Category Archives: Wills

Elder Law and Finances

Posted on by under Elder Law, Estate Planning, Kansas, Living Wills, Medical Powers of Attorney, Missouri, Probate, Retirement, Special Needs Trusts, Trusts, Wills

CNBC has this interesting article about a dilemma many people face – when to take over an elderly parent’s checkbook and finances. To pay bills for an elderly parent, you must have a durable financial power of attorney in place. There are a myriad of elder law issues to examine as well. You need an experienced estate planning and elder law attorney to help guide you and your loved ones.

If my office, Johnson Law KC LLC, can help you or your elderly parent with your estate planning or elder law needs, give me a call (913-707-9220) or email me (steve@johnsonlawkc.com) to schedule a convenient, free consult.

(c) 2013, Stephen M. Johnson, Esq.

Cross posted to The KC Elder Law Blog.

Marriage and Taxes

Posted on by under Estate Planning, Estate Tax, Financial Powers of Attorney, Generation Skipping Tax, Gift Tax, Kansas, Living Wills, Medical Powers of Attorney, Missouri, Trusts, Wills

You’ve probably seen news stories about the Supreme Court arguments this Tuesday and Wednesday in the gay marriage cases, Hollingsworth v. Perry and Windsor v. United States. This blog doesn’t take political positions, but the Windsor case presents an interesting marriage and tax question. Windsor involves a lesbian couple who were legally married in New York, where one of the spouses died, and the surviving spouse tried to claim a marital deduction for estate tax purposes. One of the federal tax benefits to being married is that the surviving spouse can claim a marital deduction on the estate tax. The government denied the marriage tax benefit in Windsor because under federal law (the Defense of Marriage Act (1996) (“DOMA”)), marriage is defined as between 1 man and 1 woman, so a lesbian couple isn’t married under federal law. So Ms. Windsor, the elderly widow from New York, doesn’t get the marriage tax benefit, even though she was legally married under New York law (marriage is a state law issue, and New York allows same-sex marriage). Ms. Windsor sued the government, arguing that DOMA is unconstitutional, because it prevents her from receiving the tax benefit she would get if federal law recognized her as legally married (like New York’s law did).

So does Ms. Windsor get her tax benefit, does DOMA’s marriage definition fall, or will something else happen? We will know by the end of June, when the Court issues its opinions. Ms. Windsor’s case may well join the annals of tax law stories.

If my office, Johnson Law KC LLC, can help you navigate the complex labyrinth of tax law and estate planning, give me a call (913-707-9220) or email (steve@johnsonlawkc.com) for a convenient free consult.

(c), 2013, Stephen M. Johnson, Esq.

Inheriting personal property

Posted on by under Estate Planning, Financial Powers of Attorney, Gift Tax, Gifts to Minors, Illiquid Assets, Kansas, Missouri, Probate, Small Business, Trusts, Wills

This Daily Mail article talks about Delta Airlines’ new policy prohibiting transfer of frequent flier miles to family members or friends upon death. Frequent flier miles are a form of personal property – you accumulate them and then trade them for a ticket or two on a flight of your choice – and this is another limitation on transferring (or alienation, as lawyers like to say) of personal property. Is it legal? Sure – if you’re issuing personal property to others, you can specify the conditions (e.g. only this airline, these flights, this time of year, these destinations, etc). Like many licenses, airline tickets (or movie, theater, or sporting game tickets) have restrictions on use, re-use, and transfer. The moral of this story is don’t count on being able to pass your frequent flier miles on to your family.

If my office, Johnson Law KC LLC, can help you or your family with estate planning questions, please call me (913-707-9220) or email me (steve@johnsonlawkc.com) to schedule a free, convenient consultation.

(c) 2013, Stephen M. Johnson, Esq.

