14 April

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Which Trust is Best for Leaving a Portion of Your Estate to a Charity?

When planning your estate, you may want to leave some money to a charity you support. If you are charitably inclined, there are two types of trusts you should consider utilizing to protect yourself from excessive taxation and maintaining the value of your future charitable donation. The two trust options include (i) the charitable lead trust and (ii) the charitable remainder trust. What is a Charitable Lead Trust? Compared to a charitable remainder trust, the roles are basically reversed when you set up a charitable lead trust. The charitable beneficiary will receive annual payments from the trust at the beginning of the term. At the end of the trust term, the assets remaining in the trust would be paid to your non-charitable beneficiaries (e.g., your children or other loved ones). You will receive a front loaded income tax deduction for the scheduled payments to the charity. These types of trust are favored...

02 March

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InSights from February 27, 2021 Annual Client Meeting

Posted by Bobby Feisee

in Bobby's Blog, News

The Annual Client Meeting is a key component of the Insight Law Maintenance Program. We are in the 13th year of hosting these meetings and have found them to be incredibly helpful to both the firm and our clients. The objective of the Annual Client Meeting is to ensure we stay connected with our clients and they stay educated on their estate plan. https://www.youtube.com/watch?v=LMOxNtQRDBk...

15 January

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Bobby Feisee Publishes Law Practice Management Book

Posted by Bobby Feisee

in News, News at the Firm

Bobby Feisee, in collaboration with fellow attorney David Ginsberg, published How Successful Law Firms Really Work through the American Bar Association. This in-depth book is designed to assist attorneys at all levels of law firm management create and implement business strategies. Each chapter provides an easy-to-follow overview of a key aspect of law practice management, with actionable guidance for a variety of situations and contexts. Get a Copy of Bobby's Book Here ...

02 November

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You Were Named the Executor or Administrator of an Estate – What To Expect

Posted by Bobby Feisee

in Bobby's Blog, News

When someone is designated as a personal representative for an estate, their mind is often inundated with questions and concerns about what they are legally obligated to do. In many instances, personal representatives are named an Executor/Executrix or an Administrator/Administratrix. Similarities and Differences between an Administrator and an Executor You may be wondering, "What is different from being named an Administrator versus an Executor?" Well, an Administrator is the individual appointed by a court to oversee an estate when someone passes away without a Last Will and Testament. In contrast, an Executor is the individual named by a decedent in their estate plan to oversee the administration of their estate, including the distribution of assets and management of any outstanding liabilities. Despite these differences, there are a number of similarities between Executors and Administrators. For example, both Executors and Administrators are subject to the jurisdiction of a probate court. Both Executors and Administrators...

19 October

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Streamlined Loan Forgiveness Application Now Available for PPP Borrowers

Posted by Bobby Feisee

in Bobby's Blog, News

If you received a loan totaling $50,000 or less through the Paycheck Protection Program, the administrative burden associated with applying for forgiveness is now much lighter. The Small Business Administration recently issued Form 3508S, which is a far simpler loan forgiveness application, especially in comparison to the original 3508 form and even the 3508EZ form. For example, Form 3508S is a single page and requires very little paperwork when applying for PPP loan forgiveness. Small business owners who borrowed $50,000 or less will need to certify the following: Loan funds were used for eligible expenses; Payroll costs were at least 60 percent of the forgiveness amount; and You meet the owner-employee's limitations and caps. In addition, PPP loan borrowers also need to provide some form of documentation supporting the eligible payroll and nonpayroll payments from the covered period, including: Payment receipts, cancelled checks, or account statements documenting the amount of employer contributions to...

