Case Studies and Articles

Defuse Your Ticking Tax Time Bomb – Vaughn Henry & Associates

You can make more money by saving taxes than you can by trying to make more money.

Understand why you should not own your own life insurance and how the voluntary nature of estate taxes and capital gains taxes can be controlled.

  • Avoid the 12 worst estate planning errors
  • Learn how the IRS can pay for your life insurance needs
  • Create a family fund that will be exempt from estate taxes forever
  • How the wealthiest U.S.families create and preserve their wealth
  • Reposition growth assets to income assets without income tax penalties

Will Rogers on Death and Taxes

‘The difference between death and taxes is death doesn’t get worse every time Congress meets.’

Will Rogers on a Balanced Budget

‘Alexander Hamilton started the U.S. Treasury with nothing — and that was the closest our country has ever been to being even.’

Defuse Your Ticking Tax Time Bomb

Legitimate planning tools allow wealthy individuals to pack more assets into gifts and transfers to heirs. Understand how these tools are used to maintain control, while passing down the future tax liabilities. Use your pension, IRA and qualified retirement funds more efficiently, and avoid capital punishment at death by avoiding taxes that reduce your savings by 80%. See how traps force families to sell ongoing businesses and income producing properties in a garage sale environment; recognize that control is better than ownership.

Could your estate withstand a 5,500 point drop in the Dow? It’s going to happen at death. Instead, create a perpetual private family bank to fund activities forever sheltered from estate taxes.

Financial and Planning Links

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Estate Planning and Planned Giving Books


Henry & Associates’ Planning Articles

Getting Out of Your Business  
Will Your Family Business Survive to the Next Generation?Now that you have it, how do you keep it?Exiting Your Business Maximize income and value tax efficiently
Freeze and Squeeze how to compress an estate and pass down your businessWhat is a CLAT – ForbesNewsday article on charitable planning
Rev. Proc. 2001-59 12/7/01 New GST and Annual Exclusion LimitsHas Estate Tax Repeal Really Changed Anything?Have You Put Your House in Order? a checklist for planning
When Payouts Won’t Payoff What’s the best way to choose a CRT/CLT payout?Just How Forgiving Will Those Heirs Be? Liability Concerns for PlannersIntegrating Your Estate Plan – How to Get Your Advisors on Track
Team Building and Expanding Your Practice A CCH Journal of Practical Estate Planning ArticleFinding (or Being) a Good Advisor Private Wealth Advisor Vol. 3, No. 6 – London, UKTake Charge – Avoid Planning Pitfalls Basic Estate Planning How-To’s
Tax Efficient Charitable GivingYear End Estate Planning OptionsPowerful Uses of the Charitable Remainder Trust Ways to Retain control of family wealth and influence.
Estate Planning Software and InformationEstate Planning ProcessesFamily Estate Planning Philosophies
Putting a Lid on Your EstateCharitable Roll-OversCharitable Lead Trusts and the Jackie Onassis Estate
Zero Estate Tax PlansEstablishing Your Estate Planning GoalsKeeping It In The Family
The Flexibility of the NIMCRUTPension Traps for the Well-HeeledTax Advantaged Corporate Stock Redemptions
Professional Planned Giving ResourcesYours, Mine and Ours Remarriages and Estate Planning NeedsEstate Planning Needs Vary
A Partnership From Hell (Continuity Planning)Making a Plan to Deal With Moving Goalposts IDIT/IRD and EGTRRAStarting the Process – Developing the best approach to clients
Choices, it’s all about choices helping clients find their way.Checklists for the elder client an initial outline for organizing your estate planning concernsInherited Wealth

Retirement Planning Articles

New IRA Distribution Rules A Simple Explanation from Professor Christopher HoytLiving With a Market DeclineMinimum Distribution Planning for IRA and Retirement Plans also, see new regs
New Life Expectancy Tables for MRD Calculations IRS Publ. 590IRS 2002 – 2003 Priority Guidance Plan What’s on the HorizonEight Myths About Retirement Planning
New MRD RegulationsRequired Distributions from Retirement PlansPlain English Analysis of the Retroactive New Distribution Regs.
Equal Employment Opportunity CommissionSocial Security COLA 2002MRD Calculator
BBC Life expectancy calculatorMSN Life Expectancy CalculatorLongevity Game
CPI Inflation Calculator or CPISEP Information from CCH 
Birthdate Database or People SearchCalculatorMonte Carlo Calculator for Retirement Planning
Protecting Retirement Plan AssetsEstate Planning with Deferred Compensation and IRA’sAmerican Employee Rights
Barry Picker’s Articles on Estate and Retirement PlanningEconomic IndicatorsData Library on Economic Subjects

