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Estate Tax Update - A Choice of Tax Law to apply for deaths in 2010

The Wall Street Journal reports that the Senate is sending out legislation to allow estates of people who died in 2010 to choose EITHER the 2010 1022 basis election OR the 2011 estate tax laws, which are currently proposed to be a $5 million exemption per person and 35% estate tax. Legislation...

What Tax Form Should You Use for Deaths in 2010?

While there is no estate tax in 2010, there is still a tax form to be filed with the federal government in relation to the estates of people who died in 2010. As discussed in greater detail here , where a person has died in 2010 their executor has an opportunity to allocate $1.3 million to the basis...

Proposed Estate Tax Legislation Contains some Generous Surprises

The new estate tax legislation proposed by Sen. Reid (D. NV) contains some pleasant surprises for wealthier Individuals. First, as expected, it proposes to raise the estate tax exemption amount to $5 million per person with a maximum 35% estate tax rate for the next 2 years. Additionally, the proposed...

Finally a New Tax Law (For Now)

The long-awaited legislation concerning the estate, gift, and generation-skipping transfer taxes has been passed by both houses of Congress, and signed into law by the President. The legislation is known as the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. Here is a...

Hirschson and Glasgow on Transfer Tax Planning for New York Couples

The 2010 Tax Act changes the landscape of gift, estate and generation-skipping transfer tax planning, at least until the new law is due to sunset at the end of 2012. For New Yorkers, however, the application of state estate tax law has to be considered along with the federal transfer tax laws. As a result...

Transfer Tax Planning for New York Married Couples In Light of the 2010 Tax Act

The 2010 Tax Act changes the landscape of gift, estate and generation-skipping transfer tax planning, at least until the new law is due to sunset at the end of 2012. For New Yorkers, however, the application of state estate tax law has to be considered along with the federal transfer tax laws. As a result...

Estate Tax Exemption Rate on the Rise in New Jersey

If you follow this blog, you know that New Jersey is the most expensive state to die in . In an effort aimed at changing that distinction, Governor Christie in his budget proposal has recommended increasing the New Jersey Estate Tax Exemption Amount from $675,000 per person to $1 million per person....

Diane L. Mutolo on the Reinstated Estate Tax’s Effect on Basis Rules and Estates of 2010 Decedents

The Tax Relief Unemployment Insurance Reauthorization and Job Creation Act of 2010 reinstated the estate tax and stepped-up basis rules and repealed the modified carryover basis rules for the estates of decedents dying in 2010. In this Emerging Issues Analysis, Diane L. Mutolo discusses the return of...

Ohio Repeals its Estate Tax Beginning on Jan. 1, 2013

The new Ohio budget signed into law on June 30, 2011, repeals Ohio's estate tax , effective January 1, 2013. (The current Ohio estate tax imposes a 6% rate on estates of $338,333, rising to 7% on estates over $500,000.) Twenty-two states (plus the District of Columbia) currently impose an estate...

Bullivant Houser Bailey PC: Oregon Replaces Inheritance Tax with Estate Tax

By Darin Christensen On June 28, Governor Kitzhaber signed a bill that will replace Oregon's inheritance tax with an estate tax. The estate tax is similar to the former inheritance tax, but has several substantial differences and provides some planning opportunities. Overview Oregon's...

Democratic Proposals for Revenue Raising

The proposal from the White House includes: Income surcharge for high income earners - basically a 55 surtax on Adjusted Gross Income in excess of $500,000. Repeal high-income tax cuts in 2012 as opposed to 2013. Grantor Retained Annuity Trusts (GRATs) - minimum 10 year term for these...

The More Things Change, The More They Stay The Same

On January 10 th , PricewaterhouseCoopers hosted a webinar pertaining to potential tax legislation in 2012. The panelists concluded that, despite a number of tax provisions that will expire, a huge deficit, and a continuing clamor for significant tax reform, it is unlikely there will be major...

