Funding the Family Foundation: Considerations for Donors of Privately Held Securities

By Sonja K. Johnson , Esq., Morrison & Foerster LLP Private family foundations have long been a popular vehicle for high net worth individuals to take advantage of valuable tax planning opportunities while maintaining ongoing involvement with the foundation's charitable giving activities. This...

Morrison & Foerster LLP: Allocation of GST Exemption to 2010 Gifts (Or Not!)

By Wendy M. Greenberg, Esq. of Morrison & Foerster LLP Thanks to the eleventh hour passing of the 2010 Tax Relief Act (the "Act") and the temporary opportunities provided by the Act, our firm's Trusts and Estates group, like many others, completed a flurry of wealth transfer during...

Zimring on Calif. Limits on Transfers to Disqualified Persons after Jan. 1, 2011

Gifts from a dependent adult to a care custodian have long been prohibited or restricted under the California Probate Code. New law, effective for instruments that become irrevocable after January 1, 2011, excludes from the definition of care custodian persons who provide care out of friendship if there...

The Importance of Gift Planning as Part of an Estate Plan by Harvey Frutkin

Gift planning is an important factor in a family estate plan. In this Analysis, Harvey Frutkin discusses gift taxes and transfers in general, exclusions, exemptions, and deductions for family gifts, and the economics of family gifts. He writes: [3] Economics of Family Gifts The significance of a...

Morrison & Foerster LLP: Planning and Administration in a Volatile Economy: Dealing with Abatement

By Sonja K. Johnson, Esq ., Morrison & Foerster LLP Fluctuations in today's economic climate necessitate that individuals and their estate planning professionals consider the possibility of abatement (i.e., reduction of gifts due to insufficient estate assets) when designing a testamentary...

Gifts in Difficult Financial Times

By Adam J. Gottlieb If a person has any desire to make any gifts at all, now may be the best time to make those gifts. I wrote a blog entry here more than a year ago which described certain gifting techniques and the reasoning therefor. I now revisit that concept now to update the financial benefit...

Morrison & Foerster LLP: Gifts and Bequests to Employees

By Wendy M. Greenberg, Esq. , Morrison & Foerster LLP It is not at all uncommon for our clients to make provisions for long-time employees in their wills or trusts. Most of the time, we don't think twice about these bequests, because we know that our clients think of the beneficiaries as friends...

McNees Wallace & Nurick LLC: Gifting and Marcellus Shale

By J. Corey Reeder When estate planning lawyers discuss gifting as an estate planning strategy with clients, there are a few very important components to this discussion that must be reviewed in order to most effectively leverage gifting as an estate planning strategy. Pursuant to the Tax Relief...

Gifting in 2012

By: David R. Schoenhaar, Esq.* 2011 is coming to a close and the generous tax laws that went into effect on January 1, 2011 reunifying the estate, gift and GST exemption amounts to $5,000,000 are creating renewed interests in lifetime gifting. As discussed in a previous Blog, the sweeping legislation...

Federal Government Access to Real Estate Transfer Information

By Adam J. Gottlieb There are many positives of the information and technological advances that private citizens have enjoyed over the past several decades. For example, we can now access information at break-neck speed on our handheld phones. We can watch a movie on a very small electronic device...

No Good Deed Goes Unpunished: Kent State Alumnus Withdraws Gift after Student Newspaper Raises SEC Questions

As reported by Cleveland.com/The Plain Dealer , Kent State alumnus, Jason Cope, recently withdrew his $1 million gift to Kent State University after the student newspaper brought to light Cope's investigation by the SEC. Kentwire.com reported that Cope was associated with a financial firm that...

Morrison & Foerster LLP: Charities, S Corporations and UBIT: Why a Charitable Gift of S Corporation Stock May Not Be the Best Option

By Danielle T. Zaragoza , Esq., Morrison & Foerster LLP Not all charitable gifts are created equal, and a charity is not required to accept any and all donations of property, especially property that may be difficult to own or liquidate in furtherance of the charity's purpose. For instance...

New York Court of Appeals Revisits the Law of Gifting of Art or Other Objects

How does one gift an 1,100 pound sculpture? The New York Court of Appeals recently revisited the law of gifts in the context of determining the validity of such a gift by the deceased sculptor's widow. Mirvish v. Mott , 18 N.Y.3d 510, 2012 N.Y. LEXIS 266 (2012) [ enhanced version available to lexis...

Williams Mullen: Wealth Transfer Planning in 2012: Perfect Storm of Opportunity

BY: FARHAD AGHDAMI 2012 may present the single greatest opportunity for wealth transfer planning in recent memory. A $5.12 million gift tax exemption, combined with low interest rates and historically low valuations for many asset classes, creates an ideal environment for wealth transfer planning....

Morrison & Foerster LLP: Gift Tax Planning Opportunities: The Window Is Closing

By Genevieve M. Moore & Richard S. Kinyon , Morrison & Foerster LLP As reported in this space over the last several months, there has been unprecedented upheaval in the federal transfer tax world in the last few years. One element of this was the unexpected increase in the federal gift and...

The John Edwards Case - What About Gift Taxes?

Yesterday [May 8th] I blogged about North Carolina's controversial Amendment One, which ended up passing by a large margin. I also have some thoughts about another matter in the headlines - the John Edwards trial. I have not been following the case closely, but I do know that central to the case...

McNees Wallace & Nurick LLC: Tax-Advantage Charitable Giving

By David M. Watts, Jr. If you are charitably inclined, there are tax-advantaged ways to make a gift to a favorite charity while enjoying the income from that gift for your lifetime. Many educational and charitable organizations offer plans that combine the benefits of an immediate income tax deduction...

Properly Reporting Gifts

As 2013 approaches, there will be a flurry of activity by wealthy individuals seeking to take advantage of a gift tax exemption of $5,120,000, that will decrease to only $1 million in 2013. Taxpayers often gift closely held business interests or real estate. The gift value of this type of non-marketable...

State Net Capitol Journal: CA State Park Donors Cry Foul

Last month California officials revealed that the state Department of Parks and Recreation had stashed away $54 million it had not reported to the state Department of Finance. The news came as quite a surprise, especially to the groups that had generously donated to keep state parks open that the department...

Ballard Spahr LLP: IRS Announces that Gifts to Single-Member LLCs Owned by Charitable Organizations Are Deductible

By Jean C. Hemphill and Christopher A. Jones The IRS has published welcome, long-awaited guidance regarding the deductibility of contributions made to a single-member limited liability company (LLC) owned by a charitable organization. For a variety of reasons, tax-exempt charitable organizations...

Morrison & Foerster LLP: Making Gifts Using Defined Value Clauses: Not Necessarily Void as Against Public Policy

By Danielle T. Zaragoza, Esq ., Morrison & Foerster LLP Given the relatively large federal gift tax applicable exclusion amount available for taxable gifts in 2011 and 2012, many clients have made or are considering making significant gifts before the end of this year. For a client who wants...

Tax Treatment of Gifts, Dividends, or Loans to Employees

By Mary Howley Esq. Although gifts are generally excluded from income, gifts from employers are generally included in income subject to certain exceptions. Payments labeled as compensation may be determined to be dividends, while payments labeled as a loan or payment for property may be determined...

Power to Substitute & End of Year Planning

By: David R. Schoenhaar, Esq.* If you are currently planning for clients to use the historically high gift tax exemption amount before the end of the year, you are becoming acutely aware that time is running out. Whether it is the appraisal companies refusing to take new business or the closing...

Ballard Spahr LLP: Windows of Opportunity: Year-End Gift Planning Opportunities for 2012

By the Family Wealth Management Group Although the end of the year is several months away, it is time to think about taking advantage of the generous tax savings that may be available for 2012 only. The 2010 Tax Act made significant changes to the estate, gift, and generation-skipping transfer...

3 Year-End Giving Tips: Use All Your Deductions

The holiday season hits Americans just as the tax year is coming to an end. While most people are distracted with buying gifts for their friends and families, they could be enjoying tax deductions by making smart year-end gifts : Choose a qualified organization. When ready to make your gifts, choose...