Estate Planning Legislation & Commentary

The American Jobs Creation Act of 2004New 2004 Tax Act AnalysisTax Changes in 2004 Summarized
States Decoupling from the Federal Estate TaxKETRA 2005 JCT Releases Technical Explanation of Katrina Emergency Tax Relief Act of 200550 State Model UPL Statutes
JJ MacNab’s Tables Comparing HR 8’s Proposal of Eliminating the Estate Tax with Current System What does the loss in “step-up” in basis really mean?Description and Analysis of Present Law and Proposals Relating to Federal Estate and Gift Taxation. (2001)The Economics of the Estate Tax
IRS Attack on the FLP – HacklSearchabe database for tax court opinionsRamesh Ponnuru on the Estate Tax Repeal
Premack on 1999 Estate Tax RepealThe Case for Repealing the Estate TaxCenter for Budget and Public Policy on Estate Tax Repeal
Online Source for IRS Revenue RulingsStates Are Decoupling from the Federal Estate Tax CutProfessional IRS Resources
REPEALING THE ESTATE TAX WOULD REDUCE CHARITABLE GIVINGEstate Tax Affects Few Family BusinessesAbusive Tax Schemes – IRS
Joint CommitteeWays and Means for Tax LegislationTax Links’ IRS Revenue Rulings and search at Tax Links – Find a Revenue Ruling
Searchable Code of Federal Regulations and IRS CODEUS House of Representatives CodeInternational Law Resources

Practical Articles and Links

Even celebrities with advisors are voluntary taxpayers. Peter Jennings’ Estate  
The Virtues and Values of an Ethical WillEthical WillsDiscussing Finances with Aging Parents
Definition of InheritanceEstate Planning TopicsLegal Documents Among the 50+ Population
Organ Donor InformationState Specific Advance DirectivesThe 5 Wishes – Aging With Dignity
Medical Directive FormsCaring ConnectionsFlorida Catholic Conference of Bishops’ Declaration on Life and Death
ABA Directory
Tax Forms – Super FormsPlanning for Unmarried Older Couples
Elder LawMichael Schwartz’ Compendium of Elder Abuse LawAdvance Directive
Helping People Meet Aging-Related Legal and Care ChallengesPARTNERSHIP FOR CARING: America’s Voices for the Dying Health Care POA samplesLiving Wills – state by state
10 Legal Myths About Advance Medical DirectivesWhen a simple will is not the wayCompassion & Choices, End of Life Choices
Trustmakers – Asset ProtectionNigerian ScamsAsset Planning for Physicians and Fraudulent Transfer and Asset Protection and Scams
Scammers and Concepts to AvoidOffshore AlertsDiscussion Board on Asset Protection
Stupid Private Annuity Tricks  
End of Life Issues, state specific living wills and DPA informationSteps You Must Take When Someone DiesElders and the Law
Tissue Donation information Living Bank, Houston, TexasHarvard Brain Tissue Resource Center, BostonForensic Anthropology Center, Univ.of Tenn, Knoxville
Laboratory of Human Osteology, Maxwell Museum of Anthropology, AlbuquerqueList of body donation programs in the United StatesBody Donation forms: University of North Texas
University of Texas – HoustonUniversity of Texas – Southwestern 
Fraudulent Transfers, UFTA, Case StudiesQDOT PlanningIncome Tax Treaties
What Canadians Should Know about US Transfer TaxesDeloitte & Touche Taxation of Foreign NationalsInland Revenue for UK Residents
Canadian Estate Tax IssuesPrice Waterhouse Memo on Canadian Estate PlanningCanadian “Snowbirds” and Taxes
Canadian Estate Tax IssuesIslamic LawLaws Affecting Inheritance for Muslims
Halachic Aspects of Estate PlanningIslamic Forms and Documents Affecting Estate PlanningIslamic Sharia Law and Calculator
Estate (and GST) Tax ReturnInstructions for IRS Form 706Fidelity Estate Tax Calculator
< a>Smart Money Estate Tax CalculatorTax Calculators
Estate Tax Calculator Asset BasedHugh’s Estate Tax CalculatorRowbotham Estate Tax Calculator
Hugh’s on-line calculatorsTimeValue: Extensive calculators and IRS extension forms and Tax, Salary and Compensation CalculatorsFinancial Calclators
 Benefits of an Insurance Trust (ILIT)AFR (applicable federal rates) Archive
Irrevocable Life Insurance Trusts – Lawrence Lipoff, CPA CEBSAvoiding Estate Tax for Farm OwnersInheriting Farmland?
The Succession QuestionCCH Business Owner’s Toolkit ArticleSuccessful Business Transitions
Fiduciary Duty of Trustee to Utilize Alternative Risk Management TechniquesHIPPA Privacy and HealthcareLiving Trusts: Fact or Fiction
Living Trust Offers: How to Make Sure They’re Trust-WorthyNow You Have a Trust Good intro to trust activities, stressing AZ revocable trusts, but it is worth a read.Drafting Irrevocable Life Insurance Trusts
Beneficiaries of Estates and TrustsIRA Planning in EstatesFTC Privacy Legislation
Myth of a Living TrustMel Abraham’s – New Decisions Bring New Life to Family Limited PartnershipsKove & Kosakow, LLC – Several articles on FLPs
UNIFORM LIMITED PARTNERSHIP ACT (2001) NCCUSLEstates Involving the United States and SwitzerlandArticles on Insurance and Trust Planning (especially on the new split dollar rules) from Michael Weinberg JD
Oshins’ Article on Inheritor’s TrustsSteve OshinsUnmarried Couples and Estate Planning ConcernsInformation on a state by state basis for divorce planning
Business Valuation ServicesBusiness Valuations – CPA oversteps experienceShould Annuities Be In IRAs? William Reichenstein
Successful family businesses follow simple guidelines by Brian Van WinkleWhat to do when a bond holder diesNolo Press
Ten Things Your Estate Planner Won’t Tell YouUTMA and UGMA Gifts for Minors 
Tax Secrets of the Wealthy: Relying on an estate planning myth – a sure-fire way to enrich the IRSBusiness Week on IRC 6166 Inheriting a Business Just Got HarderPlanning to Keep the IRS Out of Your Heirs’ Hair
Basics of Estate Taxation with emphasis on IN Inheritance TaxBasics of Estate Taxation IIBasics of Estate Taxation III
Unintended Consequences Of Old WillsWSJ on Charitable Uses of InsuranceWSJ on Director’s Insurance
College CostsTrends in College PricingCompare State §529 Plans
Internet Guide to Section 529 Plans (Qualified State Tuition Programs)College Savings Plans NetworkCollege Aid Resource Centre

