IRS Tax Practice Unit: Receipt of Dividends or Interest from a Related CFC (July 29, 2020)

The IRS Large Business and International (LB&I) has issued a new Practice Unit, Receipt of Dividends or Interest from a Related CFC. Practice Units provide IRS staff with explanations of general tax concepts, as well as information on specific types of transactions. Practice Units are not official pronouncements of law or directives and cannot be … Continue reading IRS Tax Practice Unit: Receipt of Dividends or Interest from a Related CFC (July 29, 2020)

Florida Probate & Trust Litigation Blog: Prenuptial agreement vs. revocable trust: who wins?

Juan C. Antunez, on his Florida Probate & Trust Litigation Blog writes about what happens when there is a conflict between a prenup and a revocable trust, by focusing on Wilson v. Wilson as Trustee of Paul C. Wilson Living Trust, — So.3d —-, 2019 WL 3808162 (Fla. 4th DCA August 14, 2019). His article … Continue reading Florida Probate & Trust Litigation Blog: Prenuptial agreement vs. revocable trust: who wins?

TAXATION OF TANGIBLE PERSONAL PROPERTY

By Laura Angel-Lalanne & G. Warren Whitaker Clients frequently make their choices regarding the disposition of their tangible personal property based on emotional considerations.  Nevertheless, they must be aware of the tax costs and benefits associated with the various methods of disposition they may be considering, so they can make fully informed decisions.  This article … Continue reading TAXATION OF TANGIBLE PERSONAL PROPERTY

Jay Adkisson: Mechanics Of Assignment Orders Illuminated In Optronics Technologies

Jay Adkisson, in his Forbes Column, Mechanics Of Assignment Orders Illuminated In Optronics Technologies, describes how assignment orders work in the creditor/asset protection context. His article begins as follows: An assignment order is a post-judgment enforcement remedy that causes some asset (usually a right to an income stream such as royalties) to be assigned from … Continue reading Jay Adkisson: Mechanics Of Assignment Orders Illuminated In Optronics Technologies

Jay Adkisson, Coronavirus Pandemic Will Not Slow Down IRS’s Pursuit Of Microcaptive And Syndicated Conservation Easement Transactions Says LB&I Memo (Apr. 17, 2020)

Jay Adkisson, in this Personal Finance column on Forbes website, writes that, according to a Memo by Douglas W. O'Donnell of the IRS's Large Business and International Division (a/k/a "LB&I Division"), dated April 14, 2020, and obtained by TaxNotes, the IRS will continue work on so-called Microcaptive and Syndicated Conservation Easement transactions even during the … Continue reading Jay Adkisson, Coronavirus Pandemic Will Not Slow Down IRS’s Pursuit Of Microcaptive And Syndicated Conservation Easement Transactions Says LB&I Memo (Apr. 17, 2020)

A Will Without Ink and Paper by Paul Sullivan (Oct. 18, 2019)

Paul Sullivan, a columnist at the New York Times, analyzes the new trend of creating online wills and trust documents, along with the proposed laws that seek to legitimize this practice. According to Sullivan, online wills have been available for years through sites such as Rocket Lawyer and Legal Zoom. Although these wills can be … Continue reading A Will Without Ink and Paper by Paul Sullivan (Oct. 18, 2019)

United States v. Dase, N.D. Alabama (Sept. 23, 2019): Jointly Owned Property Subject to IRS Tax Lien

In United States v. Dase, N.D. Alabama (Sept. 23, 2019), the federal district court for the Northern District of Alabama held that property jointly owned by a tax debtor and his sister was subject to an IRS lien to the extent of the tax debtor's interest in the property. To see full opinion, click United … Continue reading United States v. Dase, N.D. Alabama (Sept. 23, 2019): Jointly Owned Property Subject to IRS Tax Lien

Art Crimes and Misdemeanors: Managing Risk in Estate Administration and in Appraisals of Stigmatized Art

By Sarah Moore Johnson, Esq. & Cindy Charleston-Rosenberg, ISA CAPP Misattributed and other forms of stigmatized artwork lurking in important estate collections is far more pervasive than generally appreciated by fiduciaries. If overlooked during the appraisal process, misattributed and unattributed works may result in significant wealth loss through overpayment of tax liability or depressed sale … Continue reading Art Crimes and Misdemeanors: Managing Risk in Estate Administration and in Appraisals of Stigmatized Art

The Virtual Family Office and Personal Financial Planning

By Susan M. Tillery Many consumers, as well as professional advisers, continue to think of personal financial planning as a tool to gather assets under management (AUM) or to sell products; however, CPA personal financial planners have developed a fee-for service model which offers integrated personal financial planning without AUM or product sales.  This model embodies … Continue reading The Virtual Family Office and Personal Financial Planning

Adkisson, Charging Order Protection Backfires At Judicial Sale In Preservation Holdings

Adkisson's article describes a Maine court decision "in favor of Preservation Holdings, LLC and against Pamela Gleichman and others. The Maine court entered charging orders against Gleichman's interests in some 51 different limited liability companies (LLCs) and limited partnerships (LPs)." He pinpoints one of the main takeaways from the recent judgement to be the fact … Continue reading Adkisson, Charging Order Protection Backfires At Judicial Sale In Preservation Holdings

Adkisson, Fraudulent Transfers And The Statute of 13 Elizabeth Translated To Contemporary Legal English

