Advisers must consider changes in interest rates when recommending the most advantageous estate and gift planning vehicles and strategies.
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TOPICS
Taxation of Estates & Trusts
Supreme Court to decide estate tax impact of life insurance in closely held businesses
This term, the Supreme Court will answer the questions regarding the estate tax treatment of life insurance proceeds received by a closely held business and its shareholder redemption obligations. It heard oral arguments last week.
Top 8 estate planning factors for real estate
Layered on the strategies common to many estates are special considerations for clients owning substantial real property interests.
Qualified small business stock: Gray areas in estate planning
Gain exclusion under Sec. 1202 can be an attractive wealth-transfer strategy, but it is marked by a dearth of IRS guidance and consequent ambiguities and uncertainties in practice.
Converting from a QSST to an ESBT, or vice versa
Qualified Subchapter S trusts and electing small business trusts have distinct uses and advantages; fortunately, converting one to the other can be painless.
Recent developments in estate planning: Part 2
This second installment of an annual update on trust, estate, and gift taxation covers gift and generation-skipping transfer taxation plus inflation adjustments and legislative proposals in the president’s proposed budget for fiscal 2024.
Rev. Rul. 2023-2’s impact on estate plans
Depending upon the size of their estate, as well as other factors, an irrevocable trust may still be the best answer.
Recent developments in estate planning: Part 1
This first of two articles discusses tax issues of formation and administration of trusts and estate
taxation.
IRS signals it will challenge IDGT basis step-up at death
The IRS recently published Rev. Rul. 2023-2, which publicly announced that the Service will be challenging a basis step-up for assets in intentionally defective grantor trusts.
US estate tax: Not just for US citizens
The application of U.S. estate tax laws to a non–U.S. citizen depends on domicile, situs of assets, and application of a treaty.
10 estate and income tax questions
This item discusses 10 important income tax questions to consider when creating an estate plan.
No basis step-up for grantor trust assets if not in grantor’s estate
In a revenue ruling issued Wednesday, the IRS confirms that the step-up in basis under Sec. 1014(a) does not apply to the assets held by an irrevocable grantor trust when the grantor dies if the grantor’s gross estate does not include the assets of the irrevocable trust.
2022 Arthur J. Dixon Memorial Award
G. Edgar “Eddie” Adkins Jr., CPA, received the 2022 Arthur J. Dixon Memorial Award, the highest honor bestowed by the accounting profession in the area of taxation.
Taxpayer’s argument for $1.5 million refund fails on several grounds
A taxpayer is not entitled to a refund under the claim-of-right doctrine, mitigation provisions, or doctrine of equitable recoupment.
Recent developments in estate planning: Part 3
In this third installment of an annual update on trust, estate, and gift taxation, the topics include generation-skipping transfer tax, trusts, private foundations, selected inflation-adjusted amounts, and the president’s and Treasury’s proposed law changes affecting trusts, estates, and gifts.
Recent developments in estate planning: Part 2
In this second installment of an annual update on trust, estate, and gift taxation, the topics include split-dollar life insurance arrangements, indirect gifts, formula clauses in transfers of limited partnership interests, valuation discounts, and grantor retained annuity trusts.
Recent developments in estate planning: Part 1
In this first installment of an annual update on trust, estate, and gift taxation, the topics include estate tax closing letters, the basic exclusion amount, estate debts and expenses, and extending the time to elect portability.
Updated simplified method for estate portability elections
The IRS released Rev. Proc. 2022-32, which updates and expands the simplified method for estates to obtain an extension of time to make a portability election under Sec. 2010(c) (5)(A).
Estate planning update: Summary of recent proposed regulations
This item summarizes the impact of two sets of proposed regulations issued by Treasury in early 2022.
Estates can now request late portability election relief for 5 years
The IRS extended to five years the period under which a taxpayer can use a simplified method (in lieu of a letter ruling request) to obtain an extension of time to make a portability election.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
