Orange County Living Trust

IRS Extends Time for Portability Election

orangecountylivingtrust — Fri, 17 Feb 2012 22:50:31 +0000

Under current law, surviving spouse may under some circumstances use the Deceased Spouse’s Unused Exclusion Amount (DSUEA) in order to avoid estate tax, potentially doubling her lifetime exclusion from $5,120,000 to $10,240,000. There are several requirements for this “portability” and one of them is filing a timely election on an estate tax return (706).

IRS has extended the time for filing this election. Notice 2012-21 here.

21-Year-Old Man Wakes From Coma Before Doctors Take Organs

orangecountylivingtrust — Thu, 22 Dec 2011 21:22:06 +0000

I’ve heard of similar cases from several of my clients. This lucky guy will apparently make a full recovery. Story here.

Do you have a living will with end-of-life instructions? Consider these issues carefully with a California estate planning attorney.

CA T&E 1/4′ly article ignores Clayton Election

orangecountylivingtrust — Wed, 30 Nov 2011 00:04:10 +0000

I just received my California Trust & Estates Quarterly, Spring issue. (It’s now late Fall actually, but the section promises to catch up!)

There is an article entitled “To Bypass or Not Bypass, That is the Question: Using a Formula General Power of Appointment Clause to Address New Estate Planning Uncertainties” which does a pretty good job of outlining current planning uncertainties but then goes on to say that “three possible solutions may exist.”

The “three possible solutions” mentioned are: 1) Disclaimer Trust, 2) Opt-In General Power of Appointment, and 3) Formula General Power of Appointment.

No mention is made of the Clayton election as a possible solution, though the article cursorily dismisses one-lung QTIPs:

“…creating a QTIP Trust and a Survivor’s Trust would complicate the estate plan and require special drafting since most traditional estate plans maximize the amount passing to the Bypass Trust first and then only transfer any excess of the Decedent’s share to a QTIP Trust. In this case, the funding formula would need to be adjusted.”

Though the article considers QTIPs complicated, its proposals for giving the surviving spouse a general power of appointment over the bypass trust are not exactly models of simplicity.

Ironically, a huge display ad for WealthCounsel appears prominently within the article. The WealthCounsel network of attorneys (I’m a member) has pioneered use of the Clayton election.

To consult with a California attorney on these issues, visit http://SacredHonor.US

New State Rankings for Domestic Asset Protection Trusts

orangecountylivingtrust — Tue, 15 Nov 2011 20:40:05 +0000

Nevada attorney Steve Oshins today published a new version of his chart (here) ranking the DAPT’s offered by various states, based on recent changes in the statutes of South Dakota and Hawaii.

Estate Tax Returns Next Week?

orangecountylivingtrust — Tue, 15 Nov 2011 20:31:43 +0000

Bad News: Some speculate estate/gift tax exclusion may return to $1M before 2012 (story here). Good News: Personal wealth is returning to 1812 levels, so maybe you can still ignore the estate tax. All kidding aside, there may be some major changes announced next week, though most expect Congress will just kick the can further down the road, avoiding major changes.

Estate Tax Exclusion for 2012 to be $5,120,000

orangecountylivingtrust — Fri, 21 Oct 2011 21:40:13 +0000

Per inflation adjustments of IR-2011-104, the estate tax exclusion is to be $5,120,000 in 2012. The annual gift tax exclusion remains at $13,000.

Press Release: National Estate Planning Awareness Week, October 17-23, 2011

orangecountylivingtrust — Sat, 15 Oct 2011 00:50:21 +0000

Laguna Hills, CA, Oct. 14, 2011 – Orange County attorney David R. Duringer announced today he is joining his colleagues at WealthCounsel in a public relations campaign to showcase National Estate Planning Awareness Week, October 17-23, 2011.

According to a 2010 industry trends survey of estate planners conducted by WealthCounsel, nearly 70% of the respondents indicated that Americans fail to plan because they lack awareness as to why they should. Duringer is passionate about building awareness of the importance of thoughtful planning and is committed to educating the public about the negative consequences of what can happen to one’s loved ones when the proper documents are not in place.

