Insight on Estate Planning - October/November 2015

Oct 08, 2015

Related Practice: Estate Planning & Administration

Here's a brief glance at what you'll find in the October/November issue...

The net investment income tax and your estate plan: How one affects the other

The 3.8% net investment income tax (NIIT) can affect an estate plan in two ways: First, it can increase tax on capital gains, taxable interest and other investment income, reducing the amount of wealth available to heirs. Second, the tax is particularly harsh on certain trusts used in estate planning. This article reviews how the NIIT is applied and examines how it can affect trusts. Read more...

Use a noncharitable purpose trust to achieve a variety of goals

Generally, trusts must have one or more human beneficiaries, but there's an exception for certain "purpose" trusts. One popular type of purpose trust is a charitable trust. But don't overlook the noncharitable purpose (NCP) trust. This article explains the pluses and minuses of an NCP trust. Read more...

Addressing adopted children or stepchildren in your estate plan

Families that have children who are adopted, or stepchildren who haven't been legally adopted, face unique estate planning challenges. Additional consideration must be taken when a family includes an unmarried couple in a long-term relationship and one person has biological or adopted children. As this article explains, unique family situations require using various estate planning strategies to properly address each loved one. Read more...

Estate Planning Pitfall: You jointly own property with a family member

A common estate planning mistake that many people make is to own property jointly with a child or other family member. True, adding a loved one to the title of your home, bank account or other property can be a simple technique for leaving property to that person without the need for probate. But any convenience gained is usually outweighed by a variety of negative consequences. This brief article details four possible negative outcomes of owning property jointly with a family member. Read more...

Washington's New Prudent Investor Standard for Trustees

Recent changes to Washington law mean trustees now have to fulfill specific requirements in order to meet the state's "prudent investor standard." The previous requirement that trustees use a "total asset management" approach is still in place, but the new law lays out several factors trustees must consider (and document) when managing a trust's assets, making it even more important to consider potential trustees' investment experience and to specifically address special assets in trust documents. Read more...

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This post provides general information and is not legal or other professional advice. To discuss issues specific to your circumstances, contact one of our Estate Planning attorneys.