District of Columbia Proposes Reduction in Estate Tax Exemption from $5.6 Million to $4.0 Million

The District of Columbia Council, as part of a budget proposal that would increase taxes to cover a COVID-19 triggered revenue shortfall, has proposed legislation that would reduce the DC Estate Tax Exemption from the current $5.6 million per person to $4 million. The effective date of the proposal would be retroactively to the beginning … Continue reading District of Columbia Proposes Reduction in Estate Tax Exemption from $5.6 Million to $4.0 Million

James C. Nelson v. Commissioner, T.C. Memo 2020-81 (June 10, 2020): valuation of limited partnership interests gifted to a trust

James C. Nelson v. Commissioner, T.C. Memo 2020-81 (June 10, 2020), a donor transferred limited partnership interests equal to percentage interests that were calculated by an appraiser following a gift and a sale to a trust. The limited partnership’s primary asset was common stock of a family-owned holding company. The holding company owned 100 percent … Continue reading James C. Nelson v. Commissioner, T.C. Memo 2020-81 (June 10, 2020): valuation of limited partnership interests gifted to a trust

Akers & Aucutt: Estate of Howard V. Moore, T.C. Memo 2020-40

Steve Akers and Ron Aucutt, of Bessemer Trust, have published their summary of Howard V. Moore, T.C. Memo 2020-40 on the Bessemer website, along with a video presentation. The summary of their presentation and case summary is as follows: In this Estate Planning Case Summary and video, Estate of Howard V. Moore, T.C. Memo 2020-40, … Continue reading Akers & Aucutt: Estate of Howard V. Moore, T.C. Memo 2020-40

Jenny L. Juehring, Why the End Is Here for State Death Transfer Taxes and How States Should Respond

Jenny L. Juehring, has made available for download her article, "Why the End Is Here for State Death Transfer Taxes and How States Should Respond," published in Issue 5, Volume 96, of the Law Review at Washington University in St. Louis. The Abstract is as follows: It is time for the remaining states with death … Continue reading Jenny L. Juehring, Why the End Is Here for State Death Transfer Taxes and How States Should Respond

Stephanie J. Willbanks, Gifts in Contemplation of Death: Why Can’t Section 2035 Simply Die?, ACTEC Law Journal (Winter 2020)

Stephanie J. Willbanks has made available for download her article, Gifts in Contemplation of Death: Why Can't Section 2035 Simply Die?, published in theACTEC Law Journal (Winter 2020). The Abstract is as follows: Income and wealth inequality has become a popular topic. There are a myriad of ways to reduce such inequality utilizing the tax … Continue reading Stephanie J. Willbanks, Gifts in Contemplation of Death: Why Can’t Section 2035 Simply Die?, ACTEC Law Journal (Winter 2020)

AICPA posts (a) 20 FAQs on tax filing relief, and (b) State Tax Filing Guidance for Coronavirus Pandemic

The AICPA has identified seven key areas in need of immediate tax relief and has posted 20 FAQs on the latest developments in taxpayer relief during the COVID-19 pandemic. The AICPA has been advocating for more comprehensive relief from Treasury and the IRS and also continues to urge the agencies to develop a contingency plan for the … Continue reading AICPA posts (a) 20 FAQs on tax filing relief, and (b) State Tax Filing Guidance for Coronavirus Pandemic

Batchelder: Leveling The Playing Field Between Inherited Income And Income From Work Through An Inheritance Tax

Lily Batchelder, NYU School of Law, has made available for download her article Leveling The Playing Field Between Inherited Income And Income From Work Through An Inheritance Tax. The abstract is as follows: The Problem The core objectives of tax policymaking should be to raise revenue in an efficient and equitable manner. Current taxation of estates … Continue reading Batchelder: Leveling The Playing Field Between Inherited Income And Income From Work Through An Inheritance Tax

PLRs 202006002-6: Trusts Not Grantor Trusts, No Completed Gifts to Trust by Grantor or POA Committee

In PLRs 202006002 through 202006006, the Service ruled that as long as trusts qualified as domestic trusts and a Power of Appointment Committee (Committee) remained in existence, the grantor would not be treated as the owner of the trust under the grantor trust rules.  For each PLR, because none of the Committee members had a … Continue reading PLRs 202006002-6: Trusts Not Grantor Trusts, No Completed Gifts to Trust by Grantor or POA Committee

US v. Marin, 18 CV 9307 (VB) (US Dist. NY Jan. 22, 2020): IRS allowed to proceed with claims for unpaid estate tax

The government’s claim to foreclose its federal tax liens, for an order of judicial sale of the estate’s properties, and to appoint a receiver to operate and liquidate the properties was allowed to proceed. The estate argued that the probate exception to federal jurisdiction resulted in the court not having jurisdiction over the foreclosure claim. … Continue reading US v. Marin, 18 CV 9307 (VB) (US Dist. NY Jan. 22, 2020): IRS allowed to proceed with claims for unpaid estate tax

Est. of Agnes Skeba v. US, 2019-2 USTC ¶60,717 (Oct. 3, 2019): De Novo Std Applied to Estate’s Reasonable Cause Claim

