Family Wealth Matters Blog

Subscribe via RSS
Visit Blog
By: Hoopes Adams & Scharber

Blog Authors

Family Wealth Matters

Latest from Family Wealth Matters Blog

In contrast to a prenuptial agreement, which stakes out each spouse’s position in case of divorce, premarital estate planning blend the spouses’ separate property into a financial union.

By

Ryan Scharber

When Michael and Jessica, a 40-something engaged couple, made an appointment for premarital estate planning, we assumed (OK,

I

assumed) that they would want to create a

prenuptial agreement

.

Wrong assumption. The couple made clear from the beginning of our meeting that they wanted nothing to do with a traditional prenuptial (or premarital) agreement, which they viewed as a divisive “what’s mine is mine” step in planning for…
Continue Reading Premarital Estate Planning: When Marriage Is a Merger

Whether the result of legislation or voter approval, a number of new state laws and more have recently become effective.

In Arizona, new state laws can be created in two ways: as the result of a bill that passes both houses of the legislature and is signed by the governor, or by voter approval of an

initiative

(initiated by the public via petition) or a

referendum

(referred to the voters by the legislature). While laws can be passed by the legislature or by voters, a state constitutional amendment can be approved only by public vote.

Following is a short list…
Continue Reading New Arizona laws: a short list of legal and tax issues now in effect

Whether your funeral plan is part of, or separate from, your estate plan, specifying your wishes and perhaps pre-funding your funeral expenses can ease the burden on your loved ones.

One of the ironies of estate planning is that, after going to great lengths to create specific, thorough instructions regarding the disposition of their assets, many people provide little or no direction concerning the disposition of their remains.

That’s too bad. Just as a well-conceived estate plan can eliminate legal and financial stress in the months following your death, a simple statement of your funeral wishes can lighten your family’s…
Continue Reading Funeral Planning: Important Considerations

You don’t have to go into great detail; giving them the highlights can go a long way toward avoiding confusion and a family fight after your death.

Last summer, in “

Equipping Your Successor Trustee or Personal Representative

,” we outlined the benefits of notifying your estate administrator – perhaps one of your adult children – that you have named them to serve in that role and how to locate the documents they will need to carry out their duties.

While we stand by our suggestions, we also endorse a November 2024

Wall Street Journal

article, “

Warren Buffett Talks …
Continue Reading Telling Your Adult Kids About Your Estate Plan

For estates that will not be subject to estate tax, the removal of a generally unnecessary trust provision can make life much easier for the surviving spouse.

Over a decade ago, we wrote a practical article (“

Is It Time for an Estate Plan Review? You Be the Judge

“) that lists several triggering events that might warrant updating your will or trust. The following article addresses an issue that was not included in that list and frequently applies to older trusts.

If (a) you are married, (b) the value of your estate is below the estate tax threshold, and…
Continue Reading Streamlining Your Trust: One Simple Step

A professional diagnosis, appropriate legal planning, and understanding the available financial resources are keys to meeting the needs of a loved one in decline.

It’s one of the handful of questions that we dread hearing from our clients:

My spouse is showing signs of dementia. What do I do?

After taking a deep breath, expressing our sympathy for their concern, and acknowledging the potential seriousness of Alzheimer’s disease and other forms of dementia, we seek to help our clients examine their situation from three perspectives:

medical, legal,

and

financial

.

Medical Diagnosis.

If your spouse, parent, or other loved one…
Continue Reading Dementia: Responding to the Signals of Potential Incapacity

gift ekaterina-shevchenko-ZLTlHeKbh04-unsplash Photo by Ekaterina Shevchenko on Unsplash
Photo by Ekaterina Shevchenko on Unsplash

Gifting is expected to grow in popularity, along with anticipation that the IRS will improperly pursue “strict compliance” with its disclosure requirements.

In previous issues we have warned that, if Congress does not act, after 2025 the estate tax exemption will drop from $13.6 million per person to just $6.2 million (i.e., $5 million adjusted for inflation). As a consequence, one’s seemingly modest estate, which up to this point has not warranted estate tax planning, could become subject to taxation after their death.

The looming possibility of estate tax liability in the future, where none exists now, makes discussions of…
Continue Reading “Adequate disclosure” of gifts exceeding the yearly limit

You can help your fiduciary administer your trust and non-trust assets by anticipating what information they will need and telling them – while you’re alive – where to find it.

It’s a common scenario: Our client’s estate plan has been finalized, they signed all of the pertinent documents (Trust, Will, powers of attorney, memorial instructions, etc.), and they have come to our office for a brief meeting to pick up their document binder and flash drive.

At some point during their visit, they are likely to raise a few frequently asked – and important – questions:

  • Should we tell our

…
Continue Reading Equipping Your Successor Trustee or Personal Representative

A useful tool from its inception, the 529 concept has improved as the scope of its permitted use has grown.

A 529 or “qualified tuition” plan is federally authorized savings plan that you can use for a child’s or grandchild’s college tuition and other educational expenses. In most states, contributions to the plan are tax deductible (state), and the earnings in a 529 account are not subject to federal income tax.

Here are the features of

AZ529: Arizona’s Education Savings Plan

:

  • offers parents, grandparents, and students an opportunity to save for “qualified education” expenses – tuition, books, and room

…
Continue Reading A 529 Plan Can Help Cover the Growing Costs of a Child or Grandchild’s Education

For owners of valuable residential real estate, a QPRT offers an attractive way to transfer it to their beneficiaries while continuing to occupy the home.

For many couples and individuals, their homes (primary or second) make up a substantial portion of the value of their estate. In larger estates, the existence of residential property poses estate tax considerations and, in the event of a lawsuit or creditor claim, exposes the property to seizure by third parties.

Protecting valuable residential real estate can be achieved through the use of a “qualified personal residence trust” (QPRT) — a type of irrevocable trust…
Continue Reading Achieving estate tax savings and asset protection through a QPRT

Whether your kids’ launch will succeed or fail is ultimately up to them, but helping them anticipate and navigate life’s challenges is a valuable parental role.

The results of a recent online search included this eye-catching title: “

Has Google Replaced Mom and Dad?

”

In addition to being somewhat prophetic (it was written in 2012), the article’s insights could lead one to a sobering conclusion – that, in contrast to preceding generations, children of the Internet era are far less likely to view their parents as their primary source of information, knowledge, and wisdom.

One of the consequences of…
Continue Reading We Have Lift-Off: A Mentoring Checklist for Parents of Adult Kids

The use of a holding company offers an extra layer of legal separation between you and your business entities and assets.

Over the years, numerous strategies have been developed to help business owners, professionals, and owners of vulnerable assets protect their interests against litigation, creditor claims, and other future legal and financial threats.

In

our asset protection practice

, we utilize a variety of legal structures, special trusts, and other planning vehicles to help our clients achieve their legal and financial goals and achieve peace of mind.

That assortment of asset protection options includes a long-standing, battle-tested option: the

holding…
Continue Reading Asset Protection: Should a Holding Company Own Your Business?

A new federal law requires most legal entities to report specific information about the business and its owners. This article provides multiple updates that warrant business owners’ attention.

The CTA is a provision of the Anti-Money Laundering Act, which is part of a federal effort to combat shell corporations, LLCs and other entities that engage in illegal money laundering and other criminal financial activities.

This article provides a general overview and multiple updates from our September 2023 article. This version includes the following changes:

  • The Beneficial Ownership Information

    reporting portal

    is ready to use.

  • FinCEN has published the

    Small Entity

…
Continue Reading UPDATE: Corporate Transparency Act Update: effective date pushed back to January 1, 2024