The Tax Relief, Unemployment Insurance Re-authorization, and Job Creation Act of 2010 utilizes the concept of portability for estate planning. However, many estate planners are now advising that relying on portability alone is not sufficient. This is because, among other...
May 2011 Archives
According to the New York Times in Breaches Lead to Push to Protect Medical Data, Health and Human Services has created a new website that enumerates around 300 hospitals, doctors, insurance companies, and others who have reported breaches in medical...
On January 28, 2011, the IRS ruled in LTR 201121002 that a court-approved settlement agreement among the parties of a trust will not cause the trust to fall under the auspices of the General Skipping Transfer Tax (Section 2601 of...
Karen DeMasters published an article entitled, "Celebrity Foibles Can Be Learning Tools For Advisors, Clients." The article discusses how celebrities who have failed to properly plan their estates can provide interesting insight and awareness on estate planning. The article also...
Continue reading " Karen DeMasters: Celebrity Foibles Can Be Learning Tools For Advisors, Clients"
Emily Maltby published an article in the Wall Street Journal entitled, "Listen Up About Taxes, Family Firms Say." The article describes a recent poll taken of family businesses to determine what they want congress to focus most on. A near...
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Bill Singer published an article entitled, "Mother Sues Merrill Lynch Over Daughter's Guardianship." This lawsuit was based on negligence by Merrill Lynch for failure to advise their client to diversify their assets. Merrill provided emails to prove their case and...
Continue reading "Bill Singer: Mother Sues Merrill Lynch Over Daughter's Guardianship"
The Wealth Strategies Journal has published a new article entitled, "Estate Analyst: Evil Estates Deconstructed," By: Robert L. Moshman, Esq.In this article, Mr. Moshman discusses the possible implications of estate planning for criminal convicts.Posted by Matthew Engler, Managing Associate Editor....
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According to the New York Times in 2010 was Big-Spending Year even by Mayor's Standards, Documents Suggest, Mayor Michael Bloomberg spent more than usual in 2010 according to his tax returns. He forgave a $500,000 personal loan and created a...
Forbes' IRS Watch is reporting in California Taps Highest Income Taxpayers for More Revenue that California is using new methods to collect more money from high-income taxpayers, including assessing a penalty fee for not filing electronically and by eliminating safe...
Continue reading "California uses new Methods to Collect more from High Income Taxpayers"
According to Arden Dale in the Wall Street Journal's Financial Adviser blog in IRS Scrutinizes Gifts of Real Estate, the IRS has commenced a low-profile yet intense program to tax individuals gifting large real estate parcels to others. These transfers...
Continue reading "IRS Attempting to Tax Large Real Estate Gifts by Searching Land-Transfer Records"
According to the Wall Street Journal in Small Businesses Fight IRS over Data, the IRS has been requesting the QuickBooks and other accounting information from small businesses (including customer lists and personnel data) in order to more aggressively collect taxes. ...
Continue reading "Wall Street Journal: IRS Wants QuickBooks from Small Businesses"
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Continue reading "IRS Releases Guidance on IRA's and Marital Deductions for Estate Tax"
Gillian Brunett posted an article New Estate Tax Rules Should Expire After 2012, Center on Budget and Policy Priorities, March 26, 2011. Maintaining the current estate tax exemption after 2012 is fiscally irresponsible. The current rules will only benefit one...
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Mark Hamblett posted an article Conviction of Lawyers in Tax Shelter Case Seen as Deterrent, New York Law Journal, May 26, 2011. A recent conviction in a high profile tax shelter fraud case will bolster the government's efforts in deterring lawyers...
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Nathan Koppel posted an article Attorney Paul Daugerdas Concted in Tax Shelter Case, Wall Street Journal, May 24, 2011. Attorney Paul Daugerdas was convicted of all counts related to claims that he helped structure illegal tax shelters by his former...
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Bloomberg posted an article, "Tax seen for wealthy donors, as IRS probes campaign contributions" The IRS is investigating five donors who have made large contributions to advocacy groups without filing gift tax reurns. The investigation could have ramifications on other...
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Paul Sullivan posted an article An Investment Asks, How Much Can You Affort to Lose?, New York Times, May 20, 2011. More and more investors are beginning to invest again in high risk private equity and debt offerings. Many unsavy investors...
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Tax Analysts published an article, "New Jersey man sentenced for failure to report swiss bank account, DOJ announces". A man was sentenced to three years of probation, including 12 months of home confinement with electronic monitoring, after he failed to...
A May 18th report by the Office of Personnel Management covers significant proposed IRS regulations and changes, including:1) Changes to the deductibility of certain investment advisory and other expenses of trusts and estates, specifically whether such expenses are subject to...
Continue reading "OMB: IRS Proposes Significant Regulations and Changes"
Magalit Fox posted an article Huguette Clark, reclusive heiress, dies at 104, The New York Times, May 24, 2011. Huguette Clark, the reclusive daughter of a multi-milliionaire copper baron and Senator died at the age of 104 in New York. ...
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Robert Frank posted an article Should Millionaires Trust Their Advisers Again, The Wall Street Journal, May 24, 2011. With markets up and greed replacing fear, the wealthy once again are leaving their financial futures in the hands of wealth managers,...
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Jeff Porter of the American Institute of CPAs testified on May 25, 2011 at the House Judiciary Subcommittee hearing regarding the Mobile Workforce State Income Tax Simplification Act (Doc 2011-11346). Porter stated that employing a uniform standard for state nonresident...
According to Michael Plowgian, an attorney in the Treasury's Office of International Tax Counsel, stated recently (Doc 2011-11344) that Treasury is considering treating certain foreign charities as exempt from withholding under the Foreign Account Tax Compliance Act (FACTA). This exemption...
