Rush University Case: Impact on Self-Settled Trusts. By Gideon Rothschild, Esq. and Martin M. Shenkman, Esq.
|
|
- Erik Doyle
- 5 years ago
- Views:
Transcription
1 Rush University Case: Impact on Self-Settled Trusts By Gideon Rothschild, Esq. and Martin M. Shenkman, Esq. A recent Illinois case that ruled unfavorably on the use of self-settled trusts, Rush Univ. Med. Center v. Sessions, N.E. 2d, 2012 IL , 2012 WL (Ill, Sept. 20, 2012) (Rush U), has raised eyebrows from some advisors and drawn yawns from others. Some advisors have concluded that the use of a domestic self settled trust (DAPT) for residents of non- DAPT jurisdictions isn t viable. Others have pointed out that the result in Rush U was not unexpected in that it s consistent with prior bad fact cases attacking self-settled trusts. Other advisors are trying to focus efforts on being more cautious in their application of the self settled trust technique. The reality is that, before and after Rush U, DAPTs were and remain unproven. Until the Supreme Court rules on the application of the Full Faith and Credit clause of the constitution as to whether a DAPT jurisdiction has to respect a judgment from a non-dapt jurisdiction, we won t know whether creditors can reach a DAPT, whether transfers to a DAPT will be completed gifts or if the assets will be removed from a grantor s estate for a non-dapt resident. Some experts have stated that the Internal Revenue Service has informed them that it refuses to issue rulings on self-settled trusts after Battley v. Mortensen, Adv. D. Alaska, No. A DMD, May 26, 2011 (Original Memorandum) and July 18, 2011 (Memorandum Denying Motion For Reconsideration). Will Rush U further reinforce that position and IRS negative view about these self-settled trusts? One of the difficulties in evaluating the import of Rush U is that it appears to be another bad facts case. Time Line The following simplified time line of the facts concerning Robert W. Sessions, the grantor of the trust, is helpful in understanding the case. Feb. 1, 1994 asset protection trust established and funded with family limited partnership (FLP) interests. Fall 1995 Sessions made a pledge to a local charity. April 19, 2005 Sessions created a revocable trust and contributed his 1 percent general partnership interest to the trust. April 25, 2005 Sessions died.
2 The Trust Sessions established an FLP in Colorado. Later, on Feb. 1, 1994, Sessions, as grantor, set up the Sessions Family Trust in the Cook Islands. The trust was a foreign asset protection trust (FAPT). The FAPT was irrevocable, included a spendthrift provision and distribution standards permitting distributions to Sessions of income or principal for his maintenance, support, education, comfort and well-being, pleasure, desire and happiness. Sessions himself was named trust protector. In this capacity, he retained the power to remove trustees, to veto any discretionary actions of the trustees and to appoint or change beneficiaries in his will. Sessions transferred 99 percent of the FLP interests and real property located in Hinsdale, Illinois to the FAPT. Charitable Pledge In the fall of 1995, Sessions made a pledge to a local charity, Rush University Medical Center, of $1.5 million. The pledge was for the construction of a new president s house on the university s campus in Chicago. In reliance on this pledge, the charity built the house and even held a public dedication honoring Sessions. Sessions executed several codicils to his will reflecting that any portion of the pledge that was unpaid at his death should be paid from his estate. On Sept. 30, 1996 Sessions sent Rush University Medical Center another letter confirming the charitable pledge. Complaint On December 15, 2005 the charity filed an amended complaint against Sessions estate to enforce the pledge. The third count in the complaint relied on the principle that if the settlor creates a trust for his own benefit it s void as to existing and future creditors and that those creditors can reach his interest in the trust. This common law rule is supported by a number of Illinois cases, such as Marriage of Chapman, 297 Ill. App. 3d 611, 620 (1988) and Crane v. Illinois Merchants Trust Co., 238 Ill. App. 257 (1925). The court stated the common law rule as follows: Traditional law is that if a settlor creates a trust for the settlor s own benefit and inserts a spendthrift clause, the clause is void as to the then-existing and future creditors, and creditors can reach the settlor s interest under the trust. The court noted that this conclusion didn t require that the transfer be a fraudulent conveyance. The trustees of the FAPT argued that the common law principal stated above was supplanted by the Fraudulent Transfer Act (Act) and that the Act provided specific mechanisms to prove that a transfer was fraudulent. Section 5(a) of the Act provides that: A transfer made or obligation incurred by a debtor is fraudulent as to a creditor if the debtor made the transfer or incurred the obligation: (1) with the actual intent to hinder, delay, or defraud any creditor (2) without receiving a reasonably equivalent value in exchange for the transfer or obligation and the debtor: (A) was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were
3 unreasonably small in relation to the business or transaction; or (B) intended to incur, or believed or reasonably should have believed that he would incur, debts beyond his ability to pay as they came due. Based on Sessions conduct, his transfers to his FAPT may not have withstood this test. But, it appears that the complaint filed by the charity did not allege that the decedent made a transfer to the trusts with actual intent to hinder, delay, or defraud. The trustees advocated that the Act superseded common law rights that made a self settled trust fraudulent per se. If the Act did supersede the common law, then the charity would have had to prove that the funding of the trusts was a fraudulent conveyance under the Act. Appellate Court The appellate court reversed the lower court s decision and held that the common law cause of action was abrogated by the Act (740 ILCS 160/1 et seq.). The appellate court, as cited by the Supreme Court, found that if the legislature intended self settled trusts to remain per se fraudulent under the common law, it would not have promulgated a statue defining the conditions required to prove a transfer was fraudulent. Supreme Court The Illinois Supreme Court held that common law creditor rights and remedies remain in full force unless expressly repealed by the legislature or modified by court decision. The reasoning of the Supreme Court can be summarized in its quote from a case from 1898: it would make it possible for a person free from debt to place his property beyond the reach of creditors, and secure to himself a comfortable support during life, without regard to his subsequent business ventures, contracts or losses. Post-Rush U Planning Clearly, the planning and implementation in Rush U was flawed. Holding real estate in Illinois, and having the grantor as a trustee and trust protector was inadvisable. There s another potential line of planning that the Rush U case suggests might increase the potential for the success of a domestic self-settled trust. The Supreme Court dismissed an argument by the trustees of the FAPT that, while it may not have applied in the Rush U case, may be instructive for planning self-settled trusts generally. The trustees argued that once a debtor dies, the creditors no longer have an interest to reach in what had been a self settled trust. The trustees cited Greenwich Trust Co. v. Tyson, 27 A. 2d 166 (Conn. 1942). The Court stated: But that case is distinguishable and does not support defendants position. Unlike the assets in the present case (which the trustees were free to distribute to Sessions), the principal share subject to the relevant holding in Greenwich was not distributable to the settlor unless he lived for 20 more years after the trust was created, which he did not, and the trust further prohibited any alteration of that restriction.
