Blogs

Estate Planning

A Contrarian View on Bypass Trusts

Bypass (or credit shelter) trusts have long been a cornerstone of estate planning for married couples seeking to maximize estate tax exemptions, but changes in federal law have shifted that analysis. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts & Estates Newsletter, Jonathan C. Kinney explains that the introduction of portability—allowing a surviving spouse to use a deceased spouse’s unused estate tax exemption—reduces the necessity of bypass trusts in many cases.…

May 12, 2014

Tax Law

1031 Exchanges with a Twist

Section 1031 exchanges can help real estate investors defer capital gains taxes, but the short identification window often makes it difficult to find replacement property that fits an investor’s goals. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts & Estates Newsletter, Jonathan C. Kinney explains how investors have traditionally used tenant-in-common structures to pool capital, while also warning that those arrangements can become unstable when unanimous consent…

November 2, 2013

Estate Planning

Uniform Real Property Transfer on Death Act

Transfer-on-death deeds can allow real property to pass directly to named beneficiaries without going through probate, creating a simpler option for certain estate plans. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts & Estates Newsletter, Jonathan C. Kinney explains that Virginia’s adoption of the Uniform Real Property Transfer on Death Act allows real estate to be handled in a manner similar to bank or brokerage accounts with transfer-on-death or pay-on-death…

August 2, 2013

Estate Planning

Per Stirpes Means Per Stirpes, Correct?

The phrase “per stirpes” does not always produce the same inheritance result because some states follow a traditional definition while others use the modern approach contained in the Uniform Probate Code. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts & Estates Newsletter, Jonathan C. Kinney explains that the traditional per stirpes method begins dividing an estate at the generation closest to the decedent, even if everyone in that generation has died, while the…

August 1, 2013

Tax Law

When You Thought It Was Safe to Go Back in the Water – Estate Tax Revisions

Federal estate tax changes in 2013 reduced uncertainty in some areas, but they also made clear that additional revisions could still be on the table. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts & Estates Newsletter, Jonathan C. Kinney explains that the American Taxpayer Relief Act of 2012 set the federal estate, gift, and generation-skipping transfer tax exemption at $5.25 million per person, indexed for inflation, while increasing the top estate tax rate to 40…

August 1, 2013

Business and Financial Services

How to Protect Your Assets As a Business Owner

Business owners often assume that forming an LLC or corporation is enough to shield personal assets from business liabilities, but that protection can be lost if the entity is not maintained properly. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts & Estates Newsletter, Jonathan C. Kinney explains that courts are more likely to “pierce the corporate veil” when owners fail to treat the business as a separate legal entity. The article highlights several important…

February 1, 2013

Business and Financial Services

Asset Protection Trusts in Virginia

Virginia’s 2012 adoption of qualified self-settled spendthrift trusts created a new option for residents seeking stronger asset protection planning. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts and Estates Newsletter, Jonathan C. Kinney explains that Virginia law now permits certain irrevocable trusts—commonly referred to as domestic asset protection trusts or qualified self-settled spendthrift trusts—to shield assets from future creditor claims even when the person…

August 1, 2012

Business and Financial Services

Details Matter: Family Limited Liability Companies and 1031 Exchanges

Family limited liability companies and Section 1031 exchanges can offer important tax and estate planning benefits, but only if taxpayers follow the technical requirements precisely. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts and Estates Newsletter, Jonathan C. Kinney explains that the IRS and the Tax Court have increasingly challenged family LLCs, family limited partnerships, and 1031 exchanges when taxpayers fail to satisfy even basic procedural requirements.…

November 1, 2011

Tax Law

Portability Rule Clarified

The IRS clarified in 2011 that a surviving spouse can preserve a deceased spouse’s unused federal estate tax exemption only if the executor files an estate tax return making the portability election. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts and Estates Newsletter, Jonathan C. Kinney explains that portability allows a surviving spouse to use the unused portion of the deceased spouse’s exemption, potentially increasing the couple’s combined estate tax protection…

November 1, 2011

Estate Planning

Augmented Estates

Virginia’s concept of the “augmented estate” was designed to prevent one spouse from disinheriting the other by transferring assets outside of a will. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts and Estates Newsletter, Jonathan C. Kinney explains that Virginia law historically guaranteed a surviving spouse a share of the deceased spouse’s estate, but modern estate planning tools such as revocable trusts, joint accounts, payable-on-death accounts, and beneficiary…

November 1, 2010