Contractors and owners alike often operate under a common misconception that the “industry-standard” for construction contracts limits the contractor’s responsibility to correct defective construction to one year after completion of the work.
However, such a one-year “industry-standard” really does not exist. The likely culprit for the misconception is found in common construction documents, such as the AIA Document A201–2017, General Conditions of the Contract for Construction Projects. Specifically, Section 126.96.36.199 provides that:
Continue reading Contractor Warranty vs. The Correction of the Work Provision: What’s the Difference?
In my last article I wrote about the numerous reasons estate planning is important outside of estate tax planning, in light of the recent doubling of the federal estate tax exemption as part of the Tax Cuts and Jobs Act. This article is devoted to the other end of the spectrum, the new opportunities for estate tax planning under the Tax Cuts and Jobs Act.
The Tax Cuts and Jobs Act doubled the federal estate tax exemption from $5 million to $10 million, adjusted for inflation annually. This means that the use of typical estate tax planning techniques, such as sales to Intentionally Defective Grantor Trusts (“IDGT Sales”) and the creation of Spousal Lead Access Trusts, to implement transfers of wealth can be leveraged to unprecedented estate tax savings.
Continue reading Estate Planning Opportunities with the Tax Cuts and Jobs Act