The recent Idaho Supreme Court case of Garrett v. Garrett has provided a reminder of the limitations of planning for the post-death transfer of real property using deeds.

As I am writing this post, the Heat and the Spurs have just finished their hard fought seven game battle in the 2013 NBA Finals. It appeared in game six that it was the Spurs championship for the taking, but in the end they just didn't have enough to hold off the amazingly talented Heat. While I must confess that I am not a big fan of the Heat, there is no doubt they have been able to assemble a great team.

It is U.S. Open week. The U.S. Open is probably my favorite tournament in golf; with the possible exception of my hometown Phoenix Open. As I was watching the tournament yesterday I was reminded of one of the most fundamental rules of golf – Rule 13. Rule 13-1 says: “The ball must be played as it lies, except as otherwise provided in the Rules.” With few exceptions, as a golfer you must play your ball as it lies. You generally can’t move your ball to a better location or take a mulligan (a do-over).

Earlier this week the United States Supreme Court issued its opinion in the case of Hillman v. Maretta. The Hillman case involved the resolution of an apparent conflict between a Federal law and a Virginia law. While the legal question was one of federal pre-emption the result is instructive of the importance of regularly reviewing and updating beneficiary designations.

I was reading an article in the New York Times the other day about Roman Blum who died last year in New York at the age of 97. Mr. Blum, a Holocaust survivor who became a very successful businessman, had an estate valued at approximately $40 million. So far, after a year of investigation the state has been unable to locate either a will or any living relatives. On an estate of that size, federal estate taxes would likely be in the neighborhood of $12 million. There are certainly other significant expenses that are occurring as New York administers his estate. According to New York law, if after three years no Will or living family is located, whatever remains of Mr. Blum’s estate will ultimately pass to the State of New York. New York has received $12 billion in unclaimed assets from other estates since 1943.

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?