Tag: attorney

Insure.com calls on McManus for advice on life insurance trusts for child beneficiaries

December 16, 2013 - Media Clips

Insure logo

Navigating the terrain with life insurance trusts for child beneficiaries can be difficult, particularly when dealing with a special needs trusts for children that will likely never be on their own. Insure.com recently called upon McManus & Associates Founding Principal John O. McManus for guidance on trusts, “inherently complicated instruments” according to the story’s reporter Ed Leefeldt.

childThe article, straightforwardly titled “Life insurance trusts for child beneficiaries,” explains that life insurance companies often won’t pay the death benefit of a life insurance policy to a minor until he or she turns 18 unless a trustee or guardian has been named. Additionally, children may even face “estate taxes after a death, while the assets could be tied up in probate court” – trusts, however, ensure that life insurance money is “distributed according to your wishes, without delay.”

Trusts are also a useful tool for another reason. According to McManus:

A trust can also “protect children from themselves,” says John McManus, founder of an estate-planning law firm based in New York City. “If, at 18, a child gets it all, that could be a massively destructive injection of money,” he warns. Instead, the money can be earmarked for health, education or — with the help of a trustee — a lifetime trust.

The article suggests a revocable trust for those of average wealth, “which can be changed and/or revoked if necessary.” Of note: Sometimes you can simply write the name of the trustee on the beneficiary line of your life insurance policy, but always check with your life insurance company to make sure. For the wealthy, an irrevocable trust may be the best choice.

From the article:

This type of trust takes a bunch of assets, often including a life insurance policy, and “tosses them over the compound wall,” says attorney McManus. In effect, you create a separate corporation to manage them.

As explained by Leefeldt, an irrevocable trust needs a lawyer’s support; assets put in this trust can’t be taken out, regardless of how much one’s situation changes.

To learn how you can allow for changes in status when you create the original trust document (e.g., more kids, divorce, or a special needs child), check out the article in full. And to get help with the ins and outs of life insurance trusts for children and other loved ones, call 908-898-0100 to talk to the McManus & Associates team. Answers are a phone call away.

“Wills, Trusts, and Estates Prof Blog” Highlights Latest Advice from McManus & Associates

December 6, 2013 - Media Clips

Gerry W. Beyer

Gerry W. Beyer

Gerry Beyer, Professor of Law at Texas Tech Univ. School of Law, recently shared on his blog financial tactics and maintenance items related to estate planning to apply before 2014. “Wills, Trusts, and Estates Prof Blog” is a member of the Law Professor Blogs Network sponsored by Wolters Kluwer, and the list of tactics and maintenance items originally came from McManus & Associates. Here are the 10 estate planning questions to ask yourself before 2013:

  1. Should I change my estate plan before laws change in 2014?Jigsawquestion
  2. Is your partnership validly maintained?
  3. If making gifts to loved ones, are you exceeding your exemption amount?
  4. Are you employing the most current estate planning strategies?
  5. Are you making the most of income tax deductions?
  6. Do the fiduciaries named in your estate planning documents still reflect your wishes?
  7. Are you using the best strategies when making year-end charitable gifts?
  8. Are your cash donations from an IRA to charity being properly made?
  9. Should you consider using a GRAT or a QPRT?
  10. How should you harvest capital gains and time long-term losses?

Don’t miss our next free educational conference call, which will be held this month! Contact us for details at 908-898-0100.

MarketWatch Draws on Advice from McManus for “5 Estate-Plan Strategies for Boomers”

December 3, 2013 - Media Clips

marketwatch logo

Andrea Coombes, Ways and Means columnist for Dow Jones, last week published an interesting piece for MarketWatch sharing estate planning strategies for baby boomers. To bring readers closer to achieving their goal of putting together an estate plan, Coombes boils down advice, with the help of McManus & Associates Founding Principal John O. McManus, to offer “5 estate-plan strategies for boomers.”

Here are Coombes’ must-do estate-plan tasks:

1. Create a will or trust

2. Create a power of attorney

3. Create a health-care power of attorney and living will

4. Check the titling of your assets

5. Start with your family

In tackling the first tip “Create a will or trust”, a testamentary trust that goes into action when someone dies is given as an example to prevent unexpected consequences with regard to where your money ends up. Coombes draws from McManus’ comments to illustrate:

“The trust is actually built into the will,” said John McManus, founder of law firm McManus & Associates in New Providence, N.J.

He offered an example of what can happen without such a trust: “Say I die and leave my wife a couple of million bucks. Now it’s her in name. She then remarries, and then she dies two weeks later. Her new spouse will get one-third of those assets — even if we intended that money to go to our kids.”

