Cannabis-Related Assets in Estate Planning: Critical Considerations for Trusts and Estates Counsel

Description

Cannabis business owners and investors often overlook the importance of accounting for cannabis assets in estate planning. These assets may include intellectual property, real estate, and other assets within the “legal” marijuana, hemp, and CBD industry. Evolving state regulations legalizing/decriminalizing hemp, recreational and medical marijuana, as well as conflicting federal laws, require trust and estate attorneys to carefully consider a variety of complex rules to ensure effective drafting or modifying estate plans with cannabis-related assets.

The unique challenges inherent in estate planning for clients with cannabis-related assets require trust and estate counsel to organize a business succession plan, create an orderly distribution of assets, assign special powers of a trustee, and anticipate federal income and estate tax implications related to these assets.

Also, cannabis business owners and investors must pursue a variety of asset protection strategies to ensure that these assets are appropriately managed while minimizing unintended liabilities and shielding personal assets. Practical strategies such as a properly designed gifting plan or the use of irrevocable trusts could ensure the protection of these assets from third-party creditors and for estate planning purposes.

Listen as our panel discusses federal and state law challenges in planning for cannabis-related assets in light of recent laws legalizing/decriminalizing medical and recreational marijuana and hemp/CBD products. The panel will address critical federal income and estate tax issues, rules regarding the distribution of assets and trustee powers, and other essential issues that arise in planning for clients with cannabis-related assets.