Archive for the ‘Estate Tax and Estate Planning Developments’ category

Basic Estate Planning Video Updated for 2017

December 18, 2016

richard
Richard S. Land, Attorney

To help you face your estate planning challenges, we have updated our Basic Estate Planning video presentation for 2017.  You can take a look at the video here (Basic Estate Planning Updated for 2017) or below.

Here is a very brief summary of what the videos cover:

Parts 1 and 2:  No matter where you live (or die), your estate plan can be destroyed if you don’t know the difference between probate property and non-probate property.  We cover this distinction in Part 1.  We also cover what a trust is and how a trust can help accomplish certain estate planning goals:  protecting assets from the beneficiary’s creditors and risks; asset management for a beneficiary who needs management help; estate tax reduction; and more.  We acknowledge that the unfortunate Connecticut estate tax exists (and many other states do not have an estate tax) but, in most cases, we can help with effective workarounds.  Part 2 covers Connecticut and federal estate taxes (also New York estate taxes) including how life insurance death benefits are taxed for estate tax purposes.

Parts 3 and 4:  Your Will can include provisions that reduce or eliminate estate taxes.  Parts 3 and 4 describe such Wills.  Danger:  Existing Wills with old estate tax provisions can have the unintended effect of disinheriting a spouse.  We cover how to deal with such a risk.  We also cover new rules allowing one spouse to give his or her federal estate tax exemption to the surviving spouse.  The surviving spouse’s federal estate tax exemption could be almost $11,000,000.  In addition, we cover Will provisions that can protect assets from a beneficiary’s long term care costs.

Parts 5 and 6:  Not all trusts that are designed to save estate taxes are the same.  Part 5 compares the different types of trusts.  As Part 5 ends, we begin a discussion of common estate planning mistakes and Part 6 continues the discussion.

Parts 7 and 8:  These parts cover estate tax and income tax planning for retirement accounts such as 401(k) accounts and IRAs.

Part 9 to Part 13:  These parts include a complete discussion of revocable living trusts with a comprehensive comparison between a plan that uses a revocable trust and a plan that relies on a Will without making use of a revocable living trust.  Part 13 ends with a description of how Connecticut probate court fees are calculated.

Part 14:  This part covers the basic gift tax rules and techniques.

Part 15:  This is the final part and covers gifts of life insurance policies with brief mention of other advanced gift techniques.

We hope our updated basic estate planning videos help you.  If you have questions about any of the estate planning concepts mentioned in the video, please call.

185775_1745456110853_1072275011_31952001_6630745_n[1]Posted by Richard S. Land, Attorney, Chipman, Mazzucco, Land & Pennarola, LLC, Attorneys at Law, Danbury, CT, 06810, 203-744-1929 x29, rsl@danburylaw.com.

 

A Seminar: Planning to Protect Seniors & Remedies for Financial Elder Abuse

September 2, 2016

Join Us September 22, 2016

To Our Clients, Clients’ Advisers and other Friends of Chipman Mazzucco:

We invite you to our September 22 Seminar.  For details click here: September 22 Seminar.

We added another segment on Powers of Attorney to our seminar.

A Power of Attorney is an essential part of any plan related to protecting seniors.

The grant of broad powers to the right person can be a lifesaver.

The grant of any power to the wrong person can be tragic.

In addition to the other seminar segments Attorney Richard Land will be making a short presentation on Connecticut’s new wer of Attorney law which is effective October 1.

To register, call us at 203-744-1929 (make certain you give us your email address) or email us at rsl@danburylaw.com.

You also can register by clicking here: REGISTER.

Location: Ethan Allen Hotel (21 Lake Avenue Extension, Danbury, CT) on September 22, 2016, at 7:00 PM (doors open at 6:30).

We look forward to seeing you on September 22.

Posted 2/11/2016 by Richard S. Land, Member, Chipman, Mazzucco, Land & Pennarola, LLC, 39 Old Ridgebury Road, Suite D-2, Danbury, CT 06810.

P.S.  See below for brief descriptions of the rest of the program:

Alyson Marcucio presents: What Seniors Need to Know about Long-Term Care but Would Never Think to Consider (a/k/a traps for the unwary) regarding Medicaid and planning for long-term care.