The precise fraction promised to the surviving spouse will vary by state, but McManus said one-third is common.

Some boomers also may want to create a revocable living trust. There are a variety of reasons for considering such a trust.

Here’s one: If you have property or assets in more than one state — say, you live in New Jersey and own a condo in Florida — this document allows your estate to avoid the costly and time-consuming probate process in each state — with one document. A revocable living trust is portable. It will follow you across state lines, McManus said.

For the fifth tip “Start with your family”, Coombes turns again to McManus, who points out that estate planning isn’t only about you. From the piece:

McManus said boomers’ first estate-planning task is to ensure their elderly parents’ estate-plan documents are in order, and their second task is to focus on the estate-plan documents of their adult and minor children.

Coombes goes on to shed light on a potential pitfall:

Here’s one example of what can go wrong: Often people intend to divide their estate equally among all of their children. Their will may state as much, but if one child is named on a joint account, say, to help with bill-paying, that account will pass to that one child “by operation of law,” McManus said.

“Even though the parents intended that it be divided equally, the assets in joint names with their one child will result in that child being disproportionately favored,” he said. In his experience, he said, adult children in that situation “almost never” square up with the other family members.

To avoid the problem, your parents could adjust the will such that larger portions of other assets are given to the siblings or, rather than making that child a joint account-holder, give him or her power of attorney over the account, McManus said.

To get the full story with more expert advice from McManus, click here. And to discuss what your must-do estate plan items are based on your unique circumstances, give us a call at 908-898-0100. We can help.

Time for Those in The Garden State and Beyond to Dust Off Their Estate Plans

November 8, 2013 - News

For those who don’t manage to review their estate plans as often as they should, it’s time to break a bad habit: Revisions may be in order for many in New Jersey and beyond due to new tax laws.

Changes to both inheritance and estate tax will affect estate taxation. Here are a few items that should be examined now as they relate to your wealth transfer plan:

  • Earlier this year, the American Taxpayer Relief Act of 2012 (ATRA) became law. ATRA allows you to leave an unlimited amount of assets to your spouse. Children and other beneficiaries will be excluded if your will or trust says that your spouse will be provided up to the “maximum amount permitted by law.” Also, under the ATRA, you may give up to $5,250,000 in assets to a non-spouse, such as a child or your trust, without racking up estate tax liability.
  • The taxes of many couples in New Jersey and across the nation will be affected by the striking down of a key provision in the Defense of Marriage Act (DOMA). Same-sex couples are treated as married for all federal tax purposes, regardless of where they were legally married. Additionally, New Jersey recently gave same-sex marriage the green light. Couples who were married in another state but live in The Garden State, as well as those who are just now saying their vows, should alter their wills and trusts to capitalize on these legal changes.
  • The estate-tax exemption for 2014 will be $5.34 million for individuals, up from $5.25 million in 2013.

Give McManus & Associates a call at 908-898-0100. We can help you modify your estate plan to take full advantage of the new rules.

Flickr/storebukkebruse

Flickr/storebukkebruse

Mommy Blog Brings Estate Planning Advice to Readers

October 23, 2013 - Media Clips

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.

Professor of Law Points to McManus’ Guidance on Using Life Insurance in Your Estate Plan

October 16, 2013 - Media Clips

Gerry W. Beyer

Gerry Beyer, Professor of Law at Texas Tech University School of Law, recently featured on his blog McManus & Associates’ latest educational conference call, “Top 10 Things to Know to Make the Most of Life Insurance in Estate Planning.” As pointed out by Beyer, using life insurance in your estate plan can provide significant protection for your loved ones.

To see the top 10 questions to ask yourself when estate planning with life insurance, read Beyer’s post. And check out more hot topics related to estate planning by visiting “Wills, Trusts, and Estates Prof Blog,” a member of the Law Professor Blogs Network sponsored by Wolters Kluwer.

McManus & Associates Expertise Featured by Wills, Trusts, and Estates Prof Blog

August 23, 2013 - Media Clips

Gerry W. Beyer

Gerry W. Beyer

Gerry Beyer, Professor of Law at Texas Tech Univ. School of Law, writes “Wills, Trusts, and Estates Prof Blog,” a member of the Law Professor Blogs Network sponsored by Wolters Kluwer. Beyer recently took a closer look at the most recent educational conference call held by McManus & Associates and posted a brief, titled “10 Most Important Considerations for Domestic Asset Protection Dynasty Trusts.”

