons it needs to be “divided up” among the kids. Even if there is never an estate tax problem, one or two of the ...

There are two basic estate planning checklists. One is for the planning you do while you are alive; the other estate planning checklist is the checklist you use after a family member dies. This article will concentrate on the “life” estate planning checklist.

Four Estate Planning Checklist Issues – Issue 1

Testamentary Will

Every estate planning checklist begins with a will. Yes, the will takes affect when you’re dead, ...

Estate Planning Forms and Documents Can Make A Difference

Good estate planning forms and documents are so important, It can be tricky to get them. Many places will offer you free estate planning forms to get you in. If you get free estate planning forms you will probably get quality comparable to what you pay for them. Because estate planning requires more than ...

For centuries the “last will and testament” was the standard for estate planning. Since the living revocable trust was introduced, the trust has become pretty much a standard in estate planning. Estates and trusts go together now like estates and wills used to go together.

However, it doesn’t matter how fancy you get with estates and trusts, the will is still a standard part of estate planning. Even if you get a living trust, you ...

Writing a legal will is probably the easiest thing a lawyer can do. There are only a few legal requirements and the documents don’t need to be very long. If you are thinking of doing it yourself, you can. However certain legal requirements need to be met, so be sure you are getting good advice. When I graduated from law school one of my first clients needed a will and I had no clue what to do.

I went to the ...

I’ve had a question from a student about the “economic substance doctrine.” This has been a club that the IRS used against people for years. However, the ObamaCare legislation beefed it up and actually made it a law.

The IRS has always argued, and the courts have bought off on the idea, that if something you do is done primarily to save taxes, the IRS can “undo” your transaction. The fact is lots of things ...

ObamaCare is complicated. It is one of the largest tax increases in history. The 1099 issue that I talked about in my last email is very real. Hopefully it will be repealed, because it will create a nightmare for you and me.

I got some input from my students on the last email. I hope to step up my emails and the discussion with my ...

One of the rituals of American society is to “probate a will” whenever somebody dies.  The way our society has determined that property will be transferred after the death of the property owner is to probate a will.  It is assumed that the probate will be of the will the decedent (dead person) had prepared.  However, if the decedent didn’t leave a will, then the state will provide a will to probate.  When the ...

Inheritance tax is often called a voluntary tax.  Do the rich lose all their money when somebody in the family dies?  Of course not!  Why should you lose a dime?

How to Avoid Paying Inheritance Tax

It’s easy to know how to avoid inheritance tax. The terms inheritance tax and estate tax are usually used interchangeably by people, but there is a technical difference.  Estate taxes are taxes assessed against the estate of a person who dies.  Inheritance taxes are taxes assessed ...

To Use a Domestic Asset Protection Trust or NOT!

Revocable Trusts Aren’t Asset Protection Trusts Lots of people establish a living revocable trust thinking they are creating some sort of a domestic asset protection trust. A revocable trust is not an asset protection trust. Living trust asset protection is pretty much a myth. Whether the trust is a living trust, family trust, or another type of trust you can conjure up, if it is revocable, it does not protect its assets ...