2021年7月職業移民綠卡最後批准排期表（A表）

2021年7月職業移民遞交申請排期表（B表）

2021年7月親屬移民綠卡最後批准排期表（A表）

2021年7月親屬移民遞交申請排期表（B表）

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2021年6月職業移民綠卡最後批准排期表（A表）

2021年6月職業移民遞交申請排期表（B表）

2021年6月親屬移民綠卡最後批准排期表（A表）

2021年6月親屬移民遞交申請排期表（B表）

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2021年5月職業移民綠卡最後批准排期表（A表）

2021年5月職業移民遞交申請排期表（B表）

2021年5月親屬移民綠卡最後批准排期表（A表）

2021年5月親屬移民遞交申請排期表（B表）

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信託是什麼？

在中國和香港等地區，「信託」通常是代表一種投資產品，經常與「家族信託基金」或是「信託投資」連在一起。但在美國，信託（Trust）是一種法律的產物，最常見的就是很耳熟的生前信託（Living Trust）。信託是建立在委託人/信託設立人（Grantor）、受託人（Trustee）和受益人（Beneficiary）之間的一種財產委託法律文件。透過生前信託，委託人把財產移轉給受託人，並由委託人指定受益人，使受託人根據委託人的意願以及信託的目的，為受益人的利益，管理或處分信託財產。

舉例來說，蝙蝠俠父母坐擁上億的資產，為了能將這些資產移轉給蝙蝠俠，他們設立了一個生前信託。但因為蝙蝠俠年幼不懂事，因此蝙蝠俠的父母指定管家阿福在資產移轉給蝙蝠俠前，由他管理或處分此信託裡的財產。在這個例子裡，蝙蝠俠的父母就是委託人，管家阿福為受託人，而蝙蝠俠為受益人。

生前信託一般分為可撤銷（Revocable）和不可撤銷（Irrevocable）兩種。故名思義，可撤銷信託代表委託人在世時，可隨時修改甚至取消信託，而不可撤銷信託則不行更改。

為什麼要設立生前信託？

設立生前信託最重要的用途在於避免以後遺產需要經過法院的認證手續（Probate）。在美國，一個人去世後，即使有遺囑，亦要經過法院的認證、批准後，才能將遺產轉移給繼承人。法院認證的程序通常耗時又耗錢。在加州，法院認證平均需至少 18 至 24 個月才能完成。在這個過程中，遺產會暫時被凍結。此外，法院認證是一個公開的程序，因此也常涉及到隱私的問題。

除了避免法院遺產認證以外，設立生前信託還有以下的好處：

1. 保護未成年子女。信託可以代替未成年子女先持有並管理其資產，直到他們有足夠的責任能自行運用這筆錢為止。
2. 保護已成年子女。若您的子女很有可能會亂花錢或是有酗酒、濫用藥物等問題，則利用信託可以幫助他們保護資產，以避免他們傾家蕩產。
3. 將資產保留在自己的家庭中。例如，您的孩子要結婚了，但您不是很喜歡他們的配偶。透過設立信託，您可以保護傳承給您的子女的資產在他們離婚的情況下，不會被他們的配偶拿走一半。
4. 保護自己。在您喪失自主自理能力後，生前信託能保證資產管理能按照您的意願進行。這對於單身和沒有孩子的人特別重要。
5. 避免法律糾紛。即使您有遺囑，遺囑的內容以及有效力還是有可能會被繼承人挑戰，甚至後代互相告上法院。由於生前信託大部分在委託人生前時就已設立並且由委託人監控，因此生前信託很少會被認定為無效或是設立不當。

如何設立生前信託

通常除了生前信託外，一份完整並有效的遺產規劃文件還包括了遺囑、醫療授權書（Advanced Medical Directives）以及財務管理授權書（Durable Power of Attorney）。這些附加的文件是保障委託人預先安排其整體財務規劃以及重要的醫療決定。法律沒有規定信託一定要由律師設立。但由於生前信託涉及到遺產法並與稅務大有關連，因此我們還是建議找有經驗的律師，根據您的情況量身訂製，以反應您的需求以及期望。

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The post 資產規劃101：什麼是生前信託（Living Trust）？ appeared first on Sapient Law Group.