Links & Resources

FindLaw Estate Tax, Probate and Legal Search InformationAdam Kirwin’s Links and Legal SearchLegal Website Links and Resources (excellent introduction)
Legal Directory and ResourceSangamon Valley Estate Planning Council 
ACTEC Legal Site “What’s New” (good resource)Michigan ICLE Site on Estate Tax, Probate and Internet ResourcesRBG Certified Public Accountants and Consultants
Tax Analysts – Research ServicesFinancial Planning InteractiveDennis Kennedy’s Estate Planning
Some excellent articles from the HSW Law FirmDuty to Diversify? trust investmentsThe Alaska Dynasty Trust
Dynasty Trusts  
GPO GateThe JuristLaw Library Resource Exchange
Federal Web LocatorRominger’s Legal (Search State by State)Library of Congress on Illinois Laws
Center for Information Law and PolicyWest’s Legal DirectoryLexis-Nexis Research
Katsuey’s Legal GatewayThomas Legislative InformationLegal Research
Lyo’s Work in Progress (Many Types of Law)Cornell University’s Supreme Court OpinionsPrairie Law
Kimes International Law DirectoryFederal Courts FinderFarislaw
International Law Academy  
P-Law Legal Resource LocatorCivil Glossary of TermsLaw Guru’s Multi-Search Site (search states simultaneously)
Closing a PracticeWhen An Attorney Dies: A Guide for the Solo and Small-Firm PractitionerClosing a Solo Practice
Net-Law Email ListIndex of Law ListsThe International Academy of Estate and Trust Law
Legal Survivial WebsiteHavens’ Legal Research SiteABA Questions & Answers Site on Estate Planning
Estate Planning Tools for the Professional Jason Havens’ SiteEstate Planning LawyersOn-line Federal Estate Tax Calculator
Small Law Firm Lexis ResourceBusiness Succession PlanningSpecial Needs Children
The Brown Atlas On DyingLast ActsEnd of Life CareChoices And Conversations A guide to the end of life
Means To A Better End: A Report On Dying In America Today A seminal look at how people die in AmericaLiving Well At The End Of Life issues affecting end-of-life care.Handbook for Mortals: Guidance for People Facing Serious Illness, by Joanne Lynne and Joan Harrold (Oxford University Press)
Deathbed PlanningThe History of Estate Tax RepealEstate Planning for Gunowners
Pet SurvivorsEstate Planning for Non-Human Family MembersEstate Planning for Pets Foundation
ABA-PTL Archives


