ESTATE PLANNING BASICS

MISTAKES THAT CAUSE HEIRS TO SUFFER NEEDLESSLY

1. Procrastination. If you don’t set up an estate plan, upon your death your property will be distributed according to the laws of your state of residence, generally known as Probate law. Often, the law will require the Probate judge to give your property to someone other than the people you would have chosen.
2. Relying on a Will. If your estate plan consists of only a Will, congratulations, you are ahead of most. You might now consider that your family may face many costly and time-consuming problems such as Probate and/or Conservatorship proceedings. It is true that a Will is the most common estate planning tool, but it has many disadvantages including easy contestability - it actually invites contest.
3. Relying on Joint Tenancy. Many people own their bank accounts and homes in Joint Tenancy, yet they do not realize the dangers of owning property this way. Joint Tenancy may cause families horrible legal night-mares, and ultimately, that property will be subject to the Probate Courts. You have many options that are better and safer than owning property in Joint Tenancy – one of those ways is with a good Living Trust.
4. Relying on a Form Kit for Your Will or Living Trust. One size does not fit all - no two people or families are alike! Your family’s needs, dynamics, personalities, and values are unique. If you use a form kit, you are asking for problems. Even LegalZoom.com reveals that 80 percent of people who fill in blank forms to create legal documents do so incorrectly! Plus, if your Will or Living Trust is not executed properly, it becomes invalid. If you overlook the opportunity to write specific instructions about how you want to provide for your spouse and children, your family will receive whatever care the “cookie cutter” document provides, and you may not know of other options. The only estate plan you can rely on is one that is custom prepared by a qualified estate planning professional and attorney.
5. Relying on the Courts to Establish a Conservator. A Conservator is a Court appointed person - sometimes even a stranger - the judge appoints if you can’t take care of yourself. The Court hearings are costly, time consuming, and truly agonizing. And, anyone can apply to handle your financial and personal affairs if you become incompetent. But, when you set up a Revocable Living Trust and transfer your assets into it, you avoid the need for Conservatorship proceedings. A good Living Trust package should include language to deal with your incapacity, and should also include Powers of Attorney, Health Care Directives and Living Wills, HIPAA, and a Pour-Over Will.
6. Relying on the Courts to Establish a Guardian for Your Minor Children. Well over 60% of parents with children under the age of 18 do not have any documents in place that will help if something happens. You might be comfortable assuming that your parents or sister or best friend will happily take on the responsi-bility of your kids if you died - but things rarely work out that way. It will take the Courts, and maybe even a battle to establish Guardianship. A pre-planned transition is much preferable.
7. Relying on Community Property Laws. Many individuals decide to rely on Community Property laws. However, just like Joint Tenancy, most of your property will still have to go through Probate on the death of the spouse, and Community Property ownership requires a Conservatorship if a spouse is incapacitated. Relying on this method is not a good estate plan.
Don’t procrastinate! Choose today to plan your estate with your professional estate planner.

what is a trust and do i need it?

A Living Trust is a simple, inexpensive legal alternative that eliminates the costs and delays of probate and ensures that your loved ones will receive their inheritance promptly and exactly as you intended.

The Living Trust : The Failproof Way to Pass Along Your Estate to Your Heirs
• The Living Trust makes the old-fashioned will obsolete
• Includes information on the estate tax, the gift, and the generation-skipping tax
• Eliminates estate-devouring probate charges and attorneys' fees
• Guarantees a timely distribution of funds to your heirs
• Assures that no one may contest or overturn your wishes regarding disposition of your estate
• Shows how to protect your business, savings, and retirement from frivolous lawsuits
• Legally valid in all fifty states

You may think your heirs have been well provided for, but did you know that:
• Your loved ones may have to wait more than two years before receiving a penny from your estate- even though you left a legally valid will?
• Costs of probating your will may eat up more than 10 percent of your estate- money your heirs will never receive?
• The specific instructions of your bequest may be contested or changed completely- even though clearly spelled out in your will?
• A will cannot help you in life. If you become incapacitated or your judgment comes into question, it becomes a matter for the courts to decide and is a very public process.

what is probate and why does it take so long?