什麼是Writ of Mandamus （WOM）

Mandamus 是拉丁語，意思是「我們命令」。常常被翻譯為聯邦催辦令、告移民局、聯邦強制命令、移民訴訟，等等。Writ of Mandamus （WOM）是美國司法體系中一個很獨特的工具。目的在於通過行政訴訟程序使法院發出強制命令，敦促被告的政府部門在一定時間內完成其工作的職責，或糾正政府機構的不作為。WOM 適用的範圍很廣泛，從強制低階法院做出判決到強制企業執行其對股東的職責都可適用。但是，為了防止濫用，WOM 的要求門檻很高並且程序複雜。不過在必要情況下，WOM 常是最後關頭的良方解藥。

如何應用WOM 加快移民案件的審理速度

由於美國移民局屬於政府機構，因此，若移民局出現行為不當或不作為的情況，就可以透過 WOM 來催促移民局盡快的完成其職責。最常見的是移民局處理案子不當，或處理時間明顯超出公佈的正常處理時間。在這種情況下，便可選擇提出 WOM 申請強制令，讓法院命令移民局按照政府的規定履行其職責，即刻完成審理案子。申請人在地方聯邦法院提出 WOM 訴狀後，移民局有 60 天的時間回覆。若移民局在60 天內無法做出答覆，則可再請求延期 30 天。通常若雙方同意延期，移民申請案子很有可能就會這期間獲得進展。但需要注意的是，WOM 是透過法院施壓要求移民局處理案件，這不代表移民局一定會批准案件。因此，提出 WOM 前務必要先尋求有經驗的移民律師評估您的案子是否適合提出 WOM 訴訟。

提出WOM前，必須先耗盡其他申訴管道

為了防止 WOM 被濫用，法律規定在提出 WOM 行政訴訟之前，申請人必須先透過其他所有可能的申訴管道，嘗試與移民局進行充分的溝通。這些管道包括了：打移民局的 800 客服專線、寫信給移民局、透過移民局的網站遞交 Case Inquiry，等等。法院的法官要確認申請人已經通過正常渠道給予了移民局處理案件的各種機會。但如果透過這些渠道進行申訴或是催辦後，移民局還是置之不理，那麼法院變會正式批准 WOM。

哪類申請人可提出WOM

大部分的移民申請類別都可以向法院提出WOM。不論是親屬移民、職業移民、公民歸化、調整身份或是工卡申請。只要是移民申請等待已超過「合理的審理時間」，並且申請人已如上所述的透過正常的渠道充分的向移民局提出詢問或是催促，但移民局始終未處理案件，那麼申請人就可以尋求專業的移民律師評估其是否應該提出 WOM，另走法院的訴訟程序。

合理的審理時間

移民局在其審理時間（Processing Time）的網頁上會隨時更新其對於審批不同移民案件類型所需要的時間。通常只有在您的案子超出移民局所公布的審理時間範圍外時，才能向移民局提出案子詢問（Case Inquiry）或是向法院提出 WOM 訴訟。但有時即使案子還在「合理的審理時間」內，申請人還是能成功的向法院提出 WOM 強制移民局審理其案件。在這種情況下，有經驗的訴訟律師會代表申請人向法院挑戰移民局所公布的「合理的審理時間」是否合理。

WOM的注意事項

在成功向法院提出 WOM 後，大部分的移民案件都會在真正進入訴訟程序前收到移民局的回覆。但在少數情況下，移民局也有可能會選擇抗辯，因而走完整個 WOM 的訴訟程序。儘管 WOM 是一個有效解決政府部門延宕問題的方法，但不應該隨意使用。由於 WOM 涉及移民和聯邦訴訟，一般的移民律師通常都無法勝任。我們事務所的嚴律師除了有豐富的移民經驗以外，也是美國洛杉磯市中心 LTL Attorneys, LLP 訴訟律師事務所的合夥人。因此，嚴律師熟知移民以及訴訟的相關程序以及策略。若您符合本文所述的情況或是您的申請案件已積壓許久還未有消息，請聯繫我們的事務所。