URL for ABA-PTL Subscriber Functions

ABA-TAX Archives


URL for ABA-TAX Subscriber Functions

FindLaw Legal Internet GuideInternet Law Search EngineThe International Academy of Estate and Trust Law
National Association of Financial & Estate PlanningImpaired Risk: Listing of conditions requiring an insurance ratingU.S. Consumer Gateway: jurisdictions over a specific consumer problems
GAO Report on Offshore Trusts, Tax Scams and SchemesCorporation Sole Scam pitching a charity as a tax dodgeSection 508 of the IRC referred to by Corporation Sole promoters
Quatloos – exposing shams and tax scams and frauds IRS Bulletin 2004-71 – New Numbers for 2005
The Morning After: Tax Planning for Lottery WinnersLottery Players and Winners: Estate Planning for the Optimistic and the Lucky.”But for Rotten Luck Some People Would Have No Luck at All – Malpractice in Lotto Winnings
Proactive and holistic planning servicesChoosing a Life Insurance Beneficiary: The ‘Natural’ Choice Is Not Always BestimageEstate Planning for Non-Human Family Members
Moody’s Investor Services: Insurance company financial strength, ratings, etc.FBOExchange: Forum for life or health insurance questionsFinancial Services Journal Online: Free financial e-zine
Life and Health Insurance Foundation for EducationNational Underwriter’s Publications, Archives and ArticlesReference Tables after EGTRRA 2001


FOR YOUR OWN CRT SCENARIO or try your own at Donor Direct. Please note — there’s much more to estate and charitable planning than simply running software calculations, but it does give you a chance to see how the calculations affect some of the design considerations. This is not “do it yourself brain surgery”. Is a CRUT superior to a CRAT? Which type of CRUT is best used with which assets? Although it may be counter-intuitive, sometimes a lower payout CRUT makes more sense and pays more total income to beneficiaries. Why? When to use a CLUT vs. CLAT and the traps in each lead trust. Which tools work best in which planning scenarios? Check with our office for solutions to this alphabet soup of planned giving tools.

‘Over and over again, the courts have said there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich and poor, and all do right, for nobody owes any duty to pay more tax than the law demands. Taxes are enforced exactions, not voluntary contributions.’

Judge Learned Hand


New Estate Tax Schedule

Your Planning Just Got Harder

Economic Growth and Tax Relief Reconciliation Act of 2001

“The Government Keeps Moving the Goal Posts”

Gift Tax Exemption goes to $1,000,000, but no longer linked or “unified” with estate taxEstate and Generation Skipping Tax (GST) rates and scheduled implementation linkedSunset provision may complicate planning
YearExclusionTop Rates
“Sunset” provision kicks in 1/1/2011$1,000,00055%
Final bill (291 pages) HR 1836Plain text (258 pages) HR 1836JCT (15 pages) Summary
No step up in basis for all inherited assets, new and complicated rules will come into place. Within the unlimited marital deduction, any step-up is soon to be limited to $3,000,000 passing from decedent to spouse.Allows a new basis for $1,300,000 of property inherited from the decedent, but no step-down or step up beyond the $1.3 million. NY Times Article June 14 Lawyers and Accountants Expect Windfall From Estate Tax RepealCCH Tax Briefing changes presented to planners with EGTRRA 2001 (HR 1836 is now Public Law 107-16) and a Deloitte & Touche Review and an Aspen Publishing Review and the charitable planning implications from Caplin Drysdale of EGTRRA 2001
State death tax credit will be reduced by 25% in 2002, 50% in 2003, 75% in 2004, repealed in 2005, and replaced instead with a deduction for state death taxes paidThe gift tax is not repealed and is no longer linked to the estate tax. The gift tax exclusion amount will remain at $1,000,000 from 2002 onward.No QFOBI (section 2057) after 2004
IRS Withholding Calculator after EGTRRA 2001Tax Reform Article from the ABA-PTLExtensive Estate Planning, Elder Law & Tax Links
Estate Tax Reform Facts (as presented by this lobbying group)Reforming the Estate TaxEstate Tax and Revenue

VWH W. Henry

Henry & Associates

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Last Updated: May 16, 2006

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