The Marcellus Shale gas rush has brought about significant changes to residents across the Northern Tier of Pennsylvania. Attorneys who have practiced in rural communities for decades are being asked by their clients for planning suggestions to deal with an anticipated windfall. Strategies which worked for generations to deal with life estates, Medicaid trusts and limited liability companies, have no place in the ‘toolbox’ of family counsel looking to pass natural gas royalty wealth to the next generation and beyond. Find out how to avoid the “Nightmares” lurking in the planning!!
Summary of Contents:
The Bad, the Ugly and the Dangerous–Tales of a Tax Lawyer in Shale Country;
Tax Background; Overview of Transfer Taxes; The Estate Tax; Applicable Tax Rate;
Credits Against the Estate Tax; The Gross Estate Tax; The Taxable Estate; The Gift Tax; Taxable Gifts and Annual Exclusions; Law Favors Gifts; Gifts to Non-Citizen Spouses; Generation Skipping Transfer Tax; State Taxes; New York; Pennsylvania; MISTAKES; Mistake One–Do Nothing at All; Mistake Two–Medicaid Planning for Royalty Rights; Mistake Three–Transferred with a Retained Life Estate; Mistake Four–Inappropriate Use of Trusts; Mistake Five–Using a Limited Liability Company as the Backbone of Transfer Plan; Mistake Six–Transfer for Insufficient Consideration; Mistake Seven–Using Marketability and Minority Interest Discounts; Mistake Eight–Transferring Rights by Deeds.
Number of Pages: 59