How might the portability provisions of the 2010 Tax Relief Act affect surviving spouses who remarry? What new opportunities can advisors pursue to revamp defective life insurance or estate planning transactions? Why should children who are procreated using alternative methods merit special attention in estate plans?
Answers to these questions, among others, were forthcoming during a wide-ranging closing general session of the Society of the Financial Service Professionals' Clinic for Advanced Professionals, held at the Marriot Philadelphia Airport hotel, August 16-17. The presenters, Lawrence Brody and Kathleen Sherby, both partners at the law firm Bryan Cave LLP, St. Louis, addressed the impact of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 on estate and business planning practices, including opportunities and issues arising from the legislation.
Skipping a Generation
What must also be addressed in estate planning documents, said Sherby, is the disposition of assets in respect to children who are "procreated using alternative methods," such as surrogate parenting or contract pregnancy; and the managing of assets of households with only a single parent. If estate planners don't adapt their documents to reflect these new realities, Sherby warned, then they risk exposing their clients to time-consuming litigation.