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Category: Estate & Gift Tax Developments (page 1 of 6)

PLR 201729013 and 201729014: CRT – College Endowment Units In CRT Won’t Cause UBTI to College or Trust

In PLR 201729013, the IRS ruled that a contractual arrangement under which a college will issue units in its endowment fund to a CRT, make payments on the units, and be reimbursed to cover costs allocable to the management of the endowment or administration of the CRT, will not generate … Continue reading

Gans + Blattmachr: FLPs + 2036: Not Such a Good Fit – Examination of Powell Tax Court Decision

Mitchell Gans & Jonathan G. Blattmachr have made available for download their forthcoming ACTEC Journal article, “Family Limited Partnerships and Section 2036: Not Such a Good Fit.” The abstract is as follows:

The IRS has struggled to close down abusive family limited partnerships. At first unreceptive to IRS arguments, the

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PLR 201724007: Ruling on Timing of Gift Splitting + GST Allocations

In PLR 201724007, the Service ruled that  gift-splitting and GST tax decisions made for one year were irrevocable due to the statute of limitations, but because the statute had not expired for a subsequent year reallocations could be made.

See full PLR 201724007 by clicking here.

Posted by Lewis J. Continue reading

IRS Provides Simplified Method to Request Portability Election Extension

The Journal of Accountancy reports that the IRS has provided a simplified method of making portability elections in Rev. Proc. 2017-34.  The Journal of Accountancy summary begins as follows:

In a taxpayer-friendly development on Friday, the IRS issued guidance permitting certain estates to make a late portability election if

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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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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

PLR 201710016: Extension Granted for Carryover Basis

In PLR 201710016, the Service granted an estate of a 2010 decedent an extension to file Form 8939, “Allocation of Increase in Basis for Property Acquired from a Decedent,” and thereby make a section 1022 election.

See PLR 201710016 by clicking her.

Posted by Lewis J. Saret, Co-General Editor, … Continue reading

Portability Extensions Granted (Released 3.3.2017)

The Service released on March 3, 2017, the following portability extension grants:

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.

PLR 201709020: Ruling on Proposed Modification Re S Corp Assets

In PLR 201709020, the Service ruled on the tax consequences of a transaction proposed by an irrevocable trust’s trustee to create eight separate trusts governed under the trust agreement for a family trust and each of the grantor’s children and to allocate assets transferred from the irrevocable trust to the … Continue reading

Portability: Good Cause Portability Extensions Are Possible

Tax Notes reports that Karlene Lesho, Brach 4 senior technical reviewer, IRS Office of Associate Chief Counsel (Passthroughs and Special Industries), stated that estates that fail to make timely extensions requests for portability may be able to seek good cause extensions.  Her comments were made at a session of the Federal Bar … Continue reading

Sharon Klein: The State of the States: 2016

Sharon Klein, of Wilmington Trust, has made available for download her article, The State of the States, published in the January 2017 edition of Trusts & Estates Magazine and provides a comprehensive overview of key state-level planning developments across the U.S., including:

  • Estate and gift tax developments.
  • Planning considerations for
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Code Sec. 6324 | Tax Court Allows IRS to Collect Estate’s Unpaid Estate Tax | Estate of Ruben A. Myers v. Commissioner, T.C. Memo. 2017-11

The Tax Court, in The  Estate of Ruben A. Myers v. Commissioner, T.C. Memo. 2017-11, sustained the Service’s determination to proceed with lien and levy actions to collect an estate’s unpaid taxes, finding that the estate’s claim that the Service abused its discretion by not filing a special estate tax lien under Code … Continue reading

[T&E Podcast 10/31] – This Week in Wealth (Transfer) with Salvatore LaMendola

Please click the play button below to listen to This Week in Wealth (Transfer) with Salvatore LaMendola (week of 10/31/16)

Past installments of this series can be found on our Podcast page and ITunes

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Special Needs – Special Trusts Part. 3: Common Errors – Bernard A. Krooks


Part. 3: Common Errors

By Bernard A. Krooks

Littman Krooks LLP New York, New York / www.littmankrooks.com

Part 2. Drafting Considerations 

Set forth below are some common errors practitioners make when representing clients in connection with … Continue reading

Julius H. Giarmarco: Transfers of FLP and FLLC Interests Require Immediate Attention

By Julius H. Giarmarco

Family limited partnerships (FLPs) and family limited liability companies (FLLCs), if properly structured, are attractive vehicles for administrative convenience; income, estate and gift tax savings; and creditor protection. It is important that an FLP or FLLC be formed for valid business purposes and not merely as … Continue reading

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