No step-up in basis for private foundation’s assets
A PMTA disagrees with a prior letter ruling.
Taxation of Estates & Trusts
IRS levy trumps decedent’s children’s claim to money held in usufruct
State law treats heirs as unsecured creditors.
IRS proposes to amend estate and gift tax basic exclusion regs.
Exceptions to the special rule allowing the temporarily higher basic exclusion amount to apply to gifts credited against estate tax.
How married couples can use trusts in estate planning
Married taxpayers have estate planning options others don’t.
Estate tax closing letters now cost $67
New user fee is established by final regulations.
IRS issues inflation adjustments for 2022 returns
The IRS issued updated income tax brackets and other inflation-adjusted amounts under 62 Code sections, including a new standard deduction amount.
Final regulations establish a user fee for estate tax closing letters
The letters, which the IRS provides as a courtesy to executors and other authorized estate representatives, will now cost $67.
Tax Court OKs estate's marital deduction
A decedent's marriage is held valid based on the place-of-celebration rule.
Minority interest discounts apply to charitable bequests
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.
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.
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.
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.
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.
Estate is entitled to refund of Sec. 6651 late-filing penalty
The full tax liability had been paid by the extended due date.
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.
Great time for a GRAT
Grantor retained annuity trusts may be an optimal wealth-transfer vehicle for many.
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.
Digital assets after death
Estate planning should account for a client’s digital assets, which often have significant financial or sentimental value.
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.
Avoid tax traps with a timely appraisal
New basis-consistency requirements make defensible valuations even more important.
