Оглавление
Martin Inc. Shenkman. 2012 Estate Planning
ACKNOWLEDGMENTS
FOREWORD
CHAPTER ONE. INTRODUCTION TO 2012 PLANNING
THE BIG GIFT
PERSPECTIVE ON THE ESTATE TAX ROLLER COASTER
2013—THE TAX YEAR TO FEAR ... MAYBE
TIMING ISSUES
INCOME TAX CONSIDERATIONS CANNOT BE IGNORED
WHY GIFT NOW
Save on Federal Estate Tax
Save on State Estate Tax
Grandfathering Trusts for GST Purposes
Grandfathering for Grantor Trust Purposes
Lock in Discounts
Remove Appreciation from the Estate
Minimize Future State Income Tax
Save Future Generations’ Estate Tax
Incur Gift Tax at Today’s Low 35 Percent Rate
Protect Assets
Better Than a Prenuptial
Better Than a Postnuptial
CAUTIONS AND CAVEATS
Cautions for Professional Advisers
Cautions for Consumers
SUMMARY
CHECKLIST: STEPS YOU SHOULD TAKE
CHAPTER TWO. CURRENT TRANSFER TAX LAW—PROPOSED AND POTENTIAL CHANGES
EXEMPTION AMOUNT AND RATE
COMPOUNDING: THE EIGHTH WONDER OF THE WORLD
THROW MOMMA FROM THE TRAIN BEFORE NEW YEAR’S
ESTATE TAX PROPOSALS MAY CHANGE THE PLANNING LANDSCAPE
Grantor Retained Annuity Trusts (GRATs)
Valuation Discounts
Grantor Trust Modifications
GST TAX CONSIDERATIONS FOR 2012
A Bit of Background
GST Rules: Quick Overview
Direct Skip
Taxable Distribution
Taxable Termination
Exclusions from GST Tax
Inclusion Ratio: The Key to GST Tax Trust Planning in 2012
GST Automatic Allocation Rules
PORTABILITY OF UNUSED EXEMPTION DOES NOT NEGATE NEED FOR PLANNING
UNIFICATION
INCOME TAX CHANGES VITAL TO CONSIDER
Income Tax Paradigm Changing
Capital Gains Rates
Medicare Tax on Wages and Investment Income
Itemized Deductions
Overall Impact of Individual Changes
IRAs and Roth Conversions in 2012
SUMMARY
CHECKLIST: POSSIBLE TAX CHANGES TO CONSIDER IN PLANNING
CHAPTER THREE. IMPEDIMENTS TO TAKING ACTION NOW
COMPLEXITY
COST
UNCERTAINTY
CLAWBACK
MY INCOME IS TOO LOW
INSUFFICIENT WEALTH
SUMMARY
CHECKLIST: TAX REIMBURSEMENT AND DIFFERENT WAYS YOU MAY ACCESS ASSETS IN A DAPT
CHAPTER FOUR. 2012 PLANNING MISTAKES TO AVOID
NOT OPERATING AS A PLANNING TEAM IS THE BIG KAHUNA OF 2012 MISTAKES
OUTRIGHT GIFTS ARE A MISTAKE
LOCAL TRUSTS
NON-DAPT
IGNORING GIFT-SPLITTING ISSUES
IGNORING THE STEP TRANSACTION DOCTRINE
NOT USING AN INSTITUTIONAL TRUSTEE
NOT USING A DIRECTED TRUST
NOT CONSIDERING THE IMPACT ON TAX BASIS
NEGATIVE BASIS
NO PROJECTIONS
NOT PLANNING FOR THE RECIPROCAL TRUST DOCTRINE
SUMMARY
CHECKLIST: BUDGET AND FINANCIAL PLANS ARE A FOUNDATION FOR 2012 GIFTS
CHAPTER FIVE. 2012 PLANNING TECHNIQUES
VALUATION DISCOUNTS
Restricting Valuation Discounts
VALUATION ADJUSTMENT AND DEFINED VALUE CLAUSES
Why 2012 Is Such a Special Year
Valuation Adjustment Clause—Sample Language
LIFETIME BYPASS TRUST FOR SPOUSE AND DESCENDANTS
INTER-VIVOS BYPASS TRUST WITH A TWIST
SALES TO GRANTOR TRUSTS : INTRODUCTION TO IDITS
Overview of Note Sale to IDIT Transactions
Capital, Seed Gifts, and Other IDIT Chimera
Seed Gifts and Guarantees in 2012 Planning
Net Gifts
GRANTOR RETAINED ANNUITY TRUSTS
Overview of the GRAT Technique in Prior Years
Why Many Favor GRATs in 2012
Why GRATs Are Not Optimal for Many in 2012
When GRATs Make Sense in 2012
How Many Years Should a 2012 GRAT Last?
