The recent Supreme Court ruling providing equal marriage rights for same-sex couples might have a significant effect on some of your clients’ estate plans. Here are three areas which we encourage you to review with any clients considering a walk down the aisle with someone of the same gender or whose marital status must now be recognized in a state which previously disallowed same-sex marriage.
Archive for January, 2016
Your clients likely set up a living trust with the goal of avoiding probate. When properly prepared and funded, a trust based estate plan will avoid the public, costly, and time-consuming probate court process. Shockingly, many people still make a big mistake, catapulting their assets and loved ones right into the oft dreaded probate court system. That mistake? They fail to fund their trust.
Creating family limited partnerships (FLP) can be a great asset protection strategy for business owning clients when it’s time to hand down that business to younger generations. Doing so can reduce gift and estate taxes.
However, the Internal Revenue Service appears to be willing to challenge this strategy in court, according an article in the Wall Street Journal, which highlighted a U.S. Tax Court case where the IRS fought the passing down of portfolios of publicly traded securities at a large discount.