Examiner.com:  “Four probate cases recently made news showing estate hijacking as a thriving activity with ‘proper estate planning' and estate size being no deterrent to the growing threat of Involuntary Redistribution of Assets (IRA) actions in which probate venues and/or probate instruments (wills, trusts, guardianships or powers of attorney) are used to loot assets of the dead, disabled and incapacitated.  . . . the ‘up for grab' nature of property targeted via probate should be a great concern for all Americans.

Question:  “I want to transfer the title to my home to my revocable living trust I created for as part of my estate plan so it will not have to go through probate on my death.  My home is encumbered by a deed of trust that secures a debt I owe to my lender.  The loan documents say that the lender has an option to call the loan if I transfer the title to the home.  Can my lender call my loan? Answer:  No as if the borrower continues to occupy the home.  Most of the time when you ask a lender if it will consent to allow you to transfer the title to your home to your revocable living trust, the lender's personnel will

Arizona Republic:  “A federal investigation into elder abuse has found that Probate Courts nationwide are failing to protect vulnerable adults from exploitation by the guardians appointed to look after their health and finances.  In a report released Wednesday, the Government Accountability Office reported instances of abuse in 45 states, including Arizona, where courts failed to conduct background checks or monitor those it put in charge of an incapacitated adult.”

Wealth Strategies:  “A sobering reality is confronting many Americans in general, but there is a niche that has unique and serious planning problems–and we are not referring to all those who are going bankrupt, losing their homes to foreclosure, or filling out forms for unemployment benefits.  They won't be getting much sympathy from the one in seven Americans living in poverty, nor from the vast majority of Americans with less than $1 million in total assets, but those with $20-million estates may have the most to lose in a short time if they aren't extremely vigilant right now–and over the next several years.”

Forbes:  “The tax law is maddeningly uncertain. But there's still much a rational taxpayer can do now.  Congress has headed home for elections, leaving the tax code an unstable mess. . . . So what's a rational taxpayer to do? It's certainly tempting to put off planning and hope for a quick resolution after Nov. 2. Don't.”

Arizona Republic:  “Even the lives of American royalty are not immune from being upended in Probate Court.  Three cases in Maricopa County and California courts attest to the fact.”

Wall St. Journal:  “life-insurance companies gradually have shifted away from their broad historical base of middle-class households. Instead, statistics show, an increasing portion of insurers' business consists of selling large policies to wealthier Americans, often as part of complex estate-tax plans.  The shift means that a growing proportion of the tax benefits of life insurance goes to the well-off, not to the middle class that once was the industry's backbone.”

Arizona Republic:  “Many Americans have planned for their eventual demise by drafting wills and writing down instructions for divvying up family keepsakes.  But many have overlooked another issue: the chance that before they die, illness or age will rob them of their ability to take care of themselves or manage their own finances.”

Question:  The BATFE sent me my approved Form 4 for my NFA title II firearm.  What should I do with this original document? Answer:  I recommend that every individual, trust, LLC or corporation that submits any forms to the BATFE in connection with the acquisition, transport, disposition or any other purpose obtain a safe deposit box at a bank and deposit all original BATFE documents and copies thereof  in the safe deposit box for safekeeping.  The  safe deposit box should be registered with the bank in the name of the NFA firearm registrant.  It is especially important to safe-guard original documents that have a tax stamp. The BATFE may demand to see the original form or a copy of it.  Consider your 4th amendment rights. 

Nothing illustrates the importance of preparing a proper will, trust and estate plan like the bad examples of the rich and infamous.  This article explains the estate planning problems experienced by the loved ones of these famous folks: Sonny Bono Michael Crichton Princess Diana Leona Helmsley Jimi Hendrix Michael Jackson Florence Joyner Bob Marley Joe Robbie Babe Ruth

Associate Law Professor Phyllis Smith of Florida A&M University College of Law has written an article called “The Estate and Gift Tax Implications of Self-Settled Domestic Asset Protection Trusts: Can You Really Have Your Cake and Eat it Too?”  Here's the abstract: “Abstract: Self-settled asset protection trusts are wealth preservation trusts coupled with the spendthrift provisions. This type of trust permits the settler to have the benefit of treating the trust as a separate entity thereby protecting his assets from creditors while maintaining a pecuniary interest, as well as some level of control over what ultimately happens to the trust property. By providing asset protection from potential creditors while still having the ability to maintain a beneficial interest in the trust, the settler can essentially

New York Times:  “the house Steinbeck called ‘my little fishing place,' about a mile out of town, is part of a long-running and bitter family estate battle, pitting the surviving sister of the author’s third wife, Elaine, against his oldest son and a granddaughter.”

Anne Alstott of Harvard Law School wrote an article called “Family Values, Inheritance Law, and Inheritance Taxation.”  Here's the abstract: “This symposium paper, originally presented at the September 19, 2008 NYU Tax Law Review Symposium on inheritance taxation, begins to examine what it might mean for the law to protect a “right to use one's resources to benefit one's family.” The paper draws on historical debates over inheritance law to identify and examine three rather different ideals of the family that have recurred in various debates over time. The analysis shows that, while one can interpret values associated with family life in such a way as to oppose the taxation of inheritance, there are equally plausible interpretations according to which the family can co-exist peaceably

The 15 year saga of the Estate of Anna Nicole Smith vs. the Estate of J. Howard Marshall continues.  The U.S. Supreme Court agreed to hear the appeal filed by Smith's estate after it lost an appeal to the 9th Circuit Court of Appeals.  Anna's former billionaire husband died and left all of his estate to his son E. Pierce Marshall who died in 2006.  Anna died in 2008.  Despite the deaths of the three principal players in this long-running dispute, their estates are still duking it out in court.

Forbes:  “Wealth advisors have been telling clients all year that if you want to shift wealth to your kids or grandkids with a so-called GRAT, you should be doing one sooner rather than later. Well, it looks like the best time for this tax-saving estate-planning strategy is in October.”

Arizona Republic:  “Outside of being imprisoned, no action in the American justice system deprives a person of so many rights as being declared incapacitated in Probate Court. . . . an Arizona Republic investigation has found that Maricopa County Probate Court allows the assets of some vulnerable adults to become a cash machine for attorneys and for fiduciary companies, which manage their affairs.” For an excellent in depth review of recent Maricopa County Probate Court cases that have been in the news and problems with the system see “Life savings, freedom taken away.”  Here are other Arizona Republic stories on this issue: At the start, a conflict Bills of staggering sizes At courts, many close ties Protest, and the costs rise Judges do little to

The Probate Lawyer Blog:  “When Joe Jackson sued for the death of his son Michael Jackson, Katherine Jackson initially said she wanted nothing to do with it.  Now Michael's mother, who is also the guardian of his children, has started her own lawsuit against the concert promotion company that, she claims, pushed Michael to his death.”

AARP:  “For most people, a will is the first choice for passing on an estate to heirs. But it's not the only choice. Among other estate planning tools, the revocable living trust is gaining in popularity, especially among boomers.”

Many states, including Arizona, have laws that allow people to create trusts for the benefit of family pets. Texas Tech University School of Law Professor Gerry W. Beyer published an article on this subject called “Critters in the Estate Plan.”  Here's the abstract: “Shadow, Dolly, Spot, Lady, Ming, Trouble, Roxy, and Madam Shan are just a few of the pets that have received favored treatment in their owners’ wills. Because of the foresight of their humans, these beloved companions lived out their lives in comfortable surroundings rather than meeting the Grim Reaper in the local animal shelter’s death chamber. Virtually all clients want to provide for their pets but few actually do. Why is this? For the most part, either they do not plan their