I’ve created a new on-line service that provides specialized calculators for certain estate and tax planning issues. Currently, the following calculators are available: Cost/Benefit of Gifts of Appreciating Property Cost/Benefit of Grantor Trusts Gift Tax on Net-Net Gifts Income Tax … Continue reading
Up until the Tax Reform Act of 1986, grantor trust status was something to be avoided, but thanks to rulings by the Internal Revenue Service, intentionally creating a grantor trust is now an accepted estate and gift tax planning strategy. … Continue reading
With the release of the Consumer Price Index for August 2016, it’s possible to calculate various inflation adjustments for 2017. The following are the significant federal estate planning numbers: The base applicable exclusion amount (and generation-skipping tax exemption) will be … Continue reading
The following is a chart of the federal estate tax exclusions and the bottom and top tax rates that have been in effect since 1977 (assuming no taxable gifts before 1977). Federal gift tax exclusions were the same as the … Continue reading
According to a report of the Joint Committee on Taxation, President Obama’s fiscal year 2016 budget includes the following measures affecting estates and trusts: Restore the estate, gift, and generation-skipping exclusions and rates in effect in 2009 (i.e., $3,500,000 estate … Continue reading
According to the Analytical Perspectives volume from President Obama’s fiscal 2016 budget proposal, the President will be proposing that transfers at death or by gift should result in the recognition of gain. From the volume: In the case of a … Continue reading
The IRS has issued five identical private letter rulings, PLRs 201442042, 201442043, 201442044, 201442045, and 201442046, apparently to five different parties involved in the same transaction, agreeing that a court-approved reformation of a trust in accordance with § 415 of...