80 th SEMI-ANNUAL TAX AND ESTATE PLANNING FORUM

Transcription

1 80 th SEMI-ANNUAL TAX AND ESTATE PLANNING FORUM Moderator/Speakers John J. Miesowitz, Esq. Ventura, Miesowitz, Keough & Warner, P.C. (Summit) John L. Pritchard, Esq. Law Offices of John L. Pritchard, Esq. (Union) Speakers Robert I. Aufseeser, Esq. Ansell, Grimm & Aaron, P.C. (Ocean) Dana A. Bennett, Esq. Bennett & Wyatt, LLC (Red Bank, Lakewood) Stacey Valentine Fielding, Esq. A.Y. Strauss (New York City) Richard H. Greenberg, Esq. Greenberg & Schulman (Woodbridge) Glenn A. Henkel, Esq., LL.M., CPA, A.E.P. Kulzer & DiPadova, P.A. (Haddonfield) Bruce E. Mantell, Esq. Mantell, Prince & Reynolds, P.C. (Murray Hill) Lauren S. Marinaro, Esq. Fink Rosner Ershow-Levenberg (Clark) Lori M. McNeely, Esq. McNeely McGuigan & Esmi, LLC (Moorestown) Jack F. Meola, Esq., CPA EisnerAmper LLP (Bridgewater) Ethan J. Ordog, Esq. Begley Law Group, P.C. (Moorestown, Stone Harbor, Princeton; Huntingdon Valley, PA) Randi Siegel Weniger, Esq. Siegel & Bergman, LLC (Morristown) S

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3 Table of Contents Page Estate Administration Issues With Credit Shelter Trusts and QTIP Trusts After Repeal of the New Jersey Estate Tax Dana A. Bennett, Esq. 1 History of the New Jersey Estate Tax 3 Wills Signed by Married Couples Before Credit Shelter Trusts and Decedents Dying After 2017 With a Surviving Spouse 5 Credit Shelter Trusts Established & Funded Before The Income Tax Conundrum 7 The Twenty (or More) Items That Should Be in Every Report of the Court-Appointed Attorney in a Guardianship Matter Ethan J. Ordog, Esq. 11 Introduction 11 Attachment Guidelines for Court-Appointed Attorneys in Guardianship Matters (2005 Revised Edition) 19 Thirty Estate Planning Tips John L. Pritchard, Esq. 31 Be Careful About Executing Trust Agreements Under Which Florida Real Estate May Be Held 31 Be Careful About Binder Estate Plans 31 Be Careful About Either Amending an Existing Pour-Over Trust, or Giving the Client an Entirely New Trust Agreement 31 Become a Notary Public 32 Avoid Residuary Bequests to Charities 32 Explicitly Create Contingent, Rather Than Vested Remainders 32 Use Successive Life Estate to Avoid a Second Inheritance Tax 32 Convert Existing Income Trusts to Unitrusts Pursuant to N.J.S.A. 3B:19B-4(a) 33 Carefully Document Who is Holding the Original of the LW&T 33 Pay the Inheritance Tax Directly from the Decedent s Bank Account 33 Be Careful of Executor Conflicts of Interest 34 For Intestate Estates, the System of Per Stirpes No Longer Applies, and Has Been Replaced by Representation, Per N.J.S. 3B:5-6 and N.J.S. 3B: Try Doing the Estate s Form 1041 and Form NJ-1041 Yourself 34 Try Doing the Decedent s Last, Part-Year, Form 1040 Yourself 34 Make Distributions In-Kind from a Trust or an Estate to Save or Defer Capital Gains Taxes for the Beneficiaries 35 Intentionally Trigger Capital Gains or Other Income to Soak-Up Excess Deductions Inside the Estate or the Trust 35 Sometimes the Undeserving Child is Favored by the Parent 35

4 Appoint a Literary Executor 35 Kick the Kids Out of the Room, and Document It 35 Try Running the Administration of a Non-New Jersey Estate Out of New Jersey 36 Add into the Refunding Bond and Release a Disclosure That the Attorney is Not the Beneficiary s Attorney 36 Document Who is Responsible for the Beneficiary Designation Forms 36 Document That You Told the Executor to Keep the House and Car Insured, Even If the Car is Not Being Used 36 Tell Certain Prospective Beneficiaries to File for Bankruptcy Now, and Consider a Spendthrift Trust for Them 37 Disclaimer Proof Any Lifetime Trust, Even If the Remainder Goes to That Beneficiary s Child 37 You ve Heard It Before: I Know My Oldest Son Will Do the Right Thing 37 When Real Estate is Conveyed into a Trust, Include a Memorandum of Trust as Part of the Recorded Deed 37 Make Notes About the Heirs-in-Law. Even If They Are Not Inheriting, It Will Make the Probate Application Easier 38 Don t Use a Tax Apportionment Clause, Unless It s Really Thought-Out 38 Plan for Your Own Demise 38 Appendices A Vested and Contingent Remainders 39 B Example of Intestate Distribution by Representation 40 New Jersey Update PowerPoint Presentation Glenn A. Henkel, Esq. 41 Attachments Adopted New Rules, N.J.A.C. 18:26 53 Estate of Van Riper v. Director, Division of Taxation 81 IMO Trust of Nelson 99 IMO Trust of Post CFR Part Practical Insights Concerning Certain Individual, Corporate and Fiduciary Income Tax Changes Enacted as Part of the Tax Cuts & Jobs Act of 2017 Bruce E. Mantell, CPA, Esq., LL.M. 151 New Income Tax Rates and Brackets 151 Capital Gains and Qualified Dividend 154 Kiddie Tax Modified 155 Standard Deduction Increased 155 Personal Exemptions Suspended 155 Child Tax Credit 155 Modifications to Itemized Deductions 156 Moving Expenses 157

5 Alimony 158 Repeal of Obamacare Individual Mandate 158 Alternative Minimum Tax 158 New Draft Tax Forms 159 Extension of Tax Changes 159 IRA/Roth Conversion Issues 159 Changes to Taxation of Real Estate and Tangible Personal Property 160 Miscellaneous Business and Corporate Changes 161 C Corporate Tax Rates 163 Executive Order 164 Income Taxation of Trusts and Estates 164 Exhibits A Form W B Form 1040 and Schedules 169 Business Succession Planning John J. Miesowitz, Esq. 179 Introduction 181 Control 182 Valuation Discounts 183 Lifetime Transfers to Take Advantage of Valuation Discounts 183 New Business Enterprise 185 Use of Grantor Retained Annuity Trust in Business Succession Planning 186 Equalization 187 Gift of Stock to Charitable Remainder Trust Shortly Before Sale of Business 188 Shareholder s Agreements 188 Prenuptial Agreements 188 The Gray Area Between Full Capacity and Lack of Capacity: The Uncertain Legal Solutions for Matters of Testamentary Capacity, Guardianships, and Quasi-Testamentary Contracts PowerPoint Presentation Stacey Valentine Fielding, Esq. 189 Attachments IMO Estate of Stockdale 199 N.J.S.A. 3B:13A-1 et seq. 215 N.J.S.A. 3B:12-24 et seq. 253 Pitfalls in Non-Judicial Settlement of Estates and Trusts PowerPoint Presentation Robert I. Aufseeser, Esq. 265 Attachments Bartel v. Clarenbach 275 Gatta, et al. v. Isherwood, et al. 285 IMO Klausner 289

6 About the Panelists 295