Table Of Contents:
Contents xi
Important Information About This Book xxiii
Preface and Acknowledgments xxv

Table of Principal Cases and IRS Pronouncements xxvii
Important Information About This Book xxiii
Preface and Acknowledgments xxv

Table of Principal Cases and IRS Pronouncements xxvii

Dealing with Clients 1(48)

The Faces of Estate Planning 1(1)

The Stages of Life and Estate Planning 2(1)

Developing Clients 3(2)

Identifying the Client 5(1)

The Engagement Letter 5(3)

Exhibit 1.1. Sample Engagement Letter 7(1)

The Non-Engagement Letter 8(2)

Exhibit 1.2. Sample Non-Engagement Letter 9(1)

Preparing for the Client Interview 10(1)

Conducting the Client Interview 10(11)

Exhibit 1.3. Sample Estate Planning Questionnaire (Basic: Unmarried Individual) 12(9)

The Client Balance Sheet and Document Summary 21(3)

Exhibit 1.4. Sample Client Balance Sheet 22(1)

Exhibit 1.5. Sample Client Document Summary 23(1)

Client Competence 24(1)

Conflicts of Interest 25(11)

Married Couples 25(1)

Exhibit 1.6. Sample Joint Representation Letter 26(2)

Elderly Clients 28(1)

Overlapping Representation 29(1)

The Attorney as Beneficiary 29(7)

Execution and the Completion/Termination Letter 36(6)

Exhibit 1.7. Sample Disengagement Letter 38(2)

Exhibit 1.8. Sample Will Execution Checklist 40(2)

Reference Materials 42(7)

A Review of the Fundamentals of Drafting Wills 49(24)

Describing the Recipients of Property 49(7)

Basic Definitions 50(1)

Complications 51(2)

Survival and Lapse of Gifts 53(3)

Describing the Property 56(1)

Plain Meaning, Mistakes, and Ambiguity 56(1)

Ademption and Accessions 56(1)

The Division of Property 57(4)

Strict Per Stirpes or English Per Stirpes 57(1)

Modern Per Stirpes or American Per Stirpes or Per Capita with Representation 58(1)

Uniform Probate Code Per Capita at Each Generation (Referred to as ``By Representation'' in the UPC) 59(1)

Drafting 59(1)

Abatement and Apportionment 60(1)

Spousal Protections 61(1)

Trusts 61(1)

Will Substitutes 61(1)

Execution Formalities 61(2)

Drafting Style 63(1)

Case Study 2-1 The Last Will and Testament of Alice Goodwin Smith 63(5)

Reference Materials 68(5)

The Young Adult 73(22)

Why Plan? 73(1)

Intestate Succession 74(1)

Nonprobate Transfers 74(4)

Bank Accounts 75(1)

Securities Accounts 76(1)

Automobiles 76(1)

Clothing, Personal Effects, and Home Furnishings 76(1)

Retirement Accounts and Life Insurance Policies 77(1)

Real Estate 77(1)

Small Estate Proceedings 78(1)

Selection of Fiduciaries 78(1)

Planning for Youthful Incapacity 79(3)

Conservatorships 79(1)

Revocable Trusts 79(1)

Durable Powers of Attorney 79(1)

Medical Care Directives and Living Wills 80(1)

Organ and Tissue Donations 81(1)

Final Arrangements Instructions and Client Letter of Instruction 81(1)

Using Form Documents (Part I) 82(5)

Description of the Testator 82(1)

Revocation of Prior Wills 82(1)

Statement Concerning Family 83(1)

Payment of Debts and Expenses 83(1)

Tangible Personal Property Disposition 83(1)

Specific Bequests and Residuary Bequests 84(1)

Designation of Fiduciaries 84(1)

Waiver of Fiduciary Bonding 84(1)

Fiduciary Powers and Responsibilities 85(1)

Spendthrift Clauses 85(1)

Saving Clauses 85(1)

Apportionment of Estate Taxes 85(1)

Survivorship 86(1)

Applicable Law 86(1)

Definitions 86(1)

Self-Proving Affidavit 86(1)

Case Study 3-1 87(2)

