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InterActive Legal drafting systems contain hundreds of different options, which can make using the program sometimes feel a bit overwhelming.  Many of the options won't be needed for most clients, but are nice to have when the situation arises.  So how can you best navigate the numerous drafting options in the program for your most common estate plans?

Powers of Appointment are one of the most common ways of adding flexibility to an estate plan. Allowing a beneficiary to redirect trust property at death or to direct a distribution from their trust to another person during lifetime can give the beneficiary a sense of control and involvement, and can also permit revisions to an estate plan when circumstances or law changes warrant. The exercise of a power of appointment, and in some cases its mere existence, can trigger tax consequences as well, some of which may be the reason for including the power itself, and others which could be unintended.

Estate planners often worry about minimizing or avoiding estate taxation at death, but gift taxation must be considered when making transfers during lifetime. Smaller gifts can avoid gift taxation due to the gift tax annual exclusion, which allows taxpayers to transfer relatively small amounts of property without any gift tax impact at all. However, if a gift is made to a trust, instead of outright, the gift tax result may differ. In most cases, gifts in trust are intended to qualify for the gift tax annual exclusion by giving the trust beneficiary a right of withdrawal over trust contributions - often referred to as a Crummey power, named after the court decision that first allowed this strategy.

Subscriber Drafting Webinars provide continued training on various aspects of using the InterActive Legal software, usually focusing on drafting particular documents or using certain drafting options. These webinars are free to ILS subscribers. They provide insight and training regarding specific documents and options available within the drafting systems. Subscribers will receive an email outlining the topic of each drafting webinar with instructions for registration.