When a client walks into an estate planning attorney’s office, the client often is thinking of their own needs, such as how will the planning impact on the client’s:
- Income taxes owed
- Estate taxes owed at their death
- Ease of administration
- Divorce protection
- Asset protection, etc.
But, many clients do not consider the impact on their children of their planning strategies until the prudent estate planning attorney raises the subject. Here are some considerations for the child or other beneficiary:
- Income taxes
- Estate taxes
- Ease of administration
- Divorce Protection
- Asset protection
- Asset management
Frances Bean Cobain’s pending divorce demonstrates the importance of planning. Her father was the late Kurt Cobain. Frances is claiming that the assets left to her by Kurt are off limits in the divorce. Here’s a story about her pending divorce. Depending upon how Kurt left her the assets, and other factors, her claim that those assets are off limits may or may not be wishful thinking. A parent can leave assets to their child or other beneficiary in a manner that provides divorce protection. If Kurt did not do so, Frances would have had to have been very careful so that those assets did not become comingled and thereby become community or marital property.
This shows how a client’s planning is not just important for the client, but also for their children or other beneficiaries. Make sure to raise the issues outlined above when meeting with clients. Clients often don’t consider such things. A good estate planning attorney should.
Stephen C. Hartnett, J.D., LL.M.
Associate Director of Education
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (800) 846-1555
www.aaepa.com
- Dynasty Trusts - January 19, 2021
- Biden Administration Could Reduce Estate Tax Exclusion - January 12, 2021
- Starting the New Year Right - January 5, 2021
