Team updates
Elizabeth High, a principal with LeBlanc & Young, has been named the Portland, Maine Trusts and Estates Lawyer of the Year for 2023 by Best Lawyers, the oldest and most respected peer-review publication in the legal profession. This is the fifth time Elizabeth has received this honor. Only a single lawyer in each specialty in each community is honored as “Lawyer of the Year.”
Eliza Nichols became a principal with the firm in July. The firm has also added a new attorney to its team. Parker Towle joined the firm in February 2022 after beginning his legal practice at a leading Boston law firm. Eliza and Parker assist individuals and families with their estate planning needs, including assisting clients with lifetime gifting strategies and gift and estate tax issues as well as trust and estate administrations.
Tax Alert: Proposed Changes to Federal Estate Tax Laws
On September 13, the House Ways and Means Committee made public its proposed tax plan, the revenue from which would fund President Biden’s “Build Back Better” spending package. This proposed legislation would impact (among other things) estate, gift, and generation-skipping transfer tax exemptions, valuation discounts, and grantor trust rules.The proposals under consideration, if enacted, would most impact a client who wishes to make gifts in excess of $6,000,000 to utilize as much of his or her presently available $11,700,000 exemption as possible before the new law takes effect, and/or who has an existing grantor trust, such as an ILIT, GRAT, SLAT, or QPRT. Clients with estate plans involving only revocable trusts and/or who do not wish to make significantly large gifts do not need to make changes to their plans at this time.Read more about it by clicking here to access our Tax Alert.http://leblancyoung.com/wp-content/uploads/2021/10/tax-alert-10-26-21-final.pdf
We are all working diligently but remotely during these difficult days!
In an effort to do our part to curb the effects of COVID-19 in our community, LeBlanc & Young has enabled and encouraged all of our team to work primarily remotely. All members of the Leblanc & Young team remain reachable by phone as well as e-mail. As we work through the issues associated with a remote working environment, we remain committed to our original mission: “To provide superior services to clients with estate planning and related legal needs, within a working environment that respects and affirms all persons involved.” If you need us, please call or email us as we realize that in these difficult times we are still here to help you.
So Much News!
Chambers and Partners has once again ranked LeBlanc & Young as a “Band 1, Leading Firm” in its High Net Worth Guide in its latest issue, with Elizabeth High receiving a Band 1 leading individual recognition, and Jay Young a Band 2 recognition.
We are delighted to welcome Kristin Barry to our team of lawyers. Kristin is a graduate of Dartmouth College and Georgetown Law School, and practiced previously in Washington D.C. She has been with us for several years as a Trusts and Estates Administrator and has decided to continue her legal career with the firm. We are lucky to have her stay with us and continue to help clients with their estates and trusts as well as advise clients about their estate planning needs.
Jay Young has become “senior counsel” to the firm effective this January after a legal career of more than 40 years. He will maintain a steady presence and set of hours in the office but is scaling back his practice. Many clients have worked with other lawyers in the office with Jay as he has remained engaged. Please do not hesitate to call with any questions you might have.
Finally, we are busy reviewing plans to accommodate the increase in the federal estate and gift tax exemption. As you may be aware, the federal exemption increased to $11.4 million effective January 2019. Maine’s estate tax exemption, however, is no longer coupled with the federal exemption, and is currently approximately $5.7 million. Both the federal and state exemptions are indexed annually for inflation. Many estate plans should be reviewed and potentially revised to reflect technical changes, as well as changes in the required level of tax planning. Clients will want to consider the amount that they wish to leave in trust, as for many clients, the tax incentives to create more complex trust plans have been reduced or eliminated. Finally, clients of substantial wealth who can consider giving away their federal exemption amounts during their lifetime (that is an amount approaching $11.4 million) will want to discuss this with us as the high level of exemptions are unprecedented and it is unclear that they will remain at these high levels indefinitely. We fear that you may need to use it, lest we lose it! The estate tax changes are more thoroughly discussed in our newsletter, which can be found here or under “Client Resources.”
