A recent article published on Yahoo Finance discusses some of the techniques wealthy families use to save on estate taxes. 

For most Americans, the tactics of the ultra-wealthy are not needed, but many find it fascinating to examine some of the techniques used by top0notch accountants and lawyers to save help rich clients save big on estate taxes. 

Using trusts to give away homes and country houses.

• Qualified personal residence trusts (QPRTs) freeze the value of the real estate property for tax. 
• Homeowner puts the property in trust. 
• When the trust ends, it is transferred out of the taxable estate and the estate only has to pay gift tax on the value of the property when the trust was formed. 

Passing wealth to future generations with trusts that last up to 1000 years. 

• The laws on these so called dynasty trusts vary by state, but the idea is that the heirs don’t own the assets, but they have the right to use them and receive income from them. 
• This plan can allow the passing of wealth through trusts with a long lasting term.

Charitable remainder trusts. 

• The person puts their assets in trust and collects annual payments for as long as they live, and only 10% of what remains in the charitable remainder trust has to go to a designated charity. 
• The trust can be funded with a variety of assets from yachts to businesses, making them useful for entrepreneurs looking to help the world and benefit for themselves. 

Buying off-shore life insurance policies. 

• Private-placement life insurance is used ot pass on assets without incurring estate tax. 
• The trust owns the life insurance policy that is created off-shore.  
• This one is primarily for the ultra wealthy, as the premiums are often 5 million up front.  

Transferring assets when the market is down. 

• Grantor-retained annuity trusts can facilitate big savings when the market is down. 
• They pay a fixed annuity, so a certain amount during a term such as two years, and appreciation of the asset’s value is not subject to estate tax. 

Contact an Experienced Estate Planning Attorney

Most of us are not ultra rich, so the techniques they use may not be applicable to you, but there are many tools available to facilitate successful estate planning even for the average American. At the Law Office of David Knecht, we have extensive experience with estate planning and create a customized plan with you to make sure that your loved ones are taken care of and your wishes are memorialized. Contact us at 707-451-4502.

This article summarizes highlights from a publication at TheStreet.com which discusses the four key questions in estate planning. 

According to a recent survey, although 87% of parents plan to leave an inheritance, only 37% reported an actual plan to do so.  For some, thinking about their demise is uncomfortable and for others, discussing an estate plan may create or reopen family disputes. 

Do I even need an estate plan?

• That same survey found that one in five respondents admitted to arguing over an inheritance. 
• Failing to plan for your assets, your healthcare if you are incapacitated and your end of life preferences can lead to confusion, results not in accordance with your desires, and unnecessary court costs. 
• You estate could potentially be eroded by the unintended and unanticipated costs that result from not having an estate plan or not keeping it updated. 

What assets will I transfer?

• You want to avoid any assets becoming unclaimed property.
• One of the first steps is to have a plan that lays out what assets you will give and account details. 
• Keep your asset list in a secure and obvious place. 

When should I transfer assets?

• You can transfer assets while you are alive or after you have passed.
• As you consider the question of when to transfer, you need to consider all the tax implications and also weigh your own need for the assets during your lifetime. 

 How can I communicate my plan to my family?

• Open communication with your family members can help you better plan because you can get an idea of their financial needs and wants. 
• The potential tax consequences of wealth transfer can also be important to discuss with family members.
• If you plan to leave a business to family members, it may be wise to help teach and train them about the business during your lifetime.  

Contact an Experienced Estate Planning Attorney

The famous phrase, “failing to plan is planning to fail” is an axiom of estate planning and finding the right advisors to assist you is key. At the Law Office of David Knecht, we have extensive experience with estate planning. We can create a customized plan with you, or if you already have an estate plan, we can help you ensure that it is updated and accurate. Contact us at 707-451-4502. 

In a series of articles, we have been following the news related to the Lisa Marie Presley Estate dispute. This case has general interest to many in the public because of the fame of Priscilla Presley and her granddaughter, Riley Keough, who recently starred in the hit Amazon series Daisy and the Six. For the team here at the Law Office of David Knecht, the case is interesting for ourselves and our clients to follow since it involves an estate planning dispute, with interesting takeaways about the importance of keeping an estate plan updated and making sure it is accurate. 

The latest news, which is sources from CNN, is that a settlement has been reached between Priscilla and her granddaughter. Ronson J Shamoun reported in a court hearing in Los Angeles before Judge Lynn Scaduto, “The parties would like to report that they’ve reached a settlement.” 

What was the estate dispute about?

• The dispute centered around the Promenade Trust, which named Riley Keough, Lisa Marie Presley’s oldest daughter as the beneficiary of her mother’s estate. 
• Lisa Marie Presley, Elvis Presley’s only child, died after being hospitalized following an apparent cardiac arrest. 

What were the terms of the settlement between Priscilla Presley and Riley Keough. 

• The terms of the settlement agreement are not public at this time. 

• The judge asked for the settlement and the motion for seal (which would prevent public access to the settlement) to be filed by June 12 and set another hearing for the case in August. 

• Shamoun, Priscilla Presley’s attorney, told reporters that all parties were happy and the family in now unified and excited for the future.

What was the problem with the estate plan?

• Lisa Marie Presley’s will contained a 2016 amendment that removed her mother and former business manager as former trustees. 
• Priscilla’s petition to the court identified problems with the amendment: she did not receive the amendment while Lisa was alive, which the Trust required, and her name was misspelled. The amendment was not witnessed or notarized and the authenticity of the signature was in question.

 What are some of the estate planning lessons for everyone that can be gleaned from this high-profile case? 

• Make sure you prioritize getting your estate plan complete and updated because you never know when your time will come. 
• Follow all of the rules and procedures properly to provide notice, have correct signatures, have proper notarization if required, etc. 
• Communicate changes to family members in advance so that if there are questions or concerns, they can be addressed while you are still alive. 

Contact an Experienced Estate Planning Attorney

Benjamin Franklin is said to have coined the well-known phrase: “Nothing is certain but death and taxes.” The challenges faced by the rich and famous can be a lesson to all of us that our time may come sooner than we think and planning ahead for the sake of the peace in your family is vital. At the Law Office of David Knecht, we have extensive experience with estate planning. We will listen to you to create a customized estate plan for your family, or if you already have an estate plan, we can help you ensure that it is updated and accurate. Contact us at 707-451-4502. 

A widely publicized estate planning case that is ongoing is the disputed estate of Lisa Marie Presley and new developments were recently reported by the LA Times. Lisa Marie (daughter of Elvis Presley) died in January of 2023, leaving behind a trust that purported to leave control of her estate to her adult daughter, Riley Keough. However, Priscilla Presley (Lisa Marie’s mother) has challenged the validity of the documents that changed the Trust. In 2016 Lisa Marie amended her will, naming her two eldest children as co-executors. Her son pre-deceased her. She filed to dissolve her marriage to Michael Lockwood that same year. Lisa Marie and Michael Lockwood were parents of two minor twins. The new development in this case is that the court has appointed the father of the twins, Michael Lockwood as the legal guardian of the twins.

Takeaway Lesson for Estate Planning from this Case – Avoid Conflicts of Interest

Why was Michael Lockwood a good choice for a guardian ad litem?

Although we do not know the specific basis for the court’s ruling on this issue, the LA Times quoted Michael Lockwood’s lawyer explaining why Lockwood was a good choice: He said that his client was ready, able and willing to protect the twins’ interests and that he has a good, collegial, familial relationship with all of the parties involved. Perhaps more importantly, there is no conflict of interest regarding appointment because the proposed guardian is not a beneficiary of the trust instrument at issue. 

What is the estate planning lesson we can learn from this new development in this case? Avoid conflicts of interest.

When doing estate planning, an important consideration should be any real conflicts of interest of potential conflicts of interest. When you are alive, you are in the best position to know your beneficiaries, their relationship to each other, and try to look down the road to understand what motivations may be in play after you have passed. When you meet with your attorney to do your estate planning, it will likely be helpful for you to talk through any concerns that you might have about conflicts of interest and the possible methods to avert your worries. 

What other estate planning lessons can be learned from this case? The importance of following procedures and keeping all documents up to date. 

Some of the issues that are in dispute in this trust case are the authenticity and validity of the 2016 alleged amendment to Lisa Marie’s trust amendment. Pricilla has alleged that it wasn’t delivered to her during Lisa Marie’s lifetime, that the date was added via PDF, that the document misspells Priscilla’s name, that the signature is on a separate page from the substantive provisions, that the signature looks inconsistent with her usual signature and that the purported 2016 Amendment was neither witnessed nor notarized.

The most important takeaway from this case for anyone hoping to avoid estate planning disputes in the future is the importance of following the procedures required by the will, keeping it updated, being accurate, and fully complying with all of the requirements in the documents.

Contact an Experienced Estate Planning Firm

Estate planning that is kept up to date, drafted accurately, and performed in compliance with the terms of the estate instrument is vital for avoiding estate planning disputed. For this reason, finding an experienced law firm to assist you is essential in making sure that your estate planning is done properly to avoid disputes after you have passed. At the Law Office of David Knecht, we want to help you create a current and accurate estate plan that will help you achieve your goals. Contact us at 707-451-4502.