Have you ever considered the fate of your client’s pet upon their death or disability? In addition, how this care will be funded? Have you asked your clients if they have considered this when they are sitting across from you discussing their estate plan? When they are planning for their children, grandchildren, bequests to charities, etc.—did they consider their pets? Moreover, did you even discuss this with your client?

IRS Chief Counsel Advice (CCA) 202352018, released on December 29, 2023, addresses the gift tax consequences of modifying a grantor trust on beneficiary consent to add a tax reimbursement clause. The CCA concludes that such a modification to add a tax reimbursement clause will constitute a taxable gift by the trust beneficiaries because the addition of a discretionary power to distribute income and principal to the grantor is a relinquishment of a portion of the beneficiaries’ interest in the trust.

Effective estate administration means identifying, valuing and collecting assets, filing tax returns, making distributions and determining cash needs to pay taxes, expenses and debts, among many other tasks.

With more than 1,200 golf courses, Florida has more courses than any other state in the United States. With plenty of golf courses and warm weather, Florida has been a “hot” destination for new residents. According to the United States Census Bureau, Florida saw the biggest increase in population in 2022 with 319,000 new residents. (Forbes, Florida’s Moving Statistics that May Surprise You, July 28, 2023, Florida Moving Stats You Should Know – Forbes Home).