​
In California probate proceedings are governed by the Probate Code which sets forth certain time limits. Once a petition for probate is filed, you will receive a date for the first hearing in which an administrator or executor is appointed. The hearing is often 2-3 months after the petition has been filed. Once the representative has been appointed, notice has to be given to creditors of the decedent. Creditors have four months after publication of the notice of probate or 60 days after receiving actual notice, whichever is later to file a claim. Then the process begins of collecting and valuing the decedent’s entire asset, paying the debts, taxes, possibly liquidating some assets, and finally distributed the assets to the heirs or beneficiaries.

The normal time for probate is between 9 months and 18 months. There are a number of factors that may make the probate process take longer. Some of these are:

1. Many beneficiaries 
2. Beneficiaries that cannot be found 
3. A will contest brought to dispute the validity of the will. If a contest is filed, it will have to be decided before the estate can be distributed. Sometimes this can take years if there are depositions that have to be taken and either mediation or a trial. 
4. Disagreements among the beneficiaries such as who should be the administrator, whether the accounting is accurate, whether there are beneficiaries that should be disqualified, or having to set up a guardianship of the estate for minors. Each time a petition or motion is brought in the probate matter to resolve a disagreement; it lengthens the time for closing the estate. 
5. A taxable estate. If the estate has to pay federal estate tax, this can delay closing the estate.  
6. A complicated estate with unusual assets. Typical estates consist of real property, bank accounts, investment accounts, etc. If one of the assets is a business, however, it can take time to appraise such an asset. The same is true of oil or mineral rights or other unusual assets. If there are many assets, it can also take additional time to appraise all the assets and liquidate them if they need to be. 

​Some of the disadvantages of Probate are:
♦   It takes a long time! The average time in Probate Court is 12 - 18 months, and your assets are frozen during that time.
♦   It typically consumes 4% - 10% of the total gross estate (not the net.)
♦   Probate records are public records - Anyone may find out about your private affairs.
♦   Instead of agreeably passing your assets, it actually invites contest and can divide your family.

how much does probate cost in california?

If you die with or without a will your estate must go through Probate. California Probate Code section 10810 sets the statutory fees that attorneys can charge for a probate. Higher fees can be ordered by a court for more complicated cases. 

The fees are four percent of the first $100,000 of the estate, 
three percent of the next $100,000, 
two percent of the next $800,000, 
one percent of the next $9,000,000, and 
one-half percent of the next $15,000,000.

or estates larger than $25,000,000, the court will determine the fee for the amount that is greater than $25,000,000.

The value of the estate is determined, in general, by the inventory for the estate.  Debts are not included in determining attorney's fees, and if a house is appraised at $1,000,000, for example, and it has a mortgage of $800,000, it is still considered a $1,000,000 asset for the purpose of calculating attorney's fees.
 
 A typical estate might incur an additional $1,000 to $2,000 in court costs and other required fees.

mistakes people make with estate planning

Here are five estate planning mistakes that people make that can be avoided.
1. Dying without a will or trust - If you die without a will or trust, the state in which you reside and the IRS will simply make one for you.  Of course, they have no interest in avoiding or reducing estate taxes, minimizing estate administration costs or protecting your family and legacy. The distribution of your assets will just be turned over to the Probate Court. The probate process is needlessly time consuming, frustrating and expensive. It is also open to the public, meaning creditors, predators or anyone else will have complete access to all information about your estate. For the vast majority of people, the benefits far outweigh any initial costs.
2. Having an "I love you" will – An”I love you” will is one in which all the decedent's assets have been left to the spouse. On paper, it might seem to be a caring, thoughtful gesture, but the reality is quite different, because such a will simply passes the complex issues and problems associated with transferring and protecting wealth onto the spouse or other loved ones.  It creates more problems than it solves, particularly for future generations.
3. Giving property outright to your children - Here is another solution that might sound good at first, but ignores several important realities. For instance, what if the child in question is too immature to handle the responsibility of a large sum of money on his or her own? What if the child suffers a severe financial setback that puts the inheritance at risk to creditors?  What if the child marries a fortune-hunter, is addicted to drugs or alcohol, gets divorced or remarried? You may need to protect your children and heirs from their own poor decisions.  These assets are also gifted assets which carry potentially large IRS penalties if not handled properly.
4. Owning property jointly - There are two types of joint ownership, Joint Tenancy with Right of Survivorship (JTWROS) and Tenants in Common (TIC).  Problems with JTWROS include postponement of probate only until last tenancy, the loss of the double step-up in tax basis creating more to pay in capital gains taxes, and outright distribution.  With TIC, you also lose the double step-up in tax basis where it's available, and your property is subject to the estate plan of each tenant as well as probate for each tenant.
5. Not having a trust - A trust is the single most effective estate planning tool available. There are many different types of trusts.  Among the better known and more commonly used are revocable trusts, irrevocable trusts and testamentary trusts. A Trust protects your privacy, and will help you leave what you want, to whom you want, in the way you want at the lowest possible cost overall.  The additional advantage is that you avoid Probate altogether, which means that the settlement of the living trust will be done swiftly, without court or attorney's involvement, in contrast to having only an "I love you" Will.

what is power of attorney and do i need it?