Columnist in one of New York's Poorest Counties Sees the Estate Tax as a "Major Issue"

Hi Y'all. I'm back. Sorry for the big break in posting. I'll try to do better. In this election year, I haven't heard that much talk about the estate tax - or as the Republicans like to call it, the "Death Tax." As I've written about before, the estate tax is imposed...

District Court: Estate Tax Marital Deduction Triggers Unconstitutional Ruling on DOMA

In a case that began with a claim for a refund of estate taxes paid, Judge Barbara S. Jones of the Southern District of New York ruled that the Defense of Marriage Act (DOMA) is unconstitutional under the Equal Protection Clause of the 5th Amendment. Edie Windsor and Thea Spyer were a couple for...

Asbury Law Firm: District Court: Estate Tax Marital Deduction Triggers Unconstitutional Ruling on DOMA

In a case that began with a claim for a refund of estate taxes paid, Judge Barbara S. Jones of the Southern District of New York ruled that the Defense of Marriage Act (DOMA) is unconstitutional under the Equal Protection Clause of the 5th Amendment. Edie Windsor and Thea Spyer were a couple for over...

Ask Liza: Probate for U.S. Assets; Estate Tax for Non-Resident Aliens

Dear Liza: My brother and I are dual citizens (Japan and US). We both reside in the US. Our Japanese mother recently passed away. She had some cash/ stock/ annuities/ mutual funds in the US, and some property in Japan that we will inherit jointly, with no disputes. She has a social security number and...

Senate Democrats Abandon the Estate Tax

by Jeremy Scott The most progressive tax in the United States is also one of the most unpopular. Thanks to Republican-led efforts to characterize it as a death tax, the estate tax is almost universally reviled in Congress and by voters. To emphasize the point, last week the Democrat-controlled Senate...

States Should Repeal Their Estate Taxes

... [S]tates can go a long way toward meaningful reform by repealing their estate and inheritance taxes. I have said before on many occasions that the state estate taxes are nothing more than jealousy fueled money grabs... Right now 21 states and the District of Columbia impose some kind of estate...

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."...

Ask Liza: Should We Get Married? Estate Planning for Same Sex Couples Now

By Liza Weiman Hanks | Dear Liza: My long term domestic partner of 30 years and I were registered domestic partners for a few years and then she decided she wanted to be totally financially independent of me so we terminated the agreement last year. We are still together as a couple and live five...

Dedon on Estate Planning: The President’s 2015 Budget: Limitations on Crummey Withdrawal Rights

President Obama’s $2.9 trillion budget for the 2015 fiscal year includes several tax increases, particularly on the wealthy, to pay for increased spending without increasing the deficit. One increase that will not be widely reported pertains to "Crummey" power limitations. (I am limiting...

State Net Capitol Journal – November 3, 2014; Massachusetts Casino Study At Odds With Experience Of Other States

MA CASINO STUDY AT ODDS WITH EXPERIENCE OF OTHER STATES: Supporters of a November ballot measure in Massachusetts (Question 3) aimed at repealing the 2011 law authorizing as many as three resort casinos and a slots parlor in the state issued a press release last month predicting the law would reduce...

State DeathTax Considerations in Making Lifetime Transfers

Phasing out, and the eventual repeal, of the former state death tax credit in favor of a state death tax deduction has significantly impacted estate planning considerations for clients who now live in states that impose a state estate or inheritance tax. The elimination of the state death tax credit...

Ask Liza: Paying Capital Gains on Appreciated Assets

Dear Liza, My father passed away in 2002 when the federal estate tax limit was $1million. At that time my mother chose to put their home in the Bypass Trust. She has now passed and the home is worth $1.4 million. Do we inherit tax free or pay taxes on the amount over $1million? It’s nice when I...

Ask Liza: Should We Create a Living Trust?

Dear Liza: We are a married couple in our early and mid 30s with a one year old son living in Southern California. I have been looking at setting up a trust and/or will for our little family but not sure what is needed in our scenario. My husband and I each own a home in our name (bought before we got...