January 2011- ESTATE PLANNING RESOLUTION FIELD GUIDE FOR 2011
Happy New Year to all of the friends, family and clients of JGB! Our law firm was
fortunate to have a successful 2010 because of your support and referrals. We plan on
building on that success in 2011 and beyond. As 2010 came to a close, we were routinely asked, “What should we be concerned about with regard to our estate plan
for 2011?” Given the high frequency of this question, we decided to devote our January newsletter to help you get squared away for
a successful 2011.
October 2010- What is a GRAT?
A Grantor Retained Annuity Trust (GRAT) is a planning device used to give assets to beneficiaries while minimizing Estate & Gift Taxes. Given today’s extremely low interest rates, those with estates large enough to worry about the Federal Estate Tax should investigate using a GRAT to reduce their death taxes. As there is no Generation-Skipping Transfer Tax in 2010, this year is ideal for shifting wealth to grandchildren in particular.
September 2010- ILITS- Shiny and New... Again
“It's deja vu all over again” – applied to the current context of estate planning, this famous Yogi Berra quote could easily be made to refer to the resurgence of Irrevocable Life Insurance Trusts (“ILITs”). For the uninitiated, this begs the first question, “What is an ILIT?” The answer itself is somewhat of a paradox, being simultaneously simple and terribly complicated. First the simple answer: an ILIT is an irrevocable trust into which individuals place life insurance for the benefit of others. Now we will use the remainder of this article to discuss the complicated answer.
August 2010- Special Needs Planning in Virginia
Everyone wants to protect their loved ones when they are gone. When one of the beneficiaries is a “Special Needs Beneficiary,” the will/trust must be prepared with extra care so that an inheritance does not disrupt the beneficiary’s support system.
WHO IS A “SPECIAL NEEDS BENEFICIARY?"
July 2010- Keeping the Family Cabin in the Family
Many families count among their most treasured possessions some distinctive ancestral property. This may be a mountain cabin, a lake, beach, or river house, a hunting lodge or even the old family farm. These properties are dear to families as both a place of respite and as places which in some way embody the family’s identity. What distinguishes ancestral property for you is your desire to keep the property in your family for generations. Maintaining any property is difficult; a property cannot navigate the course of two or three generations unless the original generation made provisions for the property’s management and support. This article will first explore the pitfalls of ancestral property and then explain in brief how your goals could be better served by creating a trust or business entity to hold the property for your descendants.
June 2010- What Type of Corporate Entity Should I Choose?
When starting a business, one of the first critical decisions you make is what type of entity you wish to use as your operational structure. The most common choices include: C Corp, S Corp, LLC, Partnership and Sole Proprietor. Each structure can provide various positive benefits and negative obstacles to the operation of your business, depending on various factors. This article will discuss the difference between C Corps and S Corps. We will not discuss LLC’s or Partnerships in any great detail; but, rather leave the discussion of these entities for another edition of our newsletter.
May 2010- Probate in Virginia
Most everyone has heard of Probate, but few understand what is involved with Probate in Virginia. The word “Probate” comes from the Latin word probatum which means “to prove.” Probate is the court regulated process for distributing a decedent.s assets to the beneficiaries, after all debts, expenses, taxes, and claims have been settled. A Last Will and Testament must be Probated to be effective. If there is no valid Will the circuit court distributes according to the default intestate succession laws through the Probate process.
April 2010- Should I Put My Timeshare Into My Trust?
Welcome to the April edition of our newsletter. As part of our commitment to making trust plans work, Johnson, Gasink & Baxter, LLP transfers timeshares into trusts all over Virginia. We are happy to prepare timeshare deeds both for existing clients and for anyone who needs help funding their trust.
March 2010- ROTH CONVERSION: STEAK OR JUST SIZZLE?
The attorneys of Johnson, Gasink, & Baxter, LLP (JGB) welcome you to this edition of our newsletter in which Jeremy C. Johnson explores Roth Conversions. For our professional advisors, we will be offering a Continuing Education class on this and other topics on March 23rd at The Chesapeake in Newport News.
February 2010- Avoiding the Pitfalls of the 2010 Estate Tax
2010 continues to challenge us with both unexpected weather and estate tax policy. The attorneys of Johnson, Gasink, & Baxter, LLP (JGB) welcome you to this edition of our newsletter in which Spencer Baxter explores the implications of the chaos in the Federal Estate Tax on existing plans. For our professional advisors, we will be offering a Continuing Education class on this and other topics on March 23 at The Chesapeake in Newport News. Watch next month’s newsletter for more details!
January 2010- The Estate Tax is Dead. Long Live the Estate Tax
2009 has been a busy year. With the support of our many friends, we formed the Law Firm of Johnson, Gasink & Baxter, LLP and have been thrilled with our success and with the support our friends have shown us. In the new year, we look forward to new challenges as we adjust to changes in the Federal Estate Tax (see article below), as we welcome new members of our family (figuratively and literally), and as we continue to teach about Wills, Trusts, Estates, and Business