The purpose behind our practice is to facilitate and plan for family tranquility when it comes to inheritance, business succession planning, asset protection planning and assisting families after the loss of a loved one.

To this end, we are devoted to providing clients with high-quality trust-based estate planning, including revocable trusts, asset protection, limited liability companies, limited partnerships as well as other arrangements that will assist families in achieving their goals.

If you are visiting this website, it is more than likely that you have been referred to our office by somebody who values the relationship that they have had with us. We build relationships with our clients and work hard to see to it that their goals are met.

We have an expanding collection of articles and information on this website. However, no matter how wonderful technology is, personal contact is the best way to reach us and to learn about us.

- Ahmed Shaikh

Dying to avoid taxes?

Written on July 10, 2010 by ashaikh in main
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Another article addressing the Estate Tax situation and the lengths people will go to avoid paying it.  It looks grim and its an interesting story.  The estate tax goes from 0 to 55% the very next calendar year.  Congress is unlikely to do anything.  So people will commit suicide, children will kill their parents.  Its all about taxes and its all so sad. 

However such articles, though they cite lawyers who talk about such things, do not address how it may be possible more many families to have estate taxes dramatically reduced or eliminated without going through such grim measures.  That's was lawyers in this area are supposed to do. No lawyer would ever suggest 2010 is a good year to die because Congress never got around to fixing a law. Not only should taxes not be a reason to make life or death decisions, the idea people are doing this is  melodramatic media nonsense.  If you have good enough advice, you would not be worried.  

forced or unforced shares

Written on July 9, 2010 by ashaikh in main
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The rights of the surviving spouse loom large when it comes to inheritance.  The surviving spouse often receives everything in the United States.  Indeed its fair to say the system is rigged that way.  However what about those who do not want to give everything to the surviving spouse.  The options exist from statute.

In California, its much easier to exclude, even fully exclude a surviving spouse. There are no forced shares in California.  In Probate Code § 21611 addresses this issue by stating a surviving spouse may be excluded if:

1) the exclusion is on purpose and made plain in the documents

2) There was a transfer made outside the estate plan meant to take care of the spouse and there is evidence of this

3) The surviving spouse does not want any inheritance

Of course the last one is obvious.  Though typically people want whatever inheritance they can get.  This provision is more relevant in more complex family situations, particularly in a second marriages, where litigation is more likely. 

   

Surtax for the very, very wealthy?

Written on June 25, 2010 by ashaikh in main
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More estate tax proposals keep the issue at the fore.  However there has been no indication the US Senate is about to agree on anything at all.  One proposal is highlighted in recent news.  While it styles itself as progressive, and because it taxes the extraordinarily wealthy at a higher rate then the less extraordinarily wealthy, it sort of it.  However its striking how generous it is for a left wing, pro-estate tax proposal.  
According to the Journal:

            "Under the proposal, as in 2009, the exemption would be $3.5 million for an individual, or as much as $7 million for a couple, with a tax rate of 45%. But estates with taxable assets between $10 million and $50 million would pay a 50% rate, and estates valued above $50 million would pay 55%. A further 10% surtax would apply to assets above $500 million." 

Other proposals would curtail certain kinds of estate planning techniques, particularly the use of "discounts" in valuations and eliminate the 2 year Grantor Retained Annuity Trust, which can be used as an offset in the budget since Congress is under the impression it will raise revenue.  

While many are skeptical of the Senate's ability to do anything substantive on the estate tax, its still not too late.  It would be helpful for Estate Planners (and clients) to know what the rules actually are as most of us seem to think that the assumption of a $1 million exemption and a 55% tax rate, which is current law starting in 20111, is wrong.  

Life Insurance for Charity

Written on June 23, 2010 by ashaikh in main
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An Article in the San Francisco Chornicle on Charitable giving through Life Insurance explores ways to give charity using this asset that could be a tremendous benefit.  however I don't agree with parts of it, in particular the notion that "Transfer of assets from an insurance contract is also absolutely incontestable, thus rendering anyone contesting the estate settlement powerless to stop it." Thats a particularly silly statement.  There are a wide range of reasons why transfers can be contestable
 
 

Legalzoom’s Troubles

Written on June 5, 2010 by ashaikh in main
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LegalZoom needs lawyers to protect its interests. Its own clients also need lawyers in a class action against Legalzoom.  As always, efforts to end the participation of lawyers only ends up causing more work for lawyer.  

The company often compares itself to lawyers when comparing fees and even uses a lawyer in its commercials.  The fast talker at the end of each commercial typically says that they are not a law firm and they do not provide legal services, which is of course true.  Merely providing document preparation software or documents to do-it-yourself is not the practice of law.  Its plain however Legal Zoom is something else.  Its also true they do not compete with lawyers since their services seem to appeal to more marginal and unsophisticated people who would never hire lawyers and would not realize they are overpaying for a template filling service that fills forms that without much more effort can be obtained for free.

The problem may be these unsophisticated people are being had by a company that simultaneously says they are cheaper then a lawyer, do the same thing, and yet, are not really lawyers.  

No Deal on the Estate Tax, no surprise

Written on May 19, 2010 by ashaikh in Estate Planning, main
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It appears there was no deal on the Estate Tax, according to a report by "the Hill."  In all likelihood, there never was anything resembling a deal.  The United States Senate has been in a state of paralysis for some time. As they did not bother to fix the estate tax last year, or do it [...]

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A stranger cares for the elderly. What comes next?

Written on May 8, 2010 by ashaikh in Trust Disputes, Trustee, main
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One heavily litigated area is when non-relatives get inheritance.  Imagine this: A woman comes into the life of a man who is old and is about to die.  She cares for him, feeds him, takes him to the doctor.  Perhaps she bathes him and otherwise looks after his welfare.  This man has other family, but [...]

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Second Life: There is no such thing as “virtual land”?

Written on May 3, 2010 by ashaikh in Trust Disputes, main
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A lawsuit evidently by a group of disgruntled "second life" users highlights  problem that could conceivably affect Trust and Estate Disputes in coming years: the large number of people who seem to own, by actually paying for with real dollars, "virtual" property.  The nature of these "property rights" can be affected by whatever the company [...]

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GRATs may be curtailed

Written on April 28, 2010 by ashaikh in main
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An important estate planning method for families with high net worths may be significantly curtailed.  Trusts and Estates Magazine reports today the Small Business and infrastructure jobs act of 2010 will include a provision concerning grantor retained annuity trust as a "revenue offset."

The Grantor Retained Annuity Trust (GRAT) is a kind of trust specifically authorized [...]

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History of the Estate Tax

Written on April 23, 2010 by ashaikh in main
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David Joulfaian has written a lengthy manuscript on the history and background of the Federal Estate Tax.  Its a small portion of US revenue, however you will need to read it to appropriate why its not going anywhere, at least not for any substantial amount of time.  

Some form of inheritance tax has been prevalent through much of recorded history.  Like [...]

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