4 This suggests that restrictions can be incorporated into a self-settled trust, for example, that your client cannot benefit unless your client is not married, or that no distributions can be made to your client until after ten years and a day, etc., that if not triggered would cause the trust to be viewed as not being self-settled. This would also seem to support the position advocated by some that instead of the grantor being named a beneficiary from the inception of the trust, a third party should be granted the power to add a class of people, including the grantor. And, if the grantor is removed as a beneficiary prior to his death (even if within 3 years), the trust would not be includible in his taxable estate. Another take away from this case may be that a foreign trust should not own assets physically located in the United States (or entities under the settlor s control), if maximum asset protection is desired. Settlors have to be willing to give up control in exchange for protection. There s no doubt that if the assets were located offshore, the creditor in Rush U could not satisfy its judgment and, accordingly, the Illinois court s decision would have no force and effect. On its face, Rush U is just another bad facts case challenging self-settled trusts. But, perhaps there are some positive planning lessons to be learned. Gideon Rothschild is a partner in the New York City law firm of Moses & Singer LLP and the co-author of the BNA Tax Management Portfolio on Asset Protection Planning. He is a Fellow of the American College of Trust & Estate Counsel, Academician of the International Academy of Trust and Estate Lawyers and Chair of the New York STEP branch. A version of this article appeared on the Trusts & Estates Plus App on Wealthmanagement.com on November 1, 2012.
5 Disclaimer Viewing this or contacting Moses & Singer LLP does not create an attorney-client relationship. This is intended as a general comment on certain developments in the law. It does not contain a complete legal analysis or constitute an opinion of Moses & Singer LLP or any member of the firm on the legal issues herein described. This contains information that may be modified or rendered incorrect by future legislative or judicial developments. It is recommended that readers not rely on this general guide in structuring or analyzing individual transactions or matters but that professional advice be sought in connection with any such transaction or matter. Attorney Advertising It is possible that under the laws, rules or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation. Copyright 2012 Moses & Singer LLP All Rights Reserved
White Paper Use of Trusts and Creditor Implications
White Paper Use of Trusts and Creditor Implications www.selectportfolio.com Toll Free 800.445.9822 Tel 949.975.7900 Fax 949.900.8181 Securities offered through Securities Equity Group Member FINRA, SIPC,
More informationThe Asset Protection Planning Continuum Practical Steps for Estate Planning Lawyers and Other Professionals
The Asset Protection Planning Continuum Practical Steps for Estate Planning Lawyers and Other Professionals By: Martin M. Shenkman, Esq. and Alan S. Gassman, Esq. Asset Protection Planning for Every Client
More informationWhite Paper: Asset Protection
White Paper: www.selectportfolio.com Toll Free 800.445.9822 Tel 949.975.7900 Fax 949.900.8181 Securities offered through Securities Equity Group Member FINRA, SIPC, MSRB Page 2 Table of Contents... 3 Introduction...
More informationWeller Group LLC January 30, 2017
Weller Group LLC Timothy Weller, CFP CERTIFIED FINANCIAL PLANNER 6206 Slocum Road Ontario, NY 14519 315-524-8000 tim@wellergroupllc.com www.wellergroupllc.com Asset Protection Page 1 of 6, see disclaimer
More informationTHE NING NEVADA INCOMPLETE GIFT, NONGRANTOR TRUST by Layne T. Rushforth 1
THE NING NEVADA INCOMPLETE GIFT, NONGRANTOR TRUST by Layne T. Rushforth 1 1. OVERVIEW 1.1 Overview: It is understandable that people living in a state with a state income tax want to avoid paying that
More informationOffshore Asset Protection Trusts vs. Onshore Asset Protection Trusts
Offshore Asset Protection Trusts vs. Onshore Asset Protection Trusts Same trust concepts govern both Both support estate planning and wealth transfer Same benefits re: probate and avoidance of estate delays
More informationWILLMS, S.C. LAW FIRM
WILLMS, S.C. LAW FIRM TO: FROM: Clients and Friends of Willms, S.C. Attorney Maureen L. O Leary DATE: December 5, 2011 RE: Asset Protection Planning Asset protection planning refers to arranging an individual
More informationTaddei, Ludwig & Associates, Inc.
