The Wealth Strategies Journal has posted a new article entitled, "IRS Initiatives Make 'Hidden Income' Harder to Keep Secret," by Kevin Packman of Holland & Knight.Posted by Matthew Engler, Managing Associate Editor....
Continue reading "IRS Initiatives Make "Hidden Income" Harder to Keep Secret"
Peter Katt discusses springing-cash-values and critiques a February Tax Court case, Schwab v. Comm'r. The court held that the value of two life insurance policies should be based on the guaranteed cost of insurance to the date the one...
Continue reading "Schwab v. Commissioner: Muddying the Waters of Life Insurance Valuations"
The IRS reminds estates of married individuals dying after 2010 that an estate tax return must be filed within nine months after the date of death to pass along any unused gift and estate tax exclusion amount to a...
The New York Times Online features a video of Warren Buffett discussing several topics in his interview with CNBC on the NYSE floor. He first discussed Berkshire Hathaway beginning to perform stock buybacks. He also discussed the "Buffett Rule," which...
Continue reading "Warren Buffett Gives Interview on Floor of New York Stock Exchange"
The article cites a case where a registered employee at Ameriprise Financial failed to disclose an unsatisfied IRS lien to the Financial Industry Regulatory Authority (FINRA) on his registration application (Form U4). In response, FINRA imposed a $2,500 fine...
Continue reading "Failure to Disclose Lien Yields Penalty For Registered Financial Employee"
In Tax Notes, Benjamin Rogers questions the legality of IRS regulations regarding PTINs--which became mandatory for practitioners starting in 2011. Rogers argues that the broad definitions for "return" and "claim for refund" may not be able to survive a...
In Tax Notes Jeremiah Coder discusses how audits by the recently formed Global High Wealth group of the IRS Large Business and International Division have been causing headaches for high net-worth taxpayers who do not have experience with a...
The U.S. Tax Court held in Watson v. Commissioner that an individual was liable for a 10 percent penalty on retirement distributions because she retired prior to age 55. Ms. Watson argued that since she did not actually receive distributions...
Continue reading "Taxpayer Required to Pay Penalty for Early Retirement Distribution"
The I.R.S. has issued a revenue procedure addressing the safe harbor for certain nonaccrual-experience taxpayers under section 448(d)(5). Under the safe harbor, taxpayers using the method generally are not required to include amounts accrued, but not expected to be collected,...
Continue reading "Rev. Proc. 2011-46: Nonaccrual-Experience Method Taxpayer Safe Harbor"
In a recent Tax Court Summary Opinion, Special Trial Judge Carluzzo found that an individual was not entitled to an alimony deduction for attorney fees paid to the attorney of his former spouse. The Court found that unlike alimony, the...
Banks are charging higher fees for withdrawals from out-of-network ATM machines and for bounced checks. The average fee that banks charge non-customers for using their ATM machines is now $2.40, up 3 percent from 2010. The average bounced check fee,...
Kimberly Palmer discusses with Rachel Emma Silverman, the author of The Wall Street Journal Complete Estate Planning Guidebook, several estate planning tips for today's world. The author strongly urges young people in their twenties to consider planning that covers medical...
States with estate taxes are beginning to reap estate tax revenues again since the federal estate tax was restored for 2011. For example, Illinois has purposefully set its estate tax exemption to $2 million. Thus, Illinois will collect taxes...
Continue reading "Estate Tax Revenues Flowing Back Into States"
Several Congressmen wrote a letter last week to the Secretary of the Treasury expressing concern that the Foreign Account Tax Compliance Act (FATCA) will scare foreign financial institutions away from the United States. This week, Robert Glennon of Hogan Lovells...
Tax Notes Today features an article discussing the value of a tax LLM in today's job market. The article offers varying opinions about the value of the degree. The article suggests that while the LLM may open more doors for...
The I.R.S. launched a new website today. While the tabs across the top remain the same, the remainder of the home page appears much more navigable and features many new links.See www.irs.gov. With Thanks to Tax Prof Blog.Posted by Adam...
A 2010 study by the Investor Protection Trust found that one of five elderly Americans has been a victim of fraud, paid excessive fees for financial services or products, or been sold inappropriate investments. A research study from MetLife puts...
Continue reading "Protecting the Elderly from Illegitimate Financial Services"
One in eight people will get Alzheimer's after they turn 65 years old. Deborah L. Jacobs suggests that regardless of a person's current age or health, they must anticipate that they might become physically or mentally unable to manage their...
