John Lane Law

Be a Smart Shopper When Looking for a Final Resting Place - John M. Lane Law, PLLC

“One never expects their loved one’s last resting place to look like this.”

A Sarasota, Florida cemetery was warned by county officials to bring the grounds up to code or be fined. Recent reports had described overgrown grass and weeds at Sarasota Memorial Park; however, after a news article appeared, workers were seen mowing the lawn, weeding, and edging around tombstones.

WTSP 10 News recently published a story, “Protecting your loved ones last resting place,” which reported on the problems discovered during Memorial Day weekend. Residents walking their dog nearby noticed the overgrown cemetery. They complained to the property manager and filed a complaint with the county’s code enforcement department about the tall grass and trees on the graves.

The dog walkers even called on volunteers to mow Sarasota Memorial Park. They mowed a section one morning until they were told to leave. However, their complaint to the County Code Enforcement Department resulted in a warning to the cemetery property owners. They were ordered to clean up the cemetery or face a notice of violation and fines.

Cemetery maintenance is contractual, and it’s expected when you pay for a plot. But a contract is only as good as the company behind it. Like anything else you purchase, you need to look carefully when making a decision about a burial plot.

Research the reputation of the cemetery you’re considering. Remember: just because the cemetery looks good now—like Sarasota Memorial Park—doesn’t mean it will stay beautiful forever. Prior to making a plot purchase, ask how much is in the endowment trust fund.

In Florida, state law dictates that 10% of the purchase price be placed in a trust fund for maintenance of the property, which is monitored by the state. Also, Florida State Statue §497.262 says that cemeteries are required to be “well cared for and maintained in a proper and dignified condition.”

Be selective, and keep a digital record of the cemetery's conditions—take a photo of it the day you buy a plot and any time you visit in the event you need to file a complaint.

Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: WTSP 10 News (June 27, 2016) “Protecting your loved ones last resting place”

Planning for the Future of Your Farm Business

"A lot of factors go into crafting an estate plan for your farming operation."

The High Plains/Midwest Ag Journal's article, "Planning for the future of your farm operation," includes some helpful tips on creating an estate and succession plan for your operation.

A business plan can be an important tool in estate and succession planning. This is a roadmap for the farm business, and it gives your business direction, helps you make decisions, and can assist in the future.

Make sure that you have the terminology correct. "Estate planning" deals with the disposition of your assets during your lifetime or after your death, while a succession plan is the transitioning of your farm to the next generation or others to ensure the continuation of the business.

If you don't make a plan for the disposal of your assets, the courts in the state where you live will. And that might not be what you want. You need to create an estate and succession plan for your farm so that you are the one who makes those critical decisions about the distribution of your assets and to guide the continuation of the business.

First, find an experienced estate and succession planning attorney. Remember that not all attorneys are well-versed in estate planning, so find a person who specializes in this complex area. Here are some ideas to produce an effective estate and succession plan that is tailored to your operation.

1. Get ready to share. Your estate planning attorney will need to know all of the details of your operation, your investments, and your retirement planning. Be open so that your estate planning attorney can create the best plan to benefit you, your family, and your assets.
2. Get ready to open up and talk. Communication is a critical part of the process—one that's often downplayed or overlooked.
3. Get ready to involve the people who are a part of your operation. Make sure to include everyone who's involved in the operation of the farm business. This includes your spouse, your siblings, and/or heirs. They need to be consulted regarding whether they want to continue the farm business, their interest in particular family items, and any other wishes or concerns.

Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: High Plains/Midwest Ag Journal (February 29, 2016) "Planning for the future of your farm operation"

Avoid These Big Estate Planning Mistakes - John M. Lane Law, PLLC

Good luck to your loved ones when you die, because you are going about your estate planning all wrong. According to a recent study from the Center on Wealth and Philanthropy at Boston College, an estimated $59 trillion will be transferred from 93.6 million American estates between 2007 and 2061. However, there is far less clarity about where those assets are going, since those currently holding them can't be bothered to update their estate planning documents or inform potential beneficiaries about their plans.