Long-Term GRAT Immunization Will Require a New Antigen
Brief Description of the 99-Year GRAT
QUALIFIED PERSONAL RESIDENCE TRUSTS
Qualified Personal Residence Trust Overview
Illustration of a Qualified Personal Residence Trust Transaction
Evaluating Qualified Personal Residence Trusts in 2012
Only for Adults: Split Purchase Trusts
RESTRUCTURE OLD DEALS IN 2012
BENEFICIARY DEFECTIVE INHERITOR’S TRUST
Beneficiary Defective Inheritor’s Trust Overview
2012 Beneficiary Defective Inheritor’s Trust Considerations
Planning with aSplit-Dollar Legacy DAPT
Split-Dollar Legacy DAPT Overview
Illustration of a Split-Dollar Legacy DAPT
Split-Dollar Loans May Provide a Solution
Merger of Loan
Valuation of the Note in Parent/Lender’s Estate
Selling Insurance Policy
Summary of Split-Dollar Legacy DAPT Plan
Child Predeceases Parent Under Split-Dollar Legacy DAPT Plan
SUMMARY
CHECKLIST: 2012 ESTATE PLANNING TECHNIQUES
CHAPTER SIX. 2012 PLANNING ISSUES TO BE WARY OF
STEP-TRANSACTION DOCTRINE
RECIPROCAL TRUST DOCTRINE
A Bit of Reciprocal Trust History
Applies to More Than Husband/Wife Mirror Trusts
Planning to Minimize the Reciprocal Trust Doctrine Risk
GIFT-SPLITTING ISSUES
Additional Factor for Married Persons Creating Trusts for Each Other
SUMMARY
CHECKLIST: DIFFERENTIATING TRUSTS TO AVOID A RECIPROCAL TRUST DOCTRINE ATTACK
CHAPTER SEVEN. PLANNING FOR SPECIFIC ASSETS
LIFE INSURANCE
Changing Exemption Affects Life Insurance Planning for Some
Insurance Planning Flexibility in Light of Estate Tax Uncertainty
2012 ILIT Planning Considerations
Split-Dollar Insurance
REAL ESTATE
Residential Real Estate
Commercial Real Estate
CLOSELY HELD BUSINESS INTERESTS
Why Business Owners Aren’t Planning
Business Owners with No Exemptions Remaining
Smaller Value Business Interests
Opportunities for Small versus Large Closely Held Businesses
Why and How Smaller Closely Held Businesses Should Act Now
Why and How Larger Closely Held Businesses Should Act Now
Transfer of Closely Held Business Interests to an Irrevocable Trust
Ancillary and Implementation Considerations
SUMMARY
CHECKLIST: CLOSELY HELD BUSINESS DOCUMENT LISTING
CHAPTER EIGHT. PLANNING FOR DIFFERENT TYPES OF TAXPAYERS
CONCERN ABOUT MALPRACTICE AND LIABILITY RISKS
ELDERLY, INFIRM, INCOMPETENT
MATRIMONIAL PLANNING
UNMARRIED COUPLE PLANNING
RESIDENTS OF DECOUPLED STATES
ULTRA-HIGH NET WORTH INDIVIDUALS
Moderate Wealth Individuals
Average Wealth Individuals
UNMARRIED INDIVIDUALS
MARRIED INDIVIDUALS
SUMMARY
CHECKLIST: ESTATE PLANNING FOR SPECIFIC WEALTH LEVELS
CHAPTER NINE. INCOME TAX PLANNING IN 2012
GAIN HARVESTING
2012 ROTH IRA CONVERSIONS
LOSS HARVESTING
USING FLPS FOR INCOME SHIFTING
SUMMARY
CHECKLIST: TRUST AND ESTATE MEDICARE INCOME TAX PLANNING
CHAPTER TEN. LAST MINUTE PLANNING CONSIDERATIONS
TIME REALITY CHECK
STANDBY TRUSTS
GIFTS TO EXISTING TRUSTS
DIRECT GIFTS OF ENTITY INTERESTS
Don’t Do It Alone
REVOCABLE LIVING TRUST WITH REVOCATION MECHANISM
GIFT OF PARTIAL INTEREST IN A FAMILY VACATION HOME OR RENTAL PROPERTY
GIFTS WITH VALUATION ADJUSTMENT CLAUSE
FORGIVE INTRA-FAMILY LOANS
MAKE A SPLIT-DOLLAR LOAN
RENOUNCE INTERESTS IN EXISTING TRUSTS
TRANSFERS BY AN ELDERLY OR AILING DONOR
SUMMARY
CHECKLIST: LAST MINUTE MOvES
CONCLUSION
CONSIDER PLANNING OPTIONS NOW
FOR PROFESSIONAL ADVISERS
GLOSSARY OF COMMON ESTATE PLANNING TERMS
APPENDIX A: REFERENCES
CHAPTER 1: INTRODUCTION TO 2012 PLANNING
CHAPTER 2: CURRENT TRANSFER TAX LAW— PROPOSED AND POTENTIAL CHANGES
CHAPTER 4: 2012 PLANNING MISTAKES TO AVOID
CHAPTER 5: 2012 PLANNING TECHNIQUES
CHAPTER 6: 2012 PLANNING ISSUES TO BE WARY OF
CHAPTER 7: PLANNING FOR SPECIFIC ASSETS
CHAPTER 9: INCOME TAX PLANNING IN 2012
CHAPTER 10: LAST MINUTE PLANNING CONSIDERATIONS
APPENDIX B SAMPLE LETTERS AND POSTCARD. SAMPLE SHORT LETTER FOR PROFESSIONAL ADVISER TO SEND TO CLIENT
SAMPLE LONGER LETTER FOR PROFESSIONAL ADVISER TO SEND TO CLIENT
APPENDIX C: SAMPLE TRUST PROVISIONS FOR 2012 PLANNING
ABOUT THE AUTHORS