According to Sally Schmidt, president of Schmidt Marketing, Inc., diligence and organization can really pay-off for lawyers who keep up-to-date records of their client lists. Schmidt mentions that prioritization and categorization of contacts help in sending out targeted messages. Setting...
As more and more people use credit cards for paying bills, it may be time for law firms to get in the game, too. Although lawyers have traditionally not setup credit card payments as an option on the basis that...
According to Lawrence J. Fox, a partner at Drinker, Biddle & Reath LLP, if a lawyer is considering switching firms, then that lawyer must fully disclose this intent to their clients. Furthermore, if a lawyer wants to switch to a...
Stephen J. Dunn explains some of the differences between classifying a worker as an employee versus an independent contractor. He also writes about several issues with a new IRS program called the Voluntary Compliance Settlement Program (VCSP). The VSCP is...
The New York Times Online features an article about private jet companies utilizing social media to fill empty planes at reasonable prices. The article discusses how private jets often fly empty legs between dropping off one client and picking up...
Continue reading "Private Jet Companies Utilizing Social Media"
Denis Kleinfeld opines that giving Warren Buffett credibility on issues of estate or income tax seems to be a "fallacy of logic" and that raising the estate tax on Americans who have retained enough wealth serves no positive fiscal purpose...
The President unveiled a $3 trillion deficit reduction plan last week that included cuts in spending and revenue increases, an approach Republicans in Congress have largely opposed. The President's economic plan, however, includes the extension of several expiring payroll tax...
Continue reading "Future of President Obama's Tax Proposals Remains Uncertain"
Roger Russell at Accounting Today's "Obama Tax Proposals Offer Preview for Planners" describes some potential upcoming changes that tax professionals will want to keep in mind. Included in the proposal is a reduction in maximum itemized deduction...
Continue reading "Insight Into President's Tax Plan for Tax Professionals"
In a private letter ruling, the I.R.S. determined that modifying a trust to include adopted children does not negate the trust's exempt status for GST and gift tax purposes. The trust instrument was being modified due to a recently-discovered genetic...
The I.R.S. issued a private letter ruling that trusts established for the retirement benefits of public employees are exempt from taxation. The I.R.S. cites section 115 of the tax code, which provides that income derived from any public utility or...
The Columbia Journal of Gender and Law features an article that advocates for amending the tax code to treat heterosexual and homosexual couples equally. The article first confirms that under current law the discrepancies in taxing same-sex and heterosexual couples...
Continue reading "Equalizing the Tax Liability of Same-Sex and Heterosexual Couples"
The Palm Beach Daily News features an article discussing strategies for protecting parents' assets from their children's spouses without signing a prenuptial agreement. One instrument the article suggests is a discretionary trust that leaves almost total discretion in the hands...
Continue reading "Protecting Parental Assets from Children's Spouses"
The National Center for Policy Analysis recently outlined its "Purple Tax Plan" in a September 2011 article. The plan would replace the federal, personal, and corporate income taxes and the estate and gift taxes with a progressive retail sales tax...
The IRS has issued a ruling regarding the Generation-Skipping Transfer Tax. The IRS granted a husband and wife an extension to allocate their respective available generation-skipping transfer tax exemptions to a transfer to a trust.See PLR 201138028 (Sept. 23, 2011).Posted...
Continue reading "PLR 201138028: IRS Grants Extension To Allocate GSTT Exemptions"
As fear of a financial meltdown bear down on global markets, unified managed account industry specialists unveiled new product offerings that may assist in managing market volatility risk. The industry focused on creating technology that was streamlined and simple to...
The National Association of Estate Planners and Councils (NAEPC) Education Foundation's National Estate Planning Awareness Week will be this October, 17-23. More information can be found here.Posted by Michael Nissenbaum, Associate Editor, Wealth Strategies Journal. ...
Continue reading "National Estate Planning Awareness Week: 10/17-23"
The Congressional Research Service has released "Reducing the Budget Deficit: Tax Policy Options". The report contains economic analysis of tax policy as well as details on a number of potential changes and their consequences. Of particular interest to tax and estate planning...
Continue reading "Congressional Research Service Report on Tax Policy Options"
People can use cash gifts to make a down payment on a mortgage, but must follow the proper guidelines to show that the gift is from a legitimate source. The cash gift must be documented, which can be accomplished by...
