Mommy Blog Brings Estate Planning Advice to Readers

motherhood moment

Motherhood Moment, an advice mecca for moms, recently shared with readers guidance from the latest McManus & Associates’ educational conference call (we love the idea that moms can benefit from our focus series, because our practice not only provides asset protection, but helps continue a legacy of family values through generations). In a Motherhood Moment post titled, “Thrifty Thinking: Estate Planning with Life Insurance,” it’s noted that the use of life insurance in one’s estate plan can provide significant protection for loved ones, whether as a wealth replacement strategy combined with philanthropic giving or as a safeguard to cover expenses and taxes.

The post highlights the most important considerations when planning with life insurance and lists the 10 questions below for which Motherhood Moment readers should find answers:

  1. If a life insurance policy is owned by a trust, what is the ongoing maintenance required for the strategy to succeed most effectively?
  1. What are Cristofani beneficiaries and how can they make a life insurance trust even more gift tax efficient?
  1. How can insurance be utilized to facilitate a business succession plan?
  1. Term, whole life, 2nd to die – from a layman’s standpoint, what are the unique benefits of each?
  1. How can ownership and beneficiary designations for a life insurance policy affect the taxable assets of the estate?
  1. How do non-citizens avoid qualified domestic trust requirements with a life insurance trust?
  1. What are some strategies to avoid the three-year look-back period when existing insurance is transferred to a trust?
  1. Annual exemption gifts can fund a life insurance trust gift tax-free, but what about generation-skipping tax issues? How is the trust affected?
  1. When the terms of an irrevocable trust do not reflect the wishes of the parties, what options are available?
  1. How can life insurance be used as a wealth replacement strategy with charitable giving?

For more tips and tricks for families, visit Motherhood Moment here.

Posted in Media Clips Tagged , , , , , ,

Conference Call: Top 10 Considerations for Domestic Asset Protection Dynasty Trusts

State laws vary rather widely regarding the jurisdiction of trusts and trust assets. Certain jurisdictions have laws that are generally more favorable in their treatment of trusts for purposes of asset protection, access to trust-owned assets and creditor protection. As part of McManus & Associates’ Educational Focus Series, Founding Principal John O. McManus shares expert guidance on the top 10 things to consider when deciding where to site your trust.

LISTEN HERE: “Top 10 Considerations for Domestic Asset Protection Dynasty Trusts”

Top 10 Considerations for Domestic Asset Protection Dynasty Trusts

 During the discussion, you’ll find answers to the 10 questions below:

  1. What is a self-settled trust? When can the grantor list himself or herself as a beneficiary?
  2. How do state income taxes affect the choice of situs for my trust?
  3. What variation is there in state legislation regarding creditors and Statute of Limitations?
  4. Are certain exemptions made for specific types of creditors?
  5.  What are the standards for proving fraudulent transfers?
  6.  What role do the courts play regarding actions involving a Trust?
  7. Does the state require an Affidavit of Solvency upon the transfer of assets?
  8. How does the rule against perpetuities affect choice of situs?
  9. Discussing observations of trustee fees in each of the most favorable states.
  10. What are some of the other miscellaneous trust enhancements in the most favorable states?

We would love to learn more about your asset protection needs. Send us an email at reception@mcmanuslegal.com or give us a call at 908.898.0100.

Posted in Conference Call Tagged , , , , , ,

McManus Interviewed for Benefits Selling Magazine

An article, titled “The End,” that appeared in the April 2013 issue of Benefits Selling Magazine is worth digging into. Drawing from insight shared by experts like John O. McManus, McManus & Associates founding principal, reporter Paula Aven Gladych relays valuable intel related to end-of-life planning.

What’s one of the catch 22’s that Gladych unearths thanks to McManus? “Many people don’t realize that beneficiary designations on life insurance policies and retirement accounts trump whatever is written in a final will and testament.” From the piece:

Many parents place one of their children on their accounts as a joint account holder so they can help pay bills. What most people don’t realize is that when the parent passes away, no matter what is listed in the will, the person who is listed on the joint account will inherit that money. This can cause many problems among other beneficiaries who believe they are entitled to their share of that money, McManus said.

McManus also emphasizes a seemingly obvious but often overlooked step that needs to be taken – more than once:

Individuals need to make sure their documents are current. They need to review them every so often to make sure that what people think they will receive when they die is what they will actually receive, said John McManus, founding principal at McManus & Associates , an estates and trusts law firm in New York.

That means reviewing documents and walking through their provisions, deciding how they want to dispose of their assets and naming representatives who will make sure their assets are distributed as they intended.

But, as Gladych points out, things aren’t always so straightforward – especially when it comes to the tax system. In the piece, McManus has a word of advice, which he often shares with clients:

Each state has its own exemption when it comes to estate taxes. Some states, like New York, will allow individuals to pass down the first $1 million to heirs tax free. Anything above that $1 million will be taxed. McManus counsels his clients to gift that money while they are still alive to avoid hefty taxation later.

Gladych is right: planning for the future isn’t just about retirement accounts or what you want to do with all of your free time…people also need to plan for what comes after their retirement—end-of-life planning. To find more valuable tips, read the full story.

Posted in Media Clips Tagged , , , , , , ,