​ A durable power of attorney lets you arrange for someone you choose, called your "attorney-in-fact", to manage your finances.
A Power of Attorney can be effective immediately or have a springing power, applying only when a certain event takes place, such as incapacitation from an injury or illness. You can specify how the event is defined, for example, by the declaration of a doctor or even two that you are unable to make financial decisions.
With a power of attorney, you can insist on the amount of control your attorney-in-fact will have over your finances. This authority could include:

• Making gifts
• managing a business
• paying household bills
• buying and selling assets
• handling retirement accounts
• collecting government benefits
• completing income tax returns

You choose who takes on this job. It could be a family member, close friend or your attorney or accountant. But make sure that it is someone trustworthy and competent with managing their own finances. Be sure also to select an alternate just in case the first person pre-deceases you or is unable to handle the responsibilities.

what are medical health directives and do i need it?

A medical power of attorney - also called a health-care proxy, medical directive or durable power of attorney for health care - gives whomever you select the legal authority to make medical decisions for you when you can no longer make them yourself.
A living will offers exact instructions for your doctors and family regarding the continuation of your life by artificial means or heroic measures. In cases where there is little certainty of the desires of a person in a vegetative state, a medical power of attorney and living will can help eliminate grief and dispute between family members.
Although living wills are used throughout the country, there are no universal forms spanning all states. And the law on honoring an advance directive between states is unclear. Some states will respect the different laws of the state where the document was drafted. Others might not. In addition, the documents' titles from state to state (or country to country) might differ. Problems with advance directives can pop up when you had your living will drafted in your home state (or country) and the state you are in:
makes you use their statutory forms specifies which types of advance directives they will honor require certain conditions are met before your instructions are followed will not recognize documents that do not include person's signature who is to make the medical decisions for you
If you spend a great deal of time in a state other than your home state, you may wish to consider having your advance directive meet the laws of both states as much as possible.

events to avoid while passing assets 

Events to avoid:
o                 Probate
o                 Having your estate open to the public
o                 Living Probate - losing control of your property
o                 Conservatorship proceedings
o                 Having no Will, or only having a Will
o                 Relying on Joint Tenancy
o                 Not appointing a Guardian for your minor or
   disabled children

What is Living Probate aka conservatorship

Living Probate occurs when you become incapacitated and can't make decisions for yourself. You may be declared incompetent in court and anyone, even a stranger, can be appointed to take care of your property and person.
Court hearings are necessary to establish a Conservator.
They are public, time consuming, costly, and agonizing for all.
The person appointed as Conservator might not be your spouse or even one of your children.
The Conservator must regularly report to the court.
How can you guard against Living Probate?
♦  Make a decision to set up the necessary forms while you are able to.
♦  Establish Powers of Attorney and Nomination of Conservator.
♦  A good Living Trust package will have these necessary documents.

Ways to Pass Your Estate to Loved Ones

​There are a number of ways to pass your estate to your loved ones. Let's look at the effects of how your assets are titled.

1. JOINT TENANCY
Joint Tenancy is a common estate plan. Many of you hold your assets jointly with someone else - your spouse or children. However, Joint Tenancy has many perils, and more hidden dangers than any other type of planning - except doing nothing.
♦  Only delays Probate - does not avoid it.
♦  Capital Gains Taxes are not avoided.
♦  Unintentional Gift Taxes you don't even know about.
♦  The property is subject to court judgment or creditors, so if your joint -owner is sued or divorces, you may lose your part as well.
♦  Control issues with co-owners - they can keep you from selling your property, and they can sell their part without your consent.

2. PAY ON DEATH
♦  You may have assets that "Pay/Transfer on Death."
♦  This may work if you only have few assets - usually bank and brokerage accounts, and only with one or two beneficiaries.
♦  If contested, it is forced to go through Probate.
♦  Most states don't allow "pay on death" deeds if you own property.

