Category: Featured Articles

Marital Trust Planning – Making the Most of Your Money

PFLAGLI

marital trust

Marital Trust planning is essential for those couples who are concerned about protecting surviving family members, especially children, and avoiding estate taxation.

Marital Trust planning is the use of trusts to achieve the goals of asset preservation and family protection.  The term, “Marital Trust” is used in this article to discuss both marital trusts and non-marital trusts

What is a Marital Trust?  There are essentially three types of marital trusts.  QTIP (Qualified Terminal Interest Property) Trusts, Estate Trusts and General Power of Appointment Trusts.  Each has a specific targeted goal, but the reason why someone would consider a Marital Trust is to provide for their surviving spouse and children.marital trust

A QTIP Trust, in most cases, is funded upon the death of one spouse and directs payments of interest income, on at least an annual basis, to the surviving spouse.  The remainder in the trust then passes upon the death of the surviving spouse to the children of the original Grantor.  The benefit of this trust is that it allows someone with children from a previous marriage to ensure that those children are provided for, while also providing for a surviving spouse.  An Estate Trust essentially does the same thing, but requires the remainder to be passed through the surviving spouse’s estate, giving the surviving spouse greater discretion in the allocation of the original asset.  A General Power of Appointment Trust is appropriate if there are no children and gives the surviving spouse access to the full amount in the trust during their lifetime.

The most important element of a Marital Trust to remember is that it does not shield assets from estate taxation.  They simply postpone the taxation event until the death of the surviving spouse, as there is a unlimited marital exemption upon the death of the first spouse.   Assets in a marital trust pass subject to any applicable estate tax guidelines.  This is particularly important for QTIP Trusts as they may contain assets earmarked for the children of the Grantor, but are potentially diminished by estate taxation.  To shield assets from estate taxation, you must have a Non-Martial Trust.

What is a Non-Marital Trust?  Non-Marital Trusts are often referred to as “Credit Shelter Trusts” or “Bypass Trusts.” These trusts allow the Grantor to provide income to their surviving spouse, while ultimately passing assets to the Grantor’s children   

Bypass Trusts are irrevocable trusts that can be created during the lifetime of the Grantor or in the Grantor’s Last Will and Testament.  If they are created in a Grantor’s Will, they become irrevocable upon the death of the grantor.  The trust is funded with an amount equal to the annual exclusion applicable in the year of the Grantor’s death.  In 2017, the annual exclusion amount is $5.49 million dollars.  A surviving spouse will have access to interest income from the trust and also the trust principal, but only for the surviving spouse’s health, education, maintenance or support.  Upon the death of the surviving spouse, the trust remainder passes to the original Grantor’s children tax free.

One important note with Bypass Trusts is that the IRS has a three year look back period for tax free transfers.  That means that if the surviving spouse dies within three years of the original Grantor’s death, the assets will be subject to estate taxation.  Also, if a family residence is transferred into a Bypass Trust, it will receive the stepped-up value as of the date of the Grantor’s death.  However, if the value of the residence continues to increase, any gain attributed from the date of the Grantor’s death to the distribution to beneficiaries will be subject to capital gains tax.  A Bypass Trust cannot claim the $250,000.00 personal capital gains exemption.

Surviving spouses are often named as trustees, which makes compliance with tax requirement critical in both the drafting of Bypass Trusts and in their execution after the original Grantor’s death.  That’s why it is crucial to consult with an experienced estate planning attorney when considering Marital and Non-Marital Trusts.  Remember that a strong basic estate plan is also a must for any family.

For more information, email me at [email protected] or visit www.timeforfamilies.com.

The post Marital Trust Planning – Making the Most of Your Money appeared first on Time For Families.


Source: Time for Families

The LGBT Trump Disconnect

PFLAGLI

LGBT Trump, GLBT families,. LGBT families, LGBT Trump disconnect

The LGBT Trump disconnect is real and attention must be paid to what appears to be the beginning of a not so veiled assault on LGBT rights in America.

First, I must say that there is an LGBT Trump disconnect.  Since I wrote my first piece about LGBT family rights in the Trump presidency, a lot has changed.  I have heard from many people, and I myself wanted to believe, that Trump wouldn’t touch the LGBT gains that we have made during the Obama years.  But his actions have proven different.  His appointments, activity in state courts and the often unintelligible rhetoric we have become accustomed, all suggest that we may not be as safe as some thought we were.

The Appointment Problem – My greatest fears about Trump’s appointments center around the Department of Justice (DOJ), and more specifically, around the civil rights division of the that agency.  First, the long and telling history of Jefferson Beauregard Sessions, the Republican Senator from Alabama who President Trump has tapped to lead the DOJ, is troubling for many more that just LGBT Americans.  According to The Washington Post, Jeff Sessions has claimed to be a civil rights champion, yet he has overstated his experience and, in some cases, lied altogether about his involvement.  Sessions has spent the majority of his career attempting to undermine LGBT equality, the details of which are numerous and troubling.