Continue reading "Treasury: Foreign Charities Might Garner Carveout under FACTA"
On May 25, 2011, the Senate Finance Fiscal Responsibility and Economic Growth Subcommittee held a hearing (Doc. 2011-11382) addressing the increasing number of taxpayers whose identities are stolen. The hearing also addressed how the IRS combats these identity thefts. Because...
Kelly Greene and Jessica Silver-Greenberg posted an article, Power Grab!, The Wall Street Journal, May 14, 2011. More banks are not accepting powers of attorney as the incidence of fraud, even among the principal's family members is on the rise. ...
Gerry W. Beyer authored an article Avoid Being a Defendant: Estate Planning Malpractice and Ethical Concerns, (May 20, 2011) Available at SSRN: http://ssrn.com/abstract The article reviews the exposure an estate planner may have to malpractice liability with emphasis on Texas law...
Continue reading "Avoid being a defendant: estate planning malpractice and ethical concerns"
David Gliksberg published The Coming Inflation and the Income Tax: Lessons from the Past, Lessons for the Future, 10 Fla. Tax Rev. 411 (2010). The article addresses how the concerns about inflation as a result of the current financial crisis...
Continue reading "Inflation and the income tax: lessons from the past, lessons for the future"
Robert McTeer posted an article Tough Truths About the Dollar, the Debt and the Economy, Forbes, May 23, 2011. More than ever, it is important for the U.S. to lower its national debt. To reduce these deficits the author believes that...
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The Wealth Strategies Journal has published a new article entitled, "Start Preparing Now For New Foreign Bank Account Reporting Rules," by Laura Barooshian, CPA, MST.Ms. Barooshian discusses the implications of the new Foreign Account Tax Compliance Act and what it...
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University of Baltimore, School of Law Professor Wendy Gerzog published an article, Shapiro: Palimony and the Estate Tax, in which she criticized the 9th Circuits reliance on state law in Estate v. Shapiro to determine whether a palimony claim was...
Continue reading "Professor Wendy Gerzog Criticizes 9th Circuit Decision in Estate of Shapiro"
U.S. District Court denies IRS Summins Petition in In the Matter of the Tax Liabilities of John Does
The U.S. District Court for the Eastern District of California has denied a summons petition filed by the IRS in In the Matter of the Tax Liabilities of John Does, No. 2:10-mc-00130 (Doc. 2011-11186). The aim of the IRS's petition...
On May 17, 2011, the Congressional Research Service (CRS) issued a Report "Reducing Bidget Deficit: Tax Policy Options," which stated that an elimination of various exemptions, deductions, and credits currently in the Tax Code will help reduce the federal budget...
Revenue Ruling 2011-13 provides various prescribed rates for June 2011 for federal income tax purposes including the applicable federal interest rates, the adjusted federal long-term rate, the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by section...
At a May 18 IRS hearing, opponents of proposed regulations cautioned that rules that would require U.S. banks to report interest paid to nonresident alien depositors will lead to large-scale withdrawals from U.S. banks. Current rules only require interest reporting when the depositor is...
David Kappos, director of the USPTO, has ordered a reexamination of a 2003 patent granted to Wealth Transfer Group LLC for a system that minimizes gift tax liability through the use of a stock option grantor retained annuity trust (SOGRAT). The...
Continue reading "USPTO Commioner Orders Reexamination of Wealth Transfer Group Patent"
Patti S. Spencer posted an article, Estate Planning for Lawyers, ABA: Smart Soloing Newsletter, May, 2011. Solo practitioners also need to consider the fiduciary duties owed to their clients when drafting an estate plan. Solo practitioners should designate other lawyers...
Michael Broad posted an article, Insurance and Retirement Planning for Solos, ABA: Smart Soloing Newsletter, May, 2011. The article gives various insurance options and retirement planning options for the solo -practitioner. The topics include but are not limited to health...
Continue reading "Insurance and retirement planning for solos"
Steve O'Connor posted an article, The £400 test that tells you how long you'll live, The Independent, May 16, 2011. A new controversial test expected to gain popularity may be able to predict life expectancy by assessing the tips of a person's chromosomes. Many...
Lavonne Kuykendall posted an article, Advisers: Treasuries out, emerging market in, Investment News, May 12, 2011. Financial advisors are now favoring equities over treasury bills and fixed income investments. Investors are also now favoring a stronger diversified international portfolio. Posted...
Continue reading "Advisers: treasuries out, emerging market in"
Craig Brimhall posted an article Stay-at-home spouses need retirement plans, InvestmentNews, May 15, 2011. A financial advisor can better position a stay at home spouse for retirement by helping to maximize that spouse's social security benefits. The advisor can also help bridge...
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Larry Barrett posted an article, Advisors crucial to retirement confidence: survey, Financial Planning, May 11, 2011. A new LIMRA study suggests that more than three-times as many pre-retiree respondents who have yet to hire a financial advisor now admit they...
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Les Abromovitz posted an article Why compliance experts are apt to dislike Facebook, RIABiz, May 13, 2011. Registered Investment Advisors may have to be careful when using Facebook because advertising rules prohibit the use of testimonials and any content that is...
Continue reading "Why compliance experts are apt to dislike Facebook"
A May 18 letter to IRS Commissioner Douglas Shulman, Orrin G. Hatch, R-Utah, and five other Senate Finance Committee Republicans inquired into discussions the IRS ad with the White House and other executive branch agencies regarding the to inform several individuals that their contributions to section...
