Florida Probate & Trust Litigation Blog: What’s the “origin of the claim” doctrine and why should trusts and estates litigators care? (January 18, 2021)

Juan C. Antúnez, in his Florida Probate & Trust Litigation Blog, discusses the “origin of the claim” doctrine as it pertains to income taxes on inheritances via IRC § 102 (a) and (b). The article begins as follows:

Ever wonder why we don’t spend much time thinking about the income tax consequences of an inheritance? Well, there’s a simple reason for that. According to IRC § 102(a), “the value of property acquired by gift, bequest, devise, or inheritance” is excluded from gross income, which means it’s not subject to income tax.
On the other hand, IRC § 102(b) tells us the income I receive on inherited property (as opposed to the underlying property itself) is subject to income tax. For example, income distributions from a trust are taxable income, but the value of the trust’s underlying principal isn’t.

To see the full article, click: What’s the “origin of the claim” doctrine and why should trusts and estates litigators care?

Posted by Elise Kim, Managing Associate Editor, Wealth Strategies Journal.

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