Related Material

Attorney John Newman highlights some legal issues when preparing Wills and Trusts for non-US citizens.

by John C. Newman, Esq. and Matthew D. Getty, Esq. This article addresses the issues that can arise when a parent dies owning Vermont real estate as well as the various approaches a parent or any other owner of Vermont property might consider as part of their estate planning.

We recently met with a new estate planning client who is not a native Vermonter, but a West-coast transplant. This client felt compelled to meet with us after he had read somewhere that Vermont was “not a good place to die owning real property”.

If you or a member of your family has foreign investment accounts, and/or interests in trusts, corporations or other foreign entities that have not been disclosed to the IRS, I strongly suggest you read on, because there is a growing list of reasons to “come clean” now.

Attorney John Newman gives insight into common questions people have about simple wills, probate disbutes and estate planning.

During our seminar at the March 2008 Bar Meeting, we had a lively exchange on the potential ethical pitfalls of joint representation. To further this discussion, we would like to offer some language that you might consider for your estate planning joint engagement letters.

A little history is helpful in understanding the imposition of an exit tax on US citizens and long-term residents who commit a taxable act of expatriation on or after June 17, 2008. Since 1966, the Internal Revenue Code has contained anti-abuse rules attempting to tax individuals who renounce their US citizenship for tax avoidance.

CAUTION: The Information Contained in This Article Applies to Estates of Vermont Residents (or Nonresidents Owning Vermont Property) Dying Before January 1, 2016. An Article Addressing the Vermont Estate Tax Applicable to Decedents Dying After 2015 Will Be Posted at a Future Time. By Ron R. Morgan, Esq., and Matthew D. Getty, Esq. It would be an understatement to say that estate planning to minimize potential federal and/or state estate tax liabilities has become considerably more complex in recent years. There are two principal reasons for this.

As a result of the Small Business Jobs Act of 2010, a person receiving rental income from real estate is treated as engaged in the trade or business of renting property (amended IRC §6041(h), effective for payments made after 31 December 2010).

Co-authored by Paula McCann, Esq., and Ron R. Morgan, Esq. Vermont may be well on its way to a dubious number-one ranking: for that of thefts by fiduciaries from estates of all types. What lawyers need to know about preventing or prosecuting theft by fiduciaries.

If you are serving on a nonprofit board, you have a fiduciary duty of care in exercising oversight of the organization. One of the ways to ensure an active oversight role for your board is to review the annual filing of IRS Form 990.

Judging from the interest generated by our 2004 CLE offering and by telephone calls and emails we have received since then, our article on the tax and Medicaid planning aspects of what we tongue-in-cheek termed the “standard Vermont estate plan” has led attorneys to explore alternatives to the rather common recommendation of a joint tenancy with a family member to pass a Vermont elder’s home to the next generation. Since the article was published (VBA Bar Journal, Summer 2003), the US Congress passed legislation that radically changes the Medicaid planning aspects of our article. In addition, the Vermont Supreme Court has issued three recent decisions that also must be considered in using the survivorship or remainder features in deeds to pass a home to surviving children.

By John C. Newman, Esq. & Matthew D. Getty, Esq. There has been a recent change in Vermont's homestead filing law. Read on to see how this affects the creation of life estates and/or transfers to trusts.

As has been widely reported in the press, a U.S. citizen or resident individual must file a Foreign Bank Account Report (FBAR) to disclose foreign bank and securities accounts.

By Matthew D. Getty, Esq. Anyone planning to transfer real estate into any kind of business entity needs to be aware of the provisions of the Vermont property transfer tax.

Facing legal matters after the death of a spouse is one of the more daunting and emotionally draining tasks a surviving spouse is required to address.

The following handout on the pitfalls of preparing LBJ deeds was presented at the 2008 Winter VBA Program in Burlington. It has been updated with information from the Vermont Department of Taxes on the PTR tax imposed on certain of such transfers. We have also added model language for joint representation, an issue raised during the two-hour program.

In a major departure from current tax policy, the Vermont legislature is considering a bill to impose the Vermont estate tax on some estates where currently no federal estate tax would be due.

The Supreme Court’s 2005 decision in Estate of Mainolfi, 178 Vt. 588, illustrates the antiquated nature of Vermont’s probate laws and the need for reform efforts to instill certainty in the results of modern estate planning methods. Specifically, Mainolfi deals with the transfer of a home for estate planning purposes and the resulting implications of the statutory homestead interest for the surviving spouse. Neither the facts nor the law of the case are very clear from this 2-page decision, but the ruling casts uncertainty over any conceivable estate plan that involves the transfer of a home.

These are interesting times for individuals trying to plan their estates. State and federal laws continue to be in flux. We would like to highlight some of the most significant changes.