In remarks delivered on May 17th at the Joan Shorenstein Center on Press, Politics and Public Policy, Treasury Secretary Tim Geithner stated that after a decade of piling on debt to pay for expensive tax cuts, a large prescription drug benefit,...
Continue reading "GEITHNER: We Have to Find a Way to Return to Living Within Our Means"
In Recent remarks at Eastern Pennsylvania Working Together conference at Philadelphia University, James C. Fee Jr., senior legal counsel to the IRS Large Business and International Division's GHW unit, suggested that GHW will move to a "holistic approach" to examination of...
Continue reading "IRS to Take Holistic Approach to Sophisticated Taxpayers with High Net Worth"
Recent unofficial remarks by two Treasury officials suggest that, despite that the approach taken for pass-through payments under the Foreign Account Tax Compliance Act (FATCA) in Notice 2011-34 was intended to be a "simplifying approach," at least one official expects...
Continue reading "Treasury: Possible "Definitional Changes" for FATCA Pass-through Payments"
Robert Frank posted an article The Manic Spending of the Wealthy, Wall Street Journal, May 13, 2011. A recent study shows that the spending of the wealthy is 2.5 times as volatile as the spending of all U.S. households. Posted...
Paul Sullivan posted an article Wealthy Hesitate to Take a Break on Estate Taxes, New York Times, May 13, 2011. Many wealthy Americans are not taking advantage of the current two year window to take advantage of the increased exemption...
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Steven Sloan posted an article IRS Denies Outside Influence Sparked Gift Tax Investigations, Bloomberg, May 13, 2011. The IRS stated that it is investigating whether five taxpayers should pay the gift tax on donations made to several 501 (c)(4) organizations. Posted...
Continue reading "IRS denies outside influence sparked gift tax investigations"
Gerry W. Beyer authored an article Lessons from the Supreme Court of Texas, Estate Planning Developments for Texas Professionals, October 2010. Beyer discusses seven Texas cases which elaborate on the following topics: intestate succession, jurisdiction of district court, removal of executor, malpractice,...
The Wealth Strategies Journal has just posted a new article entitled, "You Are Being Watched: It's Not Just Big Brother Watching You," by Kevin E. Packman of Holland & Knight LLP.In this article, Mr. Packman discusses the ramifications of the...
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Recent Cases of Interest to Fiduciaries: Part 3 - Jurisdiction and Standing, a publication by Dana Fitzsimons, Jr. and Meghan Gehr, of McQuireWoods, LLP, summarizes several recent state and federal holdings concerning jurisdiction and standing that may be of interst...
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The Wealth Strategies Journal has posted a new article entitled, "Recent Developments in Asset Protection Law, May 2011," by Jay Adkisson. In this article, Mr. Adkisson surveys a number of recent cases related to asset protection and provides brief synopses...
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Steve Akers, Associate Fiduciary Counsel, Bessemer Trusts, provides the following summary of developments in estate planning over the last several months. Steve R. Akers, Fiduciary CounselAkers@bessemer.comMay 17, 2011A variety of developments over the last four months are summarized, including discussions about carryover basis, portability,...
Continue reading "Steve Akers:Current Developments in Estate Planning"
David J. Zumpano published an article entitled, "Irrevocable Pure Grantor Trusts: The Estate Planning Landscape Has Changed." The article discusses how the irrevocable pure grantor trust permit clients to have the protection of an irrevocable trust while still maintaining control...
Robert Frank published an article in the Wall Street Journal entitled, "How the Rich Are Saving State Governments." The article discusses how there was an increase in tax revenue from the wealthy which has enriched the state coffers.Posted by Shahzeb...
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Scott Adams, the author of Dilbert comics has published a comic involving Estate Planning.Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies Journal....
The Wall Street Journal published an article entitled, "The IRS Gets Political." The article examines the efforts of the IRS to tax political donations as a gift tax.Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies Journal....
Multigenerational Marketing: The Ageless Approach to Reaching Prospects According to a 2010 study by the Nielsen group, "Mining the U.S. Generation Gaps," there are fundamental differences in the shopping habits of different generations. While Boomers increased their Twitter use...
In a recent revenue ruling, The IRS concluded that an LLC Taxpayer had satisfies the requirements of section 301.9100-1 and 301.9100-3, granting the LLC 120 days to file its election to pass-through rehabilitation tax credits to a tenant. An extention...
A recent IRS revenue ruling concludes that under section 25.2519-1(f), the sale and purchase of ownership interests in various entities held by a marital trust and the payment or receipt of an equalizing payment pursuant to the trust agreement will not...
In a recent revenue ruling, the IRS issued seven rulings regarding the renouciation, and gift taxation of divided qualified terminable interest property trusts (QTIPs). According to the IRS, the division of marital trust pursuant to applicable State law and the terms...
A May 13 release by Adler & Colvin expresses the view that the IRS has engaged in a "sudden, unannounced initiative to retroactively enforce gift tax" on contributions to non-charitable 501(c) groups pursuant to a 1982, IRS ruling the IRS "had...
In a recent revenue ruling the IRS found concluded that income from trusts set up by local public agencies to prefund payment of retiree health benefits accrues to the local agency trusts. As a consequence, provided that no private interests participate...
Continue reading "IRS Revenue Ruling 2011-19008: Exclusion of Trust Income From Gross Income "
In a recent revenue ruling, the IRS concluded that the shares of a qualified subchapter S trust (QSST) created upon the death of the electing benificiary are treated as a separate trust for purposes of section 1361(d). The IRS further concluded...
The recent holding of the Fifth Circuit in Levy v. United States has been appealed on writ of certiorari to the United States Supeme Court. The petitioner seeks review of the Circuit's decision in an estate tax refund suit, arguing that the Circuit...