Adkisson describes how "modern Anglo-American voidable transactions law traces its roots in some considerable part to the English Fraudulent Conveyances Act of 1571, better known as the Statute of 13 Elizabeth, Chapter 5." However, he notes that most legal commentators have not actually read the Act, partly due to the fact that "finding a translation of the … Continue reading Adkisson, Fraudulent Transfers And The Statute of 13 Elizabeth Translated To Contemporary Legal English

Adkisson, Cortez Rule For California Uniform Voidable Transactions Act Reaffirmed In Potter

Adkisson describes the impact of a recent court case in reaffirming a provision of the California Uniform Voidable Transactions Act (CUVTA). Adkisson outlines the Statute of Extinguishment in the CUVTA Civil Code, explaining that "a Statute of Extinguishment is very much like a Statute of Limitations, but with one key difference: A Statute of Extinguishment … Continue reading Adkisson, Cortez Rule For California Uniform Voidable Transactions Act Reaffirmed In Potter

Supreme Court Petition Filed: BF Hawk v. Commissioner (18-1534) – Fraudulent Conveyance Law and Transferee Tax Liability Decedents Estate

In B.F. Hawk v. Commissioner, the Sixth Circuit held that a decedent’s estate, his widow and two marital trusts were liable as transferees for income taxes owed by the decedent’s business. The Sixth Circuit held that under the Tennessee Uniform Fraudulent Transfer Act, an asset sale followed by the stock sale was a sham transaction … Continue reading Supreme Court Petition Filed: BF Hawk v. Commissioner (18-1534) – Fraudulent Conveyance Law and Transferee Tax Liability Decedents Estate

Bove & Langa, Challenging the Judge: The Massachusetts Appeals Court Continues to Make Its Own Rules of Trust Law

Alexander A. Bove, Jr. and Melissa Langa have made available their article for download their article, "Challenging the Judge: The Massachusetts Appeals Court Continues to Make Its Own Rules of Trust Law," published in the Steve Leimberg Asset Protection Newsletter. The Introduction is as follows: When we as advisors set out to develop an estate … Continue reading Bove & Langa, Challenging the Judge: The Massachusetts Appeals Court Continues to Make Its Own Rules of Trust Law

Adkisson, Annuity Payments Protected From Creditors In Rensin

Adkisson describes the case of Maryland resident Joseph K. Rensin and his established "Joren Trust," which "illustrates the advantages of planning in a state such as Florida that exempts annuity payments either wholly or in substantial part from enforcement of a judgment, which can then provide the debtor with some means to live on while … Continue reading Adkisson, Annuity Payments Protected From Creditors In Rensin

John S. Eory, Appellate Court Permits Invasion of Retirement Accounts to Enforce Child Support Orders

On May 7th, the Appellate Division of the New Jersey Superior Court issued a decision regarding the case of Orlowsky v. Orlowsky. The Court ruled that federally-protected retirement plans can be invaded in order to pay child support, college tuition, and attorney and expert fees. For the full case opinion, click here. Download the full … Continue reading John S. Eory, Appellate Court Permits Invasion of Retirement Accounts to Enforce Child Support Orders

Fogg (Procedurally Taxing), Count Days BEFORE Filing for Bankruptcy

The case of Anthony Hugger v. Lawrence J. Warfield et al. reveals the danger of not carefully tracking days before filing for bankruptcy if you seek to discharge taxes. Mr. Hugger received his discharge in May 2017 after filing a chapter 7 bankruptcy case, only to realize in September 2017 that he had filed too … Continue reading Fogg (Procedurally Taxing), Count Days BEFORE Filing for Bankruptcy

Peter J. Reily, Florida Man Blows IRA Bankruptcy Protection

The recent Eleventh Circuit decision on Yerian v. Webber confirmed a judgement that Keith Yerian's self-directed IRA could go to his creditors. According to Peter J. Reily, the judgement is a "big deal" considering the Individual Retirement Account's role both as a tax vehicle allowing an immediate detection and tax-deferred growth or tax-free growth and … Continue reading Peter J. Reily, Florida Man Blows IRA Bankruptcy Protection

Jennifer Smithson et al. (Macfarlanes), Economic substance – application to trust structures – Bermuda, British Virgin Islands, Cayman Islands, Guernsey, Isle of Man, Jersey

In December 2018, various offshore jurisdictions such as Bermuda, the British Virgin Islands (BVI), the Cayman Islands and the Crown Dependencies (Guernsey, Jersey and the Isle of Man) introduced economic substance legislation in response to requests from the European Union. If the jurisdictions did not introduce the new rules, they faced the possibility of being … Continue reading Jennifer Smithson et al. (Macfarlanes), Economic substance – application to trust structures – Bermuda, British Virgin Islands, Cayman Islands, Guernsey, Isle of Man, Jersey

Adkison, California Child Support Order Not Enforced Against South Dakota Trust In Cleopatra (June 27, 2019).

Jay Adkisson has summarized the Cleopatra Cameron Gift Trust cases dealing with the enforcement of a California child support order against a South Dakota Trust. Mr. Adkisson's article begins as follows: Through the gifts and subsequent death of her father, California resident Cleopatra Cameron ended up as the beneficiary of two trusts (collectively, the Trust) … Continue reading Adkison, California Child Support Order Not Enforced Against South Dakota Trust In Cleopatra (June 27, 2019).