Tag Archives: credit shelter trust

2011 Tax and Estate Planning Decisions of Note

A.    Issues Arising Under IRC §2036 An important objective in estate tax planning is to transfer of assets out of one’s taxable estate, while retaining a degree of beneficial enjoyment over the transferred property. Where the IRS believes too much … Continue reading

Posted in Gift & Estate Tax Decisions of Note | Tagged , , , , , , , , , , , , | Leave a comment

Tax News & Comment — February 2012

Tax News & Comment — February 2012

Posted in Tax News & Comment | Tagged , , , , , , , , , , , , , | Leave a comment

Tax News & Comment — August 2011

VIEW IN PDF:  Tax News & Comment — August 2011 Approximately one million U.S. taxpayers have at least one financial account located in a foreign country. Many have not reported their offshore accounts to the IRS, a violation with possible … Continue reading

Posted in Tax News & Comment | Tagged , , , , , , , , , , , , , , , , , | Leave a comment

Differing Tax Visions of President Obama and Governor Romney

Much has been made of the recent revelation that Governor Romney enjoyed a 14 percent tax rate on “carried interest,” which Congress permits to be reported as capital gain. Investors such as Mr. Romney pay a lower rate of tax … Continue reading

Posted in From Washington, Tax News & Comment | Tagged , , , , , , , , , , , , , , , , , , | Leave a comment

Tax News & Comment — April 2011

View Issue: Tax News & Comment — April 2011 pril 14, 2011 I. ESTATE TAX RETURNS Calculation and remittance of federal and NYS estate tax is of primary concern in administering an estate. An estate tax return must be filed … Continue reading

Posted in Tax News & Comment | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

New Carryover Basis Rules

Prior to 2010, property acquired from a decedent generally received a stepped-up basis under IRC § 1014. The purpose of the statute is to avoid the double taxation that would result if the asset were first subject to estate tax … Continue reading

Posted in Estate Planning | Tagged , , , , , , , | Leave a comment

Use of Disclaimers in Pre and Post-Mortem Estate Planning

Disclaimers can be extremely useful in estate planning. A person who disclaims property is treated as never having received the property for gift, estate or income tax purposes. This is significant, since the actual receipt of the same property followed by a gratuitous transfer would result in a taxable gift. Although Wills frequently contain express language advising a beneficiary of a right to disclaim, such language is gratuitous, since a beneficiary may always disclaim.

For a disclaimer to achieve the intended federal tax result, it must constitute a qualified disclaimer under IRC §2518. If the disclaimer is not a qualified disclaimer, the disclaimant is treated as having received the property and then having made a taxable gift. Treas. Regs. §25.2518-1(b). Under the EPTL, as well as under most states’ laws, the person disclaiming is treated as if he had predeceased the donor, or died before the date on which the transfer creating the interest was made. Neither New York nor Florida is among the ten states which have adopted the Uniform Disclaimer of Property Interests Act (UDPIA). Continue reading

Posted in Disclaimers, Estate Planning, Post Mortem Estate Planning, Post Mortem Estate Planning | Tagged , , , , , , , , , , , , , , , , , , , , | 1 Comment