Tag Archives: Trust Fundamentals

Self Settled Life Insurance: A Viable Alternative?

Self-Settled Trusts Should Not Be Included in a Decedent’s Taxable Estate – Analysis

Section 2036(a)(1):

  • Assets gifted by Decedent (in trust or otherwise) but Decedent retained for life:
    • “The right to the income from”; or  “The possession or enjoyment of” such assets
    • If so, the assets are included in Decedent’s Gross Estate

Section 2036(a)(1):

  • In a self-settled trust, the client/settlor does not retain the right to income (or principal)
  • Does the client/settlor retain “possession or enjoyment of” the trust assets for life?

Section 2038:

  • If the Settlor of a trust retains the right to alter, amend, revoke or terminate the trust at death, the assets will be includible in the Settlor’s Gross Estate.
  • BUT, in the properly designed self-settled trust, the Settlor does not retain any such powers.

Spousal Lifetime Access Trusts: A Key Planning Tool

Spousal lifetime access trusts (“SLATs”) may be the most common planning technique for married clients to use in 2020 as the tax environment remains uncertain after the election.

This webinar will explore how to:

–Plan for a married client using SLATs (or some unmarried one where SLAT may mean Sibling Lifetime Access Trust)

–How to structure the SLATs

–How to draft a SLAT

–What provisions to consider including in the SLATs

–Sample clauses for some of those provisions

–Ancillary planning, documentation and implementation of a SLAT including due diligence before funding, funding, and more

This all presumes you have reviewed optional planning techniques and settled on a SLAT. We will not discuss the optional planning and how you get to the SLAT as the decided technique.

Asset Protection for Physicians with Alan Gassman

Doctors and their practices are common targets for terrible and aggressive lawsuits which are commonly based upon bad results from treatment or procedures that have nothing to do with the doctor’s skills or actions, and everything to do with the litigation system.

Many advisors are not aware of the ways that physician personally, and medical and other health care practices, can be much better protected than they commonly are from both malpractice and other liabilities.

Asset protection Part 2

Especially Treacherous Liabilities

Liabilities generally not cancelable in bankruptcy include the following:

  • Government student loans
  • Trust fund tax liability
  • Hazardous waste liability
  • Breach of fiduciary duty liabilities
  • Child support and alimony
  • Medicare, Medicaid, and sometimes private pay refund liabilities of physicians: Carriers have been suing doctors for not following referral laws for significant refunds

Liabilities generally not covered by insurance include the following:

  • Civil rights violations committed by employees or others
  • Environmental liabilities, including sick building syndrome and lead paint issues
  • Criminal acts
  • Charitable and religious board activities
  • Jet skis normally cannot be insured for over $250,000 per occurrence
  • Acts of terrorism: Most casualty insurance clauses exempt acts of terrorism. The industry has been paying claims on goodwill up until now
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Asset Protection Part 1

While the world and even the United States has been through much tougher times, the present cash crunch, financial devastations, and social disorder that businesses and self-employed individuals find themselves in today is unprecedented in our generation and poses a significant challenge t advisors who care about clients and businesses and want to do what we can help save them

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Why Every Estate Planner Needs to Urge All Clients to Use Their Wealth Transfer Exemptions Now

This presentation will explore various planning strategies that practitioners may employ to help clients capitalize on the estate tax environment created by the 2017 tax act, with consideration of these newer developments and trends.

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