Continue reading "Using Cash Gifts for a Down Payment on a Mortgage"
Crummey trusts are typically used to protect life insurance from federal estate taxes. The trustee must send out "Crummey letters" each year, informing beneficiaries that they can withdraw the gifted amount during a certain period of time. Financial and estate...
Forbes goes through an interesting list of questions about tax filing for registered domestic partners and same-sex spouses. Forbes notes that same-sex spouses whose marriage is recognized by the state cannot file using a jointly filing status. Furthermore, if a...
Continue reading "Questions and Answers on Same-Sex Spouses and Tax Filing"
In Santa Clara Valley Housing Group, Inc., et. al. v. United States, the court held that the company's S corporation status was terminated by the pro rata issuance to shareholders of warrants to purchase additional stock. The corporation was using...
There are many regulations and issues surrounding passing guns down to one's heirs that are not present with other types of property. A Gun Trust is a special-purpose revocable living trust that is written to hold only firearms. Gun Trusts...
The Forbes 400 List of Americans states that 70% of the people listed are "self-made." However, half of the top 10 wealthiest Americans on the list inherited all or some of their wealth. The rise of inherited wealth may signal...
In a Notice Tuesday, the IRS said it will continue to offer provisional Preparer Tax Identification Numbers (PTINs) to those who are not attorneys, accountants, or enrolled agents through April 18, 2012. This is because background check and proficiency testing...
Continue reading "News on "Registered Tax Return Preparer" Program"
The Wealth Strategies Journal has posted a new article entitled "Surviving the Great Consternation: Investing and Elder Care in the Age of Recession," by Robert Moshman, Esq.From the article:In summary: Our nation is grappling with economic woes, layoffs, the debt...
On September 19, President Obama sent a deficit reduction plan, which would cut the federal deficit by $3.2 trillion over the next 10 years, to the Joint Select Committee on Deficit Reduction. The tax portion of the President's plan calls...
Continue reading "President Obama Sends Deficit Reduction Plan to Congress"
The IRS has reissued a proposed regulation to clarify whether estate or nongrantor trust advisory expenses are fully deductible. Deductions for these advisory expenses are normally heavily restricted. This issue was also addressed in the 2007 Supreme Court case of...
Continue reading "IRS Reissues Proposed Regulation on Investment Advisory Expense Deductions"
The Wall Street Journal Online features an article reporting an increase in lawsuits against estate executors in recent years. Executors need to have knowledge of taxes, investments, and conflicts of interest, which leaves non-professionals greatly exposed to suit. The article...
Continue reading "Increased Number of Suits Against Executors"
A new article discusses when trillionaires will appear: the answer depends on variables including inflation, tax rates, and overall economic growth. At an average pace of growth, between 4 and 9 percent per year, the richest American could possess a...
Continue reading "Will We Ever See the World's First Trillionaire?"
The New York Times Online features an article about finding a balance between financial goals and available resources. The article first suggests that you must first stop worrying about the parts of your financial situation that are beyond your control....
Tax Prof Blog features several articles discussing developments in how same-sex couples are taxed. The blog links to an IRS Q&A for domestic partners in community property states and same-sex spouses in California. The blog also links to several other...
Continue reading "Developments in Taxation of Same-Sex Couples"
The Wall Street Journal Online features an article discussing investing in charitable gift annuities. This investment is attractive to many investors because it provides an up-front tax deduction, creates a consistent stream of income for the rest of the investor's...
Don Taylor of Fox Business recently wrote an article about how one who is torn between making a gift to his/her children, but doesn't want to see them squander the money, should handle the situation. Taylor states that gifts should...
The Fiscal Times recently posted an article on five trust fund rules that could really help your children. They include suggestions such as making irrevocable trusts now so that one can take advantage of the current $5 million gift-tax exemption;...
Peter J. Reilly recently published an article discussing President Obama's plan for job creation and deficit reduction. Reilly focuses on the "Buffett Principle," which is that no family making over $1,000,000 dollars should pay a smaller share of its income...
Jennifer A. Pratt recently published an article discussing estate and gift tax audits. Ms. Pratt describes the audit process in detail. She also provides a non-exhaustive list of issues that will result in a material change in tax liability (audit...
Forbes magazine's and Forbes.com's annual list of the 400 wealthiest Americans will be available with many multimedia bells and whistles on their website at noon Wednesday.Click on their "Special Report" or "The Richest People in America," Forbes.com (Sept. 19, 2011).Special...
A recent Tax Court decision held that when a grantor of an irrevocable life insurance trust makes direct payments to an insurance company (instead of transferring premium payments to the trust to remit the proceeds to the insurance company) the...