Sarah Martin

Exhibit 3.1. Designation of Beneficiary 87(2)

Reference Materials 89(6)

The Wealthy Young Adult Contemplating Marriage 95(22)

Preserving Family Wealth 95(3)

Dissolution of Marriage 95(1)

Freedom of Disposition 96(1)

Fundamental Principles 96(2)

Marital Agreements 98(1)

Irrevocable Trusts 99(5)

Conditional Bequests 104(1)

The Impact of Dissolution of Marriage on Estate Planning Documents 104(1)

Using Form Documents (Part II) 105(2)

Know Your Source 105(1)

Use the Right Form 106(1)

Understand the Form 106(1)

Strive for Uniformity 107(1)

Automate 107(1)

Case Study 4-1 107(10)

Ronald Horton Brown
Reference Materials 109(8)

The Young Married Couple (Without Children) 117(16)

Why Plan? 117(1)

Intestate Succession 117(1)

Nonprobate Transfers 118(3)

Bank and Securities Accounts 119(1)

Automobiles 119(1)

Clothing, Personal Effects, and Home Furnishings 119(1)

Retirement Accounts and Life Insurance 120(1)

Real Estate 121(1)

Spousal Protections 121(1)

Federal Wealth Transfer Tax Considerations (Part I) 122(3)

Using Form Documents (Part III) 125(1)

Case Study 5-1 126(1)

Paul

Linda Davis

Reference Materials 127(6)

Unmarried Couples 133(16)

Lifestyle Considerations 133(1)

The State and Federal Law Implications of Marriage 134(1)

Substitute Measures 135(5)

Ownership of Real Estate 136(1)

Financial Accounts 137(1)

Beneficiary Designations 137(1)

Wills and Will Contracts 138(1)

Revocable Trusts 138(1)

Palimony 139(1)

Domestic Partnership or Cohabitation Agreements 139(1)

Gay and Lesbian Couples 140(2)

Domestic Partnership Legislation 140(2)

Special Planning Measures 142(1)

Conflicts of Interest 142(1)

Case Study 6-1 143(1)

Elizabeth Green

Cindy Jones

Reference Materials 144(5)

The Married Couple (with Young Children) 149(18)

Another Stage of Life 149(1)

The Selection and Nomination of Protectors 149(7)

Personal Representatives or Executors 150(2)

Final Arrangements Representative and Client Letter of Instruction 152(1)

Guardians 153(1)

Conservators 153(2)

Trustees 155(1)

Dealing with Life Insurance and Retirement Plans 156(1)

The Contingent Trust 157(4)

Case Study 7-1 161(2)

Paul

Linda Davis

Reference Materials 163(4)

Gifts from Grandparents 167(48)

The Transferor's Concerns in Intergenerational Wealth Transfers 167(1)

Selecting the Form of the Gift 168(14)

Outright Gifts 168(1)

Direct Educational and Medical Gifts 169(1)

Custodial Accounts 169(1)

Section 529 Programs 170(4)

Coverdell Education Savings Accounts 174(2)

Section 2503(c) Trusts 176(1)

Exhibit 8.1. IRS Form 5305-E 177(2)

The Testamentary Trust 179(1)

The Inter Vivos Irrevocable Trust 179(3)

Life Insurance Trusts 182(1)

Dynasty Trusts 182(1)

Federal Wealth Transfer Tax Considerations (Part II) 182(17)

The Generation-Skipping Transfer Tax (GSTT) 182(1)

Lapses of a General Power of Appointment and Crummey 183(1)

Crummey After Cristofani 184(8)

Valuation Discounts 192(2)

Below-Market Loans 194(1)

Grantor Trust Income Tax Rules 194(5)

Specialized Tax Planning Structures 199(1)

GRATs and GRUTs 199(1)

Qualified Personal Residence Trusts 200(1)

Using Form Documents (Part TV) 200(6)

Description of the Settlor and the Initial Trustee 200(1)

Description of the Trust Property 200(1)

Name of the Trust 201(1)

Information Statement 201(1)

Statement Concerning Revocability 201(1)

Distribution Schemes 202(2)

