Estate-Planner’s Playbook For 2013

Steve R. Akers (Senior Fiduciary Counsel, Southwest Region) recently published an estate planner’s guide entitled,The Estate Planner’s “Playbook” for 2013 and Going Foward Under the Post-ATRA “New Normal” of Permanent Large Exemptions and Portability, (2013). Provided below is the introdution to the article: 

The 47th Annual Philip E. Heckerling Institute on EstatePlanning was again held in Orlando during the week of January 14, 2013. I havesummarized some of my observations from the week, as well as other observationsfrom various current developments and interesting estate planning issues. Mygoal is not to provide a general summary of the presentations. The summariesprovided on the American Bar Association Real Property, Trust & Estate LawSection website that are prepared by a number of reporters, and coordinated byJoe Hodges, do an excellent job of that. In addition, there are excellentsummaries provided by Martin Shenkman on the Leimberg Information Servicesreports. Rather, this is a summary of observations of selected items during theweek as well as a discussion of other items. I sometimes identify speakers, butoften do not. I take no credit for any of the outstanding ideas discussed atthe Institute — I am instead relaying the ideas of others that were discussedduring the week.

A major focus of the Institute was estate planning under the“new normal” of transfer tax certainty, large indexed transfer tax exemptions,and portability provided by the AmericanTaxpayer Relief Act of 2012 (ATRA). This summary focuses onpractical planning issues that estate planning professional will be facing inthis new environment. Topics include:

•       legislativematters and proposals (Items 1-4);

•       planning fordonors who made 2012 gifts, including compliance details (Items 5-6);

•       planningapproaches for various categories of clients going forward in light         of permanent large indexed exemptions and portability (Item 7-8);

•       planningconsiderations for the new 3.8% Medicare tax on net investment income (Item          9);

•       strategies topreserve basis at death (turning some traditional planning on its head)         (Item10-11);

•       wealth transferplanning strategies leaving some indirect access for the donor and         donor’sspouse (Items 12-25);

•       othersophisticated wealth transfer planning strategies (including using definedvalue         clauses) (Items 26-34);

•       planningconsiderations for commonly used intra-family loans and notes (Item 35); and

•       various otherpractical planning issues (Items 36-42).

It is hoped that this summary might be a useful “playbook” for planningunder the new post-ATRA paradigm of permanent high indexed exemptions,portability, and higher income taxes

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.