Wealth Strategies Journal

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Month: August 2015

PLRs 201532008, 201532009, 201532010, 201532011, 201532012, 201532013: Service Rules on Trust Division Pursuant to Settlement Agreement

In PLRs 201532008, 201532009, 201532010, 201532011, 201532012, 201532013, the Service made the following rulings relating to a trust division pursuant to a  settlement agreement:

(1) The terms of the Settlement Agreement, including the Trust division and the construction of the phrase “by right of representation,” will not cause a distribution from or the termination … Continue reading

PLR 201532023: CFC Treated as Trust Owner

In PLR 201532023 the Service made the following rulings  under the facts set forth below:

  • The trust in questions would be classified as a trust for federal tax purposes under Treas. Reg. Sec. 301.7701-4(a).
  • The  CFC in question will be treated as the owner of Trust for purposes of Code Sec.
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Steve Akers: Legislation Requiring Consistency of Basis with Estate Tax Values and Requiring Information Reporting

Steve Akers, Senior Fiduciary Counsel, Southwest Region, Bessemer Trust, has made available for download his summary of legislation enacted on July 31, 2015, which requires consistency of basis with estate tax values and information reporting.  The abstract for Mr. Aker’s full report reads as follows:

Legislation enacted on July 31,

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AICPA: Majority of CPAs Polled Had Clients Victimized by Identity Theft This Year

The AICPA is reporting that a majority of CPAs polled by the AICPA had client victimized by identity theft.  The article begins as follows:

Sixty-three percent of CPAs who answered the 2015 tax software survey conducted by The Tax Adviser and JofA said at least one of their clients was

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New York Society of CPAs Recommends Changes to Private Foundation Returns

In a comment letter addressed to Tamera Ripperda, Director of Exempt Organizations at the IRS, the New York Society of CPAs recommends that certain changes could be made to Form 990-PF, Return of Private Foundation (the Form) that would improve IRS oversight responsibilities, simplify and increase accuracy of form preparation … Continue reading

Court Holds Estate Must Pay Decedent’s Outstanding Tax Liability, US v. Robert L. Sadler III

In United States v. Robert L. Sadler, III, No. 2;13-cv-07207, the United States District Court for the Eastern District of Pennsylvania, in a Memorandum Order, held that an estate was liable for unpaid taxes, interest, and penalties for several tax years, finding that  the Service properly applied the decedent’s claimed … Continue reading

The Limits of Autonomy: Law at the End of Life in England and Wales by Penney J. Lewis

Penny J. Lewis has made available for download her article, “The Limits of Autonomy: Law at the End of Life in England and Wales.”  The Abstract is as follows:

This chapter describes the law governing end of life decision-making in England and Wales. The situation in Scotland is governed by

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Does the Use of ‘Request,’ ‘Wish,’ or ‘Desire’ Create a Precatory Trust or Not? by Frank Schiavo

Frank Schiavo has made available for download his 2006 article, “Does the Use of ‘Request,’ ‘Wish,’ or ‘Desire’ Create a Precatory Trust or Not?”  The Abstract is as follows:

Courts continue to remind us that an implied (precatory) trust will be created: “First, if the words are so used, that upon

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2015 Texas Estate Planning Legislative Update by Gerry W. Beyer

Professor Gerry Beyer has made available for download his article, “2015 Texas Estate Planning Legislative Update.”  The Abstract is as follows:

This article reviews the highlights of the legislation enacted by the 2015 Texas Legislature relating to the Texas law of intestacy, wills, estate administration, trusts, and other estate planning

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CRS Updates Report on Tax Treatment of Same Sex Marriages

On July 30, 2015, the Congressional Research Service updated its report on the federal tax treatment of married same sex couples in light of Obergefell v. Hodges.

The introduction to the report begins as follows:

This report provides an overview of the federal tax treatment of same-sex married couples, with

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McGuire Woods Fiduciary Cases – July 2015

McGuire Woods has made available for download its July 2015 white paper summarizing several recent fiduciary court cases.  The Abstract of cases summarized is as follows:


  • In re Estate of House, 2014 Wash. App. LEXIS 3006 (Wash. Ct. App. 2014). A release waiving any and all claims that the parties
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Proskauer Update:  Trustee’s Corpus Payment to Pooled Fund Impermissible; Delaware Court Denies Petition to Modify  Testamentary Trust To Be Directed Trust; Tax Court Rules PPL Disregarded With Income Taxable to Policy Owner and More

Proskauer’s Personal Planning Group has published its August 2015 update, which discusses the following items:

  • Florida 5th District Court of Appeals determines Trustee’s payment of trust corpus to a pooled trust fund was impermissible. Harrell v. Badger, Case Nos. 5D14-1145, 5D14-3469 (Fla. 5th DCA 2015).
  • Delaware Chancery Court denies a
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