Taddei, Ludwig & Associates, Inc. Kirk Ludwig, ChFC, CFP Scot Elrod Diane McCracken, ChFC Matt Taddei, CLU, CFP 999 Fifth Ave., Suite 230 San Rafael, CA 94901 415-456-2292 scot@tlafinancial.com www.tlafinancial.com
More informationEstate Planning. Insight on. Protecting your assets without a prenup. The ABLE account: A good alternative to a special needs trust?
Insight on Estate Planning August/September 2015 Premarital planning Protecting your assets without a prenup The ABLE account: A good alternative to a special needs trust? Make net gifts to reduce your
More informationRecent Developments in Estate Planning
ESTATE PLANNING INHERITANCE PROTECTION 7650 E. BROADWAY BLVD. #108 PHONE (520) 546-3558 TUCSON, AZ 85710 TOM@TOMBOUMANLAW.COM Recent Developments in Estate Planning 1. Estate Tax Summary: Federal estate
More informationTHE NEW MICHIGAN DOMESTIC ASSET PROTECTION TRUST
THE NEW MICHIGAN DOMESTIC ASSET PROTECTION TRUST Presenter: Larry E. Powe, Esq., KELLER THOMA, P.C., Southfield, Michigan 2017 I. RATIONALE Until approximately 20 years ago, the laws throughout the United
More informationAppendices Sample domestic asset protection trust clauses Sample irrevocable trust clauses Sample solvency letter State liability systems rankings Sta
PLANNING WITH DOMESTIC AND FOREIGN ASSET PR0TECTION TRUSTS Robert G. Alexander, JD, LL.M., EPLS, AEP Copyright 2009 Our Two Study Goals To Understand the Dynamics of Assets Protection Planning To Examine
More informationIntegrating Asset Protection Planning Into Your Estate Planning Practice. Douglass S. Lodmell, J.D., LL.M. Managing Partner Lodmell & Lodmell, P.
Integrating Asset Protection Planning Into Your Estate Planning Practice Douglass S. Lodmell, J.D., LL.M. Managing Partner Lodmell & Lodmell, P.C Douglass is the Co-Founder and the managing partner of,
More informationHONEY WE CAN CANCEL OUR TRIP TO THE COOK ISLANDS MICHIGAN HAS AN ASSET PROTECTION TRUST STATUTE!
HONEY WE CAN CANCEL OUR TRIP TO THE COOK ISLANDS MICHIGAN HAS AN ASSET PROTECTION TRUST STATUTE! By: Geoffrey N. Taylor, Esq. I. INTRODUCTION A. On my list of favorite estate planning myths, number one
More informationFraudulent Transfers
Fraudulent Transfers Governed by the Uniform Fraudulent Transfer Act. The fraudulent transfer rules prevent people from transferring assets after a debt has arisen in order to avoid having to pay the debt
More informationASSET PROTECTION PLANNING & STRATEGIES FOR LAWYERS ACCOUNTANTS, FINANCIAL PLANNING AND INVESTMENT PROFESSIONALS
EPC Diablo Valley September 21, 2016 ASSET PROTECTION PLANNING & STRATEGIES FOR LAWYERS ACCOUNTANTS, FINANCIAL PLANNING AND INVESTMENT PROFESSIONALS Presented by Jeffrey M. Verdon, Esq. Managing Partner
More informationEstate Planning Through an Asset Protection Lens
Estate Planning Through an Asset Protection Lens Gideon Rothschild, J.D., C.P.A. Moses & Singer LLP 405 Lexington Avenue New York, NY 10174 Telephone: 212.554.7806 grothschild@mosessinger.com www.mosessinger.com
More informationESTATE PLANNER THE. Do you need to file a gift or estate tax return?
THE ESTATE PLANNER September/October 2016 Asset protection PRESERVING WEALTH FOR YOURSELF AND YOUR HEIRS Do you need to file a gift or estate tax return? Of sound mind Take steps now to minimize the chance
More informationTrusts: Planning and Drafting for Divorce. By: Rebecca Provder, Esq., Gideon Rothschild, Esq., and Martin M. Shenkman, Esq.
Trusts: Planning and Drafting for Divorce By: Rebecca Provder, Esq., Gideon Rothschild, Esq., and Martin M. Shenkman, Esq. 1 General Disclaimer The information and/or the materials provided as part of
More informationNEW YORK TRUSTS AND CLAIMS IN DIVORCE UNDER NEW YORK LAW
NEW YORK TRUSTS AND CLAIMS IN DIVORCE UNDER NEW YORK LAW STEP Israel Annual Meeting Tel Aviv, Israel June 21, 2017 Michael W. Galligan Partner, Phillips Nizer LLP New York, NY Court Plaza North 25 Main
More informationU.S. Tax Considerations for Multi-Jurisdictional Family Trust Planning
Slide 1 Slide 2 Estate Planning Council of Greater Miami February 19, 2015 U.S. Tax Considerations for Multi-Jurisdictional Family Trust Planning Presented by Todd N. Rosenberg, Esq. of Packman, Neuwahl
More information(1) "property" includes real property, personal property, and interests in real or personal property;
Sec. 34.40.110. Restricting transfers of trust interests. (a) A person who in writing transfers property in trust may provide that the interest of a beneficiary of the trust, including a beneficiary who
More informationThe. Estate Planner. Gifting offers certainty in uncertain times. Ascertainable standards: What you need to know. Is your spouse a U.S. citizen?
