Month: April 2020
Portability… How Valuable Is It?
Each United States resident is subject to the federal estate and gift tax and is entitled to a $5.450 million applicable exclusion amount (“AEA”) (often called the Unified Tax Credit or the basic exclusion amount) which reduces their federal gift and estate tax....
Is Your LLC Interest Protected From a Creditor?
A recent case illustrates the difference in the protection afforded debtors who own an interest in a Multi-Member Limited Liability Company (“ MMLLC”) versus an interest in a Single Member LLC (“SMLLC”). In Pansky v. Franklin & Associates, P.A. , a law firm...
File Portability Election Late? Is There Relief?
The concept of portability has been discussed in a prior blog. What happens if a surviving spouse does not file the portability election timely? The spouse is potentially losing a savings of over $2 million in estate taxes! Relief for filing a late portability...
Gifts to Grandchildren.. Watch out. There is ANOTHER Tax to Consider!
While we may have heard of the estate tax and, of course, the income tax, many of us have never heard of the generation transfer skipping tax (GSTT). This tax is imposed on gifts to grandchildren and was imposed to prevent very wealthy families from keeping assets in...
A Caveat… Do You Have to Follow the Form?
A caveat, authorized under Florida law, is filed with the court by a creditor or interested person to ensure that the creditor or interested person has an opportunity to object to the will and receive notice of probate proceedings. The probate rules provide specific...
Beware… the IRS “Secret” Lien
Many attorneys rely exclusively on the Internal Revenue Code as the “bible” for tax law. However, many other provisions in the United States Code apply to taxes and one is the “secret lien”, secret only because there is no filing or notice other than Section 3713 of...
Don’t Be Shocked if Your QDRO Doesn’t Work…A QDRO is NOT Just a Form!
For those who have gone through a divorce, a QDRO may have been part of your agreement. A QDRO is a “qualified domestic relations order” and is required if a divorced couple splits certain retirement plans and want to avoid adverse tax consequences. A QDRO is NOT...
Transfer of IRA in Divorce…Pay Attention to Details or Transfer Will Be Taxable!
Unfortunately, even though a divorce settlement agreement (the “Agreement”) may be properly drafted, unless the parties to the Agreement comply with the terms of the Agreement, favorable tax consequences may not apply. In Kirkpatrick V. Commissioner, a divorced...
Do You Know in Whose Name Your Car is Titled?
When I meet with clients one of the topics I discuss is protection from lawsuits. Generally the highest risk asset is the automobile or the boat, both of which are a “dangerous instrumentality”. If, for any reason, the driver kills someone the owner can be liable. A...
Are You A Beneficiary of a Trust? What You Need to Know…
Some of you may be in the fortunate position of benefiting from a trust that either a relative or close friend has established for you. Being a beneficiary of a trust is usually a good thing IF you are receiving the assets to which you are entitled. How do you know to...