Continue reading "Tax Court Ruling on Crummey Withdrawal Procedures"
In a recent Wall Street Journal Article, Robert Frank discusses that one of the reasons President Obama's "Buffett Rule" (applied to those making $1 million or more a year) is so politically popular is that a majority of voters do...
Ann Carns of the New York Times notes that a survey conducted by Charles Schwab shows that singles were financially-less prepared for retirement. The telephone survey of over 2,000 adults showed that only 67 percent of singles across all age...
Continue reading "Survey - Singles Less Likely to Save for Retirement"
In private letter rulings, the IRS has granted two individuals 120-day extensions for allocating GST tax exemptions. Both PLRs cited section 301.9100-3(b)(1)(v) and the taxpayers' good faith reliance on tax professionals as the justification for both extensions.See PLR 201137001 (June...
Continue reading "IRS Grants Individuals Extensions for Allocating GST Tax Exemptions"
The Employee Benefits Security Administration (EBSA) has postponed releasing new rules to govern retirement fund advisors. The rules would have imposed a more strict fiduciary duty on advisors. The postponement is due to the overwhelming number of questions being sent...
Continue reading "EBSA Tables New Rules for Retirement Plan Advisors"
Forbes.com features an article about indexing the estate tax exemption in 2012, which should raise the exemption to $5.12M. However, the alternative minimum tax will not be indexed. Also, personal exemptions and itemized deductions will continue to have no limit...
Continue reading "Estate Tax Exemption to be Indexed in 2012"
CNN delves into the American debt crisis and paints a grim picture of the American economy. The article starts with the ominous words that the American "government is utterly broke" and goes on to mention the various budget cuts in government...
Revenue Ruling 2011-22 provides various prescribed rates for October 2011 for federal income tax purposes. These include the applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed...
President Obama's $447-billion jobs bill will mainly be financed by limiting write-offs for the wealthy. This includes write-offs for income tax breaks and charitable gifts. What used to be a 35% write off for every dollar spent would be limited...
Continue reading "Limiting Charitable Deductions for the Wealthy"
The New York Times reports on President Obama's proposal for a minimum tax rate for individuals who make over $1,000,000 per year. Obama has coined the proposal the "Buffett Rule" referencing the Berkshire Hathaway captain's admission that his effective tax rate...
Continue reading "Obama Proposes New Tax for Earners over $1 Million"
The Justice Department's Criminal Tax Division is looking into allegations that the Swiss branches of three of Israel's largest banks, Bank Hapoalim, Bank Leumi le-Israel BM, and Mizrahi-Tefahot, helped their U.S. clients evade taxes. The probe is reportedly in its...
The New York Times has published an article by Tara Siegel Barnard titled "Long-Term Stock Plans Help to Avoid Impulsive Moves." The article provides advice on how individuals nearing retirement may protect their investment portfolios from their own emotional impulses.The...
Continue reading "How to Avoid Impulse Moves in Retirement Investments"
The New York Times has published an article by Ron Lieber titled "Spotlighting 401(k) Plans, Thanklessly." The article discusses Brightscope's, which is a financial information company that provides 401k and 403b plan ratings and maintains a database of information on...
Continue reading "Rating 401(k) Plans and Investment Advisers"
House appraisals are on the rise as more and more people want to refinance their existing mortgages. However, as Paul Sullivan of the New York Times writes, house appraisals seem to be an arbitrary and highly subjective practice. In the...
The New York Times has published an article by Carl Richards, certified financial planner, titled "How Rebalancing Takes Emotion Out of Investing." In his article, Mr. Richards discusses the process of rebalancing portfolios, which allows investors to buy and sell...
Continue reading "How Rebalancing Takes Emotion Out of Investing"
Vanguard has announced it will begin offering bundled 401(k) packages to small companies. The packages, which will be designed for plans with assets below $20 million, will combine Vanguard's investment options with Ascensus' small-plan recordkeeping. The packages are expected to...
Continue reading "Vanguard to Provide 401(K) Plans to Small Companies"
TODAY has published an article by Linda Deutsch titled "Jackson Estate Sends $30 Million to Mother, Kids." The article discusses Michael Jackson's estate's preliminary payment of $30 million to Jackson's mother, children, and unnamed charities.According to the article, Jackson's estate...
