As is his custom at the 2013 Berkshire Hathaway Annual Meeting, Warren Buffett took questions from the audience. Normally, those questions revolve around Berkshire’s investments and the economy, but this year estate planning attorney Marvin Blum asked Mr. Buffett the following question: “I’m an estate planning lawyer, and it’s interesting as we wrap up today to ponder that the baby boomer generation is about to pass along the greatest transfer of wealth in history. I can design plans that eliminate estate tax and pass down great amounts of wealth to the next generation, but many of my clients come to me and say they want a plan like Warren Buffett’s, leaving their kids enough so they can do anything, but not so much that they can do nothing. Now they ask me, and I am asking you, ‘How much is that, and how do you keep from ruining your kids?’” Mr. Buffett’s answer as quoted in the Fort Worth Business Press was interesting.

A recent case I have been working on has reminded me again of the importance of thinking through your beneficiary designations.

I will be speaking next week in Logan at a workshop for business owners on the subject of estate planning and succession planning for the business owner. In preparing, I came across an article in Trust and Estates magazine entitled The Myths and Realities of Succession Planning for Small Businesses. The article set forth five myths that I will discuss at the workshop, but I think bear repeating.

Recently, we learned again the importance of proceeding with extreme caution when entering into asset protection trusts. You might end up with assets that are not only protected from creditors, but also from you.

I woke up last week to the news of the untimely death of a potential client. I say potential because though we talked a couple of times on the telephone and though there were a few appointments scheduled, cancelled and rescheduled we never actually met. I only know what he looked like from his picture in the obituary section. I wish I could say this was the first time that this has happened. Unfortunately, it is all too common. I am hopeful that for him and his family other things, like life insurance, didn't also fall into the category of "I'll get to that."

In estate planning, we often speak of values based planning. For me this phrase really brings to mind two distinct ideas. The first is using your estate planning as a platform to share your values in writing with your loved ones. This can be done in several ways, including the preparation of a value statement. A value statement is a written statement included in or with your planning, where you share life lessons, beliefs or philosophies. It is one last teaching moment. I believe such a statement can inspire your children and grandchildren and become a treasured family heirloom.

The recent snow storm aside, if you’re a golfer this is a great time of year. The snow has melted and the courses are opening. It is time to dust off the clubs and head out to the range to fine tune your game. I love golf; I have played since I was a boy. Much like my grandfather, I hope to play for the rest of my life. I hope to share it with my children and grandchildren. I especially love this particular week when I can tune in to the Masters tournament and see the talented players and beautiful scenery from historic Augusta National in Augusta, Georgia.

One of the common problems we run into in transferring the family farm or ranch from one generation to the next is the problem of the income tax on capital gains. Because the assets have usually been held for a significant period of time there is often little or no tax basis. As a result, depending upon the current value of the asset the tax on capital gains could be significant. If you find yourself in this situation is there anything you can do?

I spent this past Saturday as a presenter at a workshop for farmers and ranchers put on by Utah State University Extension. As I was able to observe participants engaging in exercises meant to foster discussion about the succession process, I was reminded again that there is no substitute for communication and there is no substitute for engaging in the process. The following is a brief checklist meant to help you move through the planning process.

This month marks eight years since a pivotal event in my life. I was 36 years old, I had a wonderful wife and four young children. the youngest was just a few months old. I got up and went work just like normal that morning. The same as so many other days before. But this day proved different.

Last week I discussed some of the pros and cons of Portability, the federal law recently made permanent, which allows the surviving spouse to carry over the unused portion of the deceased spouse’s estate tax exemption amount. My conclusion was that while Portability is a good back-up plan, for a variety of reasons it should not be the first line of defense against estate taxes. I continue to believe that the first and best choice in planning to preserve both spouses’ estate tax exemption remains a properly drafted credit shelter trust.

Starting with deaths that occurred in 2011, a surviving spouse can carry over the unused portion of the estate tax exemption of the deceased spouse. This is known as Portability. While Portability was originally only applicable if both spouses passed away in either 2011 or 2012, with the passage of the American Taxpayer Relief Act on January 2, it was made permanent (which really means that it is no longer scheduled to expire). So the question now is whether or not to rely on Portability as your sole estate tax planning tool. To answer that question, I think it is important to look at the Pros and the Cons of such a strategy.

As I am preparing for a presentation on succession planning for farms and ranches, I am reminded again about the importance of communication. Whether it is planning an estate for a family or planning for the succession of the business, there truly is no substitute for good communication. I find that even if a child disagrees with how Mom and Dad have set up their estate plan, that child is much more likely to accept the plan if it has been communicated to them by Mom and Dad, while they are still of sound mind. This results in greater family harmony and a decrease in the likelihood of litigation.

It’s that time year again, FacesOfLawsuitAbuse.org has announced the top ten most ridiculous lawsuits of the previous year, as voted by site visitors. Here is their top ten list of the most ridiculous lawsuits of 2012.

Lake Superior State University recently released its “2013 List of Banished Words” and the phrase receiving the most votes was “fiscal cliff.” I would probably join most of you in agreeing that if anyone else “doubles down” on the folks in Washington D.C. “kicking the can down the road” on the “fiscal cliff” again I might just scream.

Time is running short to take advantage of tax free IRA transfers to charity for 2012. The American Taxpayer Relief Act of 2012 enacted on January 2, 2013 extended the authorization of qualified charitable distributions (QCD) from IRAs for 2012 and 2013. IRA owners aged 70½ or older can have otherwise taxable distributions of up to $100,000 paid directly to an eligible charitable organization. A QCD can be made to satisfy any required minimum distributions for the year.