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2021年4月職業移民綠卡最後批准排期表（A表）

2021年4月職業移民遞交申請排期表（B表）

2021年4月親屬移民綠卡最後批准排期表（A表）

2021年4月親屬移民遞交申請排期表（B表）

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美國移民局是負責管理美國移民系統的主要機構。在過去幾年，該機構面臨越來越多的壓力，處理積壓的公民身份、綠卡、簽證和其他移民申請。在 2020 年 5 月，美國移民局曾對外發出裁員消息，計畫在去年 8 月底裁減其約70%的員工。這是因為受到 COVID-19 疫情的影響，移民局在 2020 年的申請費用收入下滑，導致其面臨嚴重的財政短缺。好在美國眾議院在去年 8 月緊急通過了 H.R. 8089, Emergency Stopgap USCIS Stabilization Act （安定移民局緊急權宜法案），向美國移民局提供救急資金，才解決了該機構的裁員危機。Emergency Stopgap USCIS Stabilization Act 法案提出兩種方式來提高移民局的收入來源：

1. 提高加急審理的申請費用
2. 擴大加急審理服務的適用範圍

提高加急審理（Premium Processing）的申請費用

加急審理服務允許申請人支付額外的費用，以加快某些表格的裁決。通常移民局在 15 天內會給予答覆。加急審理服務目前適用於 I-129 表格（非移民身份申請）以及 I-140 表格（外籍工人的移民申請）。從 2020 年 10 月 19 日起，移民局宣布加急申請費將調漲，除了 H-2B 或 R-1 非移民申請人以外的所有申請，遞交 I-907 表格的加急申請費從 $1,440 調漲至 $2,500。申請 H-2B 或 R-1 非移民身份，遞交 I-129 表格的加急費用也從 $1,440 增加至 $1,500。除了申請費用的調整之外，移民局也將加急審理的處理時間從 15 個日曆日（calendar days）增加為 15 個工作日（business days）。

擴大加急審理服務的適用範圍

安定移民局緊急權宜法案也要求移民局擴大加急審理服務的適用範圍。目前加急審理服務只適用於部分 I-129 以及 I-140 的移民申請類型。其他如 EB1C、 EB2 NIW、EB5、 I-539 轉換非移民身份或是申請工作許可（工卡）目前都沒辦法要求加急。針對這些建議新增的申請類型，法案也設定相關的限制：

1. EB1C 和 EB2 NIW: 費用上限為 $2,500，審理時間不得超過 45 天。
2. I-539 申請轉換到 F, J, M 身分: 費用上限為 $1,750，審理時間不得超過 30 天。
3. I-539 申請轉換或延長 E, H, L, O, P, R 家屬身分: 費用上限為$1,750，審理時間不得超過 30 天。
4. I-765 申請工作許可證明: 費用上限為 $1,500，審理時間不得超過 30 天。

其他的建議改進措施

今年 3 月，美國移民律師協會（American Immigration Lawyers Association）與 16 個聯盟組織致信移民局，敦促移民局實施 Emergency Stopgap USCIS Stabilization Act 法案，已確保其能有效的裁定所有的申請並改善審理的時間。在信中，美國移民律師協會也進而提出以下11點建議改良方案：

1. 移民局應使用加急審理所收取的費用收入，優先解決移民局案件積壓的問題。尤其是對於當前還不符合適用加急審理服務的其他移民申請類型。
2. 移民局應確保常規申請的審理時間不會因加急審理服務的擴展而受到負面影響。
3. 加快工作許可申請以及身份轉換或延期的申請流程。
4. 擴大加急審理以包括 EB-2 NIW 或 EB1C。
5. 移民局應取消對常規案件的面試要求。
6. 移民局應恢復其「遵從」政策。遵從政策尊重並採取移民局過去所做出的裁決。例如，申請人曾透過同類型的移民申請通過審核，在遞交延期申請的過程中，若關鍵要素不變，而且沒有證據顯示任何的申請材料錯誤或是有詐欺行為的話，則移民官要尊重此前的決定。移民局在2017年取消的遵從政策。
7. 移民局應重複使用過去五年內所採樣的生物特徵信息（Biometrics），並免除 14 歲以下或 65 歲以上的個人以及之前已經過審查的申請人的生物特徵信息要求，例如 I-539 表格和入籍申請人。
8. 移民局應停止因表格填寫不完整或有空缺就拒絕申請。這個政策不但效率低，還提高移民局的成本。
9. 移民局應更明智地寄發補件（RFE）和拒絕意向通知（NOID）。
10. 即時兌現申請費並擴大在線申請選項，以加快移民局接受案件遞交申請的流程。
11. 移民局應盡量避免發佈新版本的表格，除非大眾要求並支持對表格當前的版本進行變更。

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Understanding the terminology will help you with document preparation and for discussions with family members, your attorney, or anyone else involved in your plans.

