Overland Park Attorney

Weekly Blog Digest - Overland Park, KS - Estate Planning

In review, here are the five Blog Posts from this past week for your convenience.  I welcome your feed back regarding any of these posts and your input regarding any of these areas of practice which you would like for me to address.

Estate Plan … Or Legacy? Change Your Perspective – especially in Overland Park, KS

We all want to be remembered, to feel that we’ve contributed something to the world. For some, this can be a driving force leading to great accomplishments and extraordinary contributions to mankind. But for most of us with more modest goals, what pushes us is the desire to leave a legacy.

Transfer-on-Death or Payable-on-Death Problems - Especially in Overland Park, KS

“It’s not that these accounts can’t or shouldn’t be used, it’s just they have to be coordinated carefully with the rest of the plan,” says Patrick Lannon, an estate lawyer with Bilzin Sumberg in Miami, Fla. “If there is more than one child and you make a paid on death account in favor of just one, it’s bound to cause misunderstanding,” he adds.

Appreciation For Appreciated Property – especially in Overland Park, KS

When you inherit property, such as a house or stocks, the property is usually worth more than it was when the original owner purchased it. If you were to sell the property, there could be huge capital gains taxes. Fortunately, when you inherit property, the property’s tax basis is "stepped up," which means the basis would be the current value of the property.

Get Your GRATs While You Can – especially in Overland Park, KS

Clients with swiftly appreciating assets can transfer these assets and escape both gift and estate taxation on almost all of the appreciation using a combination GRAT-life insurance strategy in connection with the steep gift tax valuation discount available today. Despite this, the Administration has often threatened to eliminate the tax benefits that can be realized using a GRAT strategy, so the time for clients to lock in these tax savings is today.

Examine Expatriation Carefully – especially in Overland Park, KS!

There are distinct immigration rules and tax rules. Seek advice from an immigration lawyer and a tax adviser. You need both sets of rules.

Examine Expatriation Carefully - especially in Overland Park, KS!

There are distinct immigration rules and tax rules. Seek advice from an immigration lawyer and a tax adviser. You need both sets of rules.

Is the grass really greener on the other side? When it comes to becoming an expatriate, you may want to do your homework before ditching the passport.

Expatriation can be a difficult transition for legal and tax reasons.

This was the subject of a recent Forbes article titled “Thousands Leave U.S. Over Taxes---5 Rules If You're Tempted.” Here are the five points cited (and further explained) in the article:

1. There are distinct immigration and tax rules;
2. Tax motivation is irrelevant;
3. Consider tax filings carefully;
4. Plan before you go; and
5. Expatriating really means leaving.

Taxation is not the only reason to expatriate or the only difficulty you will face. Expatriation means an entire restructuring of your legal and financial life, so the laws of both the U.S. and your new country need to be considered.

Before saying goodbye to the U.S., expect extra thorough scrutiny from the IRS.

Reference: Forbes (August 12, 2013) “Thousands Leave U.S. Over Taxes---5 Rules If You're Tempted”

For more information about these Estate Planning issues in Overland Park, KS, please visit my website.