It’s not uncommon for families to relocate to another state to enjoy lower state income taxes. But trusts can follow a similar strategy. This article takes a closer look at how to change a trust’s residence, or “situs,” to a...more
On May 24, several banks and asset management companies sued U.S. Bank in a Missouri state court over U.S. Bank’s alleged mismanagement of 28 RMBS trusts. Plaintiffs allege that U.S. Bank disregarded its duties as trustee by,...more
The June § 7520 rate for use with estate planning techniques such as CRTs, CLTs, QPRTs and GRATs is 1.2%, which is a slight decrease from April's rate of 1.4% but remains the same as May's rate of 1.2%. The applicable federal...more
In high-net-worth estate planning, trusts are commonly used to transfer wealth from generation to generation. The rationale for using trusts is often tax savings, coupled with protection from creditors and claims of a...more
N.H. Ins. Co. v. Magellan Reinsurance Co., Ltd., No. 02-12-00196-CV, 2013 WL 1830349 (Tex. App. Fort Worth May 2, 2013). A Texas appellate court held that a cedent was judicially estopped from compelling arbitration. ...more
INTRODUCTION - A trust is a legal relationship created when a person (the settlor) places assets under the control of another person (the trustee) for the benefit of beneficiaries or a specific purpose. The trustee is...more
The British Virgin Islands is a well respected and sophisticated jurisdiction for the establishment of trusts. The general principles of BVI trust law are derived from those of English law and they have been supplemented by...more
On May 7, the U.S. Court of Appeals for the Second Circuit granted two petitions seeking interlocutory appeal of key questions related to pending mortgage backed securities (MBS) cases....more
Parties may want to resolve trust disputes in arbitration. There are perceived cost savings associated with arbitration, and arbitration can be quicker than normal litigation. But one of the main benefits is that the...more
The trust being a multi-party relationship, it is not always that easy to discern at any given time whom legal counsel is representing, or should be representing, in matters relating to the trust’s creation and...more
Foreign asset protection trusts are often established by U.S. persons to shield their assets from creditors. Typically, assets transferred to the trust can be paid to or applied for the benefit of the U.S. grantor(s) and...more
The family cottage has become one of the most contentious assets in estate planning and litigation, probably as a result of the emotional bonds that are attached to it. Commonly, cottage owners wish to ensure that the cottage...more
Many people mistakenly believe they can transfer their home to their children while retaining the right to continue living in it for the rest of their life, and remove a substantial portion of the home’s value from their...more
Too often, family members view their business as a source of wealth without making sure that the company is managed by those best suited for the job. Good governance — carefully documented in writing — can help ensure a...more
The second week of the Alabama Legislature's Regular Session saw Republican leadership maintaining their momentum and passing priority legislation at a furious pace. ...more
Bank of America’s $8.5 billion settlement in 2011 to resolve claims over Countrywide’s mortgage abuses may be in jeopardy. Last week, a group of investors, the Triaxx funds and the Federal Home Loan Banks of Boston,...more
Ever since January 1, 2010, when California overhauled the rules governing the enforceability of “no contest” clauses – provisions in testamentary instruments that say anyone who challenges the instrument will be disinherited...more
As discussed in a previous article, due to higher estate tax exemption, certain trusts previously established for purposes of avoiding estate taxes under the estate plan of a predeceased spouse may no longer be necessary in...more
In This Issue: - How to Protect Your Assets as a Business Owner - Separated But Not Divorced: Don’t Wait to Update Your Estate Plan - Tales from the Cliff: Estate Planning Policy for 2013 and Beyond -...more
Code §2501(a)(2) provides that, except as to certain expatriates, U.S. gift taxes do not apply to the transfer of intangible property by a nonresident not a citizen of the United States. This exemption is big enough to drive...more
In the wake of a series of scandals involving U.S. taxpayers sheltering their assets from the reach of the U.S. Internal Revenue Service (IRS), Congress enacted the Foreign Account Tax Compliance Act (FATCA) on 18 March 2010...more
Many people have the misconception that they cannot update their estate plan or even prepare a new Will if they are separated but not yet divorced from their spouse. This is not true. An estate plan can be updated at any...more
In This Issue: - Tax deal reshapes estate planning landscape - Are your children prepared to handle your wealth? - Planning your digital legacy - Estate Planning Red Flag: You’re married and relocating into or out...more
It’s a dream come true for at least two Americans: on Nov. 29, lottery officials announced that two tickets – one in Arizona and one in Missouri – matched the winning numbers drawn in the Nov. 28 massive Powerball lottery,...more
Canadian business laws are well developed. Several different types of business structures are available in Canada. Each features unique advantages and disadvantages. Business Corporations - The corporation is the...more
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