Will your favorite charity accept your donation?


If your estate plan includes non-cash charitable donations or liquid asset donations with restrictions, you may wish to discuss such planned gifts with the intended recipients before you finalize your plan. This is particularly important for donations that place restrictions on the charity’s use of the gift, as well as donations of real estate or other liquid assets. In contrast, if you are making a simple cash bequest, not contacting the charity might be the better approach. If you are not interested in immediate recognition, not contacting the charity about a gift will keep the charity off your front doorstep until such time as is appropriate to let them know.

Why a charity may reject your gift
Some charities have policies of rejecting gifts that come with strings attached — they accept only unrestricted gifts. And many charities are reluctant to accept gifts of real estate or other non-cash assets that may expose them to liability or require an investment in order to convert the assets into operating funds.

If a charity rejects your gift, the property will end up back in your estate and will go to any contingent or residual beneficiaries. If these beneficiaries are not other charities, rejection of the gift may create estate tax liability.

Reconsider donating real estate
Real estate is particularly risky for nonprofits. The charity may be exposed to liability for environmental issues, zoning and building code violations, and other risks. It may require a cash investment to pay the mortgage or maintain the property. And certain types of property — such as rental properties — can generate “debt-financed income,” which may cause the nonprofit to be subject to unrelated business income tax.
Even if a charity accepts gifts of real estate, it may place strict conditions on such gifts. For example, to minimize their liability, some charities require donors to place real estate in a limited liability company (LLC) and donate LLC interests. Another option is to donate property to a supporting organization that disposes of real estate on a charity’s behalf.

Call us first
If you would like to make charitable gifts through your estate plan, contact us and we can guide you on the advisability of contacting the charity and coordinating with them to ensure that your donation would be accepted. We can then help you make the proper revisions to your estate plan.

Divorce Necessitates an Estate Plan Review

There are few events that can completely upend a person’s life more than divorce. Of course, there’s the emotional toll on you and your family, but you also have to consider the divorce’s impact on your estate plan.

When you originally crafted your plan, you likely centered many of its strategies around your spouse. Thus, when divorce proceedings begin and when they conclude, it’s crucial to update your estate plan as soon as possible to avoid unintended outcomes. Don’t wait until the divorce is final.

Who’s next in line for your wealth?

Unless you wish to provide your soon-to-be former spouse with an inheritance, amend your will and any trusts to minimize or eliminate him or her as a beneficiary. In addition, unless you’re comfortable with him or her administering your estate or trust, you should designate someone else as executor or trustee. This is a good idea even if you live in one of the states where divorce automatically nullifies any gifts or bequests to an ex-spouse and automatically revokes an appointment of a former spouse as executor or trustee.

There are several reasons for this. First, if you die before the divorce is final even if you have lived separately for some time, your spouse will still inherit in accordance with your will or revocable trust, and his or her appointment as executor or trustee likely will stand.

Second, the laws in some states treat your estate plan as if your former spouse had predeceased you if you are living separately and are in the midst of divorce proceedings. If you’ve named contingent or residual beneficiaries, any property your estranged spouse would have received will go to them. If not, the property will pass according to the laws of intestate succession. But relying on these laws can be risky.

Finally, keep in mind that in many states, as long as you’re legally married, your spouse will retain elective share or other property rights to a portion of your estate. So while updating your plan soon after you decide to divorce can reduce the amount your spouse will receive if you die while you’re still married, it can be difficult to disinherit him or her completely before the divorce is final.

Seek peace of mind

If you’re going through divorce proceedings, contact us. We can help review and revise your estate plan to ensure that the proper heirs are provided for in the event of your death.

Northern Virginia Magazine Recognizes SmolenPlevy Attorneys as ‘Top Lawyers’

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Northern Virginia Magazine names SmolenPlevy principals Jason Smolen, Alan Plevy, Daniel Ruttenberg and Kyung (Kathryn) Dickerson to its ‘Top Lawyers’ list for 2016. Nominated by their peers, the award recognizes SmolenPlevy for its excellence in the areas of family law, business organization, and trusts and estates.

Smolen, Plevy, Ruttenberg and Dickerson have previously been named ‘Top Lawyers’ by Northern Virginia Magazine in 2010, 2013 and 2015.

SmolenPlevy Named to 2017 “Best Law Firms”

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SmolenPlevy is honored to announce the firm’s inclusion in the 2017 “Best Law Firms” list, published by U.S. News & World Report and Best Lawyers. SmolenPlevy is recognized for its outstanding work in the areas of family law, business organizations, and trusts and estates. Firms included in “Best Law Firms” are honored for professional excellence with persistently impressive ratings from clients and peers.

The “Best Law Firms” ranking complements the 2017 edition of “The Best Lawyers in America,” where Jason Smolen, Alan Plevy and Daniel Ruttenberg are recognized. Jason Smolen is honored as Best Lawyers® 2017 Business Organizations “Lawyer of the Year” for Washington, D.C., and Alan Plevy and Dan Ruttenberg are named in the Best Lawyers® 2017.

The U.S. News & World Report – Best Lawyers 2017 Best Law Firms rankings are based on an evaluation process that includes the collection of client and lawyer evaluations, peer review from attorneys in the field, and review of additional information provided by law firms as part of the formal submission process.