Gift Tax Traps

Posted on by under Business Succession Planning, Business Transitions, Estate Planning, Estate Tax, Family Business, Family Limited Partnerships, Generation Skipping Tax, Gift Tax, Kansas, Missouri, Trusts, Wills

The WSJ has this helpful article, entitled “Gift Taxes: What Your CPA Doesn’t Know” about potential gift tax traps. The article helpfully recommends having your CPA and your attorney collaborate on gift tax returns. Specifically, the article zeroes in on reporting large gifts of real estate, business interests, or other non-routine gifts of stocks and bonds.

The gift tax and generation-skipping transfer (GST) tax are complex estate planning issues. If my office, Johnson Law KC LLC, can help you or your family navigate these challenges this tax season, or work with your CPA to review returns, call (913-707-9220) or email me (steve@johnsonlawkc.com) for a convenient free consult.

(c) 2013, Stephen M. Johnson, Esq.

Surviving IRS Audits

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

CNBC has this interesting article about how best to handle an IRS audit. While no one wants to be audited by the IRS, Ms. Washington’s article provides some helpful tips for surviving an IRS audit.

If my firm, Johnson Law KC LLC, can help you with tax or other estate planning issues, call (913-707-9220) or email (steve@johnsonlawkc.com) for a convenient free consult.

(c) 2013, Stephen M. Johnson, Esq.

Kansas City Wealth

Posted on by under Business Succession Planning, Business Transitions, Estate Planning, Family Business, Financial Powers of Attorney, Kansas, Living Wills, Medical Powers of Attorney, Missouri, Retirement, Roth IRA, Small Business, Trusts, Wills

The Forbes annual billionaire list has many old names and a few fresh faces. This year, 4 Kansas City area residents made the list – Neal Patterson, of Cerner, Donald Hall, of Hallmark, and Min Kao and Gary Burrell, of Garmin. Congratulations to each of them on successfully building and preserving wealth amidst a challenging economic environment.

Most of us won’t be making the Forbes billionaire list any time soon. But most of us do have homes, cars, bank accounts, stocks, or a retirement plan. Everyone from Bill Gates to Joe Six Pack needs estate planning documents. Don’t bet on legal forms from the Internet or library. Two things to think about: (1) if you’re an adult, you need a will, living will, and durable medical and financial powers of attorney, and (2) if your family’s future well being is at stake, you want to be sure everything will work smoothly when it’s needed. If my firm, Johnson Law KC LLC, can serve your estate planning or business transition needs, call (913-707-9220) or email (steve@johnsonlawkc.com) me for a convenient, free consult.

(c) 2013, Stephen M. Johnson, Esq.

Tea with the Queen?

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

The Daily Telegraph (of Great Britain) has this interesting article about a growing trend among some wealthy Americans of renouncing their American citizenship to become British citizens and take advantage of lower taxes in some situations. On this side of the pond, PGA golfer Phil Mickelson recently made waves by suggesting he might move from California to another state to pay lower taxes.

While we don’t recommend clients move to another state or leave America for tax reasons, we often counsel clients about which states are best for trusts and other estate planning, asset protection, or business issues. Which states allow dynasty trusts that last for generations? Which states give people the best asset protection against potential creditors? Which states are most business-friendly? What’s the difference between Kansas and Missouri trusts and probate? Does Kansas or Missouri give you better bankruptcy protection? We’ve often dealt with these questions and more, so my office, Johnson Law KC LLC, is experienced, ready, and looking forward to help you with your estate planning or other legal needs, please give us a call (913-707-9220) or email (steve@johnsonlawkc.com) for a convenient appointment and free consultation.

(c) 2013, Stephen M. Johnson, Esq.