Christopher J. Gawley presents: FINRA Rules Designed to Protect Seniors: Warning signs of elder abuse; best practices for financial professionals when serving aging clients; the special responsibility of financial institutions and professionals when encountering seniors with signs of diminished capacity.

Timothy H. Herring presents: Legal Remedies for Financial Elder Abuse Victims (A Case Study):  What can litigators do when asked to make things right after something has gone wrong?

No admission charge.

Our seminars are always strictly educational and well attended.  Space is limited so please let us know if you plan to attend.

Light snacks, desserts and beverages (even wine and cheese) will be offered.

Please join us at the Ethan Allen Hotel (21 Lake Avenue Extension, Danbury, CT) on September 22, 2016, at 7:00 PM (doors open at 6:30).

Video Review of LegalZoom’s Estate Planning Document Preparation Service

July 10, 2016

richardAs reported in 2015, LegalZoom has provided do-it-yourself online legal services for more than 2,000,000 customers.  In 2014, LegalZoom was reportedly earning annual revenue of $200,000,000.

LegalZoom claims to assist its customers as they prepare their own do-it-yourself legal documents and that LegalZoom does so without practicing law.

LegalZoom advertises heavily on television, radio and online.

In light of LegalZoom’s visibility, Richard S. Land reviewed LegalZoom’s estate planning services in the video below.  We thought you might be interested.

How does Richard rate LegalZoom’s Estate Planning document preparation service?

Excellent?   Good?   Fair?   Poor?

In Part 1 of this review, he takes you through the LegalZoom estate planning experience from login to the end of the online interview.  Not only will you learn a lot about the LegalZoom process, you will learn a lot about basic estate planning.

Part 2 will be posted when Richard has received and analyzed the LegalZoom documents.

Legal Zoom Review

Other Educational Videos on Related Topics

Basic Estate Planning after ATRA

Estate Settlement and Trust Administration

Trusts and Trust Administration

Long Term Care Issues and Medicaid

We hope these videos add to your understanding.

Published by Chipman, Mazzucco, Land & Pennarola, LLC, Attorneys at Law, Danbury, Connecticut.

185775_1745456110853_1072275011_31952001_6630745_n[1]Posted 7/11/2016 by Richard S. Land, Member, Chipman, Mazzucco, Land & Pennarola, LLC, 39 Old Ridgebury Road, Suite D-2, Danbury, CT 06810.

 

Achieving a Better Life Experience (ABLE)

June 27, 2016

There is welcome news for people with disabilities and their families.

In December 2014, President Obama signed the Achieving a Better Life Experience (ABLE) Act into law.  Since 2014, the ABLE Act, which sailed through Congress with overwhelming bi-partisan support, has been signed into law in a record 47 states, including in Connecticut and New York.

As those with disabilities and their families know all too well, qualifying for means-based public benefits programs requires the recipient to be poor – one can have no more than $2,000 in assets ($1,600 in CT).  While public programs such as SSI and Medicaid provide vital services, they cannot nearly provide for all of the needs of a disabled person.  Living with disabilities is expensive, and many families fret about how to meet the supplemental needs of their disabled loved ones.

The ABLE Act will provide a new tool for supplementing income of a disabled person receiving public benefits, without jeopardizing eligibility for those public benefits.  Similar to the 529 Education Savings Plans, where families can set aside money for higher education, the new ABLE 529A plan enables the creation of tax-free savings vehicles for qualified individuals with disabilities.

Basic facts are presented below in a question and answer format.

