Facebook

Google

9:00 - 5:00

Our Opening Hours Mon. - Fri.

702.938.2244

Call Us For Free Consultation

Search
Menu
 

Blog

Obama’s New IDGT Proposal

By Attorney David M. Grant President Obama’s administration has recently proposed a change to the federal income and estate tax laws that would make the use of the Intentionally Defective Grantor Trust (“IDGT”) strategy essentially useless.  Important elements of the administration’s IDGT proposal can be found here. As a summary of the key features of the proposal, it would: Include the assets of  an IDGT in the gross estate of the grantor for estate tax purposes; Subject to gift tax any distribution from the IDGT to one or more beneficiaries during the grantor’s life; and Subject to gift tax the remaining IDGT...

Continue reading

Facebook Founder Renounces U.S. Citizenship, Saves Taxes

By Attorney David M. Grant It was announced on Bloomberg.com earlier this week that one of Facebook's founders, Eduardo Saverin, renounced his US citizenship last September.  The article is very good at explaining Mr. Saverin's savings as related to the capital gains tax, but fails altogether to point out his huge potential transfer tax savings as related to the Gift Tax, Generations Skipping Transfer (GST) Tax, and Estate Tax. While he undoubtedly paid the "exit" tax or the expatriation tax (see the Heroes Earnings Assistance and Relief Tax Act of 2008), all future growth and appreciation in Saverin's estate will no longer be subject to...

Continue reading

3rd Annual Domestic Asset Protection Trust State Rankings Chart Released

The 3rd Annual Domestic Asset Protection Trust State Rankings Chart has been released!  The rankings and information is compiled by our colleague, Steve Oshins of the Law Firm of Oshins & Associates, and is herein used with his permission.  It can be accessed here on our website. Please know that for the first time since the chart was originally created, it now assigns numerical rankings to each DAPT state. Also, the approximate weights assigned to each variable are listed.  However, please note that in the interests of impartiality, since Nevada is the only state (of the top eight states per the rankings) that...

Continue reading

Top Ten Common Estate Mistakes

By Bob Morris and David Grant “Poor Man’s” estate plan.  Do-it-yourself estate plans can create more problems than they solve.  Many well-intentioned people will title assets jointly with a spouse, friend, or child, not understanding the significant legal ramifications.  Others will name a “Pay on Death” (“POD” or “TOD,” as they are sometimes called) beneficiary and consider their estate planning complete, while not planning for very real risks and contingencies. Failure to plan for significant others.  Domestic partners and others who cohabitate and live together do not share the same legal rights as married couples with regard to inheritances, health...

Continue reading

Probate Question: Am I responsible for my half sister’s debts after she passed away?

By: Mark L. Dodds, Esq., Partner at Grant Morris Doddsdebts

Question: Am I responsible for my half sister’s debts after she passed away?

Question Detail: My father is trying to get me to renounce my rights in favor of him regarding a half sister I have not seen in twenty years; he says I will be responsible for her debts if I do not sign the papers. Is this a fact? Am I responsible for someone else’s debts since she has passed away?

Answer: The fact that your father is  trying  to scare you into giving him an interest in your half-sister’s estate suggests to me that there must be some reason why he wants to get control of this estate, that reason most likely being that the value of her estate exceeds the debts of her estate. There is no reasonable scenario that I can think of where it may be possible that your father is trying to do you a favor; instead, it is likely he is trying to scare you into giving up a valuable inheritance.

In the first place, a person’s death cannot cause you to ever be liable for the debts of the one who died unless you were already a co-signer with the decedent on a debt. Furthermore, your act of accepting or rejecting your rights in the decedent’s estate will have absolutely no effect on your liability for any such debts. Since you have not seen your half-sister for 20 years, it is virtually certain that you are not a co-debtor on any of her debts, so you will incur no risk of liability in refusing to release your interest in her estate. And if it should be that the value of her estate is sufficient to cover any of your half-sister’s debts, then you will be entitled to your share of the estate after those debts are paid.

Back Door Tax Hike–Bad for Nevada Business

On Thursday of last week the interim Legislative Subcommittee on Regulations approved a rule that now requires limited liability companies (LLCs) to pay an annual $200 business license tax, which is assessed and collected by the Nevada Secretary of State. This new regulation prevents LLCs from claiming an exemption to the tax for home-based businesses that earn less than $27,000 per year. Nevada Secretary of State, Ross Miller, sought the rule because he says hundreds of LLCs wrongly claim the exemption. The new regulation will cost businesses an estimated $10 million per year, and that does not touch upon the significant loss of new...

Continue reading

Naming a Trust as Beneficiary of Your IRA

IRA Beneficiary Designation

There is considerable confusion concerning the effects of naming a trust as the beneficiary of an IRA. What is most remarkable about this subject is that it seems to me that most professionals who should know better, i.e. CPA’s, investment professionals and lawyers, have as many misconceptions and gaps in their knowledge as the general public....

Continue reading

Obama’s New Tax Proposals

By David M. Grant, Esq., Partner at Grant Morris Dodds Recently President Obama released his 2013 budget proposal.  Following is a summary of his budget points as it relates to income tax, estate tax, gift tax, and Generation Skipping Transfer (GST) tax reform: Limitation on Itemized Deductions and Personal Exemption Phase-out. The proposal would reinstate the limitation on itemized deductions and the personal exemption phase-out for upper-income taxpayers. The Adjusted Gross Income (AGI) thresholds would return to the 2009 levels, and would be indexed for inflation thereafter.  The thresholds would be $250,000 for married taxpayers filing joint returns, $225,000 for head-of household taxpayers,...

Continue reading

Nevada Independent Administration of Estates Act

do it yourself probateBy: Robert L. Morris, Esq., Partner at Grant Morris Dodds

During the 2011 Legislative Session the Nevada State Legislature passed Senate Bill 221.  A major provision of SB 221 was the enactment of the Independent Administration of Estates Act, hereafter the “Act.”  The Act became effective October 1, 2011, and is codified in Nevada Revised Statutes (NRS) 143.300 et al.

The goal of the Act is to streamline the probate process in Nevada.  Many people will also see this statute as creating a “do-it-yourself probate.”  Historically “probate” has been a hiss and a byword and was categorized with unnecessary legal fees, court costs, delay and unnecessary oversight.  To add insult to injury many families discovered for the first time upon the death of a loved one that the recently departed’s will did not protect his or her estate from this probate process.

The Act, as found in NRS 143.300 et al., is designed to allow for varying levels of administration with limited court oversight.

Achieving Asset Anonymity

anonymousBy: Mark L. Dodds, Esq., Partner at Grant Morris Dodds

We often receive inquiries from clients looking for asset protection services who wish to achieve greater anonymity regarding their assets, including real estate, investment accounts, business holdings, and so forth.

It is important to understand that “hiding” assets is not a valid principle in asset protection.  In the event a person is sued and has a judgment rendered against him, he may be put under oath in a debtor’s examination and, under penalty of perjury (a felony), he must disclose his assets to the questioning authority.

So merely holding assets in a name not readily traceable back to you should not be viewed as a good way to protect your assets.  Nevertheless, keeping a lower profile, maintaining privacy, and generally avoiding the spotlight are viable reasons for obtaining anonymity, at least for certain people.