Blogs

Tax Law

Tax Law: 2010 Tax Relief Act Has Far-Reaching Consequences

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 significantly changed estate taxes, gift taxes, income taxes, payroll taxes, and business incentives for 2011 and 2012. In this Bean, Kinney & Korman article published in the BKK Business Law Newsletter, the analysis explains that the law increased the federal estate, gift, and generation-skipping transfer tax exemption to $5 million per person while reducing the top transfer tax rate to 35 percent. The…

January 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

Estate Planning

The Role of the Trust Protector

Trust protectors are becoming more common in irrevocable trusts as more states modify or abolish the rule against perpetuities and allow trusts to continue for multiple generations. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts and Estates Newsletter, Jonathan C. Kinney explains that a trust protector may serve as a mediator, advisor, or decision-maker when disputes arise between trustees and beneficiaries or between different classes of beneficiaries. The article…

November 1, 2010

Estate Planning

Virginia Uniform Power of Attorney Act

Effective July 1, 2010, Virginia adopted the Uniform Power of Attorney Act, joining a handful of other states that have adopted the Uniform Act in some form or fashion. Some of the highlights of the act are: Any power of attorney executed in Virginia after July 1, 2010 is deemed durable unless it expressly states otherwise. A power of attorney is not required to be acknowledged before a notary public but the party’s signature is deemed to be genuine if acknowledged before a notary public. Any…

November 1, 2010

Tax Law

Recent Tax Developments

Several major federal tax developments in 2010 affected businesses, estates, and individual taxpayers. In this Bean, Kinney & Korman article published in the BKK Business Law Newsletter, the analysis appears to focus on recent IRS guidance, health care tax changes, and developing rules affecting business planning and estate planning. The article is associated with Bean Kinney tax attorney Ronald A. Feuerstein, although no specific author is listed on the publication itself.

July 1, 2010

Tax Law

Tax Court Finds Gifts of Limited Partnership Interests Don’t Qualify for Annual Gift Tax Exclusion

The Tax Court ruled that gifts of limited partnership interests may not qualify for the annual gift tax exclusion if the recipient does not have an immediate right to use, possess, enjoy, or transfer the gifted interest. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts and Estates Newsletter, Jonathan C. Kinney explains that the court followed its earlier decision in Hackl and found that the Price family’s limited partnership interests were “future interests” rather…

March 1, 2010

Estate Planning

New Uniform Power of Attorney Act in Virginia

Virginia’s adoption of the Uniform Power of Attorney Act represented a major shift in how powers of attorney would be created, interpreted, and accepted. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts and Estates Newsletter, the analysis explains that powers of attorney would become automatically durable unless the document expressly stated otherwise. The article also notes that agents would need specific authority to exercise certain “hot powers,” such as making…

December 1, 2009

Estate Planning

Unraveling the World of Joint Accounts and Beneficiary Designations

Joint accounts and beneficiary designations can override the instructions contained in a will, often creating unintended consequences if they are not reviewed carefully. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts and Estates Newsletter, Jonathan C. Kinney explains that many assets pass outside of probate through joint ownership, payable-on-death designations, transfer-on-death registrations, retirement account beneficiary forms, and life insurance designations.…

August 1, 2009

Estate Planning

You May Need a Special Needs Trust

Parents of children with physical or mental disabilities often want to leave assets to support that child without jeopardizing eligibility for Medicaid, Supplemental Security Income, or other public benefits. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts and Estates Newsletter, Lori K. Murphy explains that a special needs trust, sometimes called a supplemental trust, can provide financial support while preserving the beneficiary’s eligibility for government…

August 1, 2009

Business and Financial Services

Family Limited Partnership and Family Limited Liability Company Valuation Discount Planning

Family limited partnerships and family limited liability companies can provide important estate planning and wealth transfer benefits, but only if they are operated carefully and consistently. In this Bean, Kinney & Korman article published in the BKK Business Law Newsletter, Jonathan C. Kinney explains that the IRS had become increasingly aggressive in challenging valuation discounts used in connection with FLPs and FLCs. The article notes that the IRS often questioned whether a gift was…

January 1, 2009