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Special Estate Planning & Post-Special Estate Planning & Post-Death Trust AdministrationDeath Trust Administration
Ryan W. LockhartRyan W. LockhartAssociateAssociate
Phone: (925) 944-9700Phone: (925) 944-9700Fax: (925) 944-9701Fax: (925) 944-9701
Email:[email protected]:[email protected]
Ryan Lockhart graduated with Honors from Ryan Lockhart graduated with Honors from University of Phoenix (B.S. 2007), and then University of Phoenix (B.S. 2007), and then attended Golden Gate University School of Law attended Golden Gate University School of Law (J.D. 2010, L.L.M. in Taxation 2014). At Golden (J.D. 2010, L.L.M. in Taxation 2014). At Golden Gate, Ryan was member of Jesse Carter Society Gate, Ryan was member of Jesse Carter Society for Academic Excellence, and was on the Deanfor Academic Excellence, and was on the Dean’’s s List from Spring 2007 through Spring 2010. List from Spring 2007 through Spring 2010. Ryan was admitted to the California State Bar in Ryan was admitted to the California State Bar in 2010. His practice focuses on estate planning, 2010. His practice focuses on estate planning, wealth transfer planning, estate and gift tax wealth transfer planning, estate and gift tax planning, tax controversy, trust administration planning, tax controversy, trust administration and probateand probate.
Mr. Lockhart is an estate and tax planning Mr. Lockhart is an estate and tax planning attorney whose practice includes:attorney whose practice includes:
• • Trust, estate and probate administrationTrust, estate and probate administration
Membership:Membership:
• • American Bar AssociationAmerican Bar Association• • State Bar of CaliforniaState Bar of California• • Contra Costa County Bar AssociationContra Costa County Bar Association• • Bay Area Young Tax LawyerBay Area Young Tax Lawyer
Education:Education:
• • Golden Gate University School of LawGolden Gate University School of Law• • University of PhoenixUniversity of Phoenix
Practice Areas:Practice Areas:• • Asset ProtectionAsset Protection• • Charitable GivingCharitable Giving• • ConservatorshipsConservatorships• • Health Care DirectivesHealth Care Directives• • Powers of AttorneyPowers of Attorney• • ProbateProbate• • Special Needs TrustsSpecial Needs Trusts• • Succession PlanningSuccession Planning• • Tax PlanningTax Planning• • Trust AdministrationTrust Administration• • Will Contests and Trust DisputesWill Contests and Trust Disputes• • Wills and TrustsWills and Trusts
Jenifer K. LeeceJenifer K. LeecePartnerPartner
Phone: (925) 944-9700Phone: (925) 944-9700Fax: (925) 944-9701Fax: (925) 944-9701
Email:[email protected]:[email protected]
Jenifer Leece's practice focuses on estate planning, Jenifer Leece's practice focuses on estate planning, trust and estate administration and estate related trust and estate administration and estate related litigation. Ms. Leece has extensive litigation and litigation. Ms. Leece has extensive litigation and mediation experience of trust and probate related mediation experience of trust and probate related matters representing trustees, executors, matters representing trustees, executors, beneficiaries and conservators.beneficiaries and conservators.
Ms. Leece graduated from University of California, Davis in Ms. Leece graduated from University of California, Davis in 1990 with a B.A.in International Relations and 1990 with a B.A.in International Relations and Spanish. She received her Juris Doctor from the Spanish. She received her Juris Doctor from the University of San Francisco School of Law in 1994 and University of San Francisco School of Law in 1994 and was admitted to practice in California and federal was admitted to practice in California and federal courts in 1994.courts in 1994.
While at the University of California, Davis and the While at the University of California, Davis and the University of San Francisco School of Law, Ms. Leece University of San Francisco School of Law, Ms. Leece interned at the District Attorney's Office in interned at the District Attorney's Office in Sacramento and San Francisco where she worked as a Sacramento and San Francisco where she worked as a victim advocate with victims of domestic violence and victim advocate with victims of domestic violence and as a certified legal intern in both the felony domestic as a certified legal intern in both the felony domestic violence and narcotics units.violence and narcotics units.