The Wall Street Journal's editorial "The 2013 Tax Cliff" describes the tax increases that will take effect in January, 2013. President Obama's proposal includes a cap on itemized deductions and exemptions for high-earning people, limits on tax breaks for oil and...
Continue reading "Small Businesses Have a 16 Month Tax Respite Before Hikes in 2013"
More than 12,000 American taxpayers have voluntarily revealed their secret offshore bank accounts to the IRS as part of the government's latest tax amnesty program. The voluntary disclosure program, which has been in effect since February 2011, is part of...
Continue reading "IRS Amnesty Program Yields Millions of Dollars"
The Nebraska Law Review features an article discussing the broad definition of "charitable" in section 170 of the tax code. The article examines how the difference in the lay and legal definitions of the word charitable hinder discussion of reforming...
Continue reading "Should the Definition of "Charitable" in Section 170 be Narrowed?"
On September 14, the Senate Finance Committee held a hearing on tax reform. The hearing focused on marginal rates for high-income taxpayers, capital gains rates, and the rate on dividends. The Joint Committee on Taxation released a summary of the...
According to William Baldwin of Forbes, the IRS has a little-known database of income statistics that can show tax returns by income range and by zip codes. After doing a little search on the program, Balwin notes that the richest...
The Planned Giving Design Center features an article updating advisers on developments in tax-exempt organizations. The article discusses the Small Business Health Care Tax Credit, tax relief for the victims of Hurricane Irene, final regulations on redesigned Form 990, and...
Continue reading "Updates from the I.R.S. on Exempt Organizations"
The Planned Giving Design Center features an article discussing the steps advisers should take to ensure that their clients are getting the appropriate deductions for their charitable gifts. The article focuses on determining the status of the organization to which...
Continue reading "Steps to Maximize Charitable Deductions for Donors"
The Planned Giving Design Center features an article discussing the bonding effect of participating in philanthropy as an extended family. The article specifically details a family that sold a closely-held business that was centric to their relationship with one another....
Continue reading "Using Philanthropy to Bring Families Together"
On September 13, the IRS pushed back the due date for tax returns to be filed by the estates of wealthy individuals who died in 2010. Large estates wishing to elect out of the estate tax will have until January...
Continue reading "Practitioners Welcome IRS Extension of the 2010 Estate Tax Deadlines"
With Notice 2011-76 the IRS offers relief to those filing returns for 2010 decedents. Large estates wishing to elect out of the estate tax will have until January 17, 2012 to file Form 8939. Additionally, most estates that file (by...
Tax Notes has published an article by Mitchell M. Gans, professor of law at Hofstra University Law School, titled "Trust Protector Powers: Fiduciary Duty and Tax Issues." The article discusses the increasing use of trust protector provisions, which allow settlers...
Continue reading "Trust Protector Powers: Fiduciary Duty and Tax Issues"
The Wealth Strategies Journal has posted a new article entitled, "Borrowing to Finance Life Insurance Premiums: What Professionals Need to Know," by Richard L. Harris.SUMMARYMany wealthy individuals are being approached to buy life insurance by borrowing the money to...
Continue reading "Borrowing to Finance Life Insurance Premiums"
The I.R.S. has published Notice 2011-73 requesting comments on Section 4980H, which is the Health Coverage Affordability Safe Harbor for Employers. The proposed safe harbor requires the employer to offer its full-time employees minimum essential coverage, and the employee portion...
The Washington Post Online features an article discussing how a low tax rate on capital gains benefits wealthy Americans more than the middle class. The article addresses current developments in the capital gains rate, as well as the history of...
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Continue reading "Myth of Small Business Tax Relief and its Effect on the Economy"
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The Washington Post Online features an article discussing the fight in Congress over legislation that would require public companies to disclose the discrepancy between median employee compensation and total chief executive compensation. Laws currently require public companies to disclose CEO...
Continue reading "Major Corporations Fight Against Disclosing Worker Compensation"
Consultant David Lawrence recently published an article discussing how there are three key questions you must ask yourself to find out how to improve your business. These questions include: (1) what are you doing that you should be doing? (2)...
Advisor Solutions President Daniel C. Finley recently published an article offering tips on how to meet business goals. Mr. Finley's advice includes: (1) looking at your business plan; (2) understanding what your initial goals were and why you wanted to...
Mark Miller recently published an article discussing how financial advisors can protect their aging clients' finances. This issue is very important, especially when you consider that $18.1 trillion of the $53.1 trillion dollars in U.S. household net worth is held...