The Estate Planner July/August 2010 Gifting offers certainty in uncertain times Ascertainable standards: What you need to know Is your spouse a U.S. citizen? If not, consider using a QDOT Estate Planning
More informationAsset Protection Advance Planning is Key
Partners Office for Women s Careers at MGH Presents Asset Protection Advance Planning is Key Barbara Freedman Wand, Esq. Estate Planning Group Bingham McCutchen LLP Boston Asset Protection Planning is
More informationAsset Protection Planning for Arizona Residents
ESTATE PLANNING INHERITANCE PROTECTION 7650 E. BROADWAY BLVD. #108 PHONE (520) 546-3558 TUCSON, AZ 85710 TOM@TOMBOUMANLAW.COM Asset Protection Planning for Arizona Residents 1. What is Asset Protection
More informationEstate Planning under the New Tax Law
Tax, Benefits, and Private Client JANUARY 2018 NO. 1 Estate Planning under the New Tax Law This client alert is part of a special series on the Tax Cuts and Jobs Act and related changes to the tax code,
More informationGUERRIERO v. COMMISSIONER
Supreme Judicial Court of Massachusetts. Essex. GUERRIERO v. COMMISSIONER 745 N.E.2d 324 (Mass. 2001) JEANNETTE GUERRIERO vs. COMMISSIONER OF THE DIVISION OF MEDICAL ASSISTANCE SJC-08194 Supreme Judicial
More informationAVOIDING THE ESTATE TAX TRAP OF 2017 REVERSIBLE EXEMPT ASSET PROTECTION (REAP) TRUST MIRROR DYNASTY TRUST ON THE WALL
AVOIDING THE ESTATE TAX TRAP OF 2017 REVERSIBLE EXEMPT ASSET PROTECTION (REAP) TRUST MIRROR DYNASTY TRUST ON THE WALL CAN YOU HELP MY CLIENTS NOT TAKE A FALL IF THE ESTATE TAX STAYS OR EVEN GETS WORSE
More informationNC General Statutes - Chapter 31B 1
Chapter 31B. Renunciation of Property and Renunciation of Fiduciary Powers Act. 31B-1. Right to renounce succession. (a) A person who succeeds to a property interest as: (1) Heir; (2) Next of kin; (3)
More informationnewsletter September Interest Rates for GRATs, Sales to Defective Grantor Trusts, Intra-Family Loans and Split Interest Charitable Trusts
newsletter September 2016 in this issue A monthly report for wealth management professionals. September Interest Rates for GRATs, Sales to Defective Grantor Trusts, etc.... 1 Case to Watch Constitutional
More informationChicago Estate Planning Council
Chicago Estate Planning Council November 1, 2012 Illinois Directed Trusts & Decanting Panelists: Benetta P. Jenson Rebecca Wallenfelsz Lyman W. Welch Managing Director Partner Partner J.P. Morgan Private
More information678 TRUSTS: PLANNING STRATEGIES AND PITFALLS By Marvin E. Blum
678 TRUSTS: PLANNING STRATEGIES AND PITFALLS By Marvin E. Blum Typically, when a client is considering options to help reduce estate taxes, the client must consider techniques that require the client to
More informationSUGGESTED TRUST PROTECTOR LANGUAGE Warning Legal Advice should be sought before any language is inserted into a Trust
SUGGESTED TRUST PROTECTOR LANGUAGE Warning Legal Advice should be sought before any language is inserted into a Trust 1. Trust Protector. The Trust Protector is to assist, if needed, in protecting the
More informationSeptember /October Some strings attached Stretching your legacy Don t underestimate the power of Crummey trusts Estate Planning Red Flag
The Estate Planner September/October 2007 Some strings attached Maintaining control over your charitable contributions without losing your deduction Stretching your legacy Dynasty trusts benefit many generations
More informationOffshore Protection with Domestic Simplicity
Spokane Estate Planning Council 2017 Annual Seminar The Bridge Trust Offshore Protection with Domestic Simplicity Douglass S. Lodmell, J.D., LL.M. Managing Partner Lodmell & Lodmell, P.C. Douglass Lodmell,
More informationMay the Applicant and Beneficiary of a Letter of Credit be the Same Person? Michael Evan Avidon, Esq. Moses & Singer LLP
May the Applicant and Beneficiary of a Letter of Credit be the Same Person? Michael Evan Avidon, Esq. Moses & Singer LLP 2 UCC Sec. 5-102(a)(2) Applicant means a person at whose request or for whose account
More informationL A N R U O J tm Utah Bar Volume 23 No. 2 March/April 2010
Utah Bartm J O U R N A L Volume 23 No. 2 March/April 2010 Table of Contents Letters to the Editor 7 President-Elect & Bar Commission Candidates 8 President s Message: Helping Unemployed/Underemployed Lawyers
More informationSFGH. Sugar Felsenthal Grais & Helsinger LLP SPECIAL TAX NEWSLETTER. Estate and Gift Tax Changes Create Major Opportunities. What Should You Do Now?
