Escaping Your Former State’s Taxing Authority

Regular readers of this column know that I like to educate on the importance of distancing oneself from your former state of domicile when declaring Florida residency. A recent State of New York State Tax Appeals ruling in the Matter of Thomas Campaniello highlights the reasons necessary to remove any doubt as to your state […]

Does Generation Skip Mean Your Children Aren’t Beneficiaries?

I’m guessing your estate plan eventually leaves all of your hard-earned wealth to your children in one form or another. Unless, of course, you’re someone who drives around with the bumper sticker “I’m out spending all of my children’s inheritance!” There’s nothing wrong with that of course. When you leave amounts in continuing trusts for […]

State Taxation of Irrevocable Trust

States have been increasingly aggressive taxing trust income, as the need for revenue increases. Only seven states do not impose an income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Even if you are a resident of a state that does not impose an income tax, you should be aware that the creation […]

Don’t Name Minor Children as Beneficiaries

A common mistake, particularly with young parents who come into my office, is the naming of minor children as beneficiaries to financial assets such as life insurance, retirement accounts, or beneficiary designations on brokerage accounts. I can best illustrate this by example: Assume that Joe and Sally Youngparent have two children, Bobby (age 12) and […]

Different Baskets

When choosing how to approach your estate plan, it’s important to realize that the different types of assets that you own have different legal and tax treatments. The way that I most often explain it is to consider them grouped into separate baskets, and then deciding how you want your estate plan to distribute each […]

When an IRA Distribution Causes a Probate

Most clients who have revocable trusts believe that there won’t be a probate opened upon their passing. I’ve written in the past how your trust won’t avoid the probate process if all of the assets that would have otherwise been subject to probate haven’t been transferred into the trust. But there’s another issue for those […]

Another Reason to Update Your Legal Documents to Florida Law

The Illinois Department of Revenue (IDR) once attempted to tax a trust that had been moved from Illinois to Texas after the grantor’s death, even though the trust had been moved to Texas. The trustees of the trust had to expend considerable sums fighting off the IDR. This is a lesson that those who have […]