Pennsylvania attempted to make it more difficult for disabled individuals to qualify for Medicaid benefits by revising its Medicaid eligibility requirements. The new requirements imposed strict limits on pooled trusts. A group of Medicaid recipients who used pooled trusts sued...
Brad Tuttle recently published an article discussing how heirs of wealthy baby boomers should not assume that they will receive a large inheritance. Mr.Tuttle discusses a recent survey of baby boomers, conducted by the investment firm U.S. Trust, that reports...
Continue reading "Heirs of Welthy Baby Boomers Receiving Less Inheritance"
The Wall Street Journal has published an article by Rachael Emma Silverman titled "Wills: How to Give One Child Less." Ms. Silverman's article discusses parent's decision to bequeath uneven distributions to their heirs and the steps parents can take to...
Stephanie Spinucci, a CPA at Legare Bailey Hinske, recently posted an article discussing a new IRS compliance initiative to catch gift tax cheats. The IRS estimates that between 60% and 90% of taxpayers who transfer real estate for little or...
Alaska Trust, a provider of full-service managed trusts, has started offering its directed trusts at a flat fee. As part of the company's push into the advisory market, it has eliminated basis point pricing and is simply charging a fixed,...
In response to oversights by tax preparers, the IRS has created a tax preparer exam. The exam requires tax preparer exam tests basic tax competency. Tax preparers are needed to register for a PTIN (Preparer Tax Identification Number). For those...
The New York Times Online features an article addressing the allocation of basis in estate assets when executors elect out of the 2010 estate tax. Since Form 8939 has not yet been released by the I.R.S., the exact rules governing...
Continue reading "Allocation of Basis When Electing Out of 2010 Estate Tax"
William H. Byrnes and Robert Bloink recently published an article that discusses how the Deceased Spouse Unused Exclusion Amount (DSUEA) not only makes bypass trusts unnecessary, but may even hurt an estate's beneficiaries by reducing the basis of assets they...
In a recent Tax Law Roundup article, Steven Schneider discusses how the Senate recently passed H.R. 1249, the America Invents Act, which would prohibit the patenting of tax strategies. Mr. Schneider also discusses how the legislation would be effective upon...
JDSupra has published an article by Fein, Such, Kahn & Shepard, P.C. titled "New Jersey to Become a Better Place to Die? Estate Tax Exemption Rate on the Rise." The article discusses New Jersey Governor Chris Christie's proposal to increase...
Continue reading "New Jersey Governor Proposes Estate Tax Exemption Increase"
Tax Notes has published an article by Shamik Trivedi and Amy S. Elliott discussing the Internal Revenue Service's September 8th release of Form 706 "United States Estate (and Generation-Skipping Transfer) Tax Return." See Shamik Trivedi and Amy S. Elliott, "IRS...
Tax Notes has published an article by Shamik Trivedi titled "News Analysis: Legacy of 9/11 Still Shaping Treasury Enforcement." The article discusses Mr. Trivedi's discussions with former government officials and practitioners regarding the USA PATRIOT Act and how the Act...
On a press release dated September 7, 2011, WealthCounsel and Trusts & Estates Magazine announced the launch of the estate planning industry's 5th Annual Industry Trends Survey. They encourage all estate planning and wealth management professionals to participate in the...
Kelly Bissinger of TaxLawRoundUp.com recently posted a short synopsis of the redesigned Form 990 that became effective on September 8, 2011 and will apply to the tax years starting January 1, 2008. Some of the important points of the update...
The Wealth Strategies Journal has posted a new article entitled, "Recent Developments in Asset Protection Law - August 2011," by Jay Adkisson.Posted by Matthew Engler, Managing Associate Editor....
Continue reading "Recent Developments in Asset Protection Law - August 2011"
The BVRWire News has published an article titled "Why Would Families Destroy Estate Value, Judge Mark Holmes Asks Appraisers." The article discusses United States Tax Court Judge Mark Holmes's question he asked appraisers at the LA Chapter of the Appraisal...
Tax Notes has published an article by Robert W. Wood, attorney at Wood LLP in San Francisco, titled "Estate Legal Settlements: Rose-Colored Hindsight?." Mr. Wood's article discusses valuation in the estate context by examining several estate planning cases including Estate...
Continue reading "Tax Notes Article by Robert W. Wood Discussing Estate Valuation"
Tax Notes has published an article by Shamik Trivedi and Amy S. Elliott titled "Proposed Regs Direct Allocation of Bundled Fiduciary Fees For Miscellaneous Deductions." The article discusses the Internal Revenue Service's proposed regulations (REG-128224-06) that codify the United States...
Continue reading "Tax Notes Article: Proposed Regulation 128224-06 Codifying Knight v. Commissioner"
In "Full Nest Syndrome", Suzanne McGee writes about the ways still-dependent adults can wreck their parents formerly sound financial plans. The article suggests that wealth managers should be more involved in discussing the financial demands of adult children. Many financial requests...
Continue reading "Financial Planners Urge Parents to Curb Gifts to Adult Children Returning Home"
Bonnie Sewell has written "A New Beginning After Divorce" in the Journal of Financial Planning. In the article, she urges those undergoing divorces to be alert and conscientious as the situation may make the vulnerable.She also stresses the importance of competent...
Continue reading "Advice for Financial Planning After a Divorce"
Danielle and Andy Mayoras have written "Is Britney Spears Hiding Behind her Conservatorship? for Forbes.comBritney Spears is experiencing a career resurgence and she credits her father James' guidance and help. James Spears has been Britney's conservator since 2008. A conservator...
Continue reading "Britney Spears and Her Controversial Conservatorship"
The American College of Trust and Estate Counsel features an article discussing the release of the 2010 estate tax return on September 3. The article addresses how electing out of the 2010 estate tax affects basis in the estate assets....
Continue reading "Carryover Basis, GST Tax, and Portability"
In preparation of a September 8, 2011 public hearing in front of the Senate Committee on Finance, the Joint Committee on Taxation released a report summarizing U.S. tax treatment of cross-border income and related tax issues. The report includes a summary...
Continue reading "Congressional Joint Committee on Taxation Cross-Border Taxation Report"
The IRS withdrew previous interim guidance and issued new guidance, specifying which costs incurred by an estate or a non-grantor trust are subject to the 2-percent floor for miscellaneous itemized deductions under section 67(a). The guidance also calls for the...
Continue reading "Extension of Interim Guidance on Section 67 Limitations on Estates or Trusts"
Calvin H. Johnson of the University of Texas at Austin School of Law and Joseph M. Dodge of Florida State University College of Law both review and analyze the inadequacies associated with the self-imposed temporary reductions on estate tax and the inadequacies of...
Continue reading "Ignoring Self-Imposed, Value-Reducing Estate Tax"
Cincinnati.com has published an article by J. Brendan Ryan titled "Insurance: 6 Estate Planning Flaws to Avoid." The article discusses estate planning errors that individuals should avoid.According to the article, individuals should avoid:(1) naming their estate as a beneficiary;(2) being...
The children and neighbors of Frank Blumeyer of Naples, Florida are currently fighting over the disposition of his $10M estate. The children claim that his neighbors exploited him in order to drain over $1M from the estate. The neighbors deny...
Continue reading "Litigation Over Wealthy Florida Man's Estate"
The Wall Street Journal Online features an article discussing succession plans for vacation homes. The article addresses several factors to be considered when determining how to pass the property to the heirs. Additionally, the article contemplates circumstances under which the...
Continue reading "Creating a Succession Plan for Your Vacation Home"
Google recently infused $18.5 million in cash to Rocket Lawyer, a website that assists in creating legal documents for individuals or businesses. The recent transaction seems to have placed a stamp-of-approval on the software from Google, but Tobie Stanger of...
Continue reading "Legal Software Products and their Drawbacks"
Although it may seem apathetic and insensitive, banks have the legal right to contact family members regarding the collection of the deceased's death. However, it should be explicitly noted that family members are not typically liable for a deceased family...
In a recent article on The Trust Advisor Blog, Senior Editor Scott Martin discusses how Simon Cowell spun heads by telling GQ magazine that he wanted to be cryogenically frozen when he dies. Cowell called it "an insurance policy" that...
The IRS has issued a ruling regarding the Generation-Skipping Transfer Tax. The IRS granted a husband and wife an extension to allocate their respective available generation-skipping transfer tax exemptions to a transfer to an irrevocable trust.See PLR 201135024 (September 2,...
Continue reading "PLR 201135024: IRS Grants Extension To Allocate GSTT Exemptions"
Frank J. O'Connell Jr. of Crowe Horwath LLP recently published an article that discusses how a taxpayer who is considering making a $5 million dollar tax-free gift in 2011 or 2012 might be concerned that either an additional gift tax...
The New York Times has published an article by Paul Sullivan titled "Using an Inheritance to Teach Your Problem Child a Lesson." Mr. Sullivan's article discusses estate planning options, such as incentive trusts, that are available to parents who are...
