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Team Tisser Foundation (TTF) is a non-profit corporation founded by Doron M. Tisser and his wife Laurie. TTF raises money for various charitable purposes and does not focus on any one charity or charitable purpose. The goal is to raise as much money as possible to "Help Make A Difference" by "Improving Life for Others." TTF has made donations to Memorial Sloan-Kettering Cancer Center, Leukemia & Lymphoma Society, Challenged Athletes Foundation, as well as charities helping people affected by natural disasters such as Hurricane Katrina and the Tsunamis. Since 2000, TTF has donated almost $175,000 to over 25 different charities. Friends and clients generally donate money to TTF to support Doron's participation in triathlons and marathons. If you would like more information about TTF, please contact Doron at doron@tisserlaw.com, or visit www.teamtisser.org
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About
Doron M. Tisser
Doron M. Tisser has specialized in
estate and gift planning, tax planning,
trust and probate administration,
charitable giving, buy-sell agreements
and related areas forover 27 years. Mr.
Tisser is one of less than 100 attorneys
in California who has been designated
as both a Certified Specialist in
Probate, Estate Planning and Trust
Law, and as a Certified Specialist in
Taxation Law by the State Bar of
California Board of Legal Specialization.
He was chosen by his peers as a
2009 Super Lawyer for Southern
California, and enjoys an "a.v."rating
by Martindale- Hubbell Law Directory,
which is the highest possible rating
and is based on ethical considerations
and legal skills. Mr. Tisser has
published over 65 articles and chapters
in books on various estate and tax
planning subjects and is a frequent
speaker and lecturer at estate and tax
planning seminars. Mr. Tisser competes
in triathlons, including Ironman
races, and raises money for charities
through Team Tisser Foundation, a
non-profit corporation he co-founded
with his wife Laurie.
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What’s Happening
On August 10, 2010, Doron M. Tisser was part of a panel discussion for the
San Fernando Valley Group, Los Angeles Chapter of the California Society
of Certified Public Accountants in which he discussed Estate Tax Planning
in 2010 and the Use of Intentionally Defective Grantor Trusts.
On September 29, 2010, Doron spoke at the Back to The Future for Estate
Planning Seminar for Paradigm Insurance on Current Estate Tax Planning.
On December 7, 2010, Doron M. Tisser will be speaking for the San
Fernando Valley Evening Discussion Group, Los Angeles Chapter of the
California Society of Certified Public Accountants. He will be discussing
Estate Tax Planning in 2010 and the Use of Intentionally Defective Grantor
Trusts.
If you would like to receive information on Team Tisser Foundation or
Doron’s training, or if you would like to make a donation, please contact
Doron at doron@teamtisser.org.
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2010: The State of Estate Tax Confusion and Opportunity
2010 will be known as the year of estate tax confusion. Here are some of
the issues.
Will Congress give taxpayers the choice of using the 2010 estate tax laws
or the 2009 estate tax laws for people dying in 2010?
If a married person died in 2010, will all of his or her assets be funded into a
bypass trust, rather than a marital (QTIP) trust?
Will the estate tax exemption remain at $1 million for 2011, or will Congress
increase it?
While these and other issues remain open, there are certain issues that you
should address before the end of 2010.
Gifting. If you want to reduce your estate for estate tax purposes, 2010
is the year to do this through gifting. In 2010, the maximum gift tax rate is
35%; the gift tax will rise to 55% in 2011. By gifting in 2010, you will pay
lower gift tax than you would pay in estate tax or gift tax in future years. In
addition, future appreciation is taken out of the your estate.
Generation-Skipping Tax Planning. If you want to make
gifts to grandchildren, 2010 is a year for this gifting. In 2010, there is no
generation-skipping transfer tax, so that an unlimited amount can be
transferred to grandchildren this year with no generation-skipping taxes.
With generation-skipping taxes generally being equal to the maximum
estate tax bracket, this will save your family a tremendous amount of money
in taxes.
It is important to remember, however, that there is some issue as to what
the generation-skipping tax would be if transfers are made in trust for
grandchildren. The safer route would be to make transfers directly to
grandchildren. If, however, a transfer needs to be made in trust, there are
certain strategies that can be used to try to protect against an unforeseen
generation-skipping tax.
If you are a beneficiary of a trust which is not exempt from generationskipping
taxes, so that all distributions trigger a generation-skipping taxes,
2010 would be the year to take distributions from that trust. With no
generation-skipping taxes this year, distributions from that trust would not
be subject to such a tax.
Fractional Discounts. There have been proposals in Congress
to eliminate the use of fractional discounts on transfers between family
members. If this occurs, many of the tax planning strategies we use to
minimize estate and gift taxes may go by the wayside. If you are thinking of
making transfers to family members, you should consider doing this as
soon as possible in order to take advantage of fractional discounts, in case
discounts are eliminated.
Grantor Retainer Annuity Trusts. If you are thinking about
establishing a grantor retained annuity trust (GRAT), 2010 is the year to do
this. The minimum interest rates required by the Internal Revenue Service
are at an all-time low and make the use of a GRAT a very attractive tax
saving technique. It should be pointed out that there have been proposals
in Congress to require GRATs to have a term of no less than 10 years, which
may effectively eliminate the use of GRATs for most taxpayers.
Sales to Intentionally Defective Trusts. With the value of
real estate having come down the last few years, and with the low interest
rates in effect, this is the perfect time to consider selling assets to an
intentionally defective grantor trust (IDGT) in order to pass a lot of assets to
family members with no tax costs.
With interest rates so low in 2010, the use of a self canceling installment
note (SCIN) with a sale to an IDGT is more attractive than it had been in
prior years. The potential downsides of using a SCIN can be hedged
against by creating a SCIN-GRAT, in which the SCIN and additional assets
are transferred to a GRAT.
Summary. If you would like to do estate tax planning and take advantage
of various tax planning strategies, 2010 presents many options that
should be considered. As the value of real estate rises, interest rates rise
and Congress changes the estate tax laws, many of these planning opportunities
will no longer have the benefits they do at this time.
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