Below, we have put together a list of commonly mentioned estate planning terms and definitions sorted by how they apply to the following categories:

Click on the category to jump to that section

People

Documents

Property

Taxes

Click Here for Complete List of Terms and Definitions A-Z

Terms and Definitions for People in Estate Planning

Administrator

An administrator is someone appointed by the court to represent an estate when there is no other document, like a will, that names an executor or any other individual to represent the estate. It can also occur in circumstances where an individual is unwilling to be a representative.

Attorney-In-Fact

This person is appointed through a Power of Attorney to handle another person’s property. An Attorney-In-Fact does not have to be an attorney, it can any person who is competent. Also, used interchangeably with Agent.

Beneficiary

The person (or entity) who receives assets from a living trust such as property, income, or other benefits. 

Conservator

A court-appointed individual designated to manage the property for someone who is incapacitated. It is similar to the role of a guardian to a minor. 

Decedent

A term used to refer to a deceased person. 

Executor

The person who is responsible for carrying out the instructions laid out in a will. An executor, unlike an administrator, is named in a will. 

Fiduciary 

A fiduciary can be either a person or an institution. A fiduciary is responsible for managing the assets of an estate planning instrument for the benefit of others. Executors and trustees can also act as fiduciaries. 

Grantor

A grantor is a person who creates a trust.

It is also used interchangeably with trustor, settlor, donor, and creator. 

Guardian 

A person (or institution) designated to handle decisions on behalf of a minor or an incapacitated person. 

Heir

An heir is a person who is entitled to inherit property or other valuable assets as defined by a state’s law. This term applies when there is no document, like a will or a trust, to designate such an individual. An heir is automatically entitled to receive a person’s property when there is no will or a trust. 

Although similar in meaning, an heir is not the same as a beneficiary. Beneficiaries can only be named in a will or a trust. 

Settlor

The person who creates the trust. Same as Grantor

Testator(male)/Testatrix (female)

The person who creates a will.

Trustee

A person or institution with the responsibility of managing trust assets and distributing them as laid out in its instructions. 

Trustor

Same as grantor and settlor

Terms and Definitions for Documents in Estate Planning

A/B Trusts

A Trust: A trust created for the sole purpose of a surviving spouse

B Trust: Also referred to as a “By-Pass Trust” is designated for the benefit of the grantor’s beneficiaries, which can also include the surviving spouse. However, when the surviving spouse dies, the remaining assets are awarded to the other beneficiaries, usually the children. B-Trust is also used interchangeably with the term Credit Shelter Trust.

Advance Medical Directive

Advance healthcare directives are legal documents that allow a person to nominate another individual to make critical medical decisions on their behalf. This person named in this directive is directly responsible for carrying out the other’s wishes, including matters of life or death. 

Learn more about advance healthcare directives here.

Beneficiary Designations

Beneficiary designations are usually included as part of other forms on bank or retirement accounts where a person gets to name beneficiaries for the assets in those accounts. 

Learn more about beneficiary designations here. 

Charitable Trust

A trust established for the benefit of a grantor’s charity. Note that all charitable trusts are irrevocable.

Charitable Lead Trust

This type of trust allows an individual to have income paid out to a charity for a specified number of years. After that term, the remaining funds are paid out to the named beneficiaries.

Charitable Remainder Trust

It is similar to a charitable lead trust, expect it pays out income to the named beneficiaries first and then pays out the charity. 

Learn more about charitable trusts here. 

Deed

Not to be confused with ‘title,’ a deed is the official document that lets you change ‘title’ for a piece of property, such as real estate or a car. The term, Title, refers to ownership of the item. 

For example: “Jane Doe is on the title for the house on Maple Street.”