Duringer noted that estate planning is one of the most overlooked areas of personal financial management. More than 120 million Americans do not have proper estate plans to protect themselves or their families in the event of sickness, accidents, or untimely death. This costs many families wasted dollars and unnecessary hardship, even conflict and family feuding, that can be minimized with proper planning.

Duringer also noted that the diminished freedom and independence of today’s American family is due to a lack of values transmission, a lack of values-based incentive planning in regard to religion, financial mentorship, firearms training, etc., values necessary to preserve family life, family fortune, and family honor—ultimately the only counterweight to an ever-expanding central government. “Don’t play telephone with your descendants,” Duringer says. “Write it all down in your own family constitution, and turn your family into a firearms training institution for generations.”

In 2008, the National Association of Estate Planners and Councils (NAEPC) worked with Congress to pass a resolution proclaiming the third week in October as National Estate Planning Awareness Week. The resolution noted that “Many Americans are unaware that lack of estate planning and financial illiteracy may cause their assets to be disposed of to unintended parties by default through the complex process of probate.”

“Estate planning is a thoughtful process and not merely a single legal transaction,” said Duringer. “As a member of WealthCounsel, my firm has access to a state-of-the-art document drafting system, a network of experienced colleagues throughout the country with whom I can collaborate, and superior educational resources to help me stay on the leading edge of knowledge,” Duringer stated.

In addition to WealthCounsel, Duringer is also a member of the State Bar of California and the Washington State Bar Association. His Juris Doctor is from the University of California’s Hastings College of law, and he also holds an LL.M in Taxation from Chapman University’s School of Law.

About David R. Duringer, Prof. Corp.

The law office of David R. Duringer, Prof. Corp. specializes in all areas of estate planning, including asset protection, incentive planning, charitable planning, business succession planning, and family protection planning. Visit online at http://OrangeCountyLivingTrust.com, or call 949-215-9995 (888-WAY-WILL).

# # #

Media Contact:

David R. Duringer, 949-525-8800

New Company Loads Human Ash Into Ammunition

orangecountylivingtrust — Sat, 01 Oct 2011 21:59:37 +0000

Holy Smoke, LLC! What a great idea, at least for those opting to be cremated. A new company will load your human ash remains into ammunition, then ship the remainder of ash back to you, along with the ammo. Ash is loaded into shotgun shells by mixing it with shot, not the powder. For center-fire rifle and pistol cartridges, the ash is loaded into the cavity in hollow points then sealed with wax.

What a great way to honor a crime victim! Or a hunter. Or millions of tea party revolutionary folk. You can contact the company here.

To update your will and other estate planning documents regarding your planned burial disposition, see a California estate planning attorney now.

Executors Must File 706 to Preserve Portability!

orangecountylivingtrust — Fri, 30 Sep 2011 17:02:09 +0000

This is urgent, for any executors of the estates of decedents dying after 12/31/2010: even if the estate is less than the $5,000,000 exclusion amount for estate tax, you still must file a 706 return in order to allow the decedent’s surviving spouse to make use of the deceased spouse’s unused exclusion amount (DSUEA), called “portability” of exclusion. See IRS Notice 2011-82 here.

LegalZoom Scores Poorly in Consumer Reports Test

orangecountylivingtrust — Wed, 28 Sep 2011 00:59:39 +0000

LegalZoom scored poorly, along with two other DIY alternatives (Rocket Lawyer and Quicken WillMaker Plus), in a Consumer Reports test of common fact patterns for estate planning (story here). Even in a relatively simple nuclear family situation, LegalZoom was deemed inadequate. All three products were deemed inadequate for the blended family situation tested, and LegalZoom in particular was criticized for multiple defects, including several criticisms regarding its “Legal Advantage” program which is supposed to provide some sort of attorney support. Nor did any of these products fare well in the “single with partner” fact setting tested.