Identity of Trustee, Successor Trustees 204(1)

Trustee Powers and Responsibilities; Exculpatory Clauses 204(1)

Spendthrift Clauses 204(1)

Saving Clause 204(1)

Applicable Law 205(1)

Trust Protector 205(1)

Definitions 205(1)

General Provisions 205(1)

Case Study 8-1 206(2)

Paul

Linda Davis

Reference Materials 208(7)

Remarriage (with Children) 215(12)

Common Scenarios 215(1)

Pitfalls of the Unplanned Estate 215(3)

Intestate Succession 216(1)

Elective Share 216(1)

Omitted Spouse 216(1)

Property Division and Maintenance on Dissolution of Marriage 217(1)

``I Love You'' Wills 217(1)

Guardianship and Custody of Stepchildren 217(1)

Planning Measures 218(3)

Remaining Unmarried: Cohabitation 218(1)

Marital Agreements 218(1)

Lifetime Gifts 219(1)

The QTIP Trust 219(2)

Case Study 9-1 221(1)

John Roberts

Alice Turley

Reference Materials 222(5)

Migratory Married Couples 227(12)

State Law Considerations 227(5)

Domicile 227(1)

Wills 228(1)

Trusts 229(1)

Ancillary Probate 229(1)

Community Property 230(1)

State Estate, Inheritance, and Succession Taxes 231(1)

International Wills 232(1)

Foreign Property Holdings 233(2)

Foreign Law Issues 233(1)

U.S. Income Tax Issues 234(1)

U.S. Federal Wealth Transfer Tax Issues 234(1)

The Alien Spouse 235(1)

Case Study 10-1 235(1)

Eric

Tatiana Osborn

Reference Materials 236(3)

The Married Small Business Owner or Investor 239(46)

The Taxation Factor 239(1)

The Economic Growth and Tax Relief Reconciliation Act of 2001 240(1)

Form of Marital Gift, Formula Clauses, and Funding Alternatives 241(24)

Form of Gift 242(6)

The Amount of the Bequest 248(7)

Funding the Marital Share 255(8)

Special Community Property Considerations 263(2)

State Estate, Inheritance, and Succession Taxes 265(1)

The Vision for Succession or Cashing Out 265(1)

Buy-Sell Agreements 266(2)

Grantor-Retained Annuity Trusts and Grantor-Retained Unitrusts 268(1)

Recapitalizations and Valuation Freezes 268(1)

Valuation Discounts 269(1)

Life Insurance 270(3)

Special Considerations for Agriculture 273(1)

Case Study 11-1 274(2)

Paul

Erika Button

Reference Materials 276(9)

Asset Protection and Retirement Planning 285(28)

Planning for Wealth Accumulations from Services 285(1)

Basic Asset Protection 285(4)

Choice of Professional Services Entity 286(1)

Insurance 286(1)

Titling of Assets 286(1)

Accumulation of Exempt Assets 287(2)

More Advanced Asset Protection Options 289(2)

Family Limited Partnerships and Limited Liability Companies 289(1)

Inter Vivos QTIP Trusts 290(1)

Other Advanced Asset Protection Options 291(1)

Domestic Asset Protection Trusts 291(1)

Foreign Asset Protection Trusts 292(1)

Expatriation 292(1)

Tax Planning for Retirement Plan Assets 292(13)

Outright Beneficiary Designations of Humans Are Simplest 295(1)

It Is Preferable That a Marital Trust Pay Income Taxes on the RMD Rather than a Family Trust 295(1)

Don't Fund a Pecuniary Bequest with Retirement Assets 295(1)

Designate a Beneficiary and Avoid Designating an Estate as a Retirement Plan Beneficiary 295(1)

A Trust May Provide Designated Beneficiaries 296(1)

A Spousal Trust as a Beneficiary Requires Special Marital Deduction Planning 296(1)

Charitable Bequests of Retirement Plan Assets May Be Useful 297(8)

Case Study 12-1 305(2)

John

Susan Able

Reference Materials 307(6)

The Generation-Skipping Trust 313(22)

The Rule Against Perpetuities 313(4)