3. LAST WILL & TESTAMENT 
A Will may cost less to establish up front and may express your desires for passing your assets, but it has many costly disadvantages, including easy contestability - it actually invites contest.
♦   Guarantees Probate will occur - don't believe it when you hear "Oh, Probate is easy or inexpensive in our state."
♦   It's proven by studies to be costly, time-consuming and public.
♦   Is only valid when the Probate Court approves it.
♦   Doesn't provide protection for you while you're living.

Who wants to buy a product that you have to die to use?

4. A GOOD LIVING TRUST.
This is the only estate planning tool that addresses many of these concerns, and is an effective way to avoid many pitfalls of improper estate planning.

♦    Avoids Probate and Living Probate.
♦  Protects your privacy and preserves your assets.
♦  It's revocable, so you can change it any time while you're alive.
♦  Valuable for both small and large estates.
♦  Passes assets to your family quickly and efficiently without courts.
♦  Minimizes Federal and State Estate Taxes and Capital Gains Taxes.
♦  Allows you to appoint a guardian to raise your children.
♦  Provides for Special Needs children or grandchildren.
♦  Deals with disputes of your wishes and overspending problems.
Provides the Peace of Mind you deserve - knowing you have the right documents to protect you and your family from unnecessary financial drain.

10 Costly Misconceptions

1. A Will Avoids Probate. No. A Will actually guarantees Probate. Your Will tells the Court how you want your property distributed. After your death, the Court ensures that all your bills and taxes are paid before your property can be distrib­uted to your heirs.
2.   A Will Keeps Your Assets Private. No. Probate is a pubic legal proceeding, there­fore your estate becomes a matter of public record. This means that ANYONE can go to Court to find out about your personal financial records, value of your stocks, even the appraised value of your jewelry, who you left your property to, and how much they received.
3.       A Will Prevents Quarrels Over Assets. Wrong. Wills are among the most contested legal documents in the United States. It is very common for unhappy family members to challenge a Will, thus resulting in costly attorney's fees and long delays. A Will actually encourages contest over your assets because a petition must be filed in Court to probate them. A contesting party can file their claim in Court without starting their own lawsuit.
4.         Family Members Who Are Excluded From a Will DO NOT Need to Be Notified of a Probate. Wrong. The Court requires that all heirs be notified of the probate even if they are excluded from the Will. This is a State law. It is safer and more cost effective to handle an estate with disgruntled heirs through a Revocable Living Trust.
5.         Probate and Administration Costs are Small. Not necessarily. Probate costs can be very substantial. The real problem is no one can tell you what the costs will be until the process is completed. This can often take several years! The biggest costs are the attorneys fees, and while they may be able to tell you their hourly rate, they cannot predict how long the process will take to complete. The Pro­bate process can be simple and easy, but more often than not it has damaging results on the estate. The best estate plan tries to avoid this process altogether.
6.         Revocable Living Trusts are Only for Large Estates. No. Revocable Living Trusts are for anyone who wants to avoid the time and agony of Probate, and avoid costly conservatorship Court proceedings. People with small estates can benefit from a Revocable Living Trust and people with larger estates can benefit even more.
7.      A Revocable Living Trust is a Public Document. No. A Revocable Living Trust is a private document. It does not have to be recorded or published in any way. Only those people you chose to tell will know that you have created a Trust. Some financial institutions may need to see parts of your Trust, but this is only to verify the names of your trustees and their powers in the Trust document.
8.      A Revocable Living Trust Cannot be Changed. Wrong. You can make any changes to the Trust document while you are still alive. No one can change it after you die.
9.      When You Set Up a Revocable Living Trust, You Lose Control of Your Assets. No. When you set up your Trust, you will name yourself and/or your spouse as "trustees." You are the managers of the Trust. This way you never give up control.
10.  A Revocable Living Trust Must Have a Separate Tax Return. No. It does not need a separate tax return while you are living. Your personal tax return that uses your social security number is sufficient for the IRS.
​

What documents are included in the estate plans you offer?

Ancillary documents provided in a complete Estate Plans include:
1. Pour-Over Wills,  2. Durable Power of Attorney,  3. Healthcare Power of Attorney,  4. Living Will,  5. HIPAA Authorization,  5. Real Estate Deeds,  6. Assignments of Personal and Business Interests,  7. Memorial Instructions,   8. Guardianship documents for minor children, and  9. Other legal documents as needed. 