Elizabeth High Named as Lawyer of the Year
Best Lawyers®, the oldest and most respected peer-review publication in the legal profession, has named Elizabeth High the Portland, Maine Trusts and Estates Lawyer of the Year for 2018.According to Best Lawyers, the lawyers receiving this honor have received particularly high ratings in their surveys by earning a high level of respect among their peers for their abilities, professionalism, and integrity. Only a single lawyer in each specialty in each community is honored as the “Lawyer of the Year.”This is the third time Elizabeth has received this honor, having been previously named Lawyer of the Year for 2012 and 2016.
Potential Changes in Federal Estate Tax
The federal estate tax system has undergone significant changes over the past 20 years, but the next 20 months may see even more significant change. When George W. Bush was elected in 2000, estates over $675,000 were subject to estate tax and the top marginal rate was 55%. From 2001 to 2010, the exemptions went up and the rates came down, culminating in 2010 when, for one year, there was no estate tax. In December 2010, Congress re-enacted the estate tax with a $5 million exemption (indexed for inflation) and a flat rate of 35%. Presently, there is a flat, 40%, federal estate tax on estates over $5,490,000 (an 813% increase in the exemption from 2000).Candidate Trump proposed the elimination of the estate tax and the implementation of a plan where “capital gains held until death and valued over $10 million will be subject to tax to exempt small businesses and family farms.” It is not entirely clear when beneficiaries would pay taxes on capital gains: when the assets are received from the estate or when the beneficiary later sells the asset. In any event, President Trump’s plan appears to be similar to the system in place in 2010: estate tax replaced with capital gains and an exemption. As we saw in 2010, this system may require significant changes to estate plans which rely on formula-driven tax language and may result in a rather complicated carry-over basis regime with some challenging tracking issues.At this point, we believe it is too early to make changes to existing estate plans and are recommending a “wait and see” approach. The Trump Administration has not put forth proposed legislation and we suspect that any estate tax reform will involve significant compromise. The last 20 years have been a bit bumpy in the estate planning world, but 2017 may make that uncertainty pale in comparison. Check back for additional information as it becomes available.
LeBlanc & Young and Elizabeth T. High Recognized in Chambers' High Net Worth Guide and James H. Young, II Named 2017 Lawyer of the Year
LeBlanc & Young is honored to have been ranked as a “Band 1” Leading Firm for Private Wealth in the inaugural edition of Chambers and Partners’ High Net Worth Guide. Its High Net Worth rankings are highly selective and based on independent research and interviews with lawyers, family offices, accountants, tax advisers, bankers and investment managers, among others. According to Chambers, LeBlanc & Young is “an extremely high-quality firm. All high-level practitioners.”Elizabeth High was also recognized by Chambers as a Leading Individual in Band 1, with a fellow lawyer reporting: “She is incredibly strong technically on the estate tax side, she is very careful, thoughtful and a very deep thinker and she cares deeply about her clients.” Another market source considers Elizabeth to be “a very skilled lawyer, with great practical approaches.”The Best Lawyers of America, the oldest peer-review publication in the legal profession, named James H. Young, II (“Jay”) the Portland, Maine Trusts and Estates Lawyer of the Year for 2017. According to Best Lawyers, the lawyers receiving this honor have received particularly high ratings in their surveys by earning a high level of respect among their peers for their abilities, professionalism, and integrity. Only a single lawyer in each specialty in each community is honored as the “Lawyer of the Year.”
