The IRS imposes a gift or estate tax on the transfer of money or property from one individual to another, with certain exceptions. One exception that we’d like to delve into is the self-canceling installment note (SCIN). It is a promissory note used to transfer valuable accounts and property between individuals. However, the note includes…
Estate planning can be a sensitive subject, but the experiences of iconic figures like Gloria Vanderbilt, Aretha Franklin, and Lucille Ball offer valuable estate planning lessons. This month’s newsletter explores their practices and pitfalls to gain insights into the importance of clear, strategic planning. Gloria Vanderbilt: No Trust Fund As baby boomers prepare to pass…
By James C. Man, Esq. In the nuanced and complicated world of corporate and contract law, there are three fundamental properties that all agreements must have: offer, acceptance, and consideration. Generally speaking, once an offer is revoked, it cannot be accepted because there is, in effect, no outstanding offer. Nonetheless, in some jurisdictions (e.g., TX, NY, UT) a…
Many individuals choose to incorporate a charitable bequest into their estate plan. For some, this decision stems from a deep sense of altruism; for others, the drive is the significant financial advantage. Yet, for the vast majority of donors, the charity they leave behind represents a harmonious blend of both motivations. Including charitable donations in…
Your business is likely one of your most valuable assets. For this reason, business succession planning is crucial when creating an estate plan. A business succession plan clearly defines who will take on which roles, aiming to prevent disputes among family members or employees. If the business is sold later, the plan will also clearly…
In this month’s newsletter, we provide a comprehensive understanding of the Generation-Skipping Transfer Tax and its implications. With each transfer of wealth, federal estate taxes are collected. Typically, money goes from spouses to children, then grandchildren, and so on, with taxes collected each time. Wealthy families discovered they could avoid estate taxes by giving money…
An intrafamily loan is a financial agreement between a family member who borrows money from a lending family member. These loans benefit children and grandchildren learning to be financially responsible but may have difficulty obtaining a loan due to age or credit score. In many circumstances, these loans offer flexible repayment terms and interest rates….
By Justin J. Lee, Esq. It is common knowledge that California is a community property state. In community property states, spouses jointly own nearly all assets and debts acquired in marriage. Generally speaking, community property encompasses assets earned or acquired by one or both spouses during the marriage while they lived in the community property state, as…