  1. How much can be contributed annually to an individual ABLE account? Total annual contributions to an individual’s account by the beneficiary, family or friends may not exceed $14,000, or the current annual gift exclusion amount.  Contributions must be made in cash.
  2. How can a person qualify to be a beneficiary under an ABLE account?  An individual who has a documented and diagnosed significant disability, or is blind, PRIOR to turning 26 is eligible providing (1) he or she currently receives SSI or SSDI; or (2) the beneficiary can certify, under penalty of perjury, that he or she meets the qualification standards (stated above in this paragraph), and has a signed physician’s diagnosis that can be provided to the ABLE program or the IRS upon request.  While the disability must have been diagnosed before age 26, an ABLE account may be opened at any age, including for those above age 26.
  3. How much money can be put into an ABLE account?  Although the amount that may be contributed to an ABLE account is equal to the limit for State higher education related 529 accounts (currently $300,000 in CT and $375,000 in NY), SSI benefits will be suspended once the account reaches $100,000.  Should the account go below $100,000 at a later date, SSI benefits will be reinstated.  Medicaid benefits, on the other hand, continue and remain in effect even after the $100,000 mark is reached.
  4. What sorts of qualified expenses can the ABLE account pay for?  Broadly, qualified expenses are any expenses related to the Beneficiary as a result of living with a disability.  Such expenses may include education, transportation, housing (but distributions for housing may reduce SSI payments), employment support and/or training, assistive technology, personal support services, health and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, and funeral and burial expenses.
  5. Who will be taxed on the money in the ABLE account?  Assets in the ABLE account grow tax-free, just as they do in 529 accounts.  No gift tax is due for contributions, because the total annual contribution may not exceed the gift tax exclusion amount.   As long as the payouts are used for qualified expenses (see 4 above), the payouts are tax free.  These are the basic rules that apply if contributions are kept within annual and overall limits.
  6. Who will administer the ABLE accounts?  In most states, the accounts will either be administered by the State Treasurer or by the State 529 Plan Administrator.  Connecticut has not yet set up an ABLE account mechanism, and it is rumored that it may join a consortium of other states to run its program.
  7. Who owns the ABLE account?  The designated beneficiary owns the ABLE account.  The account must be set up and controlled by the designated beneficiary, legal guardian or through a Power of Appointment.
  8. Can a person benefit from more than one ABLE account?  No, a person may only have one ABLE account for his or her benefit.
  9. Where can I set up an ABLE account? An ABLE account can be set up in any State that runs a 529A program and authorizes out-of-state persons to set up a an account.  On June 1, 2016, Ohio became the first state in the nation to launch its own ABLE account.  Eligible individuals nationwide (including Connecticut and New York residents) may set up an online account through the Ohio program at http://www.stableaccount.com.  Once ABLE programs become available in multiple states, as is widely expected, one will be able to shop around for a program that offers competitive terms.
  10. Once an ABLE account is established, may I roll it over it into another ABLE account?  Yes.  Although a beneficiary may have only one account, transfers can be made by establishing a new qualifying ABLE account, and rolling over the assets, free of penalty, to it.  Similarly, assets may be transferred from an ABLE account to that of another qualifying relative.

All in all, this is good news.

Is there a downside?  Yes, the ABLE Act contains a payback provision.  Any funds remaining in the 529A account at the death of the beneficiary must be used to repay the State for any Medicaid assistance received by the beneficiary after the account was created.  Medicaid expenses, however, are paid only after other qualified expenses, such as funeral expenses, are paid.

With an estimated 5.6 million people eligible to become beneficiaries of an ABLE account, these accounts are a welcome addition to help plan for the needs of a disabled person.   Once ABLE accounts become widely available, they will add an attractive option to families or individuals who seek to supplement the lives of a disabled person without sacrificing needs-based government benefits.  With lower costs, fewer administrative burdens, as well as favorable tax-free growth within the account, the ABLE account offers a good alternative or additional option to a Special Needs Trust.

Please note that the federal government and state regulations are still evolving and there will be ongoing modifications to the information provided above.

????????????

Posted on June 27, 2016
by Mary Dale Lancaster
Chipman Mazzucco

 

 

Estate Settlement and Trust Administration Seminar

August 6, 2015

LocationEthan Allen Hotel, 21 Lake Ave Ext, Danbury, CT 06811

Date:  September 24, 2015

Time:  7:00 to 9:00 (Doors open at 6:30)

Register here:  Seminar Registration.  Or, call 203-744-1929 for reservations.  For more contact information, go to the end of this post.

No admission charge.  Our seminars are always strictly educational.

Description

We will cover the topics listed below.  Each listed Part corresponds to a Part in our Estate Settlement and Trust Administration video which you can see on YouTube here:  Estate Settlement and Trust Administration Video.