Ms. Leece is an estate planning attorney whose Ms. Leece is an estate planning attorney whose practice includes:practice includes:
• • Estate PlanningEstate Planning• • Trust, estate and probate administrationTrust, estate and probate administration• • LitigationLitigation
Membership:Membership:
• • State Bar of CaliforniaState Bar of California• • Contra Costa County Bar AssociationContra Costa County Bar Association
Education:Education:
• • University of San Francisco School of LawUniversity of San Francisco School of Law• • University of California, DavisUniversity of California, Davis• • University of Salamanca, SpainUniversity of Salamanca, Spain
Practice Areas:Practice Areas:
• • Wills and TrustsWills and Trusts• • Trust AdministrationTrust Administration• • Succession PlanningSuccession Planning• • Will Contests and Trust DisputesWill Contests and Trust Disputes• • ProbateProbate• • Powers of AttorneyPowers of Attorney• • Health Care DirectivesHealth Care Directives• • Special Needs TrustsSpecial Needs Trusts• • ConservatorshipsConservatorships• • Tax PlanningTax Planning• • Asset ProtectionAsset Protection• • Ownership of Real PropertyOwnership of Real Property
NEW TAX ACT REVIEWNEW TAX ACT REVIEW
UNIFIED CREDIT (GIFT/ESTATE TAX UNIFIED CREDIT (GIFT/ESTATE TAX
EXLCLUSION)EXLCLUSION)
PORTABILITYPORTABILITY
ESTATE TAX PLANNING v. INCOME TAX ESTATE TAX PLANNING v. INCOME TAX PLANNINGPLANNING
NEW TAX ACT NEW TAX ACT PLANNING OPPORTUNITIESPLANNING OPPORTUNITIES
Irrevocable PlanningIrrevocable Planning BUSINESSESBUSINESSES
REAL ESTATEREAL ESTATE
LIFE INSURANCELIFE INSURANCE
FINANCIAL ACCOUNTSFINANCIAL ACCOUNTS
IRREVOCABLE PLANNINGIRREVOCABLE PLANNING
EXCLUDED FROM GROSS ESTATEEXCLUDED FROM GROSS ESTATE
GENERALLY LESS CONTROL OVER ASSETSGENERALLY LESS CONTROL OVER ASSETS
ESTATE TAX PLANNINGESTATE TAX PLANNING
IRREVOCABLE TRUSTSIRREVOCABLE TRUSTS
ILIT/SLAT – Irrevocable Life Insurance TrustsILIT/SLAT – Irrevocable Life Insurance Trusts
QPRT – Qualified Personal Residence (or QPRT – Qualified Personal Residence (or second home) Trustsecond home) Trust
Dynasty/GST Trusts and GST ExemptionDynasty/GST Trusts and GST Exemption Multi-generational planningMulti-generational planning
Charitable TrustsCharitable Trusts
IDGT – “Intentionally Defective Grantor Trusts”IDGT – “Intentionally Defective Grantor Trusts” Children’s TrustsChildren’s Trusts
IRREVOCABLE LIFE IRREVOCABLE LIFE INSURANCE TRUSTINSURANCE TRUST
““ILITILIT”” How do they work?How do they work?
