Publications
Power of Attorney, Debt and Death: What you need to know
A power of attorney — POA, for short — isn’t a person or entity. Instead, it’s a legal document that passes decision-making power from one individual or entity to another. You can’t “be” a power of attorney. But you can attain it if an individual (the principal) authorizes you as an agent or attorney-in-fact. Learn about the types of POA and your responsibilities, as well as what debts don't belong to your acting as Power of Attorney.
Facing Estate Tax Challenges For Business Owners, Artists, And Gallery Owners
As 2024 progresses, the sunsetting of key tax provisions presents unique challenges for business owners, artists, art dealers, and gallery owners alike. With the estate tax exemption set to decrease and potential changes looming in capital gains and valuation practices, it is crucial to review and adapt estate and tax plans to avoid pitfalls.
Kamala Harris Endorses American Housing and Economic Mobility Act Tax Proposals
In a significant development, the Kamela Harris presidential campaign has announced its endorsement of the estate tax reforms outlined in the American Housing and Economic Mobility Act of 2024. This support from the Harris campaign is expected to galvanize broader Democratic backing for the bill, potentially enhancing its chances of passage. By aligning with these tax proposals, the Harris campaign is positioning itself as a champion of economic justice and housing affordability—key issues in the upcoming election.
Succession: The Brewing Controversy Over the Murdoch Family Trust
The Murdoch Family Trust, Rupert Murdoch's media empire, is embroiled in a significant dispute that has implications far beyond the world of media. As reported by The New York Times, this unfolding drama sheds light on the complexities of managing high-value assets—whether they be media companies, art collections, or estates.
The trust, established during Murdoch's 1999 divorce, was designed to grant voting rights to his older children while securing financial benefits for his younger ones. Now, at 93, Murdoch is in a legal battle with three of his four adult children over who will control the empire after his death. This situation echoes similar conflicts in other media dynasties and offers valuable lessons for anyone managing assets with high emotional and financial stakes.
Key Takeaways:
Succession Planning: Just as family businesses need clear plans for leadership transition, so too do artists and collectors to preserve their legacy.
Governance Structures: Establishing clear decision-making processes is essential to prevent disputes.
Common Goals: Aligning the interests of all stakeholders ensures long-term value preservation.
Professional Mediation: Neutral third parties can help navigate complex dynamics and protect the integrity of valuable assets.
Whether you're managing a media empire or a treasured art collection, the principles at play in the Murdoch case offer crucial insights for ensuring your legacy endures.
Contrasting Tax Overhauls: Project 2025 Vs. Democratic Reform
As the 2024 elections approach, tax reform is once again a hot topic. Project 2025, spearheaded by the Heritage Foundation, offers a sweeping overhaul of the U.S. tax system and various federal policies. This ambitious plan, designed to be implemented by a future Republican administration, includes significant changes to tax laws and administration. On the other side of the political spectrum, Democrats and other left-leaning groups have also put forth their own tax reform proposals, aiming to address income inequality and generate revenue for social programs.
The Importance of Building Generational Wealth
The process of building generational wealth is intended to provide younger family members — and even those not yet born with financial opportunities and a head start to long-term stability. Generational wealth refers to financial assets passed down from one generation to the next. They include property, investments and businesses but also other assets, such as collectibles or royalties from oil and gas holdings.
IRS Form W-9 Changes and Their Impact on Trusts and Estates
In March 2024, the Internal Revenue Service (IRS) unveiled a revised version of Form W-9, Request for Taxpayer Identification Number and Certification, marking a significant update since its last revision in 2018. This change introduces new reporting requirements, particularly affecting flow-through entities such as trusts and estates. Refiliing may be necessary in certain circumstances.
Innovative Philanthropy: Beyond Traditional Grantmaking
Innovative alternatives that are reshaping how philanthropic goals are achieved
Here are the top three questions clients ask about alternatives to grantmaking:
1. What are the primary purposes that program-related investments (PRIs) within social welfare activities should achieve? PRIs within social welfare activities should primarily carry out one or more of the purposes specified under section 170(c)(2)(B) of the Internal Revenue Code 2. How can a 501(c)(4) organization engage in political activity and lobbying while keeping its status as a social welfare organization? 3. What are the tax implications and operational considerations when using non-501(c)(3) structures for philanthropy?
Corporate Transparency Act: Updating Legal and Other Documents
Practitioners need to modify their procedures to accommodate new filing requirements of the Corporate Transparency Act (CTA) took effect Jan. 1, 2024. Hers are practical steps practitioners should take to modify their practices to accommodate the new CTA requirements.
