IRS Issues Guidance on Electing Portability of Deceased Spousal Unused Exclusion Amount

The Internal Revenue Service has issued guidance on electing portability of the unused exclusion of a deceased spouse. Notice 2011-82 , which was issued on September 29, 2011, reminds estates of deceased married individuals to file a Federal estate tax return to transfer the decedent's unused...

IRS Provides Guidance for Protective Claim for Estate Tax Refund

The IRS has just issued Revenue Procedure 2011-48 , which provides guidance regarding the filing and subsequent resolution of a protective claim for refund of estate tax that is based on a deduction for a claim or expense under section 2053 of the Internal Revenue Code. Section 2053 allows...

Estate Tax Exclusion Amount for 2012 to Increase to $5,120,000

The IRS announced today that the amount exemption from estate taxes will increase next year. For an estate of any decedent dying during calendar year 2012, the basic exclusion from estate tax amount will be $5,120,000 , up from $5,000,000 in 2011. For Special Use Valuation for qualified real...

Morrison & Foerster LLP: IRC §1022 Basis Adjustment Rules for Property Owned by and Acquired from 2010 Decedents

By Richard S. Kinyon , Morrison & Foerster LLP Unless the executor of the estate of an individual who died in 2010 makes the Internal Revenue Code §1022 election, the estate is subject to the federal estate tax. If the executor makes the IRC §1022 election, neither the estate tax law...

Fulbright & Jaworski LLP: Tax Changes Effective as of January 1, 2012: Significant Implications For Estate Planning

By Philip J. Michaels , Joseph C. Sleeth, Jr. , Stephanie E. Heilborn and Lindsay H. Brown Estate Tax The federal estate tax applicable exclusion amount increases from $5,000,000 to $5,120,000 per person for 2012. The top estate tax rate for estates valued over this amount is...

Obama's 2013 Revenue Proposals

The White House has issued its 2013 fiscal year revenue proposals , with estate and gift tax changes consistent with administration's earlier stance on those rules. Beginning next year, the estate tax exemption would decrease to $3.5 million and the rate would increase to 45%. Spousal portability...

Troutman Sanders LLP: The Administration’s FY 2013 Estate and Gift Tax Proposals

By Carol F. Burger , David F. Golden , Molly F. James and Michael D. Erickson Last week, the President released his proposed budget for the upcoming fiscal year. On the same day, the Treasury released its explanation of the President's budget, which contains specific information and more detailed...

Elaine Gagliardi on Determination of the Applicable Exclusion Amount

In this Analysis, Elaine Gagliardi discusses determination of the applicable exclusion amount available to estates of decedents dying in 2011 and 2012. In particular, Notice 2011-82 provides guidance as to how to preserve the deceased spousal unused exclusion amount and how to make the election. Ms....

Williams Mullen: IRS Grants Extension of Time to Make Late Portability Election

BY: JOHN H. TURNER, III & JEFFREY D. CHADWICK In December 2010, Congress created a new right of "portability" between spouses,to remedy the circumstance in which spouses were unable or unwilling to engage in estate tax planning. For deaths occurring in 2011 and 2012 only, the applicable...

The Future of the Estate Tax?

In the last couple of weeks there has been a flurry of activity in the estate tax world. However, it simply has added to the continuing uncertainty regarding the future law. Absent new law, the $5 million exemption amount protecting taxpayers from gift and estate tax will expire at the end of 2012 and...

Duane Morris LLP: Federal Estate Tax Equality for Same-Sex Couples

On June 6, 2012, in Windsor v. United States , U.S. District Judge Barbara Jones in the Southern District of New York granted summary judgment to Edith Windsor and created a precedent that is likely to positively affect same-sex married couples for years to come. Edith was awarded $353,053, plus interests...

The Right of a Decedent to Apportion Federal Estate Tax

By Prof. John H. Skarbnik In estate planning it is important to determine if the testator or transferor has the right to apportion the federal estate tax, and if so, the scope of that right. The testator's right to apportion the federal estate tax depends, in part, on what law is applicable, and...

