Areas of Practice
Wills & Trusts
Wills and trusts are essential legal instruments used in estate planning to ensure that your assets are distributed according to your wishes after you pass away. A will is a document that outlines how you want your property and assets to be distributed, appoints guardians for minor children, and names a personal representative to carry out your wishes. A trust is a legal arrangement where a trustee holds and manages assets on behalf of beneficiaries, providing flexibility, privacy, and control over how assets are distributed.
Incapacity Planning
Incapacity planning involves preparing legal documents to ensure your affairs are managed if you become unable to make decisions for yourself due to illness, injury, or advanced age. This process involves the creation of a durable power of attorney, which appoints someone to make financial decisions on your behalf, and a healthcare directive, which designates someone to make medical decisions for you if you are unable to do so. Incapacity planning helps ensure that your wishes are followed and that trusted individuals are empowered to act in your best interests during times of incapacity..
Estate and Gift Tax Planning
Estate and gift tax planning involves strategies to minimize your tax burden on gifts made during your lifetime and upon your estate at your death. Estate and gift taxes are imposed on the transfer of assets from one person to another, either during life (gift tax) or at your death (estate tax). Effective planning often includes the utilization of exemptions, deductions, and gifting strategies to reduce the taxable value of your estate. Common techniques may involve creating trusts, making annual exclusion gifts, leveraging lifetime exemptions, and utilizing valuation discounts for certain assets. By implementing these strategies, you can preserve more of your wealth for future generations and minimize the impact of estate and gift taxes on your estate.
Probate
Probate is the process through which a deceased person's estate is administered and assets are distributed under the supervision of the court. Probate involves proving the validity of the deceased person's will, or if there is no will, determining and distributing assets according to state law. During probate, debts and taxes owed by the decedent are settled, and the remaining assets are distributed to the decedent’s beneficiaries. The process can vary in duration and complexity depending on factors such as the size of the estate, the presence of a will, and any disputes among beneficiaries.
Trust Administration
Trust administration involves the management and distribution of assets held in a trust according to the terms outlined in the trust document. The process typically begins upon the death or incapacitation of the grantor (the person who established the trust) and involves several key steps: gathering documents, inventory of assets, payment of debts and expenses, accounting and reporting, filing tax returns, and distributing assets to beneficiaries.
Charitable Planning
Charitable planning involves the creation of trusts to benefit charitable organizations while also providing potential tax benefits and meeting the philanthropic goals of the grantor (the individual establishing the trust).
There are two primary types of charitable trusts: charitable remainder trusts (CRTs) and charitable lead trusts (CLTs). Both CRTs and CLTs can provide significant tax benefits for the grantor and beneficiaries.
Income Tax Benefits: Grantors may receive an income tax deduction for the present value of the charitable remainder interest or charitable lead interest in the trust. Additionally, assets placed in the trust can grow tax-free, potentially increasing the overall value of the trust.
Estate Tax Benefits: Assets placed in a charitable trust are generally removed from the grantor's taxable estate, reducing potential estate tax liability upon the grantor's death.
By establishing a charitable trust, individuals and families can create a lasting legacy and make a meaningful impact on charitable organizations and causes.
Business Valuation
Business valuation is a crucial step for business owners engaging in the estate planning process, as it is necessary to know the value of a business interest as part of the overall estate planning process. This valuation is crucial for several reasons:
Asset Distribution: Knowing the value of the business helps in determining how it fits into the overall estate plan and how its assets will be distributed among heirs or beneficiaries.
Tax Planning: Accurate valuation ensures that the estate's tax liabilities are correctly calculated, minimizing potential tax burdens for beneficiaries.
Succession Planning: Understanding the value of the business aids in planning for future continuity, whether by passing the interest on to family members, selling it, or implementing other succession strategies.
Legal Compliance: Estate planning often involves legal requirements and regulations. A proper valuation ensures compliance with these regulations, avoiding potential disputes or challenges in the future.