Sugar Felsenthal Grais & Helsinger LLP SFGH Sugar Felsenthal Grais & Helsinger LLP SPECIAL TAX NEWSLETTER Estate and Gift Tax Changes Create Major Opportunities What Should You Do Now? January 31, 2018
More informationHOW ESTATE & ASSET PROTECTION CAN SAVE MILLIONS
HOW ESTATE & ASSET PROTECTION CAN SAVE MILLIONS HOW ESTATE & ASSET PROTECTION CAN SAVE MILLIONS You should consider creating an Intentionally Defective Irrevocable Trust ( IDIT ) and gifting assets to
More informationSession 2: Estate and Tax Planning with Trusts
Session 2: Estate and Tax Planning with Trusts I. Overview a. What is a Trust? Trav Baxter i. A trust is a fiduciary arrangement that is governed by an agreement (i.e. a trust agreement) between a grantor
More informationIntroduction to Asset Protection Planning. Objective of Asset Protection Planning Remove individual and family wealth from the attacks of :
Introduction to Asset Protection Planning Thomas P. Langdon, Esq. Objective of Asset Protection Planning Remove individual and family wealth from the attacks of : & Creditors Predators (IRS) Asset Protection
More informationASSET PROTECTION PLANNING
I. INTRODUCTION ASSET PROTECTION PLANNING Gideon Rothschild Moses & Singer LLP grothschild@mosessinger.com A. The Current Litigation Environment Creates Greater Exposure to Risk of Loss Than Ever Before:
More informationMeet the New Principal and Income Act And Say Goodbye to RUPIA
Meet the New Principal and Income Act And Say Goodbye to RUPIA PRINCIPAL AND INCOME LEGISLATION is important to every lawyer who drafts wills and trusts. It provides a basic operating system for trusts
More informationFederal Estate and Gift Tax and Use of Applicable Exclusion Amount 3. Pennsylvania Inheritance Tax 5. Gifting Techniques 6
Prepared by Howard Vigderman Last Updated August 8, 2016 Federal Estate and Gift Taxes, Pennsylvania Inheritances Taxes and Measures to Reduce Them 2 Even with the federal estate tax exemption at an historically
More informationProtecting Business Assets From Creditors in Litigation: Strategic Choice of Entities, Avoiding Fraudulent Transfers
Presenting a live 90-minute webinar with interactive Q&A Protecting Business Assets From Creditors in Litigation: Strategic Choice of Entities, Avoiding Fraudulent Transfers TUESDAY, JULY 21, 2015 1pm
More informationNEW HAMPSHIRE CREDITOR PROTECTION TRUSTS: A BRIEF PRACTICAL GUIDE FOR NEW HAMPSHIRE LAWYERS
NEW HAMPSHIRE CREDITOR PROTECTION TRUSTS: A BRIEF PRACTICAL GUIDE FOR NEW HAMPSHIRE LAWYERS When in 2008 New Hampshire enacted the Qualified Dispositions in Trust Act ( New Hampshire Act ), it joined a
More informationWISCONSIN State Decanting Summary 1
WISCONSIN State Decanting Summary 1 STATUTORY HISTORY Statutory citation 701.0418 Effective Date 7/1/14 Amendment Date(s) ABILITY TO DECANT 1. Discretionary distribution authority required to decant? 2.
More information11 N.M. L. Rev. 151 (Winter )
11 N.M. L. Rev. 151 (Winter 1981 1981) Winter 1981 Estates and Trusts John D. Laflin Recommended Citation John D. Laflin, Estates and Trusts, 11 N.M. L. Rev. 151 (1981). Available at: http://digitalrepository.unm.edu/nmlr/vol11/iss1/9
More informationS Corporation Planning
S Corporation Planning Details Written by Martin M. Shenkman, CPA, MBA, PFS, AEP, JD The income tax is the new estate tax. With a federal estate tax exemption at over $5 million and increasing by an inflation
More informationILLINOIS ESTATE PLANNING AND PROBATE BASICS
ILLINOIS ESTATE PLANNING AND PROBATE BASICS By Priti Nemani Connor, Esq. Nemani Law www.nemanilaw.com ESTATE PLANNING TYPES OF ESTATE PLANS Will Based Estate Plan Last Will and Testament Power of Attorney
More informationEstate Planning. Insight on. To preserve your wealth, consider a DAPT Estate planning for same-sex spouses. Using an FLP or LLC?
Insight on Estate Planning October/November 2013 To preserve your wealth, consider a DAPT Estate planning for same-sex spouses What the Supreme Court s DOMA ruling means Using an FLP or LLC? Beware the
More informationPre and Post-Nup Clauses to Address Trust Issues 3/2/2017. Pre and Post-Nup Clauses to Address Trust Issues. General Disclaimer.
to Address Trust Issues By: Martin M. Shenkman, Esq. and Rebecca Provder, Esq. 1 General Disclaimer The information and/or the materials provided as part of this program are intended and provided solely
More informationMICHIGAN State Decanting Summary 2012 PA 485 1
MICHIGAN State Decanting Summary 2012 PA 485 1 STATUTORY HISTORY Statutory citation 2012 PA 485 2 [tentatively MICH. COMP. LAWS 556.115a] Effective Date 12/28/12 Amendment Date(s) ABILITY TO DECANT 1.