In Est. of Agnes Skeba v. US, 2019-2 USTC ¶60,717 (Oct. 3, 2019), the US District Court for the District of New Jersey applied a de novo standard of review to determine whether an estate demonstrated reasonable cause and not willful neglect in failing to timely file its federal estate tax return. Before the deadline for … Continue reading Est. of Agnes Skeba v. US, 2019-2 USTC ¶60,717 (Oct. 3, 2019): De Novo Std Applied to Estate’s Reasonable Cause Claim

Ron Aucutt’s Top Ten Estate Planning and Estate Tax Developments of 2019

Bessemer Trust has released Ron Aucutt's Top Ten Estate Planning and Estate Tax Developments of 2019. Bessemer's announcement begins as follows: In an annual tradition, Ron Aucutt has identified what he views as the top ten estate planning and estate tax developments of 2019 and has provided context and analysis for each item.This analysis addresses … Continue reading Ron Aucutt’s Top Ten Estate Planning and Estate Tax Developments of 2019

US v. Kohls, 2020-1 U.S.T.C. ¶60,719, (Jan. 2, 2020), executor personally liable for unpaid estate tax

In US v. Kohls, 2020-1 U.S.T.C. ¶60,719, (Jan. 2, 2020), the US District Court for the Southern District of Ohio held that an executor of a decedent’s estate was personally liable for unpaid estate tax after he distributed property to himself and other beneficiaries before paying the estate tax.  The IRS notified the estate that … Continue reading US v. Kohls, 2020-1 U.S.T.C. ¶60,719, (Jan. 2, 2020), executor personally liable for unpaid estate tax

IPB Tax, Trusts & Estates Newsletter: October 2019 Edition

Ivins Phillips Barker published its October installment of the Tax, Trusts, and Estates newsletter. The following articles are included within this edition: Recent Developments: Income Taxes and Real Property Interests - IRS guidance on the Section 199A 20% pass-through deduction and two New York cases upholding double taxation for individuals domiciled outside of NY offer opportunities … Continue reading IPB Tax, Trusts & Estates Newsletter: October 2019 Edition

Taxing Billionaires: Estate Taxes and the Geographical Location of the Ultra-Wealthy by Enrico Moretti and Daniel J. Wilson (Oct. 21, 2019)

Enrico Moretti and Daniel Wilson have made their paper, Taxing Billionaires: Estate Taxes and the Geographical Location of the Ultra-Wealthy, available for download. This article was published as a working paper for the National Bureau of Economic Research. The abstract of this article, available on SSRN, reads as follows: We study the effect of state-level … Continue reading Taxing Billionaires: Estate Taxes and the Geographical Location of the Ultra-Wealthy by Enrico Moretti and Daniel J. Wilson (Oct. 21, 2019)

2018 Developments in Connecticut Estate and Probate Law by Jeffrey A. Cooper and John R. Ivimey (Oct. 15, 2019)

Jeffrey Cooper and John Ivimey have made their paper, 2018 Developments in Connecticut Estate and Probate Law, available for download. This article was published as a part of the Harvard Journal of Law and Technology, Forthcoming. The abstract of this article, available on SSRN, reads as follows: This Article provides a summary of recent developments … Continue reading 2018 Developments in Connecticut Estate and Probate Law by Jeffrey A. Cooper and John R. Ivimey (Oct. 15, 2019)

Estate of Skeba (DC NJ Oct. 3, 2019): Estate Entitled to Abatement of Failure to File Penalty for Late Estate Tax Return

The US District Court for the District of New Jersey held that an estate was entitled to a refund of failure to file penalties for filing an estate tax return late. The court reasoned that IRS refusal to abate the penalties was arbitrary and capricious. See full opinion by clicking Estate of Skeba (DC NJ … Continue reading Estate of Skeba (DC NJ Oct. 3, 2019): Estate Entitled to Abatement of Failure to File Penalty for Late Estate Tax Return

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

CCA 201939002: Pending Merger to be Considered When Valuing Stock for Gift Tax Purposes (Sep. 30, 2019)

The Office of Chief Counsel issued an advice on whether a hypothetical willing buyer and seller of a publicly-traded company would consider a pending merger when valuing stock for gift tax purposes. The issue and conclusion of the CCA are as follow ISSUEWhether, under the circumstances described below, the hypothetical willing buyer and seller of … Continue reading CCA 201939002: Pending Merger to be Considered When Valuing Stock for Gift Tax Purposes (Sep. 30, 2019)

Widtfeldt v. Commissioner, U.S. Dist. Court, D. Nebraska: Beneficiary Personally Liable for Unpaid Estate + Gift Taxes (Sept. 17, 2019)

In Widtfeldt v. Commissioner, U.S. Dist. Court, D. Nebraska (8:18CV453, September 17, 2019), a beneficiary who received property from his mother by gift and at the mother’s death was personally liable for the unpaid estate and gift tax.  The beneficiary received four parcels of real estate from his mother by gift or at death. Gift … Continue reading Widtfeldt v. Commissioner, U.S. Dist. Court, D. Nebraska: Beneficiary Personally Liable for Unpaid Estate + Gift Taxes (Sept. 17, 2019)

Emerging Issues for the Family Office

From taxation complexity to cyberthreats, what are today’s top concerns? By Randy Abeles, Tax Partner, RSM US LLP Family offices come in all shapes and sizes and the differences from one to another can be vast. And, yet family offices have common challenges—and opportunities—especially in today’s dynamic business environment. From addressing the complexities of taxation … Continue reading Emerging Issues for the Family Office