Continue reading "Cert Petition Filed in Dispute Over Expert Testimony Regarding Estate Valuation"
In a recent article, David van den Berg of Tax Analysts reports that the IRS has begun examinations of five donors who did not file gift tax returns for their donations to section 501(c)(4), "social welfare" organizations. According to the IRS,...
In a recent decision, Rahall v. Commissioner the Tax Court upheld penalties for failure to file returns and for fraud in connection with the failure to recognize taxable (non-corpus) income from several domestic and foreign trusts. The court also denied claimed casualty...
Philip Greenspurn published an article entitled, "Soft Housing Prices: Maybe Americans just aren't dumb enough to keep buying houses?" The article examines the housing market and suggests that market isn't soft but rather the consumer has examined purchasing a house...
The National Business Institute conducted a CLE entitled, "Pursuing and Defending Fiduciary Liability" on May 12, 2011. The CLE discussed the laws relevant to trustees and how to hand fiduciary litigation. HAT TIP: Wills, Trusts and Estates Prof Blog Posted...
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Ron Lieber posted an article, The Changes to Save a Big Idea, The New York Times, April 29, 2011. The Community Living Assistance Services and Support Act ("CLASS Act") tries to make it easier for people to buy insurance that could help...
Browne C. Lewis authored an article, Graveside Birthday Parties: The Legal Consequences of Forming Families Posthumously, Case Western Law Review, 2010. An excerpt from the abstract is reprinted below: As a consequence of the availability and use of reproductive technology...
Roberton Williams posted an article, IRS shows how the very rich really are different, Forbes, May 12, 2011. The 400 wealthiest Americans have earned most of their income from capital gains. During the recession, as they earned less money from these tax-preferred...
Continue reading "IRS shows how the very rich really are different"
At a May 10 Senate Finance Committee hearing, James Roosevelt Jr. of Tufts Associated Health Plans Inc. said that Social Security has a positive balance of $ 2.54 trillion and only needs "modest changes" to keep the program running, which...
Nancy Altman of Social Security Works said at a May 10 Senate Finance Committee hearing that Social Security "is too complicated and too important" to be addressed along with other complex legislation and should not be part of congressional discussions...
Charles Blahous, a Hoover Institution research fellow and public trustee for Social Security, testified at a May 10 Senate Finance Committee hearing that "Social Security faces a significant long-term financing shortfall" and said to avoid disruptive cuts for those already...
At a May 10 Senate Finance Committee hearing, Alex M. Brill of the American Enterprise Institute recommended an incremental approach to resolving Social Security's long-range shortfall and said the issue could be included in negotiations on the budget. 2011 TNT...
Continue reading "Tax Notes Article, "AEI rep advises incremental progress on social security""
In a May 10 report, the Heritage Foundation offered a plan to balance the budget that would repeal the 2010 healthcare reform law, replace the employer-provided health insurance premium exclusion with a nonrefundable fixed tax credit, and create a single-rate...
Final Circular 230 regulations will be released very soon, "maybe even before the end of this week," IRS Office of Professional Responsibility Director Karen Hawkins said May 10. 2011 TNT 91-2 Posted by Adam Fleischer, Associate Editor, Wealth Strategies...
Treasury and IRS officials on May 7 said progress has been made on several guidance projects in the trusts and estates area. 2011 TNT 90-9 Posted by Adam Fleischer, Associate Editor, Wealth Strategies Journal...
Continue reading "Tax Notes Article, "Progress made on trusts and estates guidance, official say" "
The IRS's new offshore voluntary disclosure initiative (OVDI) does not permit agents reviewing the disclosures to make factual determinations about factors like willfulness or reasonable cause, said a senior IRS official on May 7 in remarks designed to clear up...
Deloitte Tax LLP has released a publication aimed at helping individuals and entities with financial interests in or signature or other authority over foreign financial accounts file a Report of Foreign Bank and Financial Accounts (FBAR) with Treasury. 2011 TNT...
Continue reading "Tax Notes Article, "Deloitte tax releases FBAR primer""
IRS has ruled that the proposed severance of a martial trust into two separate trusts won't disqualify any of them as qualified terminable interest property trusts, and it has ruled on the gift and income tax consequences of the husband's...
The IRS has ruled that two trusts are both composed of five separate shares and that when one of the settlor's five children died, there was a taxable termination of that child's share for purposes of the generation-skipping transfer tax...
Continue reading "Tax Notes Article, "IRS addresses GSTT treatment of two trusts""
The IRS has ruled that section 2702(a)(1) and (a)(2) won't apply to the proposed amendment and restatement of a trust as long as specified requirements are met, and that on the execution of the amendment and restatement, the settlor's daughter...
The IRS has granted the personal representative of an estate an extension to make an alternate valuation election 2011 TNT 89-58 Posted by Adam Fleischer, Associate Editor, Wealth Strategies Journal...
Continue reading "Tax Notes Article, "Extension granted to make alternate valuation election""
Treasury and the IRS have nearly completed guidance on the section 1022 modified carryover basis regime, and the department's next focus in the estate and gift tax area will likely be exemption portability issues, Catherine Hughes, attorney-adviser in Treasury's Office...
According to the Wall Street Journal's The Wealth Report, in The Rich are an Ever-Changing Group, even though the wealthiest 400 taxpayers are exceedingly wealthy, the members to this exclusive club are constantly changing. Most of these individuals only make...
According to the Wall Street Journal in How to Gift a Vacation House, there are several methods to gift a vacation house to minimize taxation on the transfer. These include: the current higher per person (and couple) lifetime gift without...
