Category Archives: Trusts

Interesting investing trend

Posted on by under BDITs, Business Succession Planning, Business Transitions, Dynasty Trusts, Estate Planning, Family Business, Generation Skipping Tax, Gift Tax, Illiquid Assets, Kansas, Missouri, Probate, Small Business, Trusts, Wills

According to this CNBC article, many very affluent investors are shifting their investment portfolios around as they search for (1) safety and (2) yield. Safety or asset preservation and yield or accumulation are two often conflicting goals for investors. The article does point out that following the investing habits of very affluent investors (those with over $30 million to invest) is not necessarily a good idea for ordinary investors. But as Robert Frank notes, wealthy investors “set the tone for the broader market,” so if they are dumping publicly traded U.S. stocks in favor of private companies, real estate, and commodities (as the study suggests many are), it may send signals rippling through the broader stock markets for some time.

For both asset protection (from creditors, taxes, divorcing spouses, and spendthrift children) and tax benefits, we’re recommending Inheritor’s Trusts or Beneficiary Defective Inheritor’s Trusts (BDITs) to many of our affluent clients, clients who anticipate  receiving an inheritance from their relatives of  over $400,000, and entrepreneurial clients who like to start, grow, and sell small businesses. An Inheritor’s Trust works well in any of these situations and is an exciting new tool to help facilitate your estate and financial planning needs. Call (913-707-9220) or email (steve@johnsonlawkc.com) our law firm, Johnson Law KC LLC, to learn more about how you can benefit from an Inheritor’s Trust and for a convenient and free half-hour consultation.

(c) 2012, Stephen M. Johnson, Esq.

A One Year Extension to the Estate Tax Law?

Posted on by under Estate Planning, Estate Tax, Family Business, Gift Tax, Gifts to Minors, Kansas, Missouri, Small Business, Trusts, Wills

House Speaker John Boehner (R-OH) said in an interview yesterday that he wants the current estate tax law extended for one year. President Obama is opposed to extending the so-called Bush tax cuts. If Congress and the President do not take action, the estate tax will come back at its pre-2011 tax cut level in 2013 – up to 50% tax on any estate over $1 million. Such a move would not only cause confusion and uncertainty for estate planning professionals and their clients, it would also have economic consequences, including plunging America back into a recession, according to the Congressional Budget Office. As we get closer to 2013 and this fall’s election, expect lots of discussion from Washington, D.C. regarding taxes.

In the meantime, married couples can give up to $10.24 million in gifts to family members and friends this year and leave a combined $10.24 million estate without paying federal estate or gift taxes. If our firm, Johnson Law KC LLC, can help you with your estate planning needs, please email (steve@johnsonlawkc.com) or call (913-707-9220) us for a convenient appointment and free half hour consultation.

(c) 2012, Stephen M. Johnson, Esq.

5 Reasons to Have an Estate Plan

Posted on by under Estate Planning, Estate Tax, Family Business, Kansas, Missouri, Small Business, Trusts, Wills

From Texas Tech law professor Gerry Beyer, a noted estate planning scholar and author of the Wills, Trusts & Estates Prof blog, here are 5 reasons to have an estate plan.

Many people think that only wealthy married couples need estate plans. Nothing could be further from the truth. If you are an adult or have children, you need an estate plan. Every adult needs at least a will, a living will, a durable medical power of attorney, and a durable financial power of attorney. Many adults greatly benefit from using a trust to shield their hard-earned wealth from taxes and protecting assets or a professional practice (e.g. law, medicine, engineering, accounting). If our law firm, Johnson Law KC LLC, can help you with your estate planning needs, call (913-707-9220) or email us (steve@johnsonlawkc.com) for a convenient appointment and a free 1/2 hour consultation.

(c) 2012, Stephen M. Johnson, Esq.

Special Needs Trusts for Veterans and Military Families

Posted on by under Estate Planning, Gifts to Minors, Kansas, Missouri, Special Needs Trusts, Trusts, Wills

Via the Wills and Trusts Prof blog, Bernard Krooks, a New York lawyer who spoke very persuasively on long term care planning at the 2012 KC Estate Planning Symposium, has this article in Forbes on a new provision to allow military veterans and active service members to start special needs trusts for their severely disabled children, to ensure their families receive better care. Great idea, advocated by Sen. Jerry Moran, who hails from the great state of Kansas (my home state).

If our law firm, Johnson Law KC LLC, can help you and your family with a special needs trust to provide for your family member, please call (913-707-9220) or email us (steve@johnsonlawkc.com) for a convenient appointment.

(c) 2012, Stephen M. Johnson, Esq.

Facebook: to prenup or not?

Posted on by under Business Succession Planning, Estate Planning, Family Business, Kansas, Missouri, Prenups, Trusts, Wills

Last week’s Facebook IPO made several early investors billionaires or millionaires – kudos to them on having a nice payday from their investment. Donald Trump offered some indirect advice –  get a premarital agreement – to Mark Zuckerberg, Facebook’s co-founder, official face, and the world’s youngest billionaire. As it turns out, Zuckerberg married his long time girlfriend the day after the IPO in a private ceremony – congratulations to the happy couple!