30 September

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Presidential Debate Highlights Differences in Tax Policy

Posted by Bobby Feisee

in Bobby's Blog, News

The first debate of the 2020 presidential election took place recently and it was…unique. It's fair to say this was a norm-shattering debate that ran high on emotions and low on substantive discussions pertaining to federal policy. It was not particularly entertaining, but it was revealing in certain moments. The issue of taxes is one prominent example that highlights the stark differences between the candidates. Let's take a look at each candidate's proposals when it comes to tax policy. Joe Biden's Tax Proposals The Biden campaign released a number of policy papers, including Vice President Biden's plan regarding taxes. If elected, Joe Biden would seek to repeal many of the tax changes that were codified in the Tax Cuts and Jobs Act. In addition, a Biden administration would seek to tax capital gains at ordinary income tax rates for individuals earning in excess of $1 million. A Biden administration would also seek to...

15 September

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Info You Need to Know – Estate Taxes Levied at Both the State and Federal Level

Posted by Bobby Feisee

in Bobby's Blog, News

I recently published a blog discussing the potential modifications to the federal estate tax and the push to have the federal estate tax exemption revert to "historic norms." It appears some states may be targeting their own estate tax exemptions in an effort to raise additional revenue. For example, the D.C. Council approved the Budget Support Act of 2020 containing a number of significant tax changes, including a change to the D.C. estate tax exemption. Specifically, when someone passes away in D.C. on or after December 31, 2020, their estate would be exempt from the D.C. estate tax up to $4 million. This is a notable reduction from the current exemption for D.C. residents of $5.6 million. Though, the D.C. Council also included annual cost-of-living increases for the exemption amount. State-Level Estate Taxes When it comes to estate taxes, much of the spotlight winds up going to the federal estate tax to the point where many...

10 September

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Estate Tax Exemption May Be Modified Post-Election

Posted by Bobby Feisee

in Bobby's Blog, News

Former Vice President Joe Biden released a 110-page economic plan that included significant modifications to the estate tax exemption, in addition to other tax policies that could impact your estate. Modifying the Estate Tax Exemption Biden’s economic plan would seek to return the estate tax exemption to "historical norms." This is a nuanced way of saying that the estate tax exemption should be reduced back to close to $5 million, rather than where the exemption is currently set at closer to $12 million. The tax reform legislation that was passed recently included a doubling of the estate tax exemption. Specifically, the estate tax exemption was $5.49 million in 2017 and is now $11.58 million in 2020. In addition to reverting the estate tax to historical norms, Biden's economic plan includes revenue enhancements through modifications to the individual income tax rate on households with taxable income in excess of $400,000, according to CNBC.com. Modifying Step-Up in Basis Former...

28 August

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Advice on How to Plan Your Estate in the Midst of the Coronavirus Pandemic

Posted by Bobby Feisee

in Bobby's Blog, News

The Coronavirus Pandemic has placed the fragility of life front and center for many people. It is a harsh reminder that each day is a gift and an unexpected event can limit the days we have on this Earth. A byproduct of this realization is that many Americans are taking steps to plan their estates. However, jumping headfirst into estate planning can be rather intimidating. You have to make important decisions about whether to create a will, a trust (or trusts), power of attorney for handling financial matters, power of attorney for medical decisions, and so forth. If you are interested in planning your estate, here is some advice on specific steps to take. Decide Whether It Makes Sense to Work with an Estate Planning Professional If you are a newcomer to estate planning or have very few assets, it may make sense to utilize an online platform to create a basic estate...

27 July

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Converting Small PPP Loans To Grants – A Worthwhile Policy Proposal

Posted by Bobby Feisee

in Bobby's Blog, News

Congress is eyeing further legislative modifications to the Paycheck Protection Program, one of the pillar programs of the $2.2 trillion CARES Act enacted in response to the Coronavirus pandemic. One of the policy proposals making its way through the chambers of Congress include automatically forgiving PPP loans that are less than $150,000. The idea of automatic forgiveness for relatively small PPP loans can be attributed to the Consumer Bankers Association and the Bank Policy Institute, two prominent lobbying groups that represent large financial institutions. Current Loan Forgiveness Requirements are Administrative Hassle It is possible for a small business owner to have some, or all, of their PPP loan to be forgiven. Though, there is specific criterion that must be met which entails a fairly significant investment in administrative management (some would described it as a burden) for both small business owners and banks. To make matters worse, the rules governing PPP loan forgiveness...