03 December

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New Administration May Mean Major Estate Tax Changes

The estate tax (also known as the "death tax") may be on the proverbial chopping block with President-elect Donald Trump ascending to Commander-in-Chief, along with a Republican-controlled Congress. Most, if not all, Republicans oppose the estate tax. President-elect Trump’s tax plan expressly calls for an outright repeal of the tax and imposing a capital gains tax on assets left to heirs above $10 million, according to Forbes.com. The estate tax is generally not an issue for most people due to the sizable exemptions afforded under the tax code. However, people often make the mistake that estate planning is the same thing as estate tax planning. Rather, estate tax planning is one component of estate planning but there are many other issues your family must deal with on death as it is a major life event and you still will need to deal with local governments, financial institutions and family dynamics. Here is...

18 November

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Trust Funding – Education is our Goal

Posted by Bobby Feisee

in Bobby's Blog

At InSight Law, our focus is always on education. We are constantly striving to educate our clients, their families, and advisors around the community. One thing we stress is trust “funding”. Trust funding involves the coordination of all your assets with your trust. This is to ensure all the instructions you lay out in your trust will apply to your assets in the event of a disability or a death. We often see clients that have setup a trust several years ago and never done anything with it. It eventually becomes just a pretty binder on a shelf. Then, a disability or death occurs and the family goes into that pretty binder and discovers it is rather useless. However, if your assets are properly coordinated with your trust, the trust assets will be managed by the next person you have named as trustee upon your death or disability. This makes a...

18 November

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Proper Accounting of Business Loans Will Help Save Time and Money Down the Road

Posted by Bobby Feisee

in Bobby's Blog

As new businesses are starting out, it can be difficult to establish a steady cash flow to cover expenses. Business owners often want to “lend” their business money here and there to make sure the company stays operational. In many cases, where the business only has one member or owner, these loans go undocumented and no interest is paid when the principal is paid back. Once you decide to use your personal funds to invest in your business, you’ll need to work with your accountant to determine if the money should be treated as equity or as a loan to the business. Either way, the transfer of funds between owner and business should be well documented in the company’s accounting records. An equity investment, commonly referred to as a capital contribution, is when the owner transfers money into the business only for an increase in the owner’s equity. This is not a...

23 October

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Death with Dignity – How You Can Incorporate a “Graceful Departure” in Your Estate Plan

Posted by Bobby Feisee

in News

The D.C. Council is debating legislation that would allow doctors to prescribe lethal doses of prescription medication to terminally ill patients. The “Death with Dignity Act,” introduced by Council member Mary Cheh made it out of a five-member committee by a 3-2 vote. Council member Cheh introduced the bill to give “dying patients greater choice and control over their final moments,” according to the Washington Times. “In the face of imminent death, meeting a patient’s individual needs and wishes compassionately should be our top priority. If a dying person wishes to peacefully end his or her life rather than endure prolonged pain and suffering, we should not stand in their way,” said Council member Cheh. Here is an ABC News report discussing the proposed legislation: https://www.youtube.com/watch?v=NjPkYRxyjjg No matter where you stand on the issue of assisting a patient with ending their life, it is important to know that there are many ways to prepare if you...

14 September

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My “Message in a Bottle” to My Daugher Nava Feisee

Posted by Bobby Feisee

in Bobby's Blog

When I sat down to write this letter I did not expect to get emotional, but when I stared at the screen to think about what I would say I realized I will not always be here with you. I love you so much it hurts me to think of not being here with you. You are not even six months old and you have the whole world and rest of your life in front of you. Below are some ideas and lessons that have helped your father. Some of these lessons were taught to me by my parents, siblings, teachers and friends. Others were hard earned lessons that cost me dearly with either time or money. 1. You create your own reality. You can decide to be happy or be sad. You can decide to challenge yourself or waste time. You can achieve as much or as little as you want. You...

25 August

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Time is Running Out for Maximizing the Effectiveness of Family Limited Partnerships in Your Estate Plan

Posted by Bobby Feisee

in Bobby's Blog

Establishing a family limited partnership can be helpful in business succession planning, business continuity plans, and as a component of your estate plan. It is especially helpful if you own real estate, a family business, and concentrated positions of publicly traded stock. However, the IRS is starting to scrutinize these partnerships and has proposed a new regulation, specifically a revised versionof Section 2704 that could have a dramatic impact on your estate planning by eliminating valuation discounts. If you are looking to minimize your future estate tax this is critical and time is of the essence. Once the revised Section 2704 is in effect, which could be around the end of calendar year 2016, the ability to claim discounts might be substantially reduced or eliminated thus curtailing your tax and asset protection planning flexibility. Managing Estate Taxes If you own the aforementioned combination of real estate, a successful business, stock options, etc. you...

09 August

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Another Celebrity Leaves Sizable Estate, But No Will

Posted by Bobby Feisee

in Bobby's Blog

Actor Anton Yelchin, best known for his role as Chekov in the revamped Stark Trek movies, died tragically in an accident on June 19, 2016. Mr. Yelchin, left behind a sizable $1.4 million estate and no will. He follows other notable celebrities like Prince and Amy Winehouse who suddenly passed on leaving substantial estates, but no estate plan. Mr. Yelchin was only 27 years old, but he had at least $641,000 in personal property and had $731,000 in equity in his home, according to the Associated Press. His parents filed to become administrators of his estate in Los Angeles Superior Court. Our deepest sympathies go out to Mr. Yelchin’s parents. Losing a child is a gut-wrenching experience no child should have to endure. Unfortunately, their stress was likely exacerbated learning that there was no will, trust, or any other estate plan for their son. Mr. Yelchin was not married and had no...

24 June

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Mandatory IRA Withdrawals May Create Unforeseen Problems for Retirees

Posted by Bobby Feisee

in Bobby's Blog

2016 is a big year for individual retirement accounts (IRA). Why? Because the first wave of U.S. baby boomers are turning 70 this year. That means they can begin taking mandatory withdrawals from their IRAs. Laura Sanders wrote a fantastic article for the Wall Street Journal about the complexities and tricky issues associated with mandatory withdrawals. She highlighted these challenges by following the withdrawal adventures of Natalie Choate, a Harvard Law graduate who literally wrote a book about IRAs and estate planning. Ms. Choate became eligible for her first mandatory withdrawal from her IRA and realized it was not as simple as she was anticipating. “Now I have sympathy for average people facing these decisions,” she says. We recommend you discuss your options with your financial advisor and ensure you have the best plan in place to meet your retirement goals. However, here are some important questions that you and your loved ones...

20 June

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Baby on Board, Part 2 – I Care…Therefore, I Plan

Posted by Bobby Feisee

in Bobby's Blog

Many of us lead incredibly busy lives. Work, social events with friends and family, taking the kids from one place to another, trying to make a better life for my family, and so forth. Who has time to think about estate planning? That is something far down on the list for most people because they just don’t have time for it and don’t want to think about it. I always wondered why people would not take the time to make sure they have a plan in place for their family, but now I get it. I found myself, an estate planning attorney, putting off updating my own estate plan, even with the birth of my daughter. Like most people I have found myself making excuses so I can spend time on other supposedly more important daily tasks. Then, it hit me – I was looking at the estate planning process all wrong. I viewed estate...