More informationNicholson Financial Services, Inc. March 15, 2018
Nicholson Financial Services, Inc. David S. Nicholson Financial Advisor 89 Access Road Ste. C Norwood, MA 02062 781-255-1101 866-668-1101 david@nicholsonfs.com www.nicholsonfs.com Asset Protection March
More informationGlen S. Bagby Partner
Glen S. Bagby Partner glen.bagby@dinsmore.com Lexington, KY Tel: (859) 244-7105 Glen has enjoyed a traditional wills, trusts and estates practice throughout his career. His practice includes all types
More informationTemporary Estate, Gift and GST Tax Laws Provide Unprecedented Opportunities in 2012
Month Year Temporary Estate, Gift and GST Tax Laws Provide Unprecedented Opportunities in 2012 BY RENEE M. GABBARD, LISA M. LAFOURCADE & MEGAN S. ACOSTA It appears that the current favorable estate, gift
More informationOffice of Medicaid BOARD OF HEARINGS
Office of Medicaid BOARD OF HEARINGS Appellant Name and Address: Appeal Decision: Approved Appeal Number: 1214578 Decision Date: 11/13/12 Hearing Date: 10/25/2012 Hearing Officer: Sara E. McGrath Appearances
More informationDECANTING AND PRIVATE SETTLEMENT AGREEMENTS CINCINNATI ESTATE PLANNING COUNCIL MAY 10, 2012
DECANTING AND PRIVATE SETTLEMENT AGREEMENTS CINCINNATI ESTATE PLANNING COUNCIL MAY 10, 2012 J. MICHAEL COONEY, ESQ. Dinsmore & Shohl LLP 255 E. Fifth Street, Suite 1900 Cincinnati, OH 45202 I. DECANTING:
More information1/19/2012. J. Grant Coleman
J. Grant Coleman jcoleman@kingkrebs.com www.kingkrebs.com 1 Consideration and implementation of advance planning techniques designed to place assets outside the reach of potential future creditors (not
More informationILLINOIS FARMERS INSURANCE COMPANY, Appellee, v. URSZULA MARCHWIANY et al., Appellants. Docket No SUPREME COURT OF ILLINOIS
Page 1 ILLINOIS FARMERS INSURANCE COMPANY, Appellee, v. URSZULA MARCHWIANY et al., Appellants. Docket No. 101598. SUPREME COURT OF ILLINOIS 222 Ill. 2d 472; 856 N.E.2d 439; 2006 Ill. LEXIS 1116; 305 Ill.
More informationFINANCIAL PROFESSIONAL USE ONLY NOT FOR USE WITH THE PUBLIC
Advanced Markets Matters Annuities in Trusts A Financial Professional s Guide CF-70-40000 (1701) 1/8 Annuities in Trusts: Expanding Opportunity Are You Ready to Talk Annuities in Trusts? TRUSTS All the
More informationDECANTING ISSUES MEMO UNIFORM DECANTING DISTRIBUTIONS DRAFTING COMMITTEE
DECANTING ISSUES MEMO UNIFORM DECANTING DISTRIBUTIONS DRAFTING COMMITTEE I. Defining Decanting and the Middle Way A. Decanting as an Exercise of a Fiduciary Power. Decanting is an exercise of a fiduciary
More informationEstate Planning for Small Business Owners
Estate Planning for Small Business Owners HOSTED BY OCEAN FIRST BANK PRESENTED BY MONZO CATANESE HILLEGASS, P.C. SPEAKER: DANIEL S. REEVES, ESQUIRE Topics Tax Overview Trust Ownership Intentionally Defective
More informationCase 3:16-cv JPG-SCW Document 33 Filed 01/10/17 Page 1 of 11 Page ID #379 UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ILLINOIS
Case 3:16-cv-00040-JPG-SCW Document 33 Filed 01/10/17 Page 1 of 11 Page ID #379 CAROLINA CASUALTY INSURANCE COMPANY, UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ILLINOIS v. Plaintiff, Case
More informationThis current appeal concerns a mortgage foreclosure action brought by plaintiff-appellee
FIFTH DIVISION March 19, 2010 No. INLAND BANK AND TRUST, f/k/a ) Appeal from the WESTBANK, an Illinois Banking Corporation, ) Circuit Court ) Cook County. Plaintiff-Appellee, ) ) v. ) 07 CH 10840 ) CARLTON
More informationThe Role of the Trust Protector: Should Every Trust Have One?
