After the 2017 Tax Act, there was confusion about the availability of "excess deductions" on Form 1041. In the past, trustees and personal representatives could pass unused deductions on the final return (Form 1041) for the trust estate to the trust and estate beneficiaries. This would be useful when the expenses (fiduciary, legal and accounting fees) exceeded the income for the tax year. The beneficiaries, if they itemized deductions on their personal returns could use their share of the excess deductions on their personal returns. That seems fair, right? In the linked commentator, respected national expert, Ron Aucutt, commented on the latest from the IRS. It looks like recent guidance from the IRS has solved the problem. This still requires careful coordination by the trustee or personal representative of an estate, the attorney, and the accountant preparing Form 1041 for the estate and/or trust. Here's the link to Ron's article.
Ron Aucutt - A Decade of Disrupted Tax Guidance
Saturday, November 2, 2019
Homestead Waivers - When, Why, and How do they Work?
I serve on a committee within the RPPTL Section of the Florida Bar which deals with homestead issues. Effective July 1, 2018, there is a new option for Florida estate planning attorneys when dealing with the complex benefits and restrictions for Florida Homestead owned by a married person. I serve on the committee with Jeff Baskies. We teamed up to write an Article in the Florida Bar Journal to provide some insight into this new tool, including when to use it, why it is helpful, and how it is implemented. Like so many features of a Florida estate plan, the new tool requires careful consideration before implementation.
https://www.floridabar.org/the-florida-bar-journal/homestead-planning-under-floridas-new-safe-harbor-statute/
https://www.floridabar.org/the-florida-bar-journal/homestead-planning-under-floridas-new-safe-harbor-statute/
Monday, October 28, 2019
Electronic Notarization and Electronic Wills come to Florida
In a recent article Florida Bar Journal by Sarah S. Butters and Jenna G. Rubin, the authors discuss the recent Florida legislation that authorizes online notarization and electronic wills. The Florida legislature attempted to create a balance between the convenience of online transactions and the safeguards necessary to ensure the validity of online notarization and the protection of vulnerable adults who may choose to conduct their planning through the use of electronic wills. The legislation includes procedures to verify the identity of the person signing the online document. Florida notaries will be required to follow new procedures, utilize authorized technology and comply with education requirements. The portion of the law relating to online notarization takes effect January 1, 2020, while the portion covering electronic wills takes effect on July 1, 2020. As the linked article points out, Florida adopted the Uniform Electronic Transaction Act in 2000 and the Uniform Real Property Electronic Recording Act in 2007.
https://www.floridabar.org/the-florida-bar-journal/danger-will-robinson-the-new-frontier-of-remote-online-notarization-and-electronic-wills/
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Donor advised funds are a great option for estate planners to discuss with their clients. Professor Beyer's blog includes a link to a helpful article on donor advised funds which discusses the advantages this planning tool. Community foundations, like the Manatee Community Foundation in my home town, can help establish a donor advised fund, offering a good option for charitably-inclined clients who don't have the level of wealth to support a private foundation.