A recent article from The Street,"5 Biggest Estate Planning Mistakes You Can Make," tells us that more than half (56%) of U.S. parents have a will or living trust document, according to a caring.com survey of adult children. About one-third of parents (27%) don't have estate documents in place, and 16% of adult children have no idea about what's in their parents' estate plans. Another statistic in the clueless area: when parents have an estate in place, sometimes their adult children don't know where these documents are kept—52% of adult children don't know where their parents keep their estate documents, and 58% don't know what the estate planning documents say!

The article cautions that even when you have a will or a trust, there's no absolute guarantee that your assets will be distributed without a hitch. Wills and trusts have kept families in litigation and at odds with each other for years if the estate plan isn't administered properly. To make things easier for your family and make sure your wishes are carried out properly after you pass, try to steer clear of these monstrous errors:

1. Sibling Rivalry. When people fight over their parent's estate, they typically hand over a sizeable piece of their inheritance to the attorneys hired to represent them. If the deceased's children didn't get along while their parent was alive, it will be only the same or worse now. Parents should mitigate this by discussing their estate plans with their heirs before they die. A little explanation, the article reminds us, can go a long way.

2. Unanticipated surprises. What other kind of surprise is there? "Planned surprises?" One critical issue that many times winds up in litigation is the way that the estate taxes are apportioned. They are either written in the will or totally neglected. So for example, the will might say, "I give my house to my daughter Betty, and the estate taxes on this is paid out of revenue." This way you make sure that your estate will be taking care of the estate taxes on the items distributed.

3. Forgetting about your estate plan. Update, update, update! Keep up with your estate planning attorney and let him or her know about new news—like your recent divorce and remarriage or the birth of your first grandchild. If you fail to account for these types of life changes in your family life, you are leaving your legacy up for grabs. If you thought a divorce, a remarriage, or the blending of families is a major deal during life, after your death—if you don't address your specific wishes—if may be an even bigger nightmare. Talk to an estate planning attorney about a trust to shield everyone from potential legal repercussions and to ensure your assets go where you designated.

That survey also found that of those that have a will, only 40% have updated it in the last five years, and 25% of adult children don't know if their parents' will has ever been updated.

4. Think about whether to name co-trustees. Some people feel better with their estate planning knowing that their spouse or child will be part of the process. But if they don't have the time, patience and business sense to handle the responsibility and liability of the position of trustee, there's no reason for co-trustees and added stress. This "two-headed" approach may work in some situations but the reason for having only one trustee is that he or she can make swift and decisive decisions. It's hard for a trustee to do so when he or she is acting by committee, even if it's only two people.

5. Watch for undue influence. Personal caregivers can help with the care for your mom or dad, but some have placed themselves in estate plans by exerting pressure and by unscrupulous means during a very fragile and vulnerable time.

Avoid these and other mistakes that can derail your estate planning strategy.  Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: The Street (July 13, 2015) "5 Biggest Estate Planning Mistakes You Can Make."

The Dreadful Generation-Skipping Transfer Tax Explained in Basic Terms

The estate tax is one of the most hated taxes in the U.S. tax code, especially among those who are wealthy enough to have to pay it. Many wealthy families have used complex strategies involving wealth transfers to grandchildren, great-grandchildren, and other remote descendants in order to avoid paying estate taxes generation after generation. In response, Congress created the generation-skipping transfer tax, also known as the generation-skipping tax or GSTT, to close the perceived loophole.

In “Generation-Skipping Tax: What It Is and How to Avoid It,” The Motley Fool explains the idea behind the GSTT: general estate tax principles say that most people leave money to their spouses first, then to their children if they have any, then to grandchildren, and then to more distant descendants. The estate tax allows an unlimited deduction for marital gifts. However, in the children's generation, typically there is a tax. And when the child passes away, the IRS takes another bite by taxing the grandchildren.

