BASIC AND ADVANCED ESTATE PLANNING

Every client's needs are unique. We work with clients to design, draft and execute an estate plan that meets their specific goals and objectives. Successful estate planning not only provides a smooth and orderly transition at the time of death, but also contemplates the ongoing needs of the client's family, and identifies individuals or institutions that are best equipped to serve the family going forward. While most clients hope to minimize taxes, it is equally important to have a coordinated plan that addresses all of our client's goals and concerns. This could involve creditor protection for our clients and or their children, including the possibility of divorce for the client's children or grandchildren.  

Typically, basic estate planning involves a Will, Revocable Trust and advanced directives, such as powers of attorney for property and health care.  More advanced planning may also involve irrevocable gift trusts, marital agreements, buy-sell agreements for family owned or closely held businesses, and related instruments.

Although no two estate plans are identical, an estate plan can be designed to:

• Preserve and protect a client’s wealth. 
• Maximize the wealth available to future generations and other loved ones.
• Minimize the exposure of a client’s wealth to taxes and creditors' claims.
• Ensure that the client’s wealth is made available to loved ones on the terms and with as much (or as little) control as the client believes appropriate. 

All clients need basic estate planning documents which will primarily apply when the client passes away.  For married couples, this structure will combine planning for the life of the surviving spouse, and maximizing all federal and state estate tax exemptions and benefits. Often the primary goal is to eliminate taxes, and/or defer and minimize such taxes. In addition, we work with you to set up and implement the plan after your passing, and to make sure your family has the proper amount of control, access to wealth, and other protections as established by the client. This type of planning is particularly critical in second marriages with prior children from one or both spouses. 

An equally important phase is to help clients hold and title assets properly to take advantage of their estate planning documents. This is a task far too often ignored in estate planning which can result in assets being transferred in a way that is contrary to the client's wishes, and possibly subject such assets to tax that could have been avoided with proper planning and funding.

Advanced estate planning is necessary in a variety of situations.  For clients who will have taxable estates, we provide a full explanation of the various strategies and techniques that can substantially reduce or eliminate estate taxes.  For clients who wish to take steps to protect their wealth from the reach of creditors, both from the client's standpoint and protecting the client's heirs, we provide options and strategies based on the client's goals, objectives and his or her comfort with ongoing control and complexity.  For closely held businesses, we work with clients to match their estate planning goals with the actual business succession plan, which may include different classes of stock, super majorities, buy outs, and sales.   

Examples of Advanced Planning:

• Assisted professional athletes with premarital and estate planning, creditor protection, business planning and general legal counsel.
• Advised clients owning oil and gas investments in purchase, structure of family LLC, and gifting strategies.
• Effectively represented multi-million dollar estate in federal estate tax return preparation and IRS audit involving farm land, 2032A tax benefits, and 1031 like kind exchanges – no change after extensive audit.
• Advised individual client on a transaction and court approval for the sale of $35 million of assets from a generation-skipping transfer tax exempt trust created in the 1940s to a newly formed family dynasty trust created to efficiently transfer wealth to client’s descendants.
• Represented corporate trustees and/or trust beneficiaries in the preparation of non-judicial settlements and virtual representation agreements to address issues arising in trust administration.
• Created a series of grantor retained annuity trusts for clients with (i) concentrated positions in publicly traded companies, or (ii) privately held companies to transfer wealth to younger generations with minimal transfer-tax cost.
• Assisted client in structuring multiple family limited liability companies to provide asset protection and take advantage of valuation discounts for estate and gift tax purposes.
• Assisted highly profitable family owned business with gift and sale transactions to shift ownership of family business in a tax-efficient manner to younger generations.
• Obtained dismissal of case against decedent’s estate in U.S. Tax Court involving assessed liability under National Tiered Partnership Audit.
• Assisted younger generation siblings in determining their position, financial stake, and future roles in a family owned business.

We also work with clients to help them choose and form the appropriate entity to meet their business planning needs, and, if requested, we will assist clients with the maintenance of those entities.  In addition, we advise clients regarding business succession planning, including the preparation of critical agreements, including, shareholders agreements, partnership agreements, operating agreements and “buy-sell” agreements. Quite often the transition of a family business will be the most significant transaction in the owner’s lifetime. Typically, the goals include identifying a tax efficient way to make transfers that are integrated into the owner's estate plan. We have extensive experience advising business owners in all areas related to business succession planning. 

We help clients meet their charitable goals in a variety of ways.  Depending on the client's wishes, we may assist them with such things as establishing and administering a charitable trust, private foundation or donor advised fund and facilitating gifts to their favorite charities during lifetime or at death.