Proposed Rules May Impact Interests in Family Business Entities
The IRS has issued long awaited proposed regulations under Section 2704 of the Internal Revenue Code that would make sweeping changes to the valuation of interests in family business entities for estate, gift, and generation-skipping transfer tax purposes. If they are adopted, the proposed regulations will reduce the availability of certain valuation discounts used in valuing transfers of business interests between family members. Thus, clients considering transfers of interests in family businesses may want to consider implementing those transfers before the regulations are finalized to facilitate more favorable valuations.Under current law, when transfers of interests in family business entities are reported on a gift or estate tax return, the appraised value often reflects minority-interest and lack of marketability discounts, supporting values for estate and gift tax purposes that may be lower than the actual percentage of the interest in the total value of the enterprise. For example, if a family member owned a 20% interest in a family LLC that operated a business, the appraised value would likely be discounted by another 20% to 40% to reflect the minority position transferred and the lack of any market for such business interests, thus reflecting a value less than 20%. In addition, some legal arrangements seek to add restrictions that would limit further the rights of owners in an effort to reduce the value more. The new proposed regulations focus primarily on disregarding these restrictions on liquidation in determining the fair market value of a transferred interest, and by treating the lapse of voting or liquidation rights as an additional transfer.The proposed regulations are in a 90-day comment period, to be followed by a public hearing scheduled for December 1, 2016. It is expected, because these regulations are controversial, that the IRS will receive many comments, and that the final regulations will not be issued until sometime in 2017 at the earliest. We understand that IRS personnel have already commented that the proposed regulations were not intended to eliminate minority and marketability discounts. We will be keeping a close eye on further developments in this area.In general, the regulations would apply to transfers made after the regulations are made final, although they might apply to transfers made before that date if the transferor were to die after the effective date but within three years of the date of the transfer.We believe that for families who have contemplated transfers but have not yet done so, there is still time to act. Clients who are considering transferring interests in family-controlled entities that are not controlling interests and do not have liquidation rights should consider making the transfers soon.
Maine Cancer Foundation Twilight 5K
LeBlanc & Young teamed up with Seacoast Cares to participate in the Maine Cancer Foundation’s Twilight 5K, held annually at the Southern Maine Community College in South Portland. This is the fourth year the firm has joined in the event.
LeBlanc & Young runners are pictured (left to right): Taryn Adams, Julie Scala, Tara Weller, Justin LeBlanc, and Eliza Nichols.Taryn Adams placed first in her division.
College Checklist: Computer, Laundry Supplies and… a Power of Attorney!
Sending a child off to college is a daunting task for many parents: lists of things to buy, details to button down, all the while knowing your son or daughter will be embarking on one of the most exciting and independent ventures of a lifetime. Parents tend to fret about the well being of their children, no matter how independent, and the distance between home and a child who starts college can create some problems if the child needs help. Any child who is over 18 should start college with the proper supplies, and this should include a durable power of attorney and a health care directive or power running back to one or both parents. The durable power of attorney will facilitate the transaction of business, ranging from simple banking to more complex matters for the child should the need arise. Even more important is a health care directive or power that includes a privacy waiver so a parent can help the child with any healthcare issues that might arise and facilitate any discussion between health care providers at home and at school. One client recently recounted the tale of a child’s emergency appendectomy far from home and was appalled at the paces the remote hospital put them through to check on the child’s progress; when the parent faxed the comprehensive health care directive with a privacy waiver the information flow became quite simple. So consider a call to LeBlanc & Young in your pre-college planning – pencils, pens and powers of attorney!
Matie B. Little, Esq. Has Joined LeBlanc & Young
We are delighted to announce that attorney Matie Little has joined our firm. Matie is a graduate of the University of Maine, Honors College with a Bachelor’s Degree in Psychology, summa cum laude and earned her J.D. from American University, College of Law, summa cum laude in 2007. In 2008, Matie received her LL.M. in Taxation with a Certificate in Estate Planning with distinction from Georgetown University Law Center.Prior to returning to her home state of Maine and joining LeBlanc & Young this January, Matie was a partner in the estate planning department of a Washington D. C. law firm, where she assisted clients with a broad range of estate and gift planning projects designed to achieve clients’ personal and tax goals. She also assisted with trust and estate administration and counseled both private foundations and public charities on governance, tax and compliance matters. Matie is admitted to practice law in Maine, Massachusetts, and Washington D.C.Matie lives in South Portland with her husband and their baby daughter. Being home, Matie is excited to spend more time with her family and introduce her daughter to all of Maine’s wonderful outdoor activities, including skiing, hiking, gardening and fishing. She also looks forward to eating a lot more lobster.
Eliza Nichols
Eliza M. Nichols, who has been with us as an estate administration paralegal for about two years, is now an attorney at LeBlanc & Young.Eliza graduated from Oberlin College in 2000 and UCLA Law School in 2005. After law school she practiced at a large firm in Los Angeles in the litigation department. Eliza has thrived at LeBlanc & Young, bringing a sharp mind, good judgment and a wonderful personal touch to all of her cases. We know our clients will enjoy working with Eliza.