Seeking Absolute Freedom 314(1)

USRAP 315(2)

The Generation-Skipping Transfer Tax 317(5)

The General Application of the GSTT 318(1)

The GSTT Exemption 318(1)

GSTT Drafting Issues 319(3)

Beneficiary Conduct 322(3)

Trustee Discretion 322(1)

Holdback Clauses 323(1)

Incentive Clauses 324(1)

Spendthrift Clauses 324(1)

Drafting for the Unpredictable 325(2)

Merger or Termination of Trusts 325(1)

Trust Protectors 325(1)

Powers of Appointment 326(1)

Case Study 13-1 327(1)

Paul

Linda Davis

Reference Materials 328(7)

Charitable Gifts 335(18)

Weighing Client Objectives 335(1)

Outright Testamentary Bequests 336(2)

Outright Lifetime Gifts 338(3)

Remainder Interests in a Personal Residence or Farm 339(1)

Undivided Outright Interests in Property 340(1)

Lifetime Split-Interest Gifts 341(5)

Contributions of Remainders 341(3)

Contributions of Income Interests 344(1)

Gift Annuities 345(1)

Testamentary Split-Interest Gifts 346(1)

Conservation Contributions 346(1)

Qualified Conservation Contributions 346(1)

Qualified Conservation Easements 347(1)

Private Foundations 347(1)

Donor-Advised Funds 348(1)

Case Study 14-1 349(1)

Paul

Linda Davis

Reference Materials 349(4)

Planning for Incapacity 353(24)

Alternatives 353(1)

Conservatorship and Guardianship 353(1)

Durable Power of Attorney 354(1)

Health Care Power of Attorney and Living Will 354(1)

Revocable Trust 354(1)

The Revocable Trust 354(7)

The Forty-Year Debate 354(1)

Advantages of the Revocable Trust 355(2)

Disadvantages of the Revocable Trust 357(1)

Mechanics 358(3)

Long-Term Care Alternatives 361(2)

Family Members 362(1)

Sporadic Home Health Care 362(1)

Congregate and Assisted Living 362(1)

Skilled Nursing Facility 363(1)

Hospice Care 363(1)

Financing Long-Term Care 363(3)

Private Income and Savings 363(1)

Long-Term Care Insurance 364(1)

Accelerated Death Benefits and Viatical Settlements 364(1)

Reverse Mortgages 365(1)

Medicare and Medicaid 365(1)

Public Assistance Issues 366(5)

Scenario #1 --- Drafting for Unforeseen Disability or Long-Term Care 367(1)

Scenario #2 --- Third-Party Trusts for a Known Beneficiary 368(1)

Scenario #2.5---First-Party Trusts by a Known Beneficiary 369(1)

Scenario #3 --- Dispositions to Qualify for Assistance 369(2)

Case Study 15-1 371(1)

Janice Green

Reference Materials 372(5)

Federal Wealth Transfer Tax Principles and Planning Strategies 377(52)

An Overview of the Federal Wealth Transfer Taxes 377(16)

A Brief Overview 377(1)

A Summary of the Gift Tax 378(2)

A Summary of the Estate Tax 380(10)

A Summary of the Generation-Skipping Transfer Tax 390(3)

Planning Strategies and Techniques 393(33)

General Planning Strategies 393(26)

Planning After EGTRRA 419(7)

Reference Materials 426(3)

Probate and an Estate Tax Return 429(26)

The Estate Administration Process 429(16)

Who Is the Client? 429(1)

Is Administration Necessary? 430(2)

PostMortem Activities Preceding the Appointment of a Personal Representative 432(1)

Selecting a Form of Administration 432(2)

Exhibit 17.1. Sample Letters Testamentary 434(3)

An Overview of Administration 437(1)

Exhibit 17.2. Sample Estate Inventory 438(5)

Exhibit 17.3. Sample Notice to Creditors 443(2)

Case Study 17-1 The Estate of Alice Goodwin Smith (Part I) 445(6)

Case Study 17-2 The Estate of Alice Goodwin Smith (Part II) 451(1)

Reference Materials 451(4)
Index 455