Turning Off Grantor Trust Status
Terminating grantor trust status will not be simply a question of turning off a power of substitution.
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A Spring in Your Step: Answering the HIPAA Springing Medical Power of Attorney Question
Much is written about the Privacy Rules of the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) found at 45 CFR 164. The Privacy Rules were intended to assure an individual’s right to privacy with respect to his or her…
Gift Tax Safety Nets for Installment Sales Redux
This article updates the earlier article on this topic. As that earlier article mentioned, one relatively common estate planning arrangement is for the grantor of a trust, which is a grantor trust with respect to him or her for income tax…
Where We Are and Where We Are Going in Estate Planning and Administration
We all know the impossible has happened: no estate tax, no generation-skipping transfer (GST) tax and no “step-up” in basis for those who die this year. Many thought and continue to think Congress will do what many of its most prominent…
How WTP Has Been Revised to Cope with Drafting 2010
WTP has provided since 2001 for an alternate disposition of the estate of a married person in the event there would be no Federal estate tax but a carryover basis system in effect when the individual died.
The Act of Decanting: Amending Trusts Without Going to Court
Trusts are, in the United States, one of the most important tools available for income, estate and financial planning. For reasons relating both to Federal and State tax law and the mortality of those who transfer their property into trust,…
Gift Tax Safety Nets for Installment Sales to Grantor Trusts
Estate planners have a number of tools available to them in planning for the transfer of assets that are expected to substantially appreciate in the future. One relatively common estate planning arrangement is for the grantor of a trust…
Notice on New Language to Cope with “Decoupling” for Married Couples
Today, many states have a smaller estate tax exemption than that allowed under Federal law, which is now $1.5 million and will rise in future years. This means the estate of a married person will pay an estate tax to the state if he or she…
Steeply Declining Rolling GRATs: Perhaps, the Best GRAT Ever
Grantor Retained Annuity Trusts (GRATs), described in Code Sec. 2702(b), are successful in transmitting property out of a property owner’s estate at no estate tax cost and no or minimal gift tax cost to the extent the assets contributed to…
Something Important: Preparer and Advisor Penalties and Notice 2008-13
Since the Tax Reform Act of 1976, Code Sec. 6694 has imposed penalties on those who prepare income tax returns for compensation, whether or not they are lawyers or CPAs. Code Sec. 10.34 of Circular 230, which is not limited to income tax…
