Legal and Tax Aspects of Estate Planning In 2013 Outline

By: John G. Manfreda, Esq.

I. BASIC DEFINITIONS - What Is Estate Planning?
(1) Last Will and Testament/Trust Agreement/Probate
(2) Avoid Family Disputes - Lack of Capacity/Undue Influence Claims
(3) Choice of Fiduciaries

II. PROBLEMS WITH JOINT OWNERSHIP
(1) Distortion of Tax Plan/Convenience Account Disputes
(2) Re-Titling of Assets to Avoid Problems

III. MARITAL DEDUCTION, UNIFIED CREDIT and DEATH TAXES
(1) Unlimited Marital Deduction For US Citizen Spouse
(2) Federal Estate and Gift Tax Unified Credit/GST Exemptions - $5 Million
(3) Use of Disclaimers and Disclaimer Trust Format
(4) NJ Estate and Inheritance Taxes/ 3 Year Rule For Gifts - $675,000 Exemption
(5) Portability of the FET Unified Credit f/b/o Surviving Spouse

IV. ESTATE PLANNING FOR BLENDED FAMILIES
(1) When Spouses Have Children From Prior Marriages
(2) Solutions: QTIP Trusts, Irrevocable Wills, Pre and Post Marital Property Agreements, Irrevocable Life Insurance Trusts, Long Term Care Insurance

V. GIFTING
(1) $14,000.00 Annual Exclusion Gifts for 2013
(2) Carryover Tax Basis

VI. MEDICAID PLANNING
(1) Qualification - Asset Limits for Applicant and the Community Spouse
(2) Asset Transfers - The Five Year Lookback Rule
(3) Marital Residence and the Community Spouse
(4) Medicaid Recovery/Medicaid Trusts
(5) Long-Term Care Insurance

VII. POWERS OF ATTORNEY and LIVING WILLS
(1) General Durable Power of Attorney vs. Springing Power of Attorney
(2) Combined Advance Directive For Health Care - HIPAA Privacy Standards

VIII. IRREVOCABLE LIFE INSURANCE TRUST
(1) Transfer Tax Shelter Benefits|
(2) Creditor Protection
(3) Exemption From Equitable Distribution Claims
(4) GST/Dynasty Trust Options
(5) Choice of Trustee/Trust Protector
(6) Blended Families

IX. ASSET PROTECTION PLANNING
(1) Dynasty Trust Utilizing GST Exemptions
(2) Asset Protection Trusts (Delaware, Alaska, North Dakota, Nevada and Offshore)
(3) Defective Grantor Trust/QPRT
(4) Shareholder/Buy-Sell Agreement for LLCs, FLPs and Closely Held Corporations

X. MATRIMONIAL ISSUES
(1) Asset Protection Trusts - Potential Equitable Distribution Defense
(2) Interim Estate Plan for Divorcing Spouses
(3) Life Insurance and Retirement Planning

XI. REVERSE MORTGAGES
(1) Requirements to Qualify
(2) Consider Private Mortgage
(3) Consider Sale of Residence

XII. REVOCABLE LIVING TRUST (RLT)
(1) Active vs. Standby RLT
(2) Funded vs. Unfunded RLT
(3) Lack of Transfer Tax Shelter and Creditor Protection