Skip to Content

News & Resources

Category: Estate Planning

Donating Encumbered Property to Charity: Is it Too Good to be True? Perhaps…

Posted on Jul 20, 2017 in Estate Planning

There are many reasons why a donor would want to contribute encumbered property to charity.  Perhaps the property is perfect for the needs of a particular charity, or this may be the only property a donor owns that he is willing to donate.  Whatever the reason may be, before a donor decides to donate property that is encumbered to charity, he should consult with a professional to determine the potential tax ramifications of the donation. For instance, assume Donor purchased a parcel of real property years ago that was used for business purposes.  Over the years, Donor sold the property […]

The Importance of Advance Directives

Posted on Apr 25, 2017 in Estate Planning

                Often when you hear “estate planning,” you think of planning for what happens after your death.  Unfortunately, planning for sickness or disability during life is sometimes overlooked.  There are several documents that are crucial to have in place in the event you become temporarily or permanently unable to make (or verbalize) decisions related to your health and finances, namely: (i) Durable Power of Attorney; (ii) Health Care Surrogate; (iii) Living Will; and (iv) HIPAA release.                 Durable Power of Attorney.   A power of attorney is a legal document that gives someone of your choosing (family member, friend, trusted advisor) […]

Learn from Prince: Be Prepared!

Posted on Sep 28, 2016 in Estate Planning

After the shock of Prince’s unexpected death, it was discovered that he did not have a Last Will and Testament.  This raises a host of issues for his estate, from valuing assets to determining the ultimate beneficiaries.  The most important issue (at least in his case) may be control:  Who will control the legendary “vault” that stores hundreds of unreleased songs? Because Prince closely maintained control and ownership over the rights to his music during his lifetime, it is astounding that he did not properly plan for protecting his most prized asset.  When a person dies without a Last Will […]

Florida’s Elective Share – Why it May Be Hard to Disinherit a Spouse

Posted on May 26, 2016 in Estate Planning

Under Florida law, a surviving spouse is entitled to certain rights upon the death of the first spouse regardless of what the estate planning documents say.  One of these statutory rights is the surviving spouse’s right to a portion of the deceased spouse’s estate, also known as the elective share.  Unless waived through a valid prenuptial or postnuptial Agreement, a surviving spouse’s elective share amount is equal to 30% of the deceased spouse’s net elective estate. Though this is a statutory right, the surviving spouse must file a timely election with the probate court in order to collect the elective […]

Selling your Business through a Charitable Remainder Trust – a Win-Win for Taxpayers and Charities – Part 2

Posted on Mar 29, 2016 in Estate Planning

As discussed last month, Husband and Wife created a Charitable Remainder Trust (“CRT”), contributed their corporate stock valued at $5,000,000 to the CRT and the Trustee later sold the stock.  No capital gains tax was paid because the CRT is a tax-exempt entity.  Once Husband and Wife contribute their stock to the CRT, they are entitled to a current charitable income tax deduction against other income.  But their contribution was valued at $5,000,000, so why is their deduction only $500,100?  Why can’t they deduct the entire $5,000,000 value?  The charitable deduction is limited because Husband and Wife opted to receive […]

Selling your Business through a Charitable Remainder Trust – a Win-Win for Taxpayers and Charities – Part 1

Posted on Feb 19, 2016 in Estate Planning

You worked hard and built a successful, valuable business. You wonder, “Is it is time to sell?” Now could be the time to travel and enjoy the fruits of your labor and check items off your bucket list.  But if you decide to sell, now is also the time to pay a large capital gains tax to the IRS on the gain from the sale of your business. What if you had a choice?  What if you could take a portion of the proceeds and give it to charity instead of to the IRS?  What if you could make that […]