Elizabeth High Named as Lawyer of the Year
Best Lawyers, the oldest and most respected peer-review publication in the legal profession, has named Elizabeth High the Portland, Maine Trusts and Estates Lawyer of the Year for 2016.According to Best Lawyers, the lawyers receiving this honor have received particularly high ratings in their surveys by earning a high level of respect among their peers for their abilities, professionalism, and integrity. Only a single lawyer in each specialty in each community is honored as the “Lawyer of the Year.”This is the second time Elizabeth has received this honor, having been previously named Lawyer of the Year for 2012.
Change in Maine Estate Tax
January 2016 will herald a very important change in the Maine estate tax. The Maine estate tax exemption, now $2 million (the amount that may pass free of estate tax in addition to what may pass to a spouse or charity), will increase to match the level of the federal exemption – this is a dramatic increase! The federal exemption, currently $5.43 million per decedent, is indexed upward annually. Although we do not know what the amount will be in 2016, it should be significantly more than it has ever been. This means that many estates will no longer be subject to the Maine estate tax. As a result, many people can simplify their plans starting in 2016 to omit unneeded tax planning and focus only on the concerns of how assets should be left for survivors without the overlay of tax complexity. The federal estate tax and the Maine estate tax are not identical, however. For individuals and couples with larger estates tax planning is still warranted, as the federal concepts of portability and generation-skipping planning are often not well served by a simple plan for a Maine resident. In addition, trusts will continue to serve an important role for many clients who have incorporated them in their documents for reasons other than pure tax planning. The change in the Maine exemption creates some planning opportunities that may help families who have existing Credit Shelter and Family Trusts left in the plan of a deceased parent or spouse. We will address some of these opportunities more comprehensively in a tax planning alert that we will be sending soon. Should you have questions, please feel free to talk with any of the lawyers at LeBlanc & Young to explore how this change in Maine law might affect you and your estate plan.
Transitions with Dick LeBlanc's Retirement
As previously announced, Dick will be retiring at the end of August. Many of his clients have consulted with him over the past 15 months to discuss a seamless transition to a younger attorney here at L&Y. If you have not done so, please contact his son, Justin, whenever convenient. Over the next few weeks, Dick will be focused on completing various projects and will no longer be available to handle transition calls.Thank you for your cooperation!
Karen M. Hart, CPA, MST Has Joined LeBlanc & Young
We are pleased to announce that Karen Hart has joined our practice as our Fiduciary Services Administrator. Given her history as one of Portland’s preeminent fiduciary accountants, Karen brings immediate and obvious professional skills to our fiduciary tax practice. She will also assist with our trusts and estates practice by reviewing and finalizing tax returns and accountings.Karen graduated from the University of Maine with a degree in Business Administration with a concentration in Finance, earned her Master of Science degree in Taxation from Thomas College, and received her CPA certificate in 1999. Prior to joining LeBlanc & Young, Karen worked for over 25 years in public accounting. Karen is a member of the American Institute of Certified Public Accountants.Karen is a member of the board of trustees for Mercy Hospital, and is a board member and past president of the Maine Estate Planning Council.
Dick LeBlanc to Retire
Dick LeBlanc has announced his decision to retire in August 2015.He has been practicing law in Portland since 1972 and is a founding member of LeBlanc & Young. Although we will be sad to see Dick leave the firm, we are excited for him and his wife, Doris, as they will be able to pursue many of the things they have been looking forward to as a retired couple. Between now and August 2015, Dick will continue his active practice and will be introducing his clients to other lawyers at LeBlanc & Young. We are all committed to making the transition as seamless as possible for all involved.
Eliza M. Nichols Has Joined LeBlanc & Young
Eliza M. Nichols has joined the firm as the newest member of our Trusts and Estates team.Eliza is a paralegal with the firm, focusing on estate and trust administration. Eliza is a graduate of Oberlin College, and earned her J.D. from the UCLA School of Law in 2005. She practiced as an attorney in the litigation department at Bryan Cave LLP in Los Angeles for several years before moving back to Maine. Eliza is a member of the State Bar in both California and Maine, and is a licensed Maine guardian ad litem.