Jason Smolen Selected as Best Lawyers® 2017 Business Organizations “Lawyer of the Year” for Washington D.C.

SmolenPlevy is pleased to announce that Co-Founding Principal Jason Smolen is honored as Best Lawyers® 2017 Business Organizations “Lawyer of the Year” for Washington, D.C. SmolenPlevy Co-Founder Alan Plevy and Principal Dan Ruttenberg, JD, CPA, LLM are also named in the Best Lawyers® 2017. Plevy and Ruttenberg were selected by other leading lawyers from the Washington, D.C. area in the categories of trusts and estates and family law, respectively.

The Best Lawyers in America© is the oldest peer-review publication in the legal profession. It recognizes attorneys in 128 practice areas from all 50 states and the District of Columbia. For each location and specialty, the individual attorneys with the highest peer-reviews are recognized as “Lawyer of the Year.”

The attorneys will be featured in the 23rd edition of Best Lawyers in America©, which will be published later this year.

On Air: Dan Ruttenberg Shares Estate Planning Tips for the Elderly

Preparing in advance is vital if you want to protect your assets and have a say in how they are passed on. SmolenPlevy Principal Dan Ruttenberg, JD, CPA, LLM shares estate planning tips on local TV show, Senior Living in Alexandria.

“Legal documents are tools to address issues,” Ruttenberg tells Senior Living in Alexandria host Jim Roberts. It is important to have documents that keep you covered in case of death or disability. Particularly in the event of a disability, you want to have confidence in who is making decisions on your behalf.

What happens if you don’t have an estate plan in place? That will depend on the circumstances at the time — Ruttenberg explains important estate planning tips, including how to avoid probate in the complete segment above.

On Air: Daniel Ruttenberg Shares Why You Should Have a Will in Order on ABC 7

A court confirmed that music superstar Prince died without a will, which leaves complicated questions about who inherits his vast fortune. There are at least six siblings, including half siblings, who may inherit, and the confusion is just starting. In an interview on ABC 7, SmolenPlevy Principal Daniel Ruttenberg explained the problems that may occur when you die without a will, and why it’s vital to make sure that doesn’t happen to you.

Ruttenberg explained that without a will, Prince could not direct where his assets should go. “I think that’s a travesty,” said Ruttenberg. Often, people avoid estate planning because they don’t think they have enough assets. But Ruttenberg said you don’t need to own much to learn from Prince’s mistake — plan now and prevent the heartache and need for the court’s intervention after you’re gone.

A will can dictate to whom your money goes, protect your children’s interests in their inheritance and help avoid taxation. News reports predict Prince’s siblings will split the multi-million dollar estate, but Ruttenberg indicates that someone who claims to be Prince’s child could trump all of that.

Ruttenberg told ABC 7’s Kimberly Suiter that whoever does inherit Prince’s estate isn’t necessarily going to be better for it. Sudden wealth has its own set of problems, and many people who inherit a fortune overnight end up blowing it all quickly. They can end up broke, homeless, and in a worse position than they were before getting the money.

Jason Smolen, Alan Plevy and Daniel Ruttenberg Listed in The Best Lawyers in America© 2016

2016 Best Lawyers

SmolenPlevy is pleased to announce that Jason SmolenAlan Plevy, and Daniel Ruttenberg have been included in the 2016 Best Lawyers in America. The attorneys will be listed in the 2016 edition of The Best Lawyers in America© in November.

Best Lawyers® is the oldest peer-review publication in the legal profession. It recognizes attorneys in 128 practice areas from all 50 states and the District of Columbia. Smolen, Plevy and Ruttenberg were selected for this honor by other leading lawyers throughout the United States in the fields of business organizations, family law, and trusts and estates, respectively.

Previously, Smolen, Plevy and Ruttenberg have been recognized as Top Lawyers by Northern Virginia Magazine and Power Players by SmartCEO Magazine.

SmolenPlevy Attorneys Named to 2015 Virginia Super Lawyers

2015 Virginia Super Lawyers

SmolenPlevy is pleased to announce that Principals Alan PlevyDaniel Ruttenberg and Kyung (Kathryn) Dickerson have been named 2015 Virginia Super Lawyers. Additionally, Associate Joshua Isaacs has been recognized as 2015 Virginia Rising Stars. Both honors are awarded to no more than five percent of attorneys in each state.

Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The annual selections are made using a multiphase process that includes a statewide survey of lawyers, an independent evaluation of candidates and peer reviews.

Jason Smolen and Daniel Ruttenberg Named ‘Power Players’ by SmartCEO

 

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Co-founding Principal Jason Smolen and Principal Daniel Ruttenberg were honored during the 2014 Power Players Awards, presented by SmartCEO Magazine.

In 2013, Principal Kyung (Kathryn) Dickerson was named Attorney Power Player of the Year for Divorce, Domestic Relations, and Child Custody and Adoptions.

Every year, SmartCEO recognizes the region’s most enterprising attorneys, bankers and accountants for their leadership, accomplishment, innovation and success. Smolen and Ruttenberg are profiled in the September/October issue of SmartCEO magazine.