Dynasty Trust

A trust that’s designed for a grantor’s wealth to be passed down over multiple generations. Dynasty trusts get to enjoy many special tax privileges. Also, used interchangeably with the term Legacy Trust. 

Learn more about dynasty trusts here. 

Durable Power of Attorney

This document allows a grantor to name another individual to make decisions on their behalf. Whereas a healthcare directive only applies to medical decisions, a Durable Power of Attorney extends to other matters such as critical financial decisions. 

Learn more about Durable Power of Attorney here. 

Family Trust

A trust set up for the benefit of a grantor’s family, such as spouse and children. Also, referred to as a B-Trust or a By-Pass Trust.

Irrevocable Trust

A trust that cannot be changed or altered once a grantor establishes it. It’s the opposite of a revocable trust. 

Irrevocable Life Insurance Trust (ILIT)

A special type of trust that lets a grantor transfer a life insurance policy into a living trust. 

Learn more about life insurance trusts here. 

Living Trust

A trust created during the grantor’s lifetime. The term ‘trust’ simply refers to the instrument that contains the grantor’s assets and property. 

Learn more about living trusts here. 

Pour-Over Will

A type of will that names the grantor’s trust as the will’s beneficiary. A Pour-Over Will is a way to address left-over personal property that may not have been included in a trust. A Pour-Over Will assures that this property is automatically transferred into the trust.

Learn more about pour-over wills here. 

Revocable Trust

A type of living trust that can be changed and amended during a grantor’s lifetime. A grantor can change named beneficiaries and make other modifications to it. It’s the opposite of an irrevocable living trust. 

Terms and Definitions that Relate to Property in Estate Planning

Assets

All items under your ownership, including real estate, bank accounts, insurance policies, retirement plans, investment accounts, and personal valuables like jewelry. 

Community Property

Applies to states that follow the Community Property rules. This rule applies to the state of California. Community Property refers to property that two spouses jointly acquire, such as a husband and wife purchasing a home together. Community property is divided equally among both spouses during a divorce or upon death. 

Estate

The estate includes assets and any debts that a deceased person left behind.

Joint Tenancy

Property owned by two or more people with rights of survivorship. 

Private Trust Company

A private family company established as a fiduciary to oversee trusts and estates for extended family members. Also, referred to as a Family Trust Company. 

Terms and Definitions for Taxes in Estate Planning

Annual Exclusion

A tax exclusion that allows an individual to give a certain amount on an annual basis without having to pay a gift tax. Currently, the annual exclusion amount is $15,000.

Estate Taxes

Federal and state taxes on assets left by a deceased person. Estate taxes are also referred to as death taxes or inheritance taxes. 

Generation-Skipping Transfer Tax (GST)

Federal taxes applied to transfers in a trust or gifts to beneficiaries from two or more generations from the grantor. For example, this tax would apply to the grandchildren of a grantor. This tax is applicable for any amounts over the GST tax exclusion. 

Gift Tax

A tax that is applied to transfer of assets from one person to another. Gift taxes apply to any amount over the gift tax exemption and any other applicable exclusions. 

Transfer Tax

Any taxes on transferred assets, such as estate, GST, and gift taxes.

Glossary of All Terms & Definitions

A-Trust

A trust created for the sole purpose of a surviving spouse

Administrator

An administrator is someone appointed by the court to represent an estate when there is no other document, like a will, that named an executor or any other individual to represent the estate. It can also occur in circumstances where an individual is unwilling to be a representative.

Advance Medical Directive

Advance healthcare directives are legal documents that allow a person to nominate another individual to make critical medical decisions on their behalf. This person named in this directive is directly responsible for carrying out the other’s wishes, including matters of life or death. 

Annual Exclusion

A tax exclusion that allows an individual to give a certain amount on an annual basis without having to pay a gift tax. Currently, the annual exclusion amount is $15,000.

Assets

All items under your ownership, including real estate, bank accounts, insurance policies, retirement plans, investment accounts, and personal valuables like jewelry. 

Attorney-In-Fact

This person is appointed through a Power of Attorney to handle another person’s property. An Attorney-In-Fact does not have to be an attorney. Also used interchangeably with Agent.

Beneficiary

The person (or entity) who receives assets from a living trust such as property, income, or other benefits. 

Beneficiary Designations

Beneficiary designations are usually included as part of other forms for bank and retirement accounts where a person gets to name beneficiaries for the assets in those accounts. 

Bypass Trust

Also referred to as a B-Trust or a Family Trust, it is designated for the benefit of the grantor’s beneficiaries, which can also include the surviving spouse. However, when the surviving spouse dies, the remaining assets are awarded to the other beneficiaries, usually the children. 

Charitable Trust

A trust established for the benefit of a grantor’s charity. Note that all charitable trusts are irrevocable.

Charitable Lead Trust

This type of trust allows an individual to have income paid out to a charity for a specified number of years. After that term, the remaining funds are paid out to the named beneficiaries.

Charitable Remainder Trust

It’s similar to a charitable lead trust, expect it pays out income to the named beneficiaries first and then pays out the charity. 

Community Property

Applies to states that follow the Community Property rules. This rule applies to the state of California. Community Property refers to property that two spouses jointly acquire, such as a husband and wife purchasing a home together. Community property is divided equally among both spouses during a divorce or upon death. 

Conservator

A court-appointed individual designated to manage the property for someone who is incapacitated. It is similar to the role of a guardian to a minor. 

Decedent

A term used to refer to a deceased person. 

Deed

Not to be confused with ‘title,’ a deed is the official document that lets you change ‘title’ for a piece of property, such as real estate or a car. The term, Title, refers to ownership of the item. 

For example: “Jane Doe is on the title for the house on Maple Street.”

Durable Power of Attorney

This document allows a grantor to name another individual to make decisions on their behalf. Whereas a healthcare directive only applies to medical decisions, a Durable Power of Attorney extends to other matters such as critical financial decisions. 

Dynasty Trust

A trust that’s designed for a grantor’s wealth to be passed down over multiple generations. Dynasty trusts get to enjoy many special tax privileges. Also, used interchangeably with the term Legacy Trust. 

Estate

The estate includes assets and any debts that a deceased person left behind.

Estate Taxes

Federal and state taxes on assets left by a deceased person. Estate taxes are also referred to as death taxes or inheritance taxes. 

Executor

The person who is responsible for carrying out the instructions laid out in a will. An executor, unlike an administrator, is named in a will. 

Family Trust

A trust set up for the benefit of a grantor’s family, such as spouse and children. Also, referred to as a B-Trust or a Bypass Trust.

Generation-Skipping Transfer Tax (GST)

Federal taxes applied to transfers in a trust or gifts to beneficiaries from two or more generations from the grantor. For example, this tax would apply to the grandchildren of a grantor. This tax is applicable for any amounts over the GST tax exclusion. 

Gift Tax

A tax that is applied to transfer of assets from one person to another. Gift taxes apply to any amount over the gift tax exemption and any other applicable exclusions. 

Grantor

A grantor is a person who creates a trust.

It is also used interchangeably with trustor, settlor, donor, and creator. 

Guardian 

A person (or institution) designated to handle decision on behalf of a minor or an incapacitated person. 

Heir

An heir is a person who is entitled to inherit property or other valuable assets as defined by a state’s law. This term applies when there is no document, like a will or a trust, to designate such an individual. An heir is automatically entitled to receive a person’s property when there is no will or a trust. 

Although similar in meaning, an heir is not the same as a beneficiary. Beneficiaries can only be named in a will or a trust. 

Irrevocable Trust

A trust that cannot be changed or altered once a grantor establishes it. It’s the opposite of a revocable trust. 

Irrevocable Life Insurance Trust (ILIT)

A special type of trust that lets a grantor transfer a life insurance policy into a living trust. 

Joint Tenancy

Property owned by two or more people with rights of survivorship. 

Living Trust

A trust created during the grantor’s lifetime. The term ‘trust’ simply refers to the instrument that contains the grantor’s assets and property. 

Pour-Over Will

A type of will that names the grantor’s trust as the will’s beneficiary. A Pour-Over Will is a way to address left-over personal property that may not have been included in a trust. A Pour-Over Will assures that this property is automatically transferred into the trust.

