Case Studies in Estate Planning: With Abridged Student Forms Book

	Important Information About This Book	xxi
	Preface and Acknowledgments	xxiii
Chapter 1	Dealing with Clients	1
A.	The Faces of Estate Planning	1
B.	The Stages of Life and Estate Planning	2
C.	Developing Clients	3
D.	Identifying the Client	5
E.	The Engagement Letter	5
F.	The Non-Engagement Letter	8
G.	Preparing for the Client Interview	9
H.	Conducting the Client Interview	10
I.	The Client Balance Sheet and Document Summary	20
J.	Client Competence	24
K.	Conflicts of Interest	24
L.	Execution and the Completion/Termination Letter	28
M.	Reference Materials	35
Chapter 2	A Review of the Fundamentals of Drafting Wills	41
A.	Describing the Recipients of Property	41
B.	Describing the Property	47
C.	The Division of Property	49
D.	Will Substitutes	52
E.	Execution Formalities	53
F.	Drafting Style	54
G.	Case Study 2-1		The Last Will and Testament of Alice Goodwin Smith	55
H.	Reference Materials	60
Chapter 3	The Young Adult	63
A.	Why Plan?	63
B.	Intestate Succession	64
C.	Nonprobate Transfers	64
D.	Small Estate Proceedings	67
E.	Selection of Fiduciaries	68
F.	Planning for Youthful Incapacity	68
G.	Using Form Documents (Part I)	72
H.	Case Study 3-1	76
I.	Reference Materials	78
Chapter 4	The Wealthy Young Adult Contemplating Marriage	83
A.	Preserving Family Wealth	83
B.	Marital Agreements	86
C.	Irrevocable Trusts	87
D.	Conditional Bequests	88
E.	The Impact of Dissolution of Marriage on Estate Planning Documents	88
F.	Using Form Documents (Part II)	89
G.	Case Study 4-1	91
H.	Reference Materials	93
Chapter 5	The Young Married Couple (Without Children)	101
A.	Why Plan?	101
B.	Intestate Succession	101
C.	Nonprobate Transfers	102
D.	Spousal Protections	105
E.	Federal Wealth Transfer Tax Considerations (Part I)	106
F.	Using Form Documents (Part III)	108
G.	Case Study 5-1	109
H.	Reference Materials	111
Chapter 6	Unmarried Couples	115
A.	Lifestyle Considerations	115
B.	The State and Federal Law Implications of Marriage	116
C.	Substitute Measures	117
D.	Gay and Lesbian Couples	122
E.	Conflicts of Interest	124
F.	Case Study 6-1	124
G.	Reference Materials	125
Chapter 7	The Married Couple (with Young Children)	129
A.	Another Stage of Life	129
B.	The Selection and Nomination of Protectors	129
C.	Dealing with Life Insurance and Retirement Plans	136
D.	The Contingent Trust	137
E.	Case Study 7-1	140
F.	Reference Materials	142
Chapter 8	Gifts from Grandparents	145
A.	The Transferor's Concerns in Intergenerational Wealth Transfers	145
B.	Selecting the Form of the Gift	146
C.	Federal Wealth Transfer Tax Considerations (Part II)	159
D.	Specialized Tax Planning Structures	164
E.	Using Form Documents (Part IV)	165
F.	Case Study 8-1	170
G.	Reference Materials	172
Chapter 9	Remarriage (with Children)	179
A.	Common Scenarios	179
B.	Pitfalls of the Unplanned Estate	179
C.	Planning Measures	182
D.	Case Study 9-1	185
E.	Reference Materials	186
Chapter 10	Migratory Married Couples	189
A.	State Law Considerations	189
B.	International Wills	193
C.	Foreign Property Holdings	194
D.	The Alien Spouse	195
E.	Case Study 10-1	196
F.	Reference Materials	197
Chapter 11	The Married Small Business Owner or Investor	199
A.	The Taxation Factor	199
B.	The Economic Growth and Tax Relief Reconciliation Act of 2001	200
C.	Form of Marital Gift, Formula Clauses, and Funding Alternatives	201
D.	The Vision for Succession or Cashing Out	222
E.	Buy-Sell Agreements	223
F.	Grantor-Retained Annuity Trusts and Grantor-Retained Unitrusts	225
G.	Recapitalizations and Valuation Freezes	225
H.	Valuation Discounts	225
I.	Life Insurance	227
J.	Special Considerations for Agriculture	230
K.	Deduction for Family-Owned Business Interests (IRC [section]2057)	231
L.	Case Study 11-1	231
M.	Reference Materials	233
Chapter 12	Asset Protection and Retirement Planning	241
A.	Planning for Wealth Accumulations from Services	241
B.	Basic Asset Protection	241
C.	More Advanced Asset Protection Options	244
D.	Other Advanced Asset Protection Options	246
E.	Tax Planning for Retirement Plan Assets	248
F.	Case Study 12-1	250
G.	Reference Materials	252
Chapter 13	The Generation-Skipping Trust	255
A.	The Rule Against Perpetuities	255
B.	The Generation-Skipping Transfer Tax	258
C.	Beneficiary Conduct	263
D.	Drafting for the Unpredictable	266
E.	Case Study 13-1	268
F.	Reference Materials	269
Chapter 14	Charitable Gifts	275
A.	Weighing Client Objectives	275
B.	Outright Testamentary Bequests	276
C.	Outright Lifetime Gifts	278
D.	Lifetime Split-Interest Gifts	280
E.	Testamentary Split-Interest Gifts	284
F.	Conservation Contributions	285
G.	Private Foundations	286
H.	Donor-Advised Funds	286
I.	Case Study 14-1	287
J.	Reference Materials	288
Chapter 15	Planning for Incapacity	293
A.	Alternatives	293
B.	The Revocable Trust	294
C.	Long-Term Care Alternatives	300
D.	Financing Long-Term Care	302
E.	Public Assistance Issues	304
F.	Case Study 15-1	309
G.	Reference Materials	310
Chapter 16	Probate, Taxes, Planning, and an Estate Tax Return	315
A.	The Estate Administration Process	315
B.	An Overview of the Federal Wealth Transfer Taxes	329
C.	Planning Strategies and Techniques	341
D.	Case Study 16-1	360
E.	Case Study 16-2	366
F.	Reference Materials	366
	Index	369
	Forms Supplement
1.1	Sample Engagement Letter
1.2	Sample Non-Engagement Letter
1.3	Sample Estate Planning Questionnaire (Basic: Unmarried Individual)
1.4	Sample Client Balance Sheet
1.5	Sample Client Document Summary
1.6	Sample Joint Representation Letter
1.7	Sample Disengagement Letter
1.8	Sample Will Execution Checklist
B	Sample Simple Will
C	Sample Tangible Personal Property Memorandum
D-1	Sample Statutory Durable Power of Attorney
D-2	Sample General Durable Power of Attorney
E-1	Sample Anatomical Gifts Form
E-2	Sample Final Arrangements Instructions
E-3	Sample Client Letter of Instruction
F	Sample Comprehensive Advance Health-Care Directive (Health-Care Power of Attorney, Living Will, and Anatomical Gifts)
G	Sample Will with Contingent Trust
H	Sample Complex Will (with Marital and Family Trusts)
I	Sample Pourover Will
J	Sample Revocable Trust
K	Sample Marital Agreement
L	Sample Irrevocable Trust
M	Sample Qualified Domestic Trust Provisions
N	IRS Forms 706 & 709 (with Instructions)