Taxation of Estates & Trusts

TOPICS

June 27, 2022

Regs. proposed for present value of estate deductions

Administrative expenses and claims against estates allowable under Sec. 2053 beyond a three-year grace period would be discounted for current deduction, under proposed rules issued by the IRS.

May 1, 2022

Tax Court determines value of receivable from a split-dollar life insurance arrangement

The value of a receivable created by split-dollar life insurance arrangements is the receivable’s value, not the cash-surrender value of the insurance purchased under the arrangements

May 1, 2022

Trusts as S corporation shareholders

Generally, a trust cannot hold stock of an S corporation; however, grantor trusts, testamentary trusts, voting trusts, ESBTs, and QSSTs are permissible S corporation shareholders (Sec. 1361(c)(2)).

May 1, 2022

Trusts for holding S corporation interests: QSSTs vs. ESBTs

This article compares the relative advantages and disadvantages of a QSST versus an ESBT in estate planning.

May 1, 2022

Freezing stock value with a corporate recapitalization

A corporate recapitalization can freeze the value of the owner’s stock, potentially reducing the owner’s estate tax liability by removing future appreciation in the value of stock from the owner’s estate.

April 26, 2022

IRS proposes to amend estate and gift tax basic exclusion regs.

Exceptions to the special rule allowing the temporarily higher basic exclusion amount to apply to gifts credited against estate tax.

March 1, 2022

10 common Form 709 mistakes

While it may take some finesse to report the most complicated transactions on Form 709, you do
not have to be a gift tax specialist to be aware of 10 common return preparation mistakes.

March 1, 2022

Tax issues that arise when a shareholder or partner dies

This article discusses what partnerships, S corporations, and their owners need to know to manage the tax risks that arise when an individual partner or shareholder dies.

December 1, 2021

Indirect gift tax considerations for 2021

It is important to consider some of the less-obvious gifts when you are advising clients who are intent on using up their full $11.7 million basic exclusion amount before the end of the year.

December 1, 2021

Planning with charitable lead trusts

Today’s low interest rates make charitable lead trusts a more powerful option for tax-efficient estate planning.

November 11, 2021

Helping a client benefit from an intentionally defective grantor trust

These trusts can be advantageous to wealthier clients, but their future use in estate planning is threatened by current legislative proposals.

November 1, 2021

Recent developments in estate planning: Part 2

This second part of an annual update examining developments in estate, trust, and gift taxation covers recent court cases, proposed regulations, and other IRS guidance on estate tax.

November 1, 2021

The grantor trust rules: An exploited mismatch

This article discusses the history of the grantor trust rules, how they are exploited to avoid taxes, and ways the rules might be reformed to prevent them from being used for tax avoidance.

October 1, 2021

Penalty for failure to report distribution from foreign trust not reduced

The penalty for failure to report a distribution from a foreign trust is not reduced when the trust beneficiary is also the trust owner.

October 1, 2021

Recent developments in estate planning: Part 1

This first part of this annual update focuses on trust and gift tax issues.

September 27, 2021

Final regulations establish a user fee for estate tax closing letters

The letters, which the IRS provides as a courtesy to executors and other authorized estate representatives, will now cost $67.

June 1, 2021

Planning with revocable trusts after the grantor’s death

This article focuses on the key tax and reporting areas applicable to revocable trusts and the associated planning and pitfalls that arise at the grantor’s death.

May 1, 2021

Would you like SALT with that trust?

The total tax owed by a trust can be significantly affected by the location of grantors, beneficiaries, trustees, and even trust assets.

April 8, 2021

AICPA recommendations on Q1 estimates and 2020 Form 709 extensions

The AICPA has released some recommendations for practitioners concerning various issues that have arisen due to the postponement of the April 15 tax deadline for individuals.

March 25, 2021

Revocable trusts and the grantor’s death: Planning and pitfalls

This article focuses on the key tax and reporting areas applicable to revocable trusts and the associated planning and pitfalls that arise at the grantor’s death.