For philanthropic clients, year-end tax planning often involves charitable contributions. Many donors have specific purposes in mind and, understandably, want to ensure that the contributions they make achieve their charitable goals. To this end, they may want to restrict the gift or earmark it for a specific purpose; however, an impermissible restriction could risk their charitable deduction. Attorneys should take special care in drafting gift agreements that ensure the client’s wishes will be respected while protecting their tax deduction.

Let’s take a closer look at three common restrictive pitfalls – use restrictions, reversionary interests and deferred gifts – and review some considerations when drafting such agreements.

Trust decanting is an underused strategy for estate planning that can add value to your practice. While very few clients are aware of this option, practices that offer it can have an advantage. Not only is this a great way to offer an important service to your clients, but it also distinguishes you as a practice among competitors.

It’s no surprise that LLCs remain an attractive option for business owners. In addition to providing them limited liability, they allow the owners to customize the LLC’s management and economic structure while offering a high degree of flexibility in taxation. However, when organizing LLC formation documents, choosing the right federal tax structure is key.