Estate Taxes
Did you know your “portability” exemption may be worth something if you get married??
Under current estate tax laws each individual is entitled to a 5.340 MILLION dollar (this amount is adjusted each year for inflation) exemption (technically an “applicable exclusion amount”) when they die. Thus, if you have under 5.340 Million (which most of us have)...
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...
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...
Congress Passes Fiscal Cliff Act
On Tuesday, January 1, 2013, the Senate passed the American Taxpayer Relief Act, H.R. 8 (the “Act”) by a vote of 89 to 8, which the House of Representatives later approved by a vote of 257–167 on Tuesday evening. The Act now goes to President Barack Obama for his...
New Tax Law Coming…Is It A Christmas Present or a Sack of Coal?
The legislature is busy during these holidays. The House and Senate Conference Committee released its report and legislative text on December 15, 2017, the Tax Cuts and Jobs Act of 2017 (“TCJA”). The law is expected to be signed by the President by Christmas Day. The...
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...
Estate Tax Lien on Property You Want to Sell or Purchase?
The tax law provides that an estate tax lien automatically attaches to ANY property included in a decedent’s gross estate. For example, if I die with $7 million in my estate and $620,000 of estate tax is due, then an automatic lien is asserted on all my property....
Do YOU know if you have a power of appointment?
Many times for flexiblity and for tax planning a decedent may, in a continuing trust document, give a beneficiary either a limited or general power of appointment. For example, at my death I create a trust for my husband, Bob. At Bob’s death I give him a power of...
Tax Alert…What Will the Future Hold?
As you have probably read and heard, new tax legislation is looming to “simplify” the tax law. The major estate, gift and generation skipping transfer tax (“GSTT”) changes are as follows: The House: 1. The estate and generation skipping transfer tax (“GSTT”) would be...
IRS Allows Reformation of a Trust to Correct Scrivener’s Errors
Sometimes the drafter of a document makes a mistake that can lead to costly estate or gift taxes. In a recent private letter ruling (PLR) 201544005, the Internal Revenue Service (“IRS”) allowed a state court reformation of a trust to fix certain drafting errors which...