ADVANCE PLANNING BASICS

SPECIAL NEEDS TRUST

ASSET PROTECTION TRUSTS

ASSET PROTECTION TRUST:

Most states prohibit so-called "self-settled" asset protection trusts for the grantor’s own benefit. However, there is a growing trend among the states to allow these types of trusts, and several states have recently changed their laws to permit them. 

With a domestic self-settled asset protection trust, a grantor irrevocably transfers assets to the trust and names himself or herself as a beneficiary to receive distributions within the discretion of an independent trustee. The grantor may retain certain rights, including the right to remove and replace the trustee as long as the replacement trustee is also independent and not a related or subordinate party as defined in the Internal Revenue Code. 

By retaining a limited power to appoint the trust assets to specific family members at your death, the transfer is incomplete for gift tax purposes. As a result, the grantor is not required to file a federal gift tax return. If the trust is designed as incomplete for gift tax purposes, the trust remains part of the grantor’s gross estate but the assets should remain free from creditors’ claims.  If designed as a completed gift for tax purposes, others will be the primary beneficiaries but the grantor might still be entitled to receive discretionary needs benefits as necessary to maintain the grantor’s lifestyle. 

The self-settled asset protection trust laws vary from state to state and, therefore, there may be advantages to selecting one state's laws over another in a client’s particular circumstances. 

Note that self-settled asset protection trusts are only effective for future creditors, as the fraudulent transfer laws of all states prohibit transfers to avoid existing creditors. Also, the trust must be in existence for at least 10 years to protect against creditors in bankruptcy. 

BERT: 
BERT - The Wonder Trust is a trademark name for an Irrevocable Trust created for the primary benefit of the Grantor's spouse and designed to qualify for annual exclusion gifts.  The ancronym BERT stands for Build Up Equity Retirement Trust.  The trademark for the name is held by Cecil Smith, Memphis, TN and Carol Gonnella, Jackson, WY.

During the life of the Grantor's spouse, discretionary distributions can be made to the spouse and other initial beneficiaries.  The trust is not designed to qualify for the unlimited marital gift tax deduction and is also designed not to be included in the Grantor's spouse's estate. Crummey rights will be used to qualify transfers to the trust for the federal annual gift tax exclusion. 

INTENTIONALLY DEFECTIVE GRANTOR TRUST: 
The primary objective of an Intentionally Defective Grantor Trust (IDGT) is to create a trust that is effective for estate tax purposes but defective for income tax purposes. 

This is accomplished by including certain provisions that will result in the Grantor being considered the owner of the trust for income tax purposes pursuant to Section 671 of the Internal Revenue Code.  These provisions will not cause the trust assets to be included in the Grantor's estate at the time of his or her death. 

An IDGT should be considered a sophisticated tax planning tool involving complex and changing gift tax, estate tax, generation skipping transfer tax and income tax issues. 


GIFTING TRUST: 
The primary purpose of a gifting trust is to hold and invest property for the benefit of family members as a means of transferring family wealth.  Usually the beneficiaries will be family members in lower generations such as the grantors' children or grandchildren, nieces and nephews.

The design of the gifting trust will depend upon your clients' specific goals and wishes. 

If you desire to use the annual gift tax exclusion to shelter gifts to the trust for gift tax, you will need to include Crummey powers.  If you desire to create a grantor trust for income tax purposes, understand that there is concern among some commentators that this may be inconsistent with granting Crummey powers to beneficiaries. 

Crummey trusts do not automatically qualify for the annual exclusion for generation-skipping transfer tax (GSTT) purposes, under Section 2642(c). The annual exclusion applies for GSTT purposes only to a transfer to a trust if the trust has only one beneficiary (must be a skip person) for life or the term of the trust, whichever first occurs and the trust must be includable in the gross estate of the beneficiary at his or her death. 

INHERITOR's TRUST:
The primary purpose of an Inheritor's Trust™ is to hold property that will be received by the beneficiary as an inheritance.  Usually the Grantor(s) will be the parent(s) of the beneficiary.  The name Inheritor's Trust is a trademark of Steven J. Oshins, Richard A. Oshins, and Noel C. Ice.

