State Statute Throws Beneficiary a Lifeline!

Private Letter Ruling (“PLR”) 201706004 addresses a beneficiary designation issue. Taxpayer died owning an individual retirement account (“IRA”). The beneficiary designation indicated that taxpayer’s trust was the beneficiary. The only problem? There was NO trust created by taxpayer! The custodian of the IRA found no trust, the taxpayer’s will referenced…

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Improper GSTT Exemption Allocation…IRS Grants Relief!

The generation skipping transfer tax (“GSTT”) is a harsh tax (40%) imposed on certain transfers to grandchildren and certain individuals in that same generation. Fortunately, the Internal Revenue Code (the “Code”) provides a GSTT basic exclusion amount (the “Exemption”) which is the same amount as the basic exclusion amount for…

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Surviving Spouse? Don’t Make an IRA Rollover Mistake!

Professionals often advise individuals to name their spouse as a beneficiary of an IRA. Instead of immediately reporting the distributions from the deceased spouse’s IRA as taxable income,  the surviving spouse can rollover the amount into their own IRA. They can then defer distributions (and thus income) until they reach…

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State Court Rescues GRAT From Drafting Error

The estate and gift tax provisions under the Internal Revenue Code (the “Code”) are extremely complicated. Thus, you must have an experienced estate planner draft documents which use techniques that can save estate and gift taxes. Nevertheless, mistakes can happen and sometimes a court reformation can save the technique as…

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Have Foreign Bank Accounts? Be VERY Careful!

In preparing your Form 1040 you may notice a question that asks about foreign bank accounts on Schedule B.  “At any time during 2016, did you have a financial interest in or signature authority over a financial account (such as a bank account, securities account, or brokerage account) located in…

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Change in Taxes With Trump Presidency?

    Now that Trump will become President and the Republican Party is now in control of both Houses in Congress, you can be sure that changes are coming. A few provisions of Trump’s tax plan follow: Married joint filers: less than $75,000- 12%, $75,000-$225,000- 25%, above $225,000- 33%. Single filers- 50%…

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End of Year Thoughts

As we approach the end of the year, we want to thank each of you for your business and referrals. We really appreciate all of you. We also want to point out some items that you should consider as we approach year end. Take your required minimum distribution for the year,…

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