Continue reading "Using an Inheritance to Teach Your Problem Child a Lesson"
As cheating on taxes becomes a greater problem for the government, the IRS has implemented two whistleblower programs that may entice some individuals to turn in tax cheats. The Wall Street Journal mentions that the IRS may award up to...
Continue reading "Turning in Your Neighborhood Tax Cheat to the IRS"
Financial Planning has published an article by Martin Shenkman titled "Come TogetherThe Merits of the Team Approach to Estate Planning." The article discusses how estate planning should be a team effort among attorneys, accountants, and financial planners and the role...
10,000 Couples has published an article by Larry Ferrell titled "DOMA, Federal Benefits and Same-Sex Married Couples." The article discusses the Defense of Marriage Act (DOMA) and how same-sex married couples do not qualify for the spousal exemption from Estate...
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On September 2, the Treasury Department and IRS released the 2011-2012 Priority Guidance Plan.The 2011-2012 Priority Guidance Plan contains 317 projects that are priorities for allocation of the resources of the Treasury Department and IRS offices for a twelve-month period...
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Carter G. Bishop, a professor at Suffolk University Law School, discusses how corporate case law has limited the right to transfer stock using gap filler fiduciary duties as well as contractual good faith. Professor Bishop also explores the role of...
Continue reading "The Fiduciary Duty of Minority Shareholders to Preserve S Corp Status"
The Saint Louis University Law Journal has published their annual tax symposium on Critical Issues in International and Comparative Taxation. In an international and comparative context, tax scholars examined the distribution of tax burdens as that distribution discriminates in favor...
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The First Court of Appeals of Texas has affirmed a trial court's decision that a trustee has authority to enter into a lease that includes terms extending beyond the termination of the trust. In Myrick v. Moody National Bank, trust...
Bruce Beeler was diagnosed with cancer and banked his sperm before undergoing chemotherapy treatments. Beeler died at age thirty-seven, before he and his wife, Patti, conceived any children. After her husband's death, Patti used Bruce's sperm to conceive her daughter...
In a BBC article, Neil Bowdler discusses how an Anderson-McQueen funeral home in St. Petersburg, Florida, is now equipped with the first commercial "alkaline hydrolysis" unit. The unit dissolves a person's body in a heated solution of potassium hydroxide pressurized...
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On September 1, the IRS announced that it is providing tax relief to individual and business taxpayers impacted by Hurricane Irene. Certain taxpayers in North Carolina, New Jersey, New York, Vermont, and Puerto Rico will receive tax relief; other locations...
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Texas Tech Professor Gerry W. Beyer recently published the 2011-2013 edition of Texas Estate Planning Statutes with Commentary. Professor Beyer's book is a compilation of Texas statutes which are significant to law school and paralegal courses related to estate planning. ...
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A Credit Union used a single contract to govern all of a customer's accounts opened under the same membership number. The contract provided that any joint accounts opened under the contract would have rights of survivorship. After one party (husband)...
With 90 percent of lawyers saying that their firm has a website, Your ABA notes that it has become increasingly important in understanding how to improve volume and the quality of visitors to these websites. The five ways they discuss are: (1)...
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Reuters has published an article titled "Putting the Special in Special Needs Trusts." The article discusses special need trusts, which are used to circumvent the federal and state laws that prevent disabled individuals from receiving Supplemental Security Income Benefits, and...
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In a recent article by the New York Times, writer Sarah Lyall goes through the vast and ultra luxurious developments of the basements of some of London's riches. The recent phenomena of constructing heated lap pools, full service bars and...
Continue reading "Spike in Basement Developments Irks London Neighbors"
David A. Handler, Partner at Kirkland & Ellis LLP, and Alison E. Lothes, Associate at Sullivan & Worcester LLP, have published the "Tax Law Update" at Trusts and Estates.The update discusses:(1) Chief Counsel Advice 201047021 regarding whether an estate's beneficiaries...
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The American College of Trust and Estate Counsel Law Journal (ACTEC) has published an article by Ronald D. Aucutt, Partner at McGuireWoods LLP, titled "Creed or Code: The Calling of the Counselor in Advising Families." Mr. Aucutt's article discusses the...
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Martha C. White of Financial Planning recently wrote an article to convey the importance of estate planning for married same-sex couples and unwed elderly couples. Citing the problematic nature of how couples who may live under the same roof, share...