Continue reading "Several Methods to Gifting a Vaction House"
Peter Melcher published an article entitled, "In-Plan Roth Conversions: Planning and Administrative Considerations." The article discusses the impact the Small Business Jobs Act of 2010 has on Roth IRAs. Specifically, the article discusses the ability to convert amounts held in...
The IRS has published it's Linked Estate Tax-Form 1040 Data Tables and Estate Tax Filing for the year 2008.Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies Journal....
The basic but often overlooked question of how useful foreign bank account reporting is to the federal government was the subject of discussion among tax practitioners in Washington on May 6. 2011 TNT 89-30 Posted by Adam Fleischer, Associate...
ElderLawAnswers posted an article New Technologies and the Elder Law Practice. Part 1: Speech Recognition Software, November 29, 2010. Sixty percent of the attorneys surveyed use speech recognition software in their practice. The most popular type of software is "Dragon...
Continue reading "New Technologies and the Elder Law Practice. Part 1: Speech Recognition Software"
Jilian Mincer posted an article Living Longer: The Good News and Bad, QMS Financial, April 6, 2011. As the average American is now living to the age of 78, many retirees are unaware that they have to plan for three...
The wealthiest Americans account for 35.5% of America's personal outlays in spending. They do not notice the rising gas prices as much as the average American family, and thus experts are predicting that spending will remain static amidst the current...
Continue reading "Spending Habits by Wealthy not Affected by Rising Gas Prices"
According to Forbes in Grazing, Photocopying, and other Tricks Inflate Legal Bills, law firms often inflate their bills to clients through several methods. David Paige, a former attorney, founded Sterling Analytics to advise clients' on their legal bills. Popular practices...
Continue reading "Legal Bills Scrutinized by Consulting Firm"
McGuire Woods is reporting in Is Congress Tipping its Hand on the Future of Charities and Charitable Deductions? that there are new concerns being raised on whether or not preferential tax treatment should be given to tax-exempt organizations who assist...
Continue reading "More Potential Concerns Regarding Charitable Tax Deductions"
Group or Individual Insurance? by Ron AgyptWhen it comes to choosing the best insurance policies for their employees, small-business HR executives typically have fewer options from which to choose. The number of employees plays a significant role in determining...
Continue reading "Agent's Sales Journal: Eight New Articles on Insurance and Retirement Planning"
WealthCounsel, a membership organization of estate planning practitioners, is hosting a live webcast on Thursday, May 12, 2011 at 1:00PM on charitable planning. The webcast speakers will be Thomas J. Ray Jr., Esq. of WealthCounsel and Mark Brewer, MPA of...
The Wills, Trusts & Estates Prof Blog is reporting that a new MetLife study (Study of Inheritance and Wealth Transfer to Baby Boomers) estimates that baby boomers will inherit $8.4 trillion. Based on 2007 data (pre-recession), the median for wealthy...
Continue reading "Study Estimates that Baby Boomers Stand to Inherit $8.4 Trillion"
The Wills, Trusts & Estates Prof Blog is reporting that Scott Adams, writer of Dilbert, has created and estate-planning comic. Search for May 9, 2011 strip to view it.Posted by Jessica Rebarber, Associate Editor, Wealth Strategies Journal...
Continue reading "Dilbert Creator Pens an Estate-Planning Comic"
U.S. Trust, Bank of America's Private Wealth Management section, has just published its annual survey: Insights on Wealth and Worth. The 2011 survey provides insights into the following topics: attitudes on wealth; estate planning and wealth transfer; investment outlook, tax...
Continue reading "Survey: 2011 U.S. Trust Insights on Wealth and Worth Survey is Published"
McGuire Woods has just published a report entitled New Scrutiny of College and University Executive Compensation and Unrelated Business Activity. The report discusses the IRS's honing in on the claims of a loss deduction against Unrelated Business Income (UBI) by...
Continue reading "Report Focuses on Unrelated Business Income for Tax-Exempt Organizations"
Elliot Raphaelson published an article entitled, "The Savings Game: Putting off estate planning can leave a legacy of confusion." The article discusses a list of concerns that happen by not having an estate plan ready before you pass away. Posted...
USA Today is reporting, as per the TaxProf Blog, that Americans are paying the smallest percentage of their income in taxes since 1958. Reasons for this include recent tax cuts and a still-weakened economy.Posted by Jessica Rebarber, Associate Editor, Wealth...
Continue reading "Americans Currently Paying Smallest Tax Burden Since 1958"
According to the TaxProf Blog, Larry Ribstein, from the University of Illinois, published Taxing Big Uncorporations. The article discusses how expanding the domain of tax pass-throughs could increase efficient uncorporate governance.Posted by Jessica Rebarber, Associate Editor, Wealth Strategies Journal...
Continue reading "The Expanding Role of Tax Pass-Throughs and Uncorporate Governance"
According to the TaxProf Blog, University of Baltimore Professor Wendy C. Gerzog published The New Super Charged Pat, 47 Hous. L. Rev. __ (2011). The Article proposes repealing the prevalent QTIP provisions in the Estate Tax Code.Posted by Jessica Rebarber,...
Continue reading "Gerzog Publishes Article on New Super-Charged Power of Appointment Trust"
According to the TaxProf Blog, David Clay Johnston published Ryan's $34 Trillion Tax Folly, discussing how the cost shifting in the Ryan budget plan would actually increase costs for individuals much more than the amount of savings in taxes.Posted by...
The Wall Street Journal is reporting in Will Women Ever Outnumber Men Among the Ultra-Rich? that there has been a major rise in the wealthy women in the UK: a record 105 women made the UK's list of the 1,000...
