Estates Greater Than $5,000,000

Gary L. Maddux is both a CPA and an attorney who has a Masters in Law degree (LLM) in taxation and estate planning. He has taught the estate tax planning course in the University of Tulsa’s Masters in Taxation program offered through their business school and regularly attends national seminars which focus on estate planning matters (normally in excess of 25 hours per year). Also, he works closely with Baker & Hostettler, a large national firm, and regularly consult with them on specialized estate planning questions and unique opportunities.  And he has been fortunate enough to work on several large estates in implementing the structures described below.

Fees. There is no charge for the initial consultation.  After the initial consultation, we will normally provide you a binding fixed fee quote for your estate planning project.  Sometimes the project is so extensive that a fixed fee quote simply will not work.  Then we provide you an anticipated range in which your fees should fall.  You can then decide whether or not to proceed knowing what your costs will be.

Highest Return on Your Investment. For clients with significant wealth, we have implemented plans which should save clients very significant estate taxes.  If you have significant wealth, and you have not planned your estate, then you simply must consult with a good estate planner, whoever he or she is, to understand your current estate tax exposure and the various opportunities to minimize that exposure.  My business instincts are showing, but I can’t help but believe that if you have significant wealth, the return on your investment of time and money to properly plan your estate will greatly exceed the return of any other investment you could possibly make during your life.  We have implemented plans which should save clients millions of dollars of estate taxes.  Other qualified estate planners can achieve these same results.  There simply cannot be any investment which you can make which will provide a similar return on your investment.

Practice.I have had the good fortune to assist those who have significant wealth adopt optimal structures to minimize estate taxes.  A number of my former students, who are now CPAs, refer their larger clients to me for complex estate planning projects. These referrals include both business and non-business clients. They have also provided me with a significant base of high net worth clients to work with and develop approaches.

There are many recognized and accepted structures which accomplish family, business and estate tax planning objectives for those with taxable estates.  They include, among others, aggressive annual gifting (in trust or outright gifts); creating family limited partnerships (“FLPs”) or family limited liability companies (“FLLCs”); Irrevocable Life Insurance Trusts (“ILITs”); Grantor Retained Annuity Trusts (“GRATs”); Qualified Personal Residence Trusts (“QPRTs”); inter-family sales of assets or ownership interest to intentionally defective trusts; for those with very significant wealth, as discussed below, planning to skip the estate tax for several generations, and additional structures.

Inter-generational Planning to Minimize Estate Taxation. Clients can adopt structures specifically authorized under applicable law for larger estates which will protect a portion of your legacy from estate taxation for several generations.  Similar opportunities exist to protect the inheritance you will receive from your parents or grandparents from estate taxation at your death.  With proper inter-generational planning a family can enjoy very significant estate tax savings (in appropriate situations, through the years in excess of several millions of dollars).  But you must first adopt the appropriate plan.

Business Clients.  I am as much an estate planner as I am a business attorney [Kevin, add link to business discussion].  Unique opportunities often arise in business transactions which are best considered and implemented while the business project is ongoing.  After a deal closes, the good estate planning opportunities are sometimes lost.

Better Creditor Protection Provisions for Your Children. Regardless of the extent of your holdings, it will probably be important to you to protect the inheritance you are leaving your children from you children’s creditors, claimants, and divorcing spouses.  I have developed approaches which focus on protecting the inheritance you are leaving your heirs from such claimants.

Normally, Wills and Trusts are structured to transfer assets after a client’s death, and the death of his or her spouse, to children as each child attains a specified age (half at age 30, and the balance at age 35).  Once received by that child, the inheritance you leave is immediately available for satisfaction of claims asserted by creditors.  Over time, if your child is not careful, the inheritance might even be subject to divisions upon divorce.  I have focused on these issues and have developed approaches which better protect the inheritance you leave from your children’s creditors, claimants, and divorcing spouses. My clients with larger estates are sometimes as excited by these better creditor protection provisions as they are about potential estate tax savings.

Other Issues. There are at times additional issues to consider.  Do you have a child who has special needs? Perhaps a problem adult child who needs protection from herself? The last thing you will want to do after your death is help fund drug, alcohol, gambling or other abusive lifestyles.  Who will take care of your minor children? Will your parents need additional assistance should you die prematurely? Are you in a second marriage?  If so, what is to happen at your death?  Do you need an estate plan to manage life insurance proceeds until your children are of sufficient age?  Perhaps you will want to adopt a plan which will provide education funds for your grandchildren.

We may be the largest small firm in Town

Maddux & Maddux
2642 E. 21 Street, Suite 290
Tulsa, OK 74114
Phone: 918-582-8393
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