Everyone should have a revocable trust, or should they?

When is a Revocable Trust the Best Option?

ESTATE PLAN TO DO LIST þ   Last Will and Testament þ   Update beneficiary forms þ   Durable Power of Attorney þ   Health Care Surrogate Designation þ   Living Will ?    Revocable Trust

After more than 29 years of listening to client's concerns, and then guiding them through the estate planning process, I've learned that no two clients are the same. A trust is a good option for some clients, but not for others.  Preparing a revocable trust and charging a high fee can be lucrative work for estate planners. With the increased use of technology, some individuals, or family members concerned about a loved one,  believe that do-it-yourself options save the expense of hiring a licensed, experienced attorney.  

Our firm believes in putting the client first.  Often, a client who believes they need a trust can benefit from other simpler, less expensive options. The linked article on our firm site explains some of the myths about revocable trusts.  In some cases, they can be the best option, but in other cases, probate is actually easier and less expensive.  Many factors should be considered.  In some circumstances, revocable trusts actually cause more problems than the solve. 

https://barneswalker.com/considerations-for-using-a-trust/  

Divorce, Taxes and Trusts - The Perfect Storm

ACTEC Fellow Justin T. Miller dives into a tough combination of legal issues that many practitioners would not even consider.  The transcript and the podcast can be accessed through the link below: 

https://actecfoundation.org/podcasts/tax-cut-jobs-act-divorce/

Are you Prepared?

It may be November, but Hurricane Season is not over.  It ends November 30^th.  While the odds of a hurricane are lower this time of year, it’s always a good idea to be prepared.  Don’t wait until June 1^st to think about things that you need in the event of a hurricane:

• Review and update all of your estate planning documents, such as wills, powers of attorney, health care directives, and trusts. Keep them in a secure place, and be ready to take them with you if you had to evacuate on short notice.

• Keep your insurance coverage up to date.  Talk to your insurance advisor about cover for wind, flood, fire, and liability coverage.

• Think about your family’s needs if a disaster prevented you from working or resulted in long-term medical care.  Health insurance, long-term care coverage and life insurance can mean the difference between struggling to get by and having the resources to meet life’s unexpected changes.

New Guidance on the Impact of the 2017 Tax Act on Excess Deductions on Form 1041

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