The Role of the Trust Protector: Should Every Trust Have One? STEP MIAMI MEETING October 18, 2016 Simon Beck, Baker & McKenzie LLP David Diamond, Northern Trust Agenda What is a protector? Why do you need
More informationSaving Your Clients Assets: Asset Protection Planning
Saving Your Clients Assets: Asset Protection Planning June 21, 2016 SABA Family Law Section-CLE Presented by: Ivan Ramirez, Esq. Legal Disclaimer - The information provided is designed for general information
More informationRecreational Residence Trust Package
Recreational Residence Trust Package Fees: $6,000 Documents: 1. Recreational Residence Trust, with related documents, as required: If registered in the Land Title Office: Form A Transfer Property Transfer
More informationAsset Protection Planning (With Audit Checklist)
Asset Protection Planning (With Audit Checklist) Gideon Rothschild Gideon Rothschild, J.D., CPA, is with Moses & Singer LLP, in New York, New York. A. Introduction 1. Litigation environment creates greater
More informationRevocable Trust Vs. Irrevocable Trust
I am not an attorney but here to help you undertand what things are... Speak to An Asset protection Attorney and find the best solution for you... Revocable Trust Vs. Irrevocable Trust Trusts are relatively
More informationSOME HIGHLIGHTS OF DELAWARE TRUST LITIGATION IN 2017 AND DELAWARE TRUST LEGISLATION IN Presented at the Delaware 2017 Trust Conference
SOME HIGHLIGHTS OF DELAWARE TRUST LITIGATION IN 2017 AND DELAWARE TRUST LEGISLATION IN 2017 Presented at the Delaware 2017 Trust Conference October 24 and 25, 2017 By Norris P. Wright, Esquire 1925 1925
More informationCHAPTER 14: ESTATE PLANNING
CHAPTER 14: ESTATE PLANNING MATCHING a. marital deduction b. charitable remainder c. gift splitting d. present interest e. legal life estate f. stepped-up basis g. general power of appointment h. term
More informationIrrevocable Life Insurance Trust (ILIT)
Irrevocable Life Insurance Trust (ILIT) Overview An irrevocable life insurance trust (ILIT) can be a useful vehicle to hold life insurance policies outside the grantor s taxable estate. When an insured
More informationIRREVOCABLE TRUSTS Memorandum to the Settlor and the Trustee
Memorandum to the Settlor and the Trustee by Layne T. Rushforth 1. GENERALLY This memorandum is for the settlor (creator) and the trustee (manager) of an irrevocable trust. There is a section for each
More informationState law sets out the requirements for a trust to be valid and the rules governing trust administration.
Irrevocable Trust Overview An irrevocable trust is a trust that cannot be modified or terminated by the grantor. The grantor, who transferred assets into the trust, effectively gives up rights of ownership
More informationAn Overview of the Asset Protection Spectrum By: Leah Del Percio, Esq.
An Overview of the Asset Protection Spectrum By: Leah Del Percio, Esq. In our increasingly litigious society, the threat of lawsuits, debt and liability is at an all-time high for individuals and their
More informationSharon L. Klein provides members with timely commentary on the Connecticut Supreme Court s decision in the continuing saga of Ferri v. Powell.
Subject: Sharon L. Klein on Ferri vs. Powell - Connecticut Supreme Court Finds that Trust Assets Were Moved Out of Reach of Divorcing Spouse, But Would Be Considered for Alimony Purposes In an on-going
More informationMARKET TREND: With the enactment of exemption portability, clients may dismiss the need for lifetime estate planning, to their detriment.
The trusted source of actionable technical and marketplace knowledge for AALU members the nation s most advanced life insurance professionals. TOPIC: Issuance of Temporary Portability Regulations - Practical
More information) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Petitioner Z Financial, LLC, appeals both the trial court s granting of equitable
FOURTH DIVISION April 30, 2009 No. 1-08-1445 In re THE APPLICATION OF THE COUNTY TREASURER AND Ex Officio COUNTY COLLECTOR OF COOK COUNTY ILLINOIS, FOR JUDGMENT AND ORDER OF SALE AGAINST REAL ESTATE RETURNED
More informationPLANNING TECHNIQUES FOR LARGE ESTATES PLANNING WITH DOMESTIC ASSET PROTECTION TRUSTS
PLANNING TECHNIQUES FOR LARGE ESTATES PLANNING WITH DOMESTIC ASSET PROTECTION TRUSTS Richard W. Nenno, Esquire Managing Director and Trust Counsel Wilmington Trust Company Rodney Square North 1100 North
More informationAsset Protection Overview
Asset Protection Overview Leslie C. Giordani Michael H. Ripp, Jr. 100 CONGRESS AVENUE, SUITE 1440 AUSTIN, TEXAS 78701 phone 512.767.7100 fax 512.767.7101 WWW.GSRP.COM 2009 Giordani, Swanger, Ripp & Phillips,
More informationLifetime Asset Protection Strategies for Arizona Residents
ESTATE PLANNING INHERITANCE PROTECTION 7650 E. BROADWAY BLVD. #108 PHONE (520) 546-3558 TUCSON, AZ 85710 TOM@TOMBOUMANLAW.COM Lifetime Asset Protection Strategies for Arizona Residents Asset protection
More informationACTEC COMPARISON OF THE. EDITED BY DAVID G. SHAFTEL Copyright 2012, David G. Shaftel. All Rights Reserved.
ACTEC COMPARISON OF THE DOMESTIC ASSET PROTECTION TRUST STATUTES UPDATED THROUGH DECEMBER 2011 EDITED BY DAVID G. SHAFTEL Copyright 2012, David G. Shaftel. All Rights Reserved. This 2012 version of the
More informationThe Hide and Seek of Creditors and Debtors: Examining the Effectiveness of Domestic Asset Protection Trusts for the Massachusetts Settlor
Boston University From the SelectedWorks of Nina Dow August 30, 2013 The Hide and Seek of Creditors and Debtors: Examining the Effectiveness of Domestic Asset Protection Trusts for the Massachusetts Settlor
More informationIN THE SUPREME COURT OF FLORIDA. Case No.: SC E. MARIE BOTHE, Petitioner, -vs- PAMELA JEAN HANSEN. Respondent.