To get the most out of the seminar, attendees should view the whole video before attending.  We understand that time may not permit that, however, and we are structuring the program to make certain it will be well worth your time even if you do not view the video.

Send Us Your Questions

If you think of a question before the seminar, let us know right away before you forget.  If the question is appropriate for a group educational program, we will try to answer it during the program.  Send your questions here: rsl@danburylaw.com (Richard S. Land) or here ksg@danburylaw.com (Kasey S. Galner).

 Seminar Topics

Part 1:  Introduction.  Estate settlement steps starting with the probate application and the inventory.

Part 2: A continuation of estate settlement steps including problems relating to real estate, tangible personal property and estate and income taxes.  The importance of identifying problems early.  A description of our estate settlement letter and estate settlement checklists.  A discussion of the importance of post mortem tax planning.

Part 3:  Accounting requirements and fees and costs including the fees of the Probate Court, Executor fees and attorneys.

Part 4:  A description of trust administration, the duties of a trustee and the related risks.

Part 5:  The most common problems related to being a trustee including accounting, investing and self-dealing.

Part 6:  A continuation of a description of the Trustee’s most common problems including personal liability for contracts entered into as trustee and claims based on a trustee’s negligence and torts including claims related to contaminated property.  Trustee compensation is also discussed.

SEMINAR LOCATION AND TIME

The seminar will be on September 24, 2015, at the Ethan Allen Hotel, 21 Lake Ave Ext, Danbury, CT 06811 from 7:00 p.m. to 9:00 p.m. The doors will open at 6:30. Refreshments will be served.

These seminars are always well attended and space is limited. If you wish to attend, or if others you know are interested in attending, to reserve space call us (203-744-1929) or send an e-mail message to me (Richard Land at rsl@danburylaw.com) or Kasey Galner (at ksg@danburylaw.com) or Deb Jewell (at doj@danburylaw.com) containing your name, number attending, telephone number and e-mail address.

You may also register here: Seminar Registration.

 Posted on 8/6/2015 by Richard S. Land, Member, Chipman, Mazzucco, Land & Pennarola, LLC.

We frequently post articles relating to estate planning, estate settlement and elder law issues to this blog. We also post notices about our client seminars here. When we do, we send out notices to clients and friends of the firm. If you would like to get our notices, please join our mailing list by clicking below.

Email Newsletter icon, E-mail Newsletter icon, Email List icon, E-mail List iconJoin Email List
For Email Marketing you can trust

Changes to Connecticut Power of Attorney Law

August 3, 2015

Effective July 1, 2016, significant changes have been made to the Connecticut Uniform Power of Attorney Act.

Generally, under the revised act: (1) The agent under a power of attorney is granted broader powers than granted under the current Act; (2) Probate Courts will have broader authority over the application and interpretation of powers of attorney; and (3) the Act requires people to honor the agent’s use of the power of attorney in most circumstances.

Although most provisions of the Act are effective July 1, 2016, Probate Court proceedings will be governed by the new Act effective October 1, 2015.

For a thorough analysis of the Act, see the report of Connecticut’s Office of Legislative Research at the following link: An Act Concerning Adoption of the Connecticut Uniform Power of Attorney Act.

185775_1745456110853_1072275011_31952001_6630745_n[1]Posted on August 3, 2015
by Richard S. Land
Member
Chipman Mazzucco

Complimentary Online Estate Plan Review

August 1, 2015

Chipman Mazzucco is pleased to announce a new complimentary online Estate Plan Review.

Answer a series of thought-provoking questions about your circumstances and objectives and receive a personalized report.  We are providing this service without charge to encourage you to reflect on your estate plan from time to time.

To register and participate in the Review, click on this link: Chipman Mazzucco Online Estate Plan ReviewNote: The password you use to register must have at least eight characters, one or more upper case letters and one or more numbers (example: Reviewplan123).

Although anyone can benefit from the review, it is meant specifically for Connecticut and New York residents.

For a short demonstration (4.5 minutes), click on the video below.

We hope this helps you keep your estate plan current.

185775_1745456110853_1072275011_31952001_6630745_n[1]Posted on August 1, 2015
by Richard S. Land
Member
Chipman Mazzucco


%d bloggers like this: