Taxation of estates & trusts

The Tax Court partially upholds gift and estate tax deficiencies involving real estate LLC interests held by a family trust and includible in a decedent’s estate.

October 26, 2020

2021 inflation adjustments and tax tables issued

The IRS issued the 2021 inflation adjustment amounts and tax tables for use in preparing 2021 tax returns in the 2022 filing season. Many of the over 60 items increased from 2020.

September 22, 2020

Final regs. outline trust and estate expenses still deductible under TCJA

The IRS issued final regulations for distinguishing trusts’ and estates’ allowable deductions from miscellaneous itemized deductions currently suspended by the law known as the Tax Cuts and Jobs Act.

May 8, 2020

Trusts and estates are permitted certain deductions

The IRS issued proposed regulations to clarify that certain deductions are allowed to an estate or nongrantor trust because they are not miscellaneous itemized deductions.

March 27, 2020

Gift and GST returns added to postponed tax and filing deadlines

The IRS postponed the payment and return filing requirements for gift and generation-skipping transfer taxes due April 15 to July 15, matching prior postponements granted to federal income taxes and returns.

January 1, 2020

Estate is entitled to refund of Sec. 6651 late-filing penalty

The full tax liability had been paid by the extended due date.

November 25, 2019

Final regs. eliminate estate and gift tax clawback

The IRS issued final regulations that reconcile the current higher exclusion for the estate and gift tax unified credit amount in effect under the TCJA with the lower unified credit scheduled to go into effect in 2026.

October 1, 2019

Great time for a GRAT

Grantor retained annuity trusts may be an optimal wealth-transfer vehicle for many.

September 1, 2019

Supreme Court holds North Carolina cannot tax trust lacking minimum contact

The tax violated due process where the only connection to the state was beneficiaries’ residence there, the Court states.

August 1, 2019

Digital assets after death

Estate planning should account for a client’s digital assets, which often have significant financial or sentimental value.

June 21, 2019

Supreme Court holds North Carolina cannot tax trust

The U.S. Supreme Court issued a unanimous decision holding that North Carolina’s attempt to tax a trust based solely on the residence of a beneficiary violates the Due Process Clause of the 14th Amendment.

May 1, 2019

Avoid tax traps with a timely appraisal

New basis-consistency requirements make defensible valuations even more important.

April 17, 2019

Can a state tax a trust based on the beneficiary’s residency?

The U.S. Supreme Court heard oral arguments in a case that will decide whether states can tax trusts based solely on the fact that a trust beneficiary lives in the state.

March 1, 2019