IN THE SUPREME COURT OF FLORIDA Case No.: SC09-901 E. MARIE BOTHE, Petitioner, -vs- PAMELA JEAN HANSEN Respondent. ON PETITION FOR DISCRETIONARY REVIEW FROM THE DISTRICT COURT OF APPEAL, SECOND DISTRICT
More informationAuxiliary Organizations Association The California State University SAFEGUARDING CONTRIBUTIONS. John W. Francis and Robert E.
Auxiliary Organizations Association The California State University SAFEGUARDING CONTRIBUTIONS By John W. Francis and Robert E. Griffin Auxiliary Organizations Association 2002 Professional Monograph Series
More informationSelect Portfolio Management, Inc. December 06, 2007
Select Portfolio Management, Inc. David M. Jones, MBA Wealth Advisor 120 Vantis, Suite 430 Aliso Viejo, CA 92656 949-975-7900 dave.jones@selectportfolio.com www.selectportfolio.com Asset Protection If
More informationGIFTING. I. The Basic Tax Rules of Making Lifetime Gifts[1] A Private Clients Group White Paper
GIFTING A Private Clients Group White Paper Among the goals of most comprehensive estate plans is the reduction of federal and state inheritance taxes. For this reason, a carefully prepared Will or Revocable
More informationALI-ABA Audio Seminar. Planning and Defending Asset-Protection Trusts July 7, 2009 Telephone Seminar/Audio Webcast
49 ALI-ABA Audio Seminar Planning and Defending Asset-Protection Trusts July 7, 2009 Telephone Seminar/Audio Webcast Asset Protection for the Middle Class: Income-Only Trusts & Medicaid Asset Protection
More informationThird-Party Trusts And A Client s Disabled Beneficiary
THE LAW FIRM OF BOVE & LANGA A PROFESSIONAL CORPORATION TEN TREMONT STREET, SUITE 600 BOSTON, MASSACHUSETTS 02108 Telephone: 617.720.6040 Facsimile: 617.720.1919 www.bovelanga.com Trusts & Estates Forum
More informationEstate Planning. Insight on. Saving for college is also good for your estate plan. Will your estate plan benefit from a trust protector?
Insight on Estate Planning Year End 2014 Saving for college is also good for your estate plan Will your estate plan benefit from a trust protector? Charitable deductions Substantiate them or lose them
More informationTHE ESTATE PLANNER S SIX PACK
Tenth Floor Columbia Center 101 West Big Beaver Road Troy, Michigan 48084-5280 (248) 457-7000 Fax (248) 457-7219 SPECIAL REPORT www.disinherit-irs.com For persons with taxable estates, there is an assortment
More informationTRUST AND ESTATE PLANNING GLOSSARY
TRUST AND ESTATE PLANNING GLOSSARY What is estate planning? Estate planning is the process by which one protects and disposes of his or her wealth, sometimes during life and more often at death, in accordance
More informationTHE USE OF ASSET PROTECTION TRUSTS FOR TAX PLANNING PURPOSES
THE USE OF ASSET PROTECTION TRUSTS FOR TAX PLANNING PURPOSES Presented by: Michael M. Gordon Gordon, Fournaris & Mammarella, P.A. 1925 Lovering Avenue Wilmington, Delaware 19806 302-652-2900 mgordon@gfmlaw.com
More informationTrusts and Surety Indemnification. NASBP Annual Meeting, San Antonio, TX April 28, 2014
Trusts and Surety Indemnification NASBP Annual Meeting, San Antonio, TX April 28, 2014 Presenters: John Coyne Vice President & Regional Underwriting Officer Travelers Bond & Financial Products Marc Brown
More informationUnderstanding Dynasty Trusts
Understanding Dynasty Trusts Understanding Dynasty Trusts DISCUSSION TOPICS What is a Dynasty Trust? How to Set Up a Dynasty Trust What are the Benefits of a Charitable Lead Trust? INVEST Trust Services
More informationGOALS OF ESTATE PLANNING 12/12/2011 SUCCESSION PLANNING SUCCESSION PLANNING IMPEDIMENTS TO ACHIEVING ESTATE PLANNING GOALS
SUCCESSION PLANNING Why is succession planning so important Avoid sacrificing land for liquidity http://bit.ly/vwx5jn SUCCESSION PLANNING 1. Discuss your vision and goals for the land with your spouse
More informationSTATE OF NEW JERSEY. SENATE, No SENATE JUDICIARY COMMITTEE STATEMENT TO. with committee amendments DATED: DECEMBER 17, 2015
SENATE JUDICIARY COMMITTEE STATEMENT TO SENATE, No. 2035 with committee amendments STATE OF NEW JERSEY DATED: DECEMBER 17, 2015 The Senate Judiciary Committee reports favorably and with committee amendments
More informationSuccessor Liability Under Colorado Law By Paul J. Hanley
Wells Fargo Center 1700 Lincoln Street, Suite 3800 Denver, Colorado 80203-4538 303.839.3800 303.839.3838 (FAX) Successor Liability Under Colorado Law By Paul J. Hanley This article summarizes applicable
More informationYour Will Planning Workbook
Your Will Planning Workbook Preparing your Will Glossary of terms..................................... 2 Introduction......................................... 3 Your estate.........................................
More information