For a complete discussion of the concept you should review the materials Steven J. Oshins presented during the Plenary Session of WealthCounsel Annual Education Event in Scottsdale, AZ on May 19, 2005 or read the articles available at www.oshins.com. 

An Inheritor's Trust should be considered a sophisticated tax planning tool involving complex and changing gift tax, estate tax, generation skipping transfer tax and income tax issues.  No practitioner should attempt to draft and implement an Inheritor's Trust without a sound understanding of the tax issues surrounding this device. 

Charitable Lead Trust 
A charitable lead trust pays an annuity or unitrust interest to a designated charity for specified term of years (the "charitable term") with the remainder ultimately distributed to non-charitable beneficiaries. There is no specified limit for the charitable term. The donor receives a charitable deduction for the value of the interest received by the charity. The value of the non-charitable beneficiary's remainder interest is a taxable gift by the grantor.
 
Charitable Lead Annuity Trust 
A charitable lead annuity trust is a charitable lead trust paying a fixed percentage of the initial value of the trust assets to the charity for the charitable term.
  
Charitable Lead Unitrust 
A charitable lead unitrust is a charitable lead trust paying a percentage of the value of its assets, determined annually, to a charity for the charitable term.
  
Charitable Remainder Trust 
In a charitable remainder trust, the donor transfers assets to an annuity trust or unitrust. The trust pays the donor or another beneficiary a certain amount each year for a specified period. In an annuity trust, the payment is a specified dollar amount. In a unitrust, the payment is a percentage of the value of the trust, as valued each year. The term of the trust is limited to 20 years or the life of the designated recipients. At the end of the term of the trust, the remaining trust assets must be distributed to a charitable organization. Contributions to the charitable remainder trust can qualify for a charitable deduction. This charitable contribution deduction is limited to the present value of the charitable organization's remainder interest.  Revenue Procedures 89-20, 89-21, 90-30, and 90-31 provide sample trust forms that the Service will recognize as meeting charitable remainder trust requirements.

Ilit

An insurance trust is generally an irrevocable trust that owns insurance on the life of the grantor or grantor and spouse. The trust is designed to avoid federal estate taxation of the insurance proceeds on the deaths of the grantor or spouse. When premium payments or other gifts to the trust are made, the trust instrument grants specified beneficiaries Crummey withdrawal rights over the gifts so that they will qualify for the federal gift tax annual exclusion. These trusts would generally file a Form 1041 as a complex trust, if the $600 income requirement were met.

An Irrevocable Life Insurance Trust (ILIT) makes it possible to: 

• Remove life insurance death benefits from the taxable estate on the death of the insured; 
• Allow the grantor to control the disposition of the policy and the death proceeds;
• Utilize the client’s annual gift tax exclusion to pay the premiums;
• Provide significantly increased asset protection during lifetime; and
• Provide the grantor with indirect access to the cash value build-up inside trust-owned insurance policies.

By removing the death proceeds from the insured’s taxable estate, the amount actually passing to the beneficiaries is, in effect, doubled (assuming a 50% tax) because the tax is avoided. Viewed another way, the client could reduce premiums to half of what they’re currently paying and receive the same real coverage. 

The primary objective of an Irrevocable Life Insurance Trust (ILIT) is to make proceeds of life insurance policies available to trust beneficiaries in a manner that will not subject the policy proceeds to estate tax upon  the death of the insured (and if married upon the death of the insured's spouse). 

Another common objective of the trust is to qualify transfers to the trust, which will most likely be used for payment of insurance premiums, for the federal annual gift tax exclusion.  This may be accomplished through the use of Crummey withdrawal rights. 

An ILIT should be considered a sophisticated tax planning tool involving complex and changing gift tax, estate tax, generation skipping transfer tax and income tax issues. 

The primary objective of an Irrevocable Life Insurance Trust (ILIT) - Second-to-die policy with spousal access trust option is to make proceeds of second-to-die life insurance policies available to trust beneficiaries in a manner that will not subject the policy proceeds to estate tax upon the death of the survivor of the Grantor and the Grantor's spouse. 

During the life of the Grantor's spouse, discretionary distributions can be made to the spouse.  This is commonly referred to as a Spousal Access Trust and is supported by PLR  9748029.  Remember IRC Section 6110(i)(3) provies that a PLR may not be used or cited as precedent and is only directed to the taxpayer who requested it. 