Historic Estate & Gift Tax Savings Opportunities Almost Gone

By: David R. Schoenhaar, Esq.* We are half way through 2012 and the generous tax legislation that went into effect on January 1, 2011, is scheduled to sunset on December 31, 2012, if Congress fails to act. Those who can participate in significant gift planning must act now if they plan to take advantage...

Historic Estate & Gift Tax Savings Opportunities Almost Gone

By: David R. Schoenhaar, Esq.* We are half way through 2012 and the generous tax legislation that went into effect on January 1, 2011, is scheduled to sunset on December 31, 2012, if Congress fails to act. Those who can participate in significant gift planning must act now if they plan to take...

How to Avoid Massachusetts Estate Taxes

As we described in an earlier article , calculating the Massachusetts Estate tax (imposed on estates over about $1 million) is not an easy task. So it should be no wonder that families find it difficult to form an estate plan that incorporates a Massachusetts estate tax strategy. Actually avoiding such...

Obama vs. Romney: What It Means for the Estate Tax

The December 31, 2012 sunset date for the estate tax, as provided by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, is once again quickly approaching, and in typical fashion there is a divide over what the fate of the estate tax should be. With the Obama and Romney...

Troutman Sanders LLP: Last Chance - Estate Tax Saving Opportunity May Expire At Year End

By Carol F. Burger , David F. Golden , Molly F. James and Tania S. Sebastian For approximately the next two months, we have estate, gift and generation skipping transfer (GST) tax exemptions of $5.12 million, a maximum gift and tax rate of 35%, and "portability" of any unused estate tax...

Gagliardi on Classification of the Estate Tax Return for Audit

All estate tax returns are mathematically verified, classified for audit potential, and checked that all required documents are attached. Selected returns are assigned by estate tax managers to estate tax auditors for audit. Certain estate characteristics, coined "audit triggers" by estate...

Election Consequences

Now that the election is over, the good news for those of us who live in swing states is that we will no longer be overwhelmed with negative ads telling us the opposing candidate is despicable. For those who were hoping to see an end to the estate tax, the news is not so good. President Obama's re...

After the Election, Still Looking for Estate Tax Certainty

It's over. American voted. We have our winners and losers. With the election behind us, Washington has got to get down to business, and soon. The so-called fiscal cliff is looming. How this issue is handled will likely have a dramatic impact on the structure of federal estate taxes going forward...

Personal Liability of a Fiduciary under the Federal Priority Statute for Unpaid Federal Taxes of an Estate and Recent U.S. District Court Decisions

By Diane L. Mutolo J.D. LL.M. An estate fiduciary may be held personally liable for the estate's unpaid taxes. IRC § 6901 provides that the government may collect a fiduciary's liability under the Federal Priority Statute ( 31 U.S.C. § 3713 ) for an unpaid claim of the Government...

McNees Wallace & Nurick LLC: 2012 Tax Act

By McNees Asset Planning and Federal Taxation Group The American Taxpayer Relief Act of 2012 (the "Act") was signed into law on January 1, 2013 to avert the tax law changes that were one part of the "fiscal cliff" facing our country's economy (the other part being automatic...

North Carolina's Estate Tax: Dying Out?

Most of the country's attention has been on federal estate tax changes made by the American Taxpayer Relief Act of 2012 . Little focus centered on state estate taxes. North Carolina is among 21 states where state-level estate or inheritance taxes are imposed on assets passed on to heirs. State...

Spouse vs. Charity: Estate Tax Apportionment

By John G. Farinacci, Esq. Ruskin Moscou Faltischek, P.C. We know that estate taxes are to be paid in the manner of a testator's choosing, but if the testator fails to make that choice, then estate taxes are "equitably apportioned among the persons interested in the gross tax estate."...

New York State - New and Proposed Legislation Affecting Trusts and Estates

In 2013, New York undertook a comprehensive review of the state's tax structure and made recommendations to improve and simplify the current tax system. This article discusses the findings of that review and the resulting legislation to implement changes. ... New York State Reform and Fairness...