Stites on Estates

Tag Archives: estate planning

Give From the Heart and the Head with a Charitable Remainder Trust

Posted in Charitable Planning, Estate Planning, Insurance, Life Insurance, Nonprofit Organizations, Trust Administration, Uncategorized
The holidays always put me in the mood for giving, and I hope to continue that charitable spirit into the New Year with this post on charitable remainder trusts (CRTs). Almost everybody knows that they can claim a deduction on their income tax returns for gifts they make to charities, but many are unaware of… Continue Reading

Trust Planning for Upside Business Potential – part 3: Repeating Liquidity Events

Posted in Business Planning, Estate Planning, Estate Tax Planning
This series on how grantor retained annuity trusts can be applied in situations with upside business potential presented an overview of how GRATs work in Part 1.  Part 2 presented a case study of how an “Entrepreneurial GRAT” could be used to substantially improve the net-of-tax risk-adjusted return for a risky venture with a new… Continue Reading

Trust Planning for Upside Business Potential – part 2: Case Study of a Long Shot

Posted in Business Planning, Estate Planning, Estate Tax Planning, Retirement Planning
As we saw in Part 1 of this series, a grantor retained annuity trust (or “GRAT”) can be a very effective way to remove the government as a 40% silent partner in the potential upside of a business venture in several types of circumstances. In the pre-2010 regime of low estate tax exemptions, two common types of circumstances were: (a) … Continue Reading

Trust Planning for Upside Business Potential – part 1

Posted in Business Planning, Estate Planning, Estate Tax Planning, Retirement Planning
The pursuit of wealth has long been part of the American Dream, and a positive feature of the current $5.34 million estate tax exemption (high by historic standards) is that entrepreneurs have more “run room” before the Federal government becomes a 40% silent partner in the upside of all the work, creativity, striving, and risk… Continue Reading

Reasons to Use a Life Insurance Trust, or Keep the One You Already Have

Posted in Asset Protection, Estate Planning, Estate Tax Planning, Insurance, Life Insurance
A decade ago, when the estate tax exemption was much lower, the irrevocable life insurance trust (or “ILIT”) was a component of many (or even most) tax-aware estate plans. It was common for physicians, attorneys, architects, engineers, and corporate executives to have insurance trusts, without necessarily knowing why that was so.  Reassured by their attorneys… Continue Reading

Using Community Foundations for More Effective Charitable Giving in Your Estate Plan

Posted in Charitable Planning, Estate Planning, Estate Tax Planning, Income Tax Planning, Nonprofit Organizations
Families at all levels of wealth commonly include charitable giving as a part of their estate plans.  This is gratifying for the families, and absolutely essential to maintaining and building excellence in so many civic areas, including hospitals, social services, conservation, the arts, and education. It’s also true, however, that the business cultures of the… Continue Reading

Elective share statutes – hidden dangers for blended families – part 3: solutions

Posted in Asset Protection, Blended Families, Estate Planning, Retirement Planning
We hope this mini-series on the knotty estate planning issues presenting in the (fictional) later lives of the Drapers convinced you that blended families often face much greater risks to relationships, harmony, and the orderly flow of wealth than they might first realize. Elective share statutes are one of the main unrealized dangers. In part… Continue Reading

Elective share statutes: hidden dangers for blended families – part 2

Posted in Blended Families, Estate Planning, Retirement Planning
When a married couple doesn’t have the same beneficiaries in each of their estate plans, elective share statutes make it an unstable situation, as we began to see in part 1 — which ended with the fictional, widowed Megan Draper realizing that Don’s will had left her a lot of issues to consider. Let’s introduce… Continue Reading

Tenancy by the entirety: a simple, important tool to protect your home from creditors

Posted in Asset Protection, Estate Planning
When a deal goes bad for a professional, entrepreneur, or business owner, it raises a concern that creditors may be able to take their home.  But many Kentucky residents may already have protected that asset just by owning it with a spouse. In many instances, property owned by a husband and wife in a tenancy… Continue Reading