From the post:

Jurisdictions have different laws when it comes to determining the jurisdiction of trusts and trust property. Founding Principal of McManus & Associates, John O. McManus, has shared his expertise by listing the ten most important considerations for deciding where to site your trust. Listed below are the considerations.

To read Beyer’s post and find a wealth of information on estate planning, head on over to Wills, Trusts, and Estates Prof Blog at http://lawprofessors.typepad.com/trusts_estates_prof/. 

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

August 20, 2013 - Conference Call

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.

International “Boutique Firm of the Year” Finalist and “Advisor You Need To Know”

July 24, 2013 - Press Releases

McManus & Associates Honored as “Boutique Firm of the Year” Finalist for STEP Private Client Awards

John O. McManus also named “Advisor You Need To Know” in The New York Enterprise Report (NYER) Accountant & Attorney Awards

NEW YORK, NY – July 24, 2013 – McManus & Associates is the only American law firm that has been named a finalist for the Society of Trust and Estate Practitioners (STEP) Private Client Awards 2013/2014 in the “Boutique Firm of the Year” category, the firm announced today. STEP is an invitation-only professional association for worldwide leading practitioners dealing with family inheritance and succession planning. It has 18,500 members across 80 jurisdictions from a broad range of professional backgrounds.

The STEP Private Client Awards “highlight excellence among private client solicitors/attorneys, accountants, barristers, bankers, trust managers and financial advisors.” The successful criteria for finalists includes:

  • Demonstrate excellence over the past year, taking into account significant obstacles that have been overcome.
  • Demonstrate consistent quality of work over the past year.
  • Demonstrate excellent client service building on-going relationships aligned with the interests of clients in a transparent and cost effective manner, and where appropriate, bespoke.
  • Demonstrate excellence in leadership, including a clear vision for the future.
  • Demonstrate excellence in technical skills and a qualified team with support for on-going continual professional development and education.
  • Where applicable, demonstrate innovation and involvement in interesting, challenging or new areas of practice.
  • Demonstrate conflict management by differentiating itself from its competitors and exploiting opportunities.
  • Demonstrate a broader contribution to the profession – contribution to wider social responsibility, including support for good causes and maintaining high standards of staff treatment.
  • Demonstrate staff retention and explanation for its achievement and maintenance.

The Awards judges have assessed entries and shortlisted up to five finalists worldwide. The Awards ceremony will take place on September 18, 2013 in London.

John O. McManus, founding principal of McManus & Associates, was also recently chosen for The New York Enterprise Report’s (NYER) “Accountant & Attorney Awards: The Advisors You Need To Know,” presented by Citibank. This is the fourth year that the newly revamped program has recognized top business advisors in the New York Tri-State Area. According to the NYER, “accountants and attorneys are consistently considered among the most impactful advisors for business owners. This program celebrates the accountants and attorneys who have made an outstanding impact in helping their clients succeed.”

The advisors are highlighted in a special editorial section within the July/August 2013 issue of The New York Enterprise Report magazine, as well as on nyreport.com. The top accountants and attorneys were announced at a networking reception on June 19, 2013 at the Citi Executive Conference Center.

To see additional awards that McManus & Associates has been grateful to receive, visit the firm’s Honors & Recognitions page: https://mcmanuslegal.com/about-us/honors-and-recognitions/.

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About McManus & Associates

McManus & Associates, a trusts and estates law firm, was formed in 1991 by John O. McManus to provide the highest quality experience of the largest firms coupled with the intimacy and efficiency of a specialized boutique firm. Over 20 years later, McManus & Associates continues to earn its reputation for integrity, intellectual ability, efficiency, and enduring relationships through its signature 10-Step Wealth and Family Values Protection Process™.

For more information contact:

Lauren DuBois

(917) 573-2485

communications@mcmanuslegal.com

McManus & Associates Named Finalist for STEP Private Client Awards

July 3, 2013 - Firm News

Boutique Firm of the Year

We’re excited to share that McManus & Associates has been named a finalist in the category “Boutique Firm of the Year” (sponsored by Citibank N.A.) for the STEP Private Client Awards 2013/2014. STEP, the Society of Trust and Estate Practitioners, is the leading worldwide professional association for practitioners dealing with family inheritance and succession planning.

The STEP Private Client Awards highlight excellence among private client solicitors/attorneys, accountants, barristers, bankers, trust managers and financial advisors. So far, the Awards judges have assessed entries and shortlisted up to five nominees per category. To see the full list of categories and finalists, click here.

The Awards ceremony will take place on September, 18 2013 in London. Wish us luck!