Continue reading "Women Begin to Outnumber Men on Rich Lists"
According to Forbes The Best Places to Buy a Home Right Now, Rochester, NY and Pittsburgh, PA are the top two places to currently purchase a new home. Rochester is a college town, making it perennially attractive to homeowners.Posted by...
McGuire Woods has included Deidre Foster v. Winifred Foster in its latest update on "Recent Cases of Interest to Fiduciaries". In Deidre Foster v. Winifred Foster, the Arkansas Court of Appeals held that the will was valid and properly executed...
Continue reading "Fiduciary Update: Deidre Foster v. Winifred Foster"
McGuire Woods has included Siegel et. al. v. JP Morgan Chase Bank in its latest update on "Recent Cases of Interest to Fiduciaries". In Siegel et. al. v. JP Morgan Chase Bank, the Florida Court of Appeals found that the...
Continue reading "Fiduciary Update: Siegel et. al. v. JP Morgan Chase Bank"
McGuire Woods has included James Munn v. Michael D. Briggs in its latest update on "Recent Cases of Interest to Fiduciaries". In James Munn v. Michael D. Briggs, the Court of Appeals of California declined to recognize the tort of...
Continue reading "Fiduciary Update: James Munn v. Michael D. Briggs"
McGuire Woods has included Christopher Gene Fazzi v. Norma Jean Klein in its latest update on "Recent Cases of Interest to Fiduciaries". In Christopher Gene Fazzi v. Norma Jean Klein, the Court of Appeals of California held that the intent...
Continue reading "Fiduciary Update: Christopher Gene Fazzi v. Norma Jean Klein"
McGuire Woods has included Lange v. Nusser in its latest update on "Recent Cases of Interest to Fiduciaries". In Lange v. Nusser, an unpublished opinion, the Court of Appeals of California held that the beneficiaries only sought a interpretation of...
McGuire Woods has included Glory Kaufman v. JP Morgan Chase Bank in its latest update on "Recent Cases of Interest to Fiduciaries". In Glory Kaufman v. JP Morgan Chase Bank, an unpublished opinion, the Court of Appeals of California held...
Continue reading "Fiduciary Update: Glory Kaufman v. JP Morgan Chase Bank"
McGuire Woods has included Claude Arnall v. Dawn Arnall in its latest update on "Recent Cases of Interest to Fiduciaries". In Claude Arnall v. Dawn Arnall, an unpublished opinion, the Court of Appeals of California affirmed the probate court's decision...
Continue reading "Fiduciary Update: Claude Arnall v. Dawn Arnall (Round 2)"
McGuire Woods has included Claude Arnall v. Dawn Arnall in its latest update on "Recent Cases of Interest to Fiduciaries". In Claude Arnall v. Dawn Arnall, an unpublished opinion, the Court of Appeals of California affirmed the probate court's decision...
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McGuire Woods has included Derringer v. Emerson in its latest update on "Recent Cases of Interest to Fiduciaries". In Derringer v. Emerson, the fed. dist. for D.C. applying Virginia law dismissing daughters' contesting their father's amendment to his will before...
McGuire Woods has included In Re Estate of Dorsey W. Rohrbaugh in its latest update on "Recent Cases of Interest to Fiduciaries". In In Re Estate of Dorsey W. Rohrbaugh, the court held that no-contest clause sare strictly applied in...
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Patrick M. Wilson (J.D. 2010, New England School of Law) recently published his note entitled Protecting Investors From Their Investments: Encouraging States to Make Assets in Domestic Asset Protection Trusts Available to Creditors Who Have Successfully Pierced the Corporate Veil, 44...
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Patrick M. Wilson (J.D. 2010, New England School of Law) recently published his note entitled Protecting Investors From Their Investments: Encouraging States to Make Assets in Domestic Asset Protection Trusts Available to Creditors Who Have Successfully Pierced the Corporate Veil, 44...
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Susan N. Gary (Orlando J. and Marian H. Hollis Professor, University of Oregon), Jerome Borison (Associate Professor of Law, University of Denver Sturm College of Law), Naomi R. Cahn (John Theodore Fey Research Professor of Law, George Washington University), and...
Continue reading "Contemporary approaches to trusts and estates law"
Susan N. Gary (Orlando J. and Marian H. Hollis Professor, University of Oregon), Jerome Borison (Associate Professor of Law, University of Denver Sturm College of Law), Naomi R. Cahn (John Theodore Fey Research Professor of Law, George Washington University),...
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An article published by Advisor One titled "Beneficiary Designations and Divorce Decrees: A Cautionary Tale" should serve as a cautionary tale to individuals contemplating a divorce after a life of intertwined finances with their spouses. The article discusses a case...
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ABA presents Teleconference and Live Audio Webcast Creating Grantor TrustsTuesday, May 10, 20111:00 p.m. - 2:30 p.m.Program information as provided by ABA:Grantor trusts are one of the most powerful tools in an estate planner's arsenal. This program will review the different...
A U.S. district court has denied individuals' motions to prohibit the government's post-trial objection to the deductibility of estate fees and to include a promissory note in the case record, finding that the government preserved its right to object to...
Susan Adams published an article entitled, "Entrepreneurs: The 'Business' Gene." The article discusses whether business acument and success is passed on from one generation to the next.Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies Journal....
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Robert Frank published an article in the Wall Street Journal entitled, "Remembering a Modest Billionaire." The article looks back at the life of William Cook, the billionaire founder of Cook Medical. Specifically, the article examines the difference in today's billionaires...
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Dana G. Fitzsimons Jr. & Meghan L. Gehr published a newsletter entitled, "Recent Cases of Interest to Fiduciaries: Part 1 - Defenses and Limitations to Actions, Arbitration, and Settlements." The articles describes a series of cases concerning limitations to surcharges...
