In transferring the family business to the next generation there is no substitute for good communication. The lack of communication will derail even the best plans.

I will preface this post with the admission that I have never seen an episode of The Sopranos. Mr. Gandolfini may have been a great actor, but I was generally unaware. What I have seen is a tidal wave of articles since his death dissecting his estate planning and the alleged “mistakes” that were made. I had determined not to join the chorus as many of the alleged “mistakes” are based on presumptions which may or may not be accurate. I also thought; how many people reading this blog are likely to have estates purported to be worth nearly $100 million or anywhere near that amount. Do most of us really benefit from knowing about these alleged “mistakes.” But as I read another article recently it occurred to me there is actually something we can all learn from this untimely death and the sea of publicity surrounding his plan – the benefit of keeping things private.

Last year in this Blog I wrote about the efforts of Sen. Max Baucus (D-Mont.) to limit the ability of non-spouse beneficiaries of IRAs to stretch out withdrawals over their lifetime. Presently a non-spouse beneficiary can enjoy years, if not decades, of tax deferred or tax free growth on inherited IRAs (traditional or Roth). Last week, the Senate took up this cause again in relation to its efforts to fund the extension of low interest rates on student loans.

Earlier this week I was listening to a story on Utah Public Radio about the bipartisan Death Tax Repeal Act of 2013 that was introduced into both the House and Senate in June to repeal the federal estate tax, which is sometimes referred to as the death tax. This legislation comes in follow-up to the American Taxpayer Relief Act of 2012 that made permanent the individual estate tax exemption at $5 million (indexed for inflation, it is currently $5.25M per person). At the same time, President Obama’s 2014 Budget proposes reducing the individual exemption to $3.5 million.

I recently started reading again one of my favorite books, Zen and the Art of Motorcycle Maintenance: An Inquiry Into Values by Robert M. Pirsig. One of my favorite lines in the book is found near the beginning: “We want to make good time, but for us now this is measured with the emphasis on ‘good’ rather than ‘time’ and when you make that shift in emphasis the whole approach changes.”

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.