TRUSTS & ESTATES - JULY 2004
An innovative technique
gives clients use of their assets even as they reduce transfer taxes and
leave money to charity.
How would you like to
offer your well-to-do clients an estate plan that eliminates or
significantly reduces estate taxes and generation skipping taxes (GST)
while providing the family with immediate use of the assets and creating a
significant charitable legacy? This is not a pie-in-the-sky goal. It can
be achieved by meshing disparate planning techniques.
Florida Homestead Traps
Think twice before
flying south to exploit favorable homestead and bankruptcy laws. Case law
and proposed bankruptcy reforms may clip a few wings.
People should think
carefully before deciding to move to Florida to take advantage of the
state's favorable asset protection laws. Attorneys and advisors need to
have some understanding of the potential traps clients may fall into as
they try to benefit from the Florida homestead exemption.
Creditors have been
successful in forcing the sale of a homestead, with the sales proceeds
allocated between the debtor homeowner and his creditors as well as in
attaching a homestead through a lien.
To uproot a family during
a time of financial stress is difficult, but to do so only to discover the
anticipated benefits are nonexistent is devastating. So carefully plan and
consider all risks before making the move to this so-called "debtor's
The following notice
is required by the IRS: Any U.S. federal tax advice contained in
the articles and information in this web site is not intended to
be written or used, and cannot be used or relied upon, to avoid
tax-related penalties under the Internal Revenue Code, or to
promote, market or recommend to another any tax-related matter