Private Trust Company

A private family company established as a fiduciary to oversee trusts and estates for extended family members. Also, referred to as a Family Trust Company. 

Revocable Trust

A type of living trust that can be changed and amended during a grantor’s lifetime. A grantor can change named beneficiaries and make other modifications to it. It’s the opposite of an irrevocable living trust. 

Settlor

The person who creates the trust. Same as Grantor.

Testator(male)/Testatrix (female)

The person who creates a will.

Trustee

A person or institution with the responsibility of managing trust assets and distributing them as laid out in its instructions. 

Trustor

Same as grantor and settlor

Transfer Tax

Any taxes on transferred assets, such as estate, GST, and gift taxes.

The post Commonly Used Estate Planning Terms and Definitions appeared first on Sapient Law Group.

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Whenever tax season kicks off into gear, many of us look for ways to reduce our tax liability. Some, but not all, attorney fees are eligible for deduction. It depends on the type of legal service you sought. For instance, hiring an attorney for a child custody dispute or a personal injury case are both ineligible expenses. Legal expenses related to a business, such as collecting unpaid debt, are qualifiable. 

Examples of Tax Deductible Legal Fees

Business-related expenses such as seeking advice for a startup business

Rental property expenses such as fees paid to evict a tenant

Employment discrimination cases

Examples of Non-Deductible Legal Fees

Personal injury cases including workers compensation

Criminal cases

Estate planning disputes

As they relate to estate planning, the IRS  will allow you to claim certain legal fees but not all. As you can see from the last example, legal costs relating to disputes between family members are not tax deductible. 

What Does the IRS Say about Deducting Legal Fees for Estate Planning

The IRS discusses Miscellaneous Deductions under Publication 529. Estate planning fees, including all other legal expenses, qualify under the miscellaneous category. 

For example, if you have a living trust that generates income, any legal fees associated with the maintenance and preservation of your trust are tax deductible. 

An example of an income generating trust would be one that includes rental property. Therefore, any legal fees associated with the management of your rental property are qualifiable. In addition, your trust may hold other non-real estate assets that generate income.

Examples of these would include:

Royalties paid to you

Businesses

Dividend-paying stocks

Certificates of Deposit (CDs)

Savings accounts

Legal fees you pay toward the preparation of filing taxes for a trust are also eligible for deduction. These fees could relate to collection or refund of estate taxes. 

Estate planning fees that are not tax deductible would be legal advice about the creation of a trust or issues that relate to the transfer of property. For example, if you seek legal advice that relates to transferring your residential home into a newly created trust as a way to avoid probate, this would qualify as a personal expense. 

Other estate planning instruments that don’t qualify for deductions would include healthcare directives, powers of attorney, and guardianship designations. 

How To Claim Your Estate Planning Legal Fees on Your Taxes

Attorney invoices include a list of services rendered throughout the course of service. You might get several invoices periodically, depending on the length of time you worked with your attorney. 

Some attorney services are tax deductible, while ones that are not are considered personal expenses. 

Your attorney can inform you about which services were related to taxes or for the management of income generating activities, such legal advice about your business. 

It also doesn’t hurt to double check with a tax professional about which of your legal expenses are tax deductible. 

You may claim your legal expenses on Schedule 1 Form 1040 as miscellaneous deductions. It is essential to point out that the IRS has a 2% rule on miscellaneous deductions, meaning that they will deduct 2% from your adjusted gross income.

All of your deductions on your tax returns count toward adjusting your total income.  For example, if your total gross income for the year totals $100,000 and the total amount of your deductions equal to $10,000, your adjusted gross income (AGI) is $90,000.

Now let’s assume that $3,000 of your miscellaneous deductions were all estate planning legal fees. The IRS would deduct 2% from your total AGI of $90,000, or $1800. This means you can deduct $1,200 of the $3,000 paid in legal fees ($3,000 – $1,800 = $1,200).

While not every legal fee you pay counts as an eligible deduction, the good news is that many of them can help ease your tax burden. This is good news for anyone concerned with how much they will have to pay an estate planning attorney in legal fees. 

Always consult with an attorney and tax professional about which expenses you can claim on your tax return.

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The post Are Estate Planning Legal Fees Tax Deductible? appeared first on Sapient Law Group.