Wealth Strategies Journal

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States Vie to Shield the Wealth of the 1 Percent by Patricia Cohen

In her article, Patricia Cohen discusses a tactic many estate planning lawyers are using to protect the wealth of the superrich, with a specific focus on Nevada, Delaware and other states. Cohen elaborates,

Yet even as more and more states seek ways to help the richest Americans protect their wealth

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Rubin on Tax: Some Food for Thought – Code Section 2704 Proposed Regulations

Tax blogger Charles Rubin has provided some commentary on the proposed regulation to Section 2704 by the IRS. He says,

As the proposed regulations are digested by practitioners, here is some food for thought:

a. Will GRATs be underwater from the start – that is, nondiscounted values for the funding

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New North Carolina Law Allows Fiduciaries Access to Digital Assets, but Only If … by Jean Gordon Carter, Andrea C. Chomakos, Melissa L. Kreager and E. Graham McGoogan Jr.

An issue that is becoming more and more relevant in recent years is digital assets, specifically what becomes of them after an individual becomes incompetent or dies. In their article, Jean Gordon Carter, Andrea C. Chomakos, Melissa L. Kreager and E. Graham McGoogan Jr. discuss a new North Carolina law granting … Continue reading

Rethinking Premarital Agreements: A Collaborative Approach by Elizabeth Ruth Carter

Elizabeth Ruth Carter, Louisiana State University, Baton Rouge – Paul M. Hebert Law Center, has made available for download her paper, “Rethinking Premarital Agreements: A Collaborative Approach.” The Abstract reads,

Scholars and lawyers have told us to be wary of premarital agreements — unfairly characterizing them as being coercive, unfair, sexist,

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Illinois Tool Works Inc. et al. v. Commissioner, Pretrial Memorandums

Recent developments in the case of Illinois Tool Works Inc. et al. v. Commissioner (No. 10418-14) (United States Tax Court) were released earlier this month.

The IRS filed a pretrial memorandum with the Tax Court in Illinois Tool Works Inc.’s case challenging a $70 million deficiency, arguing that a distribution received from … Continue reading

US Court of Appeals Affirms Gragg v. United States

A recent appeal case by The Ninth Circuit, affirming a district court, held that section 469(c)(7) merely removes the per se bar for treating all rental losses as passive for a real estate professional, but it doesn’t excuse real estate professionals from showing material participation in the real estate activity … Continue reading

IRS Announces Changes Regarding Individual Taxpayer Identification Numbers (ITINs)

The IRS recently announced changes to its ITIN system that may affect millions of taxpayers.

Renewals of individual taxpayer identification numbers, required following the enactment of last year’s tax extenders and spending law, will begin in October for about 11 million taxpayers, an IRS official said August 4. The IRS has … Continue reading

Executrix Held Liable Under Federal Claims Statute For Actions Taken Prior to Appointment as Executrix by Charles Rubin

Charles Rubin summarized the case of U.S. vs. McNicol, in which at the time that an individual died, he owed more than $300,000 in federal income tax liabilities and had an insolvent estate. Rubin explains,

A decedent died while owing over $340,000 in unpaid federal income tax liabilities. His estate

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May the donee of a limited testamentary power of appointment irrevocably and immediately exercise it inter vivos by contract? by Charles E. Rounds, Jr.

In his post, Charles E. Rounds, Jr. reviews and comments on a recent case in the Delaware Chancery Court which confirmed that the donee of a limited testamentary power of appointment may not irrevocably, immediately, and effectively exercise it inter vivos by contract. Rounds begins,

The Delaware Chancery Court [In

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IRS Action on Decision, Voss v. Commissioner

An action on decision released earlier this month by the IRS announced it will acquiesce in a Ninth Circuit decision that held that the section 163(h)(3) limitations apply per taxpayer, allowing each taxpayer to deduct interest on mortgage indebtedness of up to $ 1.1 million.

View the document here: IRS AOD Continue reading

REG 163113-02: IRS Issues Changes to Section 2704(b)

The IRS recently issued the long-awaited changes to Section 2704(b). The document is summarized as follows,

This document contains proposed regulations concerning the valuation of interests in corporations and partnerships for estate, gift, and generation-skipping transfer (GST) tax purposes. Specifically, these proposed regulations concern the treatment of certain lapsing rights and restrictions

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IRS Warns Taxpayers of Summer Surge in Automated Phone Scam Calls; Requests for Fake Tax Payments Using iTunes Gift Cards

In a recent news post, the IRS issued a warning on a recent increase of scams by IRS impersonators in the form of fake automated phone calls. The post begins,

The Internal Revenue Service today warned taxpayers to stay vigilant against an increase of IRS impersonation scams in the form of

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Federal Government To Expand Tracking Of Luxury Home Buyers To LA, San Diego, San Francisco & San Antonio by Paul Caron

In his recent post, Paul Caron discusses a move by the Treasury Department to track luxury home buying in an effort to reveal money laundering schemes within real estate. The investigations began in Miami and Manhattan and are now set to expand to all five boroughs of NYC, more counties in … Continue reading

When Friends Buy a Home Together by Ronnie Koenig

Ronnie Koenig discusses a common new practice for individuals looking to buy a home with a limiting budget, that is, choosing to share a place with other buyers, usually family or close friends. Koenig gives several anecdotes of groups who have set out on this type of home-buying/fixing journey and … Continue reading

Death And Taxes For Wealthy Foreigners by Carol J. Clouse

In her article, Carol Clouse discusses a concept that is becoming more relevant in the United States within recent years: rich foreign nationals planning for the future of their bloodline in the US. Clouse explains,

Call it another stream in the flood of foreign money hitting the U.S, along with

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