Wealth Strategies Journal

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Month: May 2017 (page 1 of 2)

PLR 201721006: Renunciation of Marital Trust Interest Not Gift, Income Interest Not Valued at $0 under Sec. 2702, and Not Includable in Estate

The Service made the following rulings regarding a renunciation by a spouse of an interest in a marital trust:

  • When Spouse renounces his right, title and interests in Marital Trust, Spouse will not be deemed to have made a gift of the property in Marital Trust under Section 2519.
  • Spouse’s
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US v. Park  Illinois, Northern District Court: US seeks FBAR penalties from Rev Trust Trustee and Beneficiaries

In United States of America v. Park et al (1:16-cv-10787), Illinois Northern District Court, the US filed an amended complaint seeking recovery of FBAR penalties from a trustee of a revocable trust, estate and beneficiaries of decedent with FBAR penalties.

The complaint alleges that despite having more than $ 7 … Continue reading

The Prudent Investor Rule and Market Risk: An Empirical Analysis – Schanzenbach and Sitkoff

Max M. Schanzenbach and Robert H. Sitkoff have made their article, “The Prudent Investor Rule and Market Risk: An Empirical Analysis,” published in the  Journal of Empirical Legal Studies, available for download.  The abstract is as follows:

The prudent investor rule, enacted in every state over the last 30 years,

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Never Say Never: Preparing for the Reintroduction of the Withdrawn Centralized Partnership Audit Regulations, by Mark H. Leeds

Mark H. Leeds, Mayer Brown partner, makes available article, “Never Say Never: Preparing for the Reintroduction of the Withdrawn Centralized Partnership Audit Regulations.”   The abstract is as follows:

Following Congress’ enactment of a new set of rules for partnership tax audits for 2018 and thereafter, the US Internal Revenue

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Regulating Tax Return Preparation by Jay A. Soled, Kathleen DeLaney Thomas

Jay A. Soled and Kathleen DeLaney Thomas have made available their article, “Regulating Tax Return Preparation,” 58 Boston College Law Review 151 (2017).   The Abstract is as follows:

Annually, the U.S. government collects nearly $3 trillion of income and employment taxes. With respect to these collections, Form 1040 (U.S. Individual Income

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Est. of Nancy H. Powell: Transfer to Limited Partnership Includible in Estate

In the Estate of Nancy H. Powell, 148 T.C. No. 18, filed May 18, 2017, the Tax Court held that limited partnership interests were includible in decedents estate. The abstract is as follows:

On August 8, 2008, D’s son, J, acting on her behalf, transferred cash and securities to LP,

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2017.05.17: Florida Electronic Wills Legislation Update 

Chuck Rubin’s blog provides an update on the Florida electronic wills legislation.  His update begins as follows:

A bill has cleared both Houses of the Florida legislature authorizing electronic wills and electronic will execution in Florida. Absent an unexpected veto by Gov. Scott, the last wills of testators may now

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Miller & Chevalier Requests Guidance on Charitable Contributions Under Section 170(e)(3)

Marc Gerson and George Hani, of Miller & Chevalier, have asked the Service to include on its 2017-2018 priority guidance plan guidance clarifying the treatment of acquisition costs for charitable contributions of inventory and other property under Section 170(e)(3), noting that this project is not only in accordance with, but … Continue reading

Tax Policy Center Report: Trump Tax Reform Options to Reduce the Taxation of Pass­‐through Income

The Tax Policy Center has issued a report analyzing the Trump tax reform options to reduce the taxation of pass-through income.  The abstract is as follows:

The Trump administration and House Republicans are developing proposals that would reduce the individual income tax rate on income earned through pass-through entities such

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Erik Paulsen Introduces Private Foundation Excise Tax Simplification Act of 2015: Reduces Excise Tax on Net Investment Income to 1%

Erik Paulsen has introduced the Private Foundation Excise Tax Simplification Act of 2015, which amends the Code to: (1) reduce from 2% to 1% the excise tax rate on the net investment income of tax-exempt private foundations, and (2) repeal the 1% reduction in such tax rate for private foundations … Continue reading

What Makes Or Breaks A Relationship? By Regina A. DeMeo

Last week on the Washington Post Express FB Live segment of Baggage Check, I got to cover major issues that come up for couples with respect to money.  But hopefully it is clear that money is just the topic, and the real issue is usually something much deeper like … Continue reading

PLR 201719004: Foundation’s Grant Results in Indirect Self Dealing

In PLR 201719004, the Service ruled that a private foundation’s grant to an exempt organization created by the foundation founder’s granddaughter to purchase waste recycling collection containers is a qualifying distribution under Section 4942, but the transfer of waste to the granddaughter’s limited liability company would result in indirect acts … Continue reading

PLR 201719008: Court Ordered Termination Doesn’t Cause GST Tax

In PLR 201719008, the Service ruled that a court-approved termination of a trust will neither cause a beneficial interest to be shifted to a beneficiary who occupies a generation lower than the beneficiaries who held the interests prior to the termination, nor extend the time for vesting of any beneficial … Continue reading

IRS Memo: Crediting of Overpayments in the Offshore Voluntary Disclosure Program

In a legal memorandum, the Service addressed whether, in the context of the Offshore Voluntary Disclosure Program (OVDP), an overpayment attributable to one tax year may offset the miscellaneous offshore penalty or tax due in a different year in the OVDP disclosure period.

The Service concluded that, unless the taxpayer … Continue reading

More Older Couples Are ‘Shacking Up’

Paula Span reports on the sharp rise in unmarried partners over the age of 50 in recent years. This trend partly reflects the sheer size of the baby boom cohort, as well as its rising divorce rate. But attitudes have shifted, too. “People who’ve divorced have a more expansive view of what … Continue reading

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