MATTHEW S. BEARD, P.C. ––––––––TAX ATTORNEY–––––––– TAX, ESTATE, TRUST, AND PARTNERSHIP
Legal representation
and advice for the
transfer and taxation
of property
Estates follow a life cycle pattern of growth, maturity, and termination. With proper planning and administration, this cycle occurs over multiple generations.
We work with clients and their advisors on tax and other legal issues for estates, trusts, and partnerships.
August is back to school for many, and supply lists include pencils and erasers. For tax planning, I.R.C. § 1014 is an eraser of built in gain for property acquired from a decedent.
Most agree that the only certainties in life are death and taxes. The surprise for many lies in the rate that is imposed, and for others the broad application of the tax.
Disclaimer Planning: No Coin Toss Needed for Unpredictable Tax Law
A disclaimer provides flexibility in estate planning to address unpredictable tax law, particularly with respect to the basic exclusion amount under I.R.C. § 2010(c) that is in a state of flux. The focus of disclaimer planning is to provide the surviving spouse with an option to arrange for favorable income tax results, such as a new basis under I.R.C. § 1014(a), where no estate tax is due. This article reviews requirements for a qualified disclaimer under I.R.C. § 2518, presents components of a disclaimer trust structure, and analyzes implementation of a disclaimer for small, medium, and large estates. With disclaimer planