Beneficiary and Fiduciary Liability for Income, Gift and Estate Taxes

It can be either a blessing or a curse to be appointed as the Personal Representative of an estate or Trustee of a trust (collectively a “Fiduciary”). One of the most over looked aspects of the job is the fact that the U.S. Government has a “general tax lien” on all estate and...

Estate Tax and Other Federal Tax Provisions Expiring on December 31st

The estate tax along with tax provisions like the annual alternative minimum tax patch, the deduction for state and local sales taxes, the $4,000 deduction for college tuition, a provision that allows taxpayers age 70-and-a-half or older to transfer up to $100,000 directly from an IRA to charity and...

2010 Estate Tax Repeal: A Time to Reach Out To Your Clients

David R. Schoenhaar, Esq., Ruskin Moscou Faltischek As of January 1, 2010, there is no estate or generation skipping tax (GST), the gift tax remains with a million dollar exemption but at a rate of 35%, and carry over basis rules have been enacted. Of course, all of this is subject to...

States Struggle to Deal with Congress's Shameful Estate Tax Mess

The Year Without an Estate Tax continues. As I have previously written, due to Congress's extreme irresponsibility and inability to get anything done at all, the Estate and Generation Skipping taxes are repealed in 2010, but for one year and one year only. Last December, in a post entitled, The...

Permanent Estate Tax Bill Placed On Calendar in Senate; States May Be Trying to Head Off Expected Problems

On January 20, 2010, the Senate read H.R. 4154 for the second time and placed it on the Calendar as Number 253. The Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Bill of 2009 would permanently extend the estate tax at 2009 exemption rates. The bill would impose a 45 percent...

New Federal Tax Legislation Impacting Florida Estate Planning

The months of March and April 2010 have brought new tax legislation that increases Federal taxes on both high and lower income taxpayers. The following is a brief overview of the new tax provisions and potential future legislation which would adversely impact current estate planning techniques...

Tax Court Memo 2010-104: A New IRS Tool for Valuing Gifts of Undivided Interests in Real Property

A recent Tax Court decision has caught the attention of estate planners and appraisers because of its implications for gifts of undivided interests in real property. The case at issue is Ludwick v. Comm'r, T.C. Memo 2010-104 (May 10, 2010) . In Ludwick , the court determined that the value of a married...

Primary Tax Considerations in Planning for Succession to Family Homes

Estate planning for the succession to family properties requires careful consideration of a number of complicated, and sometimes conflicting, tax laws. In this Analysis, Nancy G. Henderson discusses primary tax considerations in estate planning for family homes. She writes: A significant assumption...

Ten Tips for Taxpayers Making Charitable Donations - IRS Summertime Tax Tip 2010-21

From IRS.gov : Did you make a donation to a charity this year? If so, you may be able to take a deduction for it on your 2010 tax return. Here are the top 10 things the IRS wants every taxpayer to know before deducting charitable donations. 1. Charitable contributions must be made to qualified...

Estate Tax, AMT, etc - Has Washington forgetten about the Other Taxes?

So Dem and GOP appear to all agree to extend this years income tax rates to next year - avoiding a jump in income and capital gains taxes when the ball falls on New Years Eve. This has been greeted with great fanfare in the press and an apparent sigh of relief and an attitude of "well, that's...

Year-End Tax Planning Tips

With the holidays upon us, it's time to do some planning that can help reduce your tax bill this year. Contributing to your retirement plan is a fast and easy way to cut your taxes, while building your nest egg. The federal limit for 401(k) contributions this year is $16,500 if you are under...

Executors Held Personally Liable for Unpaid Taxes

In a recent federal District Court case, the co-executors of a decedent's estate were held to be personally liable for the decedents unpaid income taxes under the federal priority statute because they distributed assets of the estate, the distribution rendered the estate insolvent, and it took place...

Personal Representative Liable for Unpaid Federal Income Taxes

The recent Pennsylvania District Court case of U.S. v. David A. Tyler and Louis J. Ruch [ enhanced version available to lexis.com subscribers ] is designed reminds estate executors ( Florida Personal Representatives ) that if they fail to do their job right, they can incur personal liability for the...

New IRS Regulations For Estates and Trusts

The IRS has issued final regulations ( T.D. 9582 ) requiring that a provision in a trust, will, or local law that specifically indicates the source out of which amounts are to be paid, permanently set aside, or used for a charitable purpose must have an independent economic effect aside from income tax...

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...