Author Archives: David L. Silverman, J.D., LL.M. (Taxation)

PRESIDENT BUSH SIGNS $1.35 TRILLION TAX CUT

In an early triumph for his administration, President Bush has signed a 10-year, $1.35 trillion tax measure which by 2006 will reduce the 39.6% rate to 35%, and the 36%, 33% and 31% rates by 3 percentage points each. The … Continue reading

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Ninth Circuit Reverses Tax Court in Estate of Simplot

In a terse and unusually critical opinion, the Ninth Circuit Court of Appeals, over a dissent, has reversed the Tax Court’s controversial decision in Estate of Simplot (see Tax News, Oct. 1999), remanding the case and ordering that judgment be entered in favor of the estate, annulling the deficiency of $2.16 million. 87 AFTR 2d ¶2001-2165 (5/14/2001). Continue reading

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Executors and Trustee Commissions

MEMORANDUM OF LAW TO:        Clients & Associates FROM:    David L. Silverman, Esq. DATE:    March 29, 2010 RE:        Executor and Trustee Commissions Under the New York Surrogate’s Court Procedure Act _____________________________________________________________________________ This Memorandum of Law discusses the determination of … Continue reading

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Estate Planning in 2001

The first issue discussed at the University of Miami School of Law’s 35th Annual Heckerling Institute on Estate Planning at the Fontaintebleau a in January, which this writer attended (in down ski parka), was whether the President Bush would repeal … Continue reading

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Tax Consequences of Making Gifts (October 1996)

The income tax consequences of  making a gift are straightforward:  neither the donor nor the donee incurs any income tax.  Although it is fairly clear why the donor has no income on account of the gift, it is less clear … Continue reading

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Calculation of Federal Estate Tax Liability (October 1996)

In general, a Form 706 estate tax return need only be filed if the value of the gross estate exceeds the $600,000 exemption equivalent. If required, the form must be filed within 9 months after the date of the decedent’s … Continue reading

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Short Stock Sales

Currently, taxpayers can sell short securities which they own, and in so doing lock in economic gain but defer taxable gain indefinitely. Stocks exhibiting significant downside potential may be attractive candidates for short sales. To consummate a short sale, an … Continue reading

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Qualified Personal Residence Trusts (QPRTs)

In essence, a QPRT is formed when a grantor transfers a personal residence (and some cash for expenses) into a residence trust, and retains the right to live in the residence for a term of years. If the grantor dies before the end of the trust term, the trust assets are returned to the grantor’s estate, and pass under the terms of the grantor’s will. However, if the grantor outlives the trust term, the residence passes to named beneficiaries without any gift or estate tax event. Continue reading

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Life Insurance Trusts

Life insurance can be an invaluable estate planning tool. It can provide a broad measure of financial security for loved ones as well as provide the liquidity necessary to meet tax and other estate settlement obligations. Ownership of a life … Continue reading

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Will May be Preferable to “Living Trust”

As a testamentary instrument, the living trust may be attractive for some elderly testators. For younger persons however, a Will is generally preferable. Despite statements to the contrary, a living trust is possessed of no inherent tax benefits. Furthermore, few, … Continue reading

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Check-The-Box Regulations (January 1997)

The Treasury has announced new regulations that allow most noncorporate entities to elect to be taxed under the partnership tax law provisions of the Code. Previously, this coveted tax treatment depended upon a favorable analysis of four “corporate characteristics” of … Continue reading

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Charitable Gifts: Tax Benefits & Reporting Requirements

To reduce the cost of charitable contributions, consider donating low-basis, appreciated long-term capital gain property. For example, the taxpayer who donates such property worth $100 that was originally purchased for $20 will be entitled to a charitable contribution deduction of … Continue reading

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PRESIDENT BUSH PROPOSES $1.6 TRILLION TAX CUT

President Bush on February 8 formally proposed to Congress a $1.6 trillion tax cut over 10 years, to be financed from the current budget surplus. To stimulate the economy, Mr. Bush also appears to favor making some of the tax … Continue reading

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2000 REGS, IRS RULINGS & PRONOUNCEMENTS

I.   New Pension Distribution Rules The objective of many participants of qualified pension plans and IRAs is to delay distributions as long as possible and, when required to take distributions, to withdraw the least amount over the longest period of … Continue reading

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Estate Planning in 2002 Requires Flexibility

With estate tax repeal scheduled to occur in 2010, but reinstatement to follow in 2011, estate planning documents must be sufficiently flexible to operate in either tax regime, or any other that Congress or a later administration determines. Wills and … Continue reading

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