We get a lot of questions about estate planning in our practice. You may be wondering if you need an estate plan, or are completely confused as to how the process works. Perhaps you have an estate plan, but an issue has arisen, or you have received an inheritance and are now facing a problem related to it. No matter how you have encountered this estate plan problem, we know it can feel scary and overwhelming.
We had an interesting example of this recently. A client came to us that had received a $10,000,000 inheritance. Unfortunately, they were also on the hook for $1,000,000 in estate taxes.
As it turns out, our client’s parents’ attorney didn’t follow the estate plan created by their retired attorney. The estate plan required that a special trust be created, which was not done.
To remedy the problem, on behalf of the trust we filed a creditor’s claim against the estate of the 2nd parent to pass away.
Once this creditor’s claim is approved, we will file an amended tax return and claim a deduction from the 2nd parent’s estate. This will reduce the claim to zero.
We will then file a claim with the IRS requesting a refund. If the IRS denies the refund, we have a back-up plan for that too.
Our clients came to us with a complicated estate tax problem. They were understandably upset with what had transpired and needed help. When this process is complete they will leave with a solution and peace of mind. They leave knowing that they have a personal relationship with us and know they can call upon us in the future.
This case is a great example of what we can do. We take great care in determining what course of action is best for our clients, and truly care about the results. If you have an estate problem, or just want to talk about what estate planning options may be a good fit for you, please give us a call.