So do estate planners recommend premarital agreements for their clients? It depends on the lawyer. I recommend couples consider premarital agreements when it’s a 2nd marriage for both spouses, to help resolve potential inheritance issues with their children from previous marriages. But I don’t usually advise couples to get premarital agreements in cases of wealth inequality or some other circumstances. What do you think? To prenup or not?

(c) 2012, Stephen M. Johnson, Esq.

KC Estate Planning Symposium

Posted on by under Estate Planning, Family Business, Kansas, Missouri, Small Business, Trusts, Wills

I’m looking forward to attending the KC Estate Planning Symposium Thursday in Overland Park. I hope to post some insights from what promises to be a great program of nationally renown speakers on timely estate planning topics. If my firm, Johnson Law KC LLC, can serve your estate planning needs, please call me (913-707-9220) or email (steve@johnsonlawkc.com) for a convenient appointment.

(c) 2012, Stephen M. Johnson, Esq.

Heckerling Insights: Part 3

Posted on by under BDITs, Business Succession Planning, Business Transitions, Dynasty Trusts, Estate Planning, Estate Tax, Family Business, Family Limited Partnerships, Generation Skipping Tax, Gift Tax, Income Tax, Kansas, Missouri, Probate, QPRTs, Small Business, Trust protector, Trusts, Wills

Here are some interesting insights from our colleagues at the Heckerling Institute from this year’s conference. Among other topics, beneficiary defective inheritor’s trusts (BDITs), generation skipping tax planning (GST), trust protectors, qualified personal residence trusts (QPRTs), grantor trusts, and various probate planning issues are discussed. If we can help you and your family with any of these issues or address other estate planning or small business issues you have, please call (913-707-9220) or email us (steve@johnsonlawkc.com) for a convenient appointment.

Our firm, Johnson Law KC LLC, is developing a practice in Missouri inheritor’s trust and other beneficiary defective inheritor’s trusts (BDITs) and excited about sharing this new tool with clients to help meet their estate planning needs now and for generations to come.

(c) 2012, Stephen M. Johnson, Esq.

Happy Tax Day!

Posted on by under Business Succession Planning, Business Transitions, Digital Estate Planning, Estate Planning, Financial Powers of Attorney, Income Tax, Kansas, Living Wills, Medical Powers of Attorney, Missouri, Trusts, Wills

Happy tax day and many happy returns (or refunds, as the case may be)!

In unrelated news, the Daily Mail (UK) has this article about the dangers of using Google to find medical treatments and self-medicating without seeing a doctor about medical issues. A parallel problem exists in the legal world: many people use the Internet to try and solve their legal issues without consulting with an attorney. Remember, if you use an online legal form, you’re doing so at your own risk. If it’s anything important, or that could affect your rights,  your finances, or your family, you should consult with an attorney. Only an attorney has been through three years of law school, passed a bar exam, and become well versed in handling your particular issue. Some online legal resources have useful insights, but many are riddled with errors, hopelessly obsolete, filled with misstatements of the law, or  misleading or incomplete documents that won’t hold up in court (and aren’t worth the paper they’re printed on).

At Johnson Law KC LLC, we constantly review and revise our documents and keep up to the moment on new legal developments to ensure our clients always get the best representation and legal advice. If we can help you or your loved ones, please call (913-707-9220) or email (steve@johnsonlawkc.com) for a convenient appointment.

(c) 2012, Stephen M. Johnson, Esq.

Lump Sum Retirement Planning

Posted on by under Business Succession Planning, Business Transitions, Dynasty Trusts, Estate Planning, Family Business, Family Limited Partnerships, Kansas, Missouri, Probate, Small Business, Trusts, Wills

This video from Smart Money has useful strategies for lump sums from early retirement. If you’ve taken early retirement, you need to review and revise your estate planning documents as well. Call (913-707-9220) or email (steve@johnsonlawkc.com) us and we’d be happy to work with you on your early retirement needs.

(c) 2012, Stephen M. Johnson, Esq.

Shhhh … You’ve Inherited Money

Posted on by under Business Succession Planning, Business Transitions, Dynasty Trusts, Estate Planning, Estate Tax, Family Business, Generation Skipping Tax, Kansas, Missouri, Small Business, Trusts, Wills

Smart Money has this interesting video about how to interact with family and friends when you inherit money or have a large financial windfall. Our law firm has decades of experiencing advising wealthy individuals and families. Affluent people don’t always look the same either – some look like a socialite, while others may be a small business owner or farmer. If you have inherited money or had a windfall, be humble and quiet about it, and talk with your financial advisor and attorney ASAP. If we can help you deal with an inheritance and related estate planning needs, call (913-707-9220) or email us (steve@johnsonlawkc.com) for a convenient appointment.

(c) 2012, Stephen M. Johnson, Esq.