Another common objective of the trust is to qualify transfers to the trust, which will most likely be used for payment of insurance premiums, for the federal annual gift tax exclusion.  This may be accomplished through the use of Crummey withdrawal rights. 

The primary objective of an Irrevocable Life Insurance Trust (ILIT) - 2nd-to-die joint trust is to make proceeds of 2nd-to-die life insurance policies available to trust beneficiaries upon the death of the surviving Grantor in a manner that will not subject the policy proceeds to estate tax upon  the death of the insureds. 

Another common objective of the trust is to qualify transfers to the trust, which will most likely be used for payment of insurance premiums, for the federal annual gift tax exclusion.  This may be accomplished through the use of Crummey withdrawal rights. 

An ILIT should be considered a sophisticated tax planning tool involving complex and changing gift tax, estate tax, generation skipping transfer tax and income tax issues.

RETIREMENT TRUSTS

IMMIGRATION BASICS

IMMIGRATION - CITIZENSHIP

​CITIZENSHIP
Citizenship Eligibility Requirements
 
Must be at least 18 years of age; Must be a Legal Permanent Resident for at least 5 years, OR, if married to a U.S. citizen, must have been a Legal Permanent Resident for at least 3 years; Must have basic knowledge of U.S. History and Government; Must be able to read, write, speak and understand basic English; Must have good moral character.
 
NECESSARY DOCUMENTS FOR NATURALIZATION APPLICATION
 
$680.00 ($595 is for the application and $85 is for the fingerprints) check or money order payable to: DEPARTMENT OF HOMELAND SECURITY
 
IDENTIFICATION
_Driver’s license or State issued I.D.
_Social Security Card.
_Legal Permanent Residency Card - “Green Card.”
TRIPS OUTSIDE THE U.S. (month/day/year)
_Dates of all trips, over 24 hours, outside the United States since becoming a legal permanent resident.
_Dates left for and returned from abroad and destinations.
RESIDENCE (last 5 years) month & year
_Complete addresses for the past five years.
_Dates moved in and moved out of the residence.
EMPLOYMENT (last 5 years) month & year
_Names, dates, and addresses of all employers for the past five years.
_Title of position held.
MARRIAGE(S)
Present Spouse:
_Name.
_Address.
_Country of Birth.
_Date of Birth.
_Date of marriage by Law.
_Social Security Number.
_Number from spouse’s green card.
_Date and Place of Naturalization.
_Immigration status.
 
Former spouse:
_Name.
_Date of marriage.
_Date marriage ended.
_Divorce/death certificate.
_Immigration status.
If your spouse was previously married, the same information is required about your spouse’s ex-husband/ex-wife.
CHILDREN
_Names of all children.
_Date of birth.
_Country of birth.
_Number of all children.
_City and state of where they live.
CRIMINAL RECORD
_Date and location of any arrest.
_Nature of the offense.
_Outcome of the case.
_Police report and court disposition.
SELECTIVE SERVICE
_Selective Service Number and date registered.
1. If you registered and do not have this information, you can call (847) 688-6888 or visit www.sss.gov
2. If you have not registered and are between the ages of 18 to 26, you should register by calling (847) 688-6888.
3. If you were born after 1960 and you were in the US between the ages of 18 to 26, you must have registered
with Selective Service, even if you were undocumented.
 
**This is a partial list only. We may require additional information and/or documentation
 
Our services include:
1. Check your eligibility for citizenship
2. Complete your citizenship application
3. File your application with USCIS
4. Help you prepare for your interview
Be sure to:
1. Make an appointment
2. Bring a copy of your green card (both sides)
3. Bring 2 passport-style photos
4. Bring the $680 USCIS filing/fingerprint fee ($595 if 75 or older)
*Fee waiver applications also available

​INTERNATIONAL ADOPTIONS

​INTERNATIONAL ADOPTIONS
The process varies greatly, as it is governed by the laws of the countries where the adoptive parents and the child reside (which in the case of the United States means both federal and state law), and also in which of these locations the legal adoption is finalized. Additionally, if the child's home country is a party to the Hague Adoption Convention, the Hague processes of both countries must be followed. Prospective adoptive parents should consider all of these factors when evaluating what to expect.
 
Adoption forms
•      Hague Process
•      I-800A
•      I-800
•      DS-230
•      DS-5509
•      Non-Hague Process
•      I-600A
•      I-600
•      DS-230
•      Certificate of Citizenship

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