But the worst of this story is that President Trump has chosen John M. Gore to head the DOJ’s Civil Right s division.  Mr. Gore, prior to this nomination, was in the process of defending North Carolina’s odious trans-bathroom bill.  Prior to that, he defended Republican efforts to gerrymander congressional districts in violation of the civil rights of minority Americans.       This is not only putting the fox in charge of the hen house, but the hens in this analogy are real people who have had their civil rights violated in what should be the most fundamental right this country possesses – the right to vote.  How can they now trust that their best interests will be defended by an agency whose sole purpose is supposed to be that defense.

The Visibility Problem – One of the first signs that there might be a distance between Trump’s “accepting” rhetoric toward the LGBT community during the campaign and what he plans to do as president appeared, or rather disappeared, within the first hour after he was sworn in.  The official White House website, www.whitehouse.gov, removed the LGBT rights page which had been there throughout Obama’s last term, and before.  No explanation was given, however, the pro-Trump Twittersphere rejoiced.LGBT Trump

In an equally expedient manner, all data regarding climate change was removed as well from the whitehouse.gov site.  As most LGBT Americans are not one issue voters, this deletion concerned me as much as the LGBT page being removed.  “Out of sight, out of mind,” seems to be the rule of law now.

The Marriage Issue – I referred earlier to things having changed since I wrote LGBT Family Rights in a Trump Presidency.  At that time, the Supreme Court of Texas had declined to re-hear a case which would abolish benefits that the City of Houston provides to same-sex married couples. On the inauguration day, the Supreme Court of Texas changed its mind, under GOP pressure.  The Republican Governor of Texas himself wrote a brief to the court asking them to reconsider essentially arguing that the Obergefell Supreme Court marriage decision does not apply to Texas.  In that brief, the Governor wrote of the “Federal Tyranny” of the courts and that Obergefell does not require that same-sex married couples and different-sex married couples deserve equal treatment under the law.

In my previous article, I was originally at a loss for identifying a case with a fact pattern that would make it to the Supreme Court which would have the effect of etching away at the Obergefell marriage decision.  This Texas case may be just that.  While it would undoubtedly take time to make it to the Supreme Court, who knows what its makeup will be then.  The anti-marriage movement’s argument is in development as well and may take the same amount of time to get its legs.  The Arkansas Supreme Court issued a decision based on this logic denying same-sex couples that right to be listed on their children’s birth certificates.  The issue is now before us and we cannot afford to stop paying attention.

After attending the Women’s March in Washington this last weekend, I left with a renewed sense of hope and possibility.  Hundreds of thousands of people made the impossible seem possible.  The greatest lesson that I took form my experience there was that no matter how generous I may have felt before in giving President Trump a chance to govern, I cannot forget, nor should any of us, that he won the election by dividing the country and making it clear that some people were simply not welcome.  This is the LGBT Trump disconnect.  I fear now that my beloved LGBT community has taken its place among the female, black, brown, Muslim and immigrant communities that were so vilified during the election and may have no voice in the Trump administration.  I hope that the LGBT Trump disconnect is a myth, but if past is prologue, we have no option other than to pay attention, remain engaged and share our feelings with everyone we can. 

For more information, visit www.timeforfamilies.com, or email me at [email protected].  

The post The LGBT Trump Disconnect appeared first on Time For Families.


Source: Time for Families

Conscious Surrogacy – Making the Best Decisions For Your Family

PFLAGLI

conscious surrogacy

Is there such a thing as conscious surrogacy? Yes, and those considering surrogacy will be confronted with some serious ethical questions.

Conscious surrogacy is a process. It is critical to understand some of the questions, and dilemmas, that you will face if you choose surrogacy to help you have your family.  If you are prepared to answer these questions before your surrogacy journey, and if you are comfortable with your answers, then you are ready to have these conversations with a potential surrogate mother.

What are some of the questions that you will face on your conscious surrogacy journey?

Do I want a single embryo or double embryo transfer? Do I want twins?  One of the first questions you will have to consider is whether you want to try and have twins with your surrogate mother.  Many choose this option for economic reasons.  If you know that you want more than one child, consecutive surrogacy journeys may not be an option.  But there is much more to consider.

conscious surrogacy

Twin pregnancies are much harder on the surrogate mother.  It can mean doctor ordered bed rest for your surrogate and more doctors’ visits, particularly in the third trimester.  Twin pregnancies also bring a higher risk of complications for the surrogate, such as preterm labor, and hypertension.

Twins arrive earlier. A normal singleton pregnancy is 40 weeks.  Most twins arrive early, at or before 36 weeks, which means that one or both of the children may require an extended hospital stay in the NICU (neonatal intensive care unit.)  Some doctors state that in 50% of twin pregnancies, a NICU stay is required.  This by itself may give parents pause about choosing a double embryo transfer.  Studies show that consecutive singleton births result in better medical outcomes than a single twin birth.  With all the information, you can make a conscious decision.

