Kentucky Estates: articles on estate planning issues
Many of my clients own second homes at the beach, or the lake. Less frequently, clients own large properties (often farms) that have deep family and historic significance. In either instance, clients often want to keep these vacation or farm properties “in the family.” Unfortunately, there are many instances in which these good intentions work […]
My practice, and the practices of most colleagues and friends who are also trust and estate attorneys, has become busier than any of us ever expected after the 2010 tax act made high estate tax exemptions an (allegedly) permanent part of the landscape. I think one issue, more than any other, has been the key […]
One of the most fascinating aspects of my practice is working with clients who expose me to so many different case studies of how wealth is grown, maintained, or dissipated. What I’ve seen demonstrates that different investment approaches, over time, carry dramatically different potential and risks, and produce substantially different results. Along those lines, this […]
In the 90s, when the Internet was new and Bill Clinton still had more tomorrows than yesterdays, the estate tax exemption was $600,000, an amount even Thomas Piketty might think was rather low. In that sort of environment, credit shelter trust planning for married couples felt almost mandatory. We live in a very different world today. […]
Certainly one of Adam Smith’s core insights in The Wealth of Nations was that incentives matter. I believe examples are everywhere about how Smith was correct – ranging from California water shortages and student loan debt, to tax policy and white collar crime. If incentives matter in these areas, shouldn’t they matter in designing trusts that maximize successful outcomes for […]
These are interesting years in estate planning for families in the Upper Middle and Lower Upper Classes. As a high estate tax exemption has reduced the tax-driven imperatives for using trusts to hold inheritances, non-tax applications of trusts come to the fore. As non-tax issues in trust design assume greater relative importance, what factors should […]
I often work with “Wealth Creators” who have built substantial wealth themselves, most notably as founders of companies or early-stage employees at startups. I also work with “Inheritors” managing wealth built in prior generations for the benefit of descendants. Although every instance has unique aspects, in general, I find that Wealth Creators have conflicted feelings about what being […]
During an estate or trust administration, it’s easy to divide and distribute financial assets. Distributing tangible personal property (such as furniture, collections, artwork, jewelry, etc.) can be much harder. Executors, trustees, and beneficiaries are usually very surprised by how little household goods and personal property are worth in an estate administration context. Nonetheless, simply because […]
Estate administration can be a frustrating experience for families and their advisors, because it’s an occasion when families fight. Sometimes the fights are necessary, and unavoidable. Many other times, to a detached observer, the fights seem silly. Whether justified (or not), whether necessary (or not), conflict makes estate administration cost more (even when litigation doesn’t […]
Many clients I work with have done a little bit of research about estate administration before we meet. Often, they are surprisingly focused on “avoiding probate.” This is such a common part of the client mind map that I think it’s worth examining myths and realities of avoiding probate in Kentucky. Myth: Probate is expensive, so […]
Several months ago I read Cut Adrift: Families in Insecure Times by Marianne Cooper, a Stanford sociologist. Cooper’s chapters on the extremely professionally successful upper middle class and their project of “doing security” were particularly interesting. These families were operating an increasingly unstable career and social environment, and devoted tremendous energy to enhancing their own financial security. […]
Last week, Business First of Louisville published a report and slideshow on the top 25 largest residential real estate transactions of the first quarter of 2015 in Jefferson County. It might surprise you to know that a home bought for $646,000 was pricey enough to make the first quarter slideshow. The most expensive home on […]