GRATs and Mitt Romney's estate planning

No one really knows what will happen with the estate and gift taxes in 2013--if Congress does nothing, we're back to a $1,000,000 exemption.  President Obama's proposed budget sets it at $3,500,000.  We do know that the $5,120,000 exemption we have this year is a great planning tool to move assets to the next generation, something that several of my clients are finding useful.

Mitt Romney took advantage of great advice and used a grantor retained annuity trust (GRAT)  to transfer appreciating assets to future generations of his family free of gift tax.  The grantor must survive the term of the GRAT for the asset to be excluded from his estate, but the term can be very low (although Obama's budget proposes a minimum 10-year term, which is another reason to do your planning now).  The grantor receives annuity payments during the term of the GRAT, and the rest goes to future generations and avoids a lot of taxes.  Combined with a Delaware trust, this strategy can provide security for beneficiaries for decades to come.

If you'd like more information regarding advanced planning strategies and the value that a professional trustee and trust company can provide at little or no additional cost, please contact me at U.S. Trust, Pasadena.
  

Two new conservation easements

I've written before about conservation and preservation easements, and I'm pleased to see that the Pasadena Heritage organization has received two new easements--one on the historic Freeman House, designed by Alfred and Arthur Heineman, and the other on a commercial building in the Playhouse Historic district.

I wasn't aware that Pasadena Heritage holds 82 easements, making it one of the largest easement holders in the West.  They conduct annual inspections of the properties to be sure the easements are being honored.

There may be tax breaks available, and you can feel good about preserving a piece of history and architectural art.

My talk on estate planning and probate basics

I'll be speaking this March 28, 2012, on wills, living trusts, irrevocable trusts, estate taxes, trust administration and probate--it's a webinar by LawReviewCLE that I'll be giving with Rhode Island attorney Anthony Mignanelli. Click here for more information.

RIP Bob Burnett, chart-topper and trust lawyer

I've been a Senior Trust Officer with U.S. Trust in Pasadena almost a year now, after a 16-year career as a trusts and probate lawyer, and am also a fan of folk music.  So, I was pleasantly surprised to read the obituary of Bob Burnett, who died last December.  It turns out he was a trusts lawyer for U.S. Trust/Bank of America and a folk musician.

He came to Wesleyan University in 1958, and was told by his fraternity to get an entertainment act together.  He did, and with Dave Fisher, Steve Butts, Chan Daniels and Steve Trott — became the Highwaymen.  In 1961, they had a number one single, "Michael," their version of "Michael, Row the Boat Ashore."  More success followed, but they disbanded in 1964 as Bob went to Harvard Law School and others to schools elsewhere.

He went on to work in various bank trust departments, eventually retiring from U.S. Trust. He did take a break to perform with the original group members in 1990 and release more albums--they came out of retirement after settling with Waylon Jennings, Johnny Cash, Willie Nelson and Kris Kristofferson, who misappropriated the "Highwaymen" name.

Not everyone would walk away from a successful music career to work with trusts, but he did, and that's my kind of guy.

Don Schweitzer in San Gabriel Valley Tribune

Congratulations to a fellow lawyer and great guy in Pasadena!  Donald Schweitzer practices family law, estate planning and criminal law, and I've had the pleasure of knowing him for several years now, along with working with him on some cases as well.  This article in the San Gabriel Valley Tribune profiles him.

If you have questions about planning and protecting your estate, both now and for future generations, contact me at U.S. Trust.