Cracking the Code: BOI and Trusts for Accountants
This is a critical moment for accountancy practices to showcase their expertise in trust management and CTA compliance. Staying updated with these developments and proactively managing reporting obligations will be essential for navigating the regulatory landscape with the Corporate Transparency Act of 2024.
Navigating The Evolving US Estate Planning Landscape
Estate planning has evolved into a vibrant field marked by substantial transformations in recent years. These changes are propelled by updates in legislation, technological advancements, and shifts in societal norms. As a trust and estates attorney, I closely monitor these trends and understand the significance of staying abreast to offer superior service to my clients. Here are the key topics in contemporary estate planning and the advantages of engaging with either large or boutique law firms.
Generative AI: Revolutionizing Professional Services For Wealthy Families
The integration of Artificial Intelligence (AI) into professions like law, accounting, and investment management has been evolving over several decades, with significant acceleration in recent years. Here's a brief overview of AI's impact on legal matters.
Navigating the Transfer of Ownership and Control
Understanding trusts, family limited partnerships and the ‘Tragedy of the Commons’: Transferring Ownership and Control Through Trusts and FLPs, Advantages of Trusts and FLPs.
Year-End Tax Planning Considerations for Families with Property Interests in the US
The end of the year presents a strategic opportunity for family enterprise advisors to guide their clients in reviewing their wealth and estate planning strategies.
This is the perfect time for clients to reflect on their financial objectives and align them with their current and future financial commitments. Whether their interests lie in philanthropy, planning for generational business transitions, or navigating surplus wealth goals, effective year-end planning can help optimize their financial outlook.
Do The Right Thing: Returning Looted or Stolen Art (and How Not to Buy It in the First Place)
Returning stolen and looted art is a complex and lengthy process, involving legal and political challenges. Nonetheless, transferring ownership to the government for repatriation, as exemplified by the Worcester Art Museum, aligns with property laws and represents the morally right course of action. Objects of this nature should be returned to their rightful owners or to the countries or cultures from which they originated if there is any doubt regarding their true ownership. To safeguard yourself from such situations, diligent research and thoroughness are imperative.
IRS Releases Proposed Regulations on Reporting & Income Taxation of Digital Assets
In August of 2023, the IRS proposed regulations aimed to align tax reporting on digital assets with tax reporting on other financial assets. They would provide much-needed guidance and clarity on the taxation of digital asset transactions, ensuring consistent reporting and treatment across different types of assets such as crypto. We can help you navigate your taxes and estate planning with Cryptocurrency, NFTs, and other digital assets. There are additional considerations and expertise that Matthew Erskine keeps up to date with and can help you plan for the future with your digital assets.
Planning For Estates That Contain Firearms
Estate planning involving firearms requires careful consideration and adherence to legal requirements. By understanding the legal issues, choosing the right executor or trustee, considering a gun trust, keeping accurate records, and exploring buyback programs, you can ensure that the transfer of firearms in your estate plan is done legally and safely. Consulting with an attorney experienced in firearms and estate planning can provide valuable guidance throughout the process.
What to do When You win the Lottery
Receiving a windfall is both exciting and overwhelming; something estate planners should anticipate while creating an estate plan for their client. Even smaller windfalls can be a life changing event. Here are some recommended actions to consider taking to manage your newfound wealth responsibly.
Aretha Franklin’s Estate: Why Copyrights Require Estate Planning
The Aretha Franklin estate is a high-profile, and expensive, lesson in how not to manage copyrights in an estate. These copyrights should be considered assets and an integral part of the client’s estate. Such planning includes the management and distribution of copyright assets after the copyright owner passes away. Proper estate planning can ensure the protection and transfer of copyright ownership, as well as provide for the financial well-being of heirs and beneficiaries.
FDIC Changes Insurance Coverage Of Trust Bank Accounts
The FDIC issued new regulations, effective April 1, 2024, on how the insured amounts are calculated. These changes make it simpler to calculate what is, and is not, insured but will still require some adjustment in how much is held in trusts.
The FID treats revocable and irrevocable trusts differently. Revocable trusts, which include informal trust accounts such as Pay on Death (POD) or As Trustee For (ATF) accounts are insured up to $250,000 per unique beneficiary up to a maximum of five beneficiaries, provided that 1) the bank account title states that the account is for a trust, 2) each beneficiary is named in the correct place, and 3) each beneficiary is a living person, charity or non-profit organization. So, if a revocable trust account has only one beneficiary, the insurance limit is $250,000, if the revocable trust has five or more beneficiaries, the insurance limit is $1,250,000 total.