Reading Your Trust (and Estate Plan)

Posted on by under Business Succession Planning, Estate Planning, Family Business, Financial Powers of Attorney, Gifts to Minors, Kansas, Living Wills, LLCs, Medical Powers of Attorney, Missouri, Prenups, Retirement, Small Business, Trusts, Wills

Read your trust. Yes, I know, reading a will, trust, or almost anything written by a lawyer (except John Grisham or Scott Turow) sounds as appealing as doing your taxes, having a root canal, getting caught in a blizzard, or spending the night in an airport. And understanding “legalese” is even more daunting. Let’s face it: most lawyers don’t write well, and when they do write, they level forests, producing 50 page “briefs”and minor novellas by the hour. Lawyers speak legalese and often leave a trail of misplaced participles, dangling modifiers, and bizarre archaic phrases (e.g. “hereafter,” “heretofore,” “said party of the first part,” “such party of the second party,” “inter alia,” “res ipsa loquitor,” “stare decisis et non quieta movera,” “cy pres,” “stipulated,”  “subsequent,” “give, bequeath, and devise,” and “situate”). Most people don’t read the small print, we all just want to get it done (and leave the details to the professionals). People hire lawyers to apply their wishes and desires for the future to their family’s legal landscape: clients tell lawyers “we want X,” now figure out how to do it. And lawyers are the professionals who what you need in a will, trust, living will, powers of attorney, and who can answer your tax issues, and other vital questions.

If you’d like to work with a lawyer who speaks and writes in plain English and can help you decipher the legalese of your trust and other estate planning documents, give me a call (913-707-9220) or email me (steve@johnsonlawkc.com) for a convenient free consult with my firm, Johnson Law KC LLC. We practice law differently.

(c) 2013, Stephen M. Johnson, Esq.

Selecting a Trustee

Posted on by under Business Succession Planning, Business Transitions, Estate Planning, Family Business, Financial Powers of Attorney, Gifts to Minors, Illiquid Assets, Kansas, Living Wills, Medical Powers of Attorney, Missouri, Prenups, Probate, Retirement, Small Business, Trusts, Wills

So you’ve decided it’s time to do some estate planning and you’ve talked with you estate planning attorney. And the lawyer asks who you want to serve as trustee. A friend or family member? Your bank or a trust company? Here’s a helpful article on some non-legal issues to think about when selecting a trustee.

The lawyer walks you through some of the pros and cons of each option – a friend or family member probably won’t expect to be paid for their service, but they may not know anything about investments or administering the trust for you and your family, so they could jeopardize your financial legacy to your descendants. A bank or trust company will usually serve for a fee of 1%/year of assets under management and they have professional investment and advising services included (so you’ll be getting a good return on investment and monthly or quarterly financial statements), but they might not want real estate or closely held (and non-diversified) business interests or other assets in the trust. And banks and trust companies often change through mergers and other business deals over the years, not to mention the internal turn over of trust officers and employees that you actually work with.

Even if you don’t set up a trust, the lawyer will ask a similar question about your will (who’s your executor?), your living will and your financial and medical powers of attorney (who’s your agent/attorney in fact?). Who’s going to be making decisions on your behalf? Who do you trust to handle your last affairs and settle your estate? The law doesn’t provide many answers, but a good estate planning lawyer can walk you through your options, and help you select the person or institution best suited for your unique situation and your needs. If I can help you on your estate planning journey or answer any other questions, please give me a call (913-707-9220) or email me (steve@johnsonlawkc.com) for a convenient appointment with my firm, Johnson Law KC LLC.

(c) 2013, Stephen M. Johnson, Esq.

Gun Trusts: Inheriting Firearms

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

The NYT has this interesting article about gun trusts. A gun trust allows an individual to buy or give certain firearms or paraphernalia  to the next generation. Gun trusts aren’t widely used for most common firearms (antiques, pistols, revolvers, rifles, or shotguns), but are a useful tool for more exotic firearms and accessories (machine guns, silencers, and other items). As the article notes, they’re a perfectly legal, if mostly unknown, way to buy, own, or pass on firearms.

If you have questions about a gun trust or other estate planning, asset protection, or business succession issues, please call (913-707-9220) or email me (steve@johnsonlawkc.com) at your convenience and my firm, Johnson Law KC LLC, will be happy to serve your legal needs.

(c) 2013, Stephen M. Johnson, Esq.