Proper FundingProper Funding
I have one, but its broken. How can we fix I have one, but its broken. How can we fix a broken ILIT?a broken ILIT? TerminationTermination Court Ordered ReformationCourt Ordered Reformation Sale to New ILITSale to New ILIT
Spousal Lifetime Access Spousal Lifetime Access Trust Trust ““SLATSLAT””
Provide for Surviving SpouseProvide for Surviving Spouse
Marital DeductionMarital Deduction
Respecting the FormalitiesRespecting the Formalities
Non-Trust AssetsNon-Trust Assets
Qualified Retirement Qualified Retirement
AccountsAccounts
Joint TenancyJoint Tenancy
Payable on Death AccountsPayable on Death Accounts
Qualified Retirement PlansQualified Retirement Plans
Individual Retirement Individual Retirement
Account (“IRA”)Account (“IRA”)
Spousal RolloverSpousal Rollover
Required Minimum Required Minimum
Distributions & Stretch-Out Distributions & Stretch-Out
OptimizationOptimization
INCOME TAX LAWINCOME TAX LAW
Step-up in tax basis on Step-up in tax basis on ““ownedowned”” assets at deathassets at death ““OwnedOwned”” assets are those that are assets are those that are
includible in a decedentincludible in a decedent’’s gross estate s gross estate for tax purposesfor tax purposes
Joint-TenancyJoint-Tenancy
Death of First Joint TenantDeath of First Joint Tenant
Non-Step Up of Basis for Non-Step Up of Basis for
Surviving OwnerSurviving Owner
Tax ImplicationsTax Implications
Payable on Death Payable on Death AccountsAccounts
Death of First OwnerDeath of First Owner
Step-up of basisStep-up of basis
Tax ImplicationsTax Implications
Trust Trust Administration Administration
101101
Similarities between probate and Similarities between probate and trust administrationtrust administration Inventory and value assetsInventory and value assets Pay debts and taxesPay debts and taxes Distribute assets to designated beneficiariesDistribute assets to designated beneficiaries
Differences:Differences:
No court supervisionNo court supervision Less structure and formalityLess structure and formality Need for involvement of other professionalsNeed for involvement of other professionals Costs and FeesCosts and Fees
Trust Administration following Trust Administration following death of first spouse:death of first spouse: Step 1Step 1: Locate documents (estate plan, insurance policies, financial statements, tax returns, etc.): Locate documents (estate plan, insurance policies, financial statements, tax returns, etc.)
Step 2Step 2: Review and analyze estate planning documents: Review and analyze estate planning documents
Step 3Step 3: Pay bills (medical bills, funeral and other expenses): Pay bills (medical bills, funeral and other expenses)
Step 4Step 4: Formalities – Lodge Will, notify DHS and social security, re-title assets in name of trustee: Formalities – Lodge Will, notify DHS and social security, re-title assets in name of trustee
Step 5Step 5: Inventory, collect and value all assets as of date of death: Inventory, collect and value all assets as of date of death
Step 6Step 6: Analyze need for and file estate tax return: Analyze need for and file estate tax return
Step 7Step 7: Prepare accounting if required: Prepare accounting if required
Step 8Step 8: Allocate trust property to sub-trusts if required : Allocate trust property to sub-trusts if required
Step 9Step 9: File taxes: File taxes
Step 10Step 10: Evaluation of estate planning documents going forward: Evaluation of estate planning documents going forward
Trust Administration following Trust Administration following death of surviving spouse (or death of surviving spouse (or single person):single person):
Step 1Step 1: Locate documents, statements, tax returns, etc.: Locate documents, statements, tax returns, etc.
Step 2Step 2: Review estate planning documents: Review estate planning documents
Step 3Step 3: Administrative duties (formalities): Administrative duties (formalities)
Primary Difference: Trust is fully irrevocablePrimary Difference: Trust is fully irrevocable
Step 4Step 4: Pay bills, expenses, claims: Pay bills, expenses, claims
Step 5: Step 5: Inventory, collect and value assets as of date of deathInventory, collect and value assets as of date of death
Step 6Step 6: File and pay outstanding taxes/ determine if 706 is required: File and pay outstanding taxes/ determine if 706 is required
Step 7Step 7: Prepare accounting: Prepare accounting
Step 8Step 8: Make distributions and gifts/maintain reserve: Make distributions and gifts/maintain reserve
Step 9: Step 9: File final trust income tax returns/distribute reserveFile final trust income tax returns/distribute reserve
OUR CLIENTSOUR CLIENTS
Business OwnersBusiness Owners
Real Estate InvestorsReal Estate Investors
High Net Worth IndividualsHigh Net Worth Individuals
Life Insurance PortfoliosLife Insurance Portfolios
ProfessionalsProfessionals
Clients Requiring General Estate PlansClients Requiring General Estate Plans
PRACTICE AREASPRACTICE AREAS BusinessBusiness
Real EstateReal Estate
Wealth Succession and EstateWealth Succession and Estate
TaxTax
EmploymentEmployment
Business, Real Estate, Estate and Business, Real Estate, Estate and
Commercial LitigationCommercial Litigation
