Do You Have Proper Substantiation For That Charitable Deduction?
Many of us make annual or weekly contributions to a favorite charity, whether a religious institution, school, hospital or other charitable organization. Often taxpayers “assume” they can take a deduction on their income tax return for the contribution just by writing...
DING DONG…. WILL THE STRETCH IRA BE DEAD?
Many individuals own an individual retirement account (“IRA”) with a named beneficiary. Under current law, if the beneficiary is a designated beneficiary, then, when the owner dies, the designated beneficiary must take at least a minimum required distribution (“MRD”)...
Implied Death of the Intentionally Defective Grantor Trust (IDGT)?
In President Obama’s 2013 budget, he proposes to include a change to the estate and gift taxation of an Intentionally Defective Grantor Trust (IDGT) created by a decedent. An IDGT is created to remove the property from a grantor’s estate for estate tax purposes...
To Forgive May Not Always Be Divine…
If you loan someone $10,000 and then either forgive or cancel part of the loan (perhaps because it is too difficult to collect the debt) and the forgiveness or cancellation is not a gift, you probably haven’t realized that such forgiveness will create taxable income...
IRA Saves A Missed Alternate Valuation Election
When an estate exceeds the applicable exclusion amount (the “Exemption”) of $5.490 million, a taxpayer is required to file a Form 706 for the decedent’s estate. Under the Internal Revenue Code (the “Code”), assets are valued as of the date of death. However, the Code...
Relief for Late Filed Portabilty Elections!
The Internal Revenue Service (“IRS”) has offered needed relief for portability elections. Portability, discussed in a prior blog, can save a surviving spouse’s beneficiaries over $2 million (in 2017) in estate taxes! However, to utilize such savings, the surviving...
A New Will and Revoking Your Old Trust… The Devil is in the Details!
Many individuals have created revocable trusts that no longer meet their needs or they do not want a trust. They do not care about “avoiding” probate and some actually want court supervision! What happens if an old revocable trust is not properly revoked or, having...
What’s Mine Is Yours… Or Maybe Not!
Even though Florida is not a community property state, Florida does have a statute that addresses community property for residents of Florida who have moved here from a community property state. Community property can be very advantageous for tax and marital reasons....
U. S. Supreme Court Rules on Life Insurance/IRA Divorce Statute…Clarity for Practitioners and Clients
A recent blog discussed the issue in the Sveen v. Melin case which has now been decided by the Supreme Court of the United States (the “Court”). The Court determined that a Minnesota statute (similar to Florida’s statute) is constitutional under the Contracts Clause...
ALWAYS Request Release from Personal Liability for Estate Taxes…It Could Save You from Catastrophic Financial Consequences!!!
In the recent case, United States v. John Michael Paulson, 2000 WL 1821022 (3.23.2020), a California Federal District ruled in favor of an executor of an estate for release from PERSONAL liability for estate taxes. John Michael Paulson (“Mike”) became an initial...