Robert Frank posted an article in the Wall Street Journal entitled, "Young, Rich and Shopping for a Mansion." The article describes a british reality-TV show that follows a group of wealthy kids shopping for their starter mansion.Posted by Shahzeb Gaziani,...
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Melissa A. Dizdarevic published a journal article entitled, "The FATCA Provisions of the Hire Act: Boldly Going Where No Withholding Has Gone Before." In an effort to crack down on offshore tax evasion , the U.S. has increased the withholding...
The Ninth Circuit, finding no error, has affirmed the Tax Court's holding that amounts transferred to a pair of family partnerships should be included in the decedent's taxable estate. 2011 TNT 87-10 Posted by Adam Fleischer, Associate Editor, Wealth Strategies Journal...
Practitioners are offering relatively consistent interpretations of sentences resulting from an ongoing series of Justice Department foreign bank account reporting prosecutions against taxpayers with unreported offshore accounts, agreeing the sentences are light. 2011 TNT 87-3 Posted by Adam Fleischer,...
As lawmakers grapple with how to reduce the federal deficit, Senate Finance Committee Chair Max Baucus, D-Mont., said May 4 they will have to consider whether to tax at least some passthrough entities as corporations. 2011 TNT 87-5 ...
In news analysis, Jeremiah Coder examines several recently released opinions in Circular 230 disciplinary proceedings, finding that the sanctions recommended by the IRS Office of Professional Responsibility are hard to escape. 2011 TNT 87-4 Posted by Adam Fleischer, Associate Editor, Wealth...
Under FATCA, the U.S. status of a family member of a client with a preexisting individual private banking account at a foreign bank need not be reported by foreign financial institutions unless that family member has an account linked to...
In a recent statement, Senator Max Baucus, D-Mont., said that the Senate Finance Committee, which he chairs, will consider whether to elliminate at least some of the tax advantages of pass through entities by taxing them as corporations. The statement...
In a recent artcile, Jeremiah Coder examines the disposition of several recent Circular 230 disciplinary proceedings. Mr. Coder concludes that practitioners should take allegations of ethical violations by the IRS Office of Professional Responsibility seriously as the office usually prevails...
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In a recent press release, the Internal Revenue Service has clarified the reporting rules relating to family members of a client with a private banking account at a foreign bank under the Foreign Account Tax Compliance Act ("FACTA"). Such family...
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The U.S. District Court for the Southern District of Texas has granted in part and denied in part Plaintiffs post-trial motion to amend the Court's August 20, 2009 Findings of Fact and Conclusions of Law in Thomas Lane Keller et...
In a recent unpublished opinion, the United States Court of Appeals for the Ninth Circuit affirmed the Tax Court's holding in Estate of Erma V. Jorgensen et al. v. Commissioner. In Estate of Erma, the Tax Court held that amounts...
In a recent article discussing the prosecution of seven former UBS AG clients, Kevin E. Thorn, managing partner of the Thorn Law Group, a tax litigation firm based in Washington, suggests that sentences for offshore account reporting violations will increase....
The Wealth Strategies Journal has posted a new article entitled, "FLP Update," by Martin Shenkman.In his article, Mr. Shenkman summarizes the insights offered by a panel of tax and business professionals on the use and management of FLPs and...
In Increasing Income Inequality Around the World, Paul Caron notes that the wealth gaps between the wealthy and the poor have been increasing in other nations besides just the USA. In fact, even in the more equitable region of Scandinavia,...
The ABA has published A Practitioner's Guide to Innocent Spouse Relief according to the TaxProf Blog. The Guide provides step-by-step guidelines for attorneys navigating their clients through innocent spouse claims.Posted by Jessica Rebarber, Associate Editor, Wealth Strategies Journal...
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In a recently published book, Estate Planning Smarts, Deborah L. Jacobs provides a user-friendly guide to planning one's estate.Among other things, the book uses charts and plain English to explain the complex legal principles. According to the book's website, Estate Planning...
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An article in the Lubbock Avalanche-Journal, State looks to clamp down on life settlements, reports that Texas is trying to put an end to companies buying life insurance policies from the elderly at a discount.The "life settlements" give the elderly...
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A 90-minute teleconference, Reverse Mortgages From An Elder Perspective, will be hosted by the National Business Institute on May 18, 2011 from 11 am to 12:30 pm EST.The teleconference will teach attorneys, wealth planners, accountants, and paralegals about reverse mortgages...
The National Association of Estate Planners & Councils has posted a reminder to include pets in estate planning. The NAEPC advises pet-owners to leave care instructions, veterinary information, the location of records and legal documents, and the name and contact...
In a recent article in the Wall Street Journal, Life Insurers Skimp on Payouts, Leslie Scism and Vauhini Vara write that states are looking into allegations that some large life insurance companies have failed to pay out policies on their...
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The Alzheimer's Association has released news on Alzheimer's and the baby boomer generation. The results of the study reflect a number of facts regarding the disease and the baby boomers. For example, the Alzheimer's Association estimates that 10 million baby...
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Paula Span writes about a new and touching book in the New York Times The New Old Age blog.The book, "Emily, Alone," by Stewart O'Nan is about an elderly widow in Pittsburgh. In a more realistic story than those about...
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A recent report from K&L Gates, LLP, suggests that foreign finacial institutions are finding it difficult to impliment the Foreign Account Tax Compliance Act, dispite guidance provided by the IRS. The Act is intended to reduce tax avoidance by corporations...