Do I want PGD or PGS? Preimplantation genetic diagnosis or screening is now being offered by most IVF facilities.  PGD or PGS allows a parent to view the genetic material of their child before an embryo is implanted in a surrogate mother’s womb.  PGD/S can show whether a child has any genetic disorders, the sex of the child and other genetic traits that may complicate a pregnancy.  While infertile couples who use IVF (in vitro fertilization), or anyone with a preexisting genetic condition,  may be familiar with PGD/S, couples or individuals who have their families with the assistance of a surrogate mother will most definitely be asked whether they want the information that PGD/S provides.

Knowing whether there is a genetic complication prior to embryo implantation may be in the best interests of all parties, however, choosing the sex of your child before it is born ventures into an ethical quagmire. Most families do not have this information and, while the technology exists, you must ask whether you want the information that it can provide.  The mental and physical health of your surrogate mother must be a priority in making this decision.

Do I want to selectively reduce if complications arise? Perhaps the most important questions you will confront is whether or not to selectively reduce, or abort, an embryo or fetus if there is a danger to the surrogate mother or to the child.  In reality, no state will enforce a gestational carrier contract which requires selective reduction.  The surrogate mother will always have the final say.  But you must know what you want first before you can discuss it with your surrogate.

While abortion is one of the most controversial topics in American society, it is routinely a part of conversations that intended parents have with their surrogate mothers. Surrogacy agreements attempt to cover all possible outcomes and obstacles that can arise during a surrogate pregnancy.  The most important aspect of this topic is being able to communicate your beliefs and desires with your surrogate.

There are many more issues that intended parents will face. Conscious surrogacy is about understanding the major decisions surrounding these issues and being able to come to a place of peace with each one, first with yourself, then with your surrogate mother.  Respecting her autonomy during the pregnancy will take you a long way toward reaching this goal.  Maintaining open and honest communication with your surrogate mother will also help to ensure that the journey is successful for all involved.

For more information about surrogacy, please visit http://www.timeforfamilies.com or email me at [email protected].

The post Conscious Surrogacy – Making the Best Decisions For Your Family appeared first on Time For Families.


Source: Time for Families

LGBT Family Rights in a Trump Presidency

PFLAGLI

LGBT family rights in a Trump presidency

Many are asking, “Will there be LGBT family rights in a Trump presidency?” While there certainly is cause for concern about the direction of our country, there are also certain realities that are reassuring.

I never thought I would be writing about LGBT family rights in a Trump presidency. But I also never received as many concerned calls from previous and prospective clients asking whether their marriages would be invalidated, or whether their second or step parent adoptions would be overturned.  These serious questions have led me to write about what I see as LGBT family rights in a Trump Presidency.

First, there is strong precedent holding that when a marriage is validly performed, it will be respected and honored under the law. This means that those LGBT Americans who are already married should not have to worry about a new Supreme Court taking their marriages away from them.LGBT family rights in a Trump presidency

For those who are not married but may wish to in the future, the question is a bit more nuanced. Shannon Minter, the legal director of NCLR, the National Center for Lesbian Rights, and one of the smartest legal minds in our community, said in a recent press release, “it is also highly unlikely that the fundamental right of same-sex couples to marry will be challenged or that the Supreme Court would revisit its 2015 holding that same-sex couples have that fundamental right.”  Mr. Minter is basing this belief on the long held tradition of the court to honor its previous decisions, a term called stare decisis.

The question many legal scholars are asking is whether a newly conservative Supreme Court will ultimately hear a case challenging the right of LGBT couples to marry and overturn the Obergefell marriage decision. While unlikely, it is possible. We can only wait to see who Trump appoints to the Supreme Court.

The most moving calls that I have received in the past days have been from people either in the process of having their families or plan to have families in the near future. They are deeply concerned about the security of their families.  I recently wrote about New York’s changing family law and how second and step parent adoption are now critical to create unassailable family protections, particularly for non-genetically related parents.  These specific forms of adoption are state based and largely shielded from Federal meddling.  That said, if you have a child and have not gone through the adoption process, it is strongly recommended that you do so now rather than later, when our Federal judicial system may be less friendly to LGBT families.

Among LGBT lawyers, one issue of great concern regards transgender Americans and obtaining accurate gender markers on federally issued identification, such as passports. While there is a transgender rights case which the Supreme Court has agreed to hear, we do not yet know whether a ninth more conservative justice will be appointed in time to hear it.

My husband reminded me that politics is cyclical. We have bounced between conservative and liberal presidents and congresses many time before, however, we have never before been faced with a president who based his entire campaign on dividing America by fearful and bigoted rhetoric.  We have never before had a President who, during his campaign, threatened to ban all Muslims from the country, or “lock up” his presidential opponent or degrade women as objects of his own control and pleasure.

Now more than ever it is time to be proactive. Many of us have experienced the shock and sadness associated with the loss of what we had hoped would be a liberal president in the White House.  We are entering uncharted territory.  LGBT family rights in a Trump Presidency will undoubtedly take some hits, but we are a strong, resilient and loving community.  And we have the tools to protect our families.   Don’t fail to use them!

By Anthony m. Brown, Esq.  November 11, 2016 – For more information, visit www.timeforfamilies.com or email Anthony at [email protected].

The post LGBT Family Rights in a Trump Presidency appeared first on Time For Families.

Source: Time for Families