Online resource center to help you explore these key issues, and others, regarding your estate.

Practice Areas

Mr. Miller has many years of experience in designing and implementing a comprehensive variety of Trusts, Wills, and other estate planning documents, as well as settling estates in the most expedient and appropriate method. Further, he counsels and assists clients on becoming eligible for VA benefits and Medi-Cal.

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VA Pension/Aid & Attendance/Medi-Cal

Mr. Miller has been active in the area of VA Pension and Medi-Cal for well over a decade. He uses various specialized types of Trusts as well as non-trust strategies to gain eligibility for his clients and save the family money.

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Probate & Estate Administration

Mr. Miller has been settling estates (both simple and complex) for well over 40 years. The starting point is always to create a strategy to settle the estate in the most efficient manner possible with a minimum of taxes. Often times the strategy created allows the family to bypass Probate Court proceedings.

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Who is John Doe?

By merv,

  Filed under: Blog, Estate Planning

Originally, John Doe was a person with an unreported off-shore bank account, who may be subjected to substantial tax penalties for failing to disclose their foreign assets.  However, for the last year the John Doe summons (which, essentially goes after people whose identities are unknown and unspecified), has been targeted toward people who failed to disclose gifts to the IRS.  (Disclosure is made on Form 709.)  Specifically, it has been targeted toward Californians, many of whom likely did not seek attorney advice before executing their deeds.

You may currently give $13,000 per donor, per donee.  The exclusion amount has been at least $10,000 per year since the late 90s, and rose steadily until it reached its current level in 2009.  Any amounts over that require a gift tax return.  For the most part, no tax is actually required with the return; however, the gift decreases the amount you may pass to your heirs tax-free upon death.  In other words, the amount you give now decreases how much you can give without a tax when you die.  The IRS needs these tax return forms  to keep track of how much of an exemption you have for estate tax purposes.  As a result, tardy filing is also penalized.

The IRS issued a “John Doe summons” in California, where real estate prices are relatively high, to find people who have transferred real estate to others without selling the property.  Often, people will write “gift” in order to avoid a recording transfer tax and then record the document.  These documents are public record for the IRS to tap into.  If you have already transferred property to your children or grandchildren, especially without any transfer tax paid, you should speak to a tax professional to determine how to disclose your potential gift tax obligation.

If you have been thinking of transferring property to your children or grandchildren, especially to decrease your potential estate tax, there may be estate planning alternatives that can help.  Estate tax planning is one of the reasons people “give” their house away.  In such cases, a Qualified Personal Residence Trust or other gift for a certain number of years in the property may be an effective tool.

Some other common reasons people give their homes away to their children during life include Medi-Cal planning and Veteran’s Aid & Attendance Non-Service Connected Disability planning.  It is a common misconception that individuals seeking to qualify for Medi-Cal or Veterans Aid & Attendance Non Service Connected Disability benefits must rid themselves of their real property in order to qualify.  However, there are sound reasons for doing this.  Depending on your circumstances, a QMap trust or a QVap trust may solve your dilemma by allowing you to meet the requirements of the program while preserving certain income tax benefits. Remember that a gift tax return is required even if you do not have any estate tax concerns; even if your estate will be under $1 million (assuming that that is the exemption in 2013) with the property, you must make a record of the gift.

Regardless of your reason for transferring real estate, you should always speak to a tax advisor and an estate planning attorney before attempting to make the transfer yourself.  Otherwise, you may subject yourself to substantial unforeseen consequences including legal fees, tax penalties, and even public family feuds in court!

Estate Planning: The Price of Organization, Rewards, Gifts, and Wondrous Tax Things… FREE REPORT: This complimentary report, focused on Estate Planning, is comprised of many of Mr. Miller’s articles from his long running column for the largest regional newspaper in San Diego County. This report will guide you through the questions surrounding getting your estate planning in order.

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About Living Trusts

About Living Trusts is hosted by the Law Offices of Merwyn J. Miller, as your online resource center to help you explore these key issues, and others, regarding your estate.

Merwyn J. Miller, J.D.

  • Board Certified Specialist in Estate Planning, Trust & Probate Law
  • Co-Author of legal text book and of “Don’t Go Broke in a Nursing Home
  • Teacher of law courses at public and private colleges
  • Continuing Education Instructor for attorneys
  • Columnist for largest regional newspaper in San Diego County and professional journals for 15 years, Contributing author to the book “In Your Service: The Veteran’s Friend”
  • Masters Degree in Financial Services - Estate Planning

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