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In a letter addressed to Democratic members of the House Ways and Means Committee, dated April 29, IRS commissioner Douglas Shulman state that the IRS would review the innocent spouse provision under section 6015(f), which provide relief to joint taxpayers...
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The IRS and Treasury officials have asked for further public comment on proposed regualtions to impliment the Foreign Account Tax Compliance Act. Specifically, comments relating to the treatment of existing entity accounts and definitional issuers relating to the treatment of...
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Hiring an assistant can be a difficult task, according to Jason Fried, co-founder of 37Signals and author in his article When to Hire an Assistant in Inc. Magazine. Fried notes that while he was reluctant at first to hire an...
According to the Oregon Capitol News in Estate Tax Moves to House Floor, the Oregon Revenue Committee passed a new estate tax, moving it from committee to the House Floor. The new estate tax will be a progressive tax, taxing...
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The IRS has ruled that a transfer between a qualified terminable interest property trust's two funds won't be considered a disposition of a qualifying income interest for life in property under section 2519 and that the entire value of assets...
Continue reading "Tax Notes Article, "IRS Rules on Proposed QTIP Trust CRUT Provisions""
The IRS has granted an individual an extension to make an election under section 469(c)(7) and reg. section 1.469-9(g)(3) to treat all interests in rental real estate as a single rental real estate activity. See 2011 TNT 84-42 ...
The IRS has granted a foreign entity's request to be treated as a trust for federal tax purposes. See 2011 TNT 84-62, May 2, 2011. Posted by Adam Fleischer, Associate Editor, Wealth Strategies Journal ...
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The Congressional Research Service in an April 29 report on budget deficit reduction described President Obama's April 13 proposal to cut the deficit through spending cuts, tax reform, and a debt failsafe trigger that would require the debt-to-GDP ratio to...
Continue reading "Tax Notes Article by Mindy R. Levit, "CRS Examines Budget Deficit Reduction""
Steven A. Neiss, a securities industry executive, said May 2 that based on a conversation he had with an IRS official, he believes that exchange-traded funds (ETFs) should not be considered covered securities in 2011. 2011 TNT 85-5, May...
The Wealth Strategies Journal has posted a new article entitled, "Roth IRA Conversion Planning in 2011 & 2012," by Robert Keebler, CPA of Keebler & Associates, LLP.Posted by Matthew Engler, Managing Associate Editor....
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Michael Jackson created the Heal the World Foundation, which, once taken over by Melissa Johnson, used many Jackson-related trademarks. According to Jackson Estate Settles with Heal the World Foundation, Jackson's estate sued to stop the usage, and a settlement was...
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According to the Wall Street Journal, estate tax laws in the USA are inconsistent. In Some States Push for More Estate Taxes, some states, like Connecticut are attempting to lower their estate tax threshold to capture more revenue. However, other...
According to the Wall Street Journal in Paying Grandkids' Tuition, the recent gift tax exemption increase (from $1 million to $5 million) has given grandparents another option to help pay for their grandchildrens' college educations. Previously a irrevocable trust or...
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According to the New York Times in Putting your Doctor, or a Whole Team of them, on Retainer, concierge medicine, where doctors are paid an annual fee to be at the ready for their wealthy patients, is a growing sector...
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Alex Trias published an article entitled, "Here's a Third Way to Determine When You Have Enough to Retire." The article discusses and provides considerations for portfolios that would be needed for retirement.Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies...
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Robert Frank published an article entitled, "Top Five Signs That You're Wealthy." The article looks at survey questions on what is considered to be financially wealthy.Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies Journal....
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Anne C. Lee published an article entitled, "Cut the tax bite of gifting a variable annuity." The article discusses the negative tax consequences for gifting a variable annuity.Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies Journal....
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Robert Frank published an article in the Wall Street Journal entitled, "Why the Rich Are Never Happy." The article argues that the rich are not content because of the demands from others to share their wealth. Moreover, it causes them...
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The Tax Court has denied a marital trust discount and Section 2053 deduction to an estate including a frozen marital trust. The Court found that the estate was not entitled to a discount for lack of marketability or control but...
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The Tax Court has held that an estate had properly applied the income capitalzation method to determine the fari market value of the decenent's real property. The IRS had disputed the estate's calculation finding a significant deficency which the Court...
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In a recent case the Tax Court has held that the estate of Gertrude Saunders was not entitled to deduct $ 30 million for a claim arising from a suit against the deceased woman's late husband. The court found that...
Senator Richard Shelby introduced a bill which would abolish the current tax code and replace it with a flat tax. See "S. 820 Would Replace Current Tax Code With Flat Tax," 2011 TNT 82-29, April 28, 2011. Posted by Adam Fleischer,...
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The IRS has requested public comment on information collections under final regulations that permit the reformation of personal residence trusts or qualified personal residence trusts to comply with applicable requirements under the code. See "IRS Seeks Comment on Regs on...
Tax Notes published an article by Larry J. McKinney. A district court granted the government's motion to exclude evidence regarding minority interest and lack of marketability discounts used by the IRS in assessing ift tax liability. The court held that...
Tax Notes has published an article by Bridget J. Crawford, Professor at Pace University School of Law. The article discusses a recent district court decision that held an estate's payment to charity in settlement of a bona fide will dispute...
Dorothy Rose and Lacey Pomerantz posted an article Top-Earning Dead Celebrities, Forbes, October 25, 2010. Michael Jackson earned more money over the past year than any other actor or singer, dead or alive. Elvis Presley was number two on the...
Robert Frank posted an article Millionaire Tax Didn't Chase the Rich from New Jersey, Study Says, The Wall Street Journal, April 20, 2011. A Princeton study shows that New Jersey millionaires generally did not move out of the State to...
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