 The GSTT levies a second tax on gifts made to grandchildren or those who are more than 37½ years younger than the person making the gift or bequest. This is to make sure those gifts are treated consistently with the policy behind the estate tax. The GSTT applies the same 40% tax rate to gifts that the regular estate tax applies to direct inheritances. In effect, the GSTT lines up the tax liability so that the grandchildren receive the same amount of assets as they would have if their inheritance had come straight from their parents instead of their grandparents.

 The article explains that outright gifts to grandchildren, called “direct skips,” are typically subject to GSTT, but the tax can also apply in more complex scenarios. “Indirect skips” occur when a trust that is created for multiple generations begins to see vested interests held by grandchildren and distant relatives. In such a case, the GSTT can become due— not only when a trust is set up—but also years or even decades later when remote relatives find themselves primary beneficiaries.

 Lastly, there are also instances where a person can make what would otherwise be a generation-skipping gift without treating it as one for the taxes. The article notes that the most common is the "deceased parent" rule, which makes sense in normal estate planning. Most people will leave an equal amount to each of their children when they pass away; however, if one child dies before them, they will usually assign that share to that child’s children. Thankfully, the GSTT doesn’t disrupt this logical gift to the grandchildren when their parent has already passed away at the time of the gift.

 Because the generation-skipping tax is about the scariest part of estate tax law, most folks like to steer clear of it if they can. Speak with an estate planning attorney to find out more about the GSTT and other tax-decreasing strategies.

Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

 Reference: The Motley Fool (June 28, 2015) “Generation-Skipping Tax: What It Is and How to Avoid It”

 

Defining Your Legacy - John M. Lane Law

Baby boomers are more concerned with funding their retirements than leaving financial inheritances to their families and charities.  While this may have been initially driven by the Recession, remember that this generation re-defined everything from music to social mores.  The boomers are at it again: redefining what it means to leave a legacy after they are gone.

However, money isn’t the only definition of legacy, according to the US News article titled “How Boomers Are Redefining 'Legacy.'” Baby boomers realize that their top priority is to have enough assets to support themselves, but are starting to redefine “legacy” in the process. For some individuals, it means giving away some money now. For others, it’s restructuring some assets to leave a financial inheritance. For most, the process of aligning their assets with their priorities means the opportunity to create non-financial legacies.

Rethink how you label the financial help you're giving now to your next generation. Are you helping them out with college tuition? Helping with the living expenses of a slow-to-launch millennial by having them stay at home or by covering some bills is not uncommon. About 62% of Americans 50 and older are providing financial support to family members, according to a recent study. The study found that the subsidies averaged $15,000 over five years, but also increased with the givers’ resources. You’re allowed to give away $14,000 per recipient, per year, without triggering any tax penalties or disclosures … more than that and the person who gives has to complete a gift tax return. Also, the gift tax is deducted from your lifetime cap on tax-free gifting.

A 529 college saving plan lets grandparents build up provisions for a grandchild’s college education. Another way to redefine “legacy” is to set up your assets to guarantee that your heirs receive at least some type of asset. Be sure to distinguish legacy planning from estate planning, the article says. For instance, some families construct a legacy of memories and real estate by purchasing a vacation property held in a trust and owned equally by all heirs, keeping it intact for at least another generation. It also guarantees that the vacation home won’t automatically be sold as part of the estate.

Baby boomers: it’s really stories and family values children want from their parents—that’s what Boomers say they want from their aging parents. It’s likely that Generation X and millennials will want the same. Discussions about heirlooms with some market value but even greater sentimental attachment, like grandma’s gold wedding band, are great openings for conversations about “values that characterize the family.”

The article also suggests legacy letters that convey your own priorities, point of view, and life lessons for future generations. This gives you the chance to talk about the document. It’s a good way to redefine “legacy.”

Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: US News (June 18, 2015) “How Boomers Are Redefining 'Legacy'”