In some circumstances, a trustee's fiduciary duty might oblige them to decant the trust; if the trust document does not clearly provide for decanting, the trustee must determine whether they have authority to decant the trust.
Income and estate tax implications vary for each estate depending on whether the decedent had a trust in place and, if so, the nature of the trust. Where the decedent transferred assets to a revocable living trust prior to death, one or more fiduciary income tax returns might be required to report income earned by assets in the estate and/or trust after death.
While some may be tempted to regard estate administration as a checklist, the unique and often unanticipated circumstances that might manifest during probate require careful consideration to ensure that all requirements have been met prior to closing the estate.
Executors are not legally required to retain a lawyer for estate administration. Many state-provided resources are available to executors. However, when an executor chooses to manage the probate process independently, they increase their chance of errors.
The preservation and resources needed to properly maintain collectibles pose distinctively different challenges and liabilities compared to real property, mutual funds, and assets outside of the art world.
Alaska first enacted statutes for DAPTs in 1997. Other states have passed similar legislation since then. One fact has remained constant: No creditor has collected a judgment or settlement against a debtor.
An executor pressured by surviving family to distribute an estate early might be tempted to comply with these requests with the best of intentions. However, the executor might be required to personally pay estate debts if they distribute assets too soon. The personal risk of early distribution is often too great for an executor to oblige.
Since trust protector provisions are not included in the trust document by default, many individuals find themselves in a situation where they wish to add provisions to an existing trust. If you are considering adding such provisions, outlined below are a few questions that should be discussed during a consultation with a trust attorney.
The Trump Administration released updated tax proposal terms in late April that closely match the proposals made prior to Election Day last year. If adopted, these tax reform provisions would offer substantial benefits to business owners and the wealthy.
Tennessee has a favorable tax reputation. While it is widely recognized that Tennessee does not impose income tax on wages, the state levies the Hall income tax on dividend and interest income. However, that tax is no longer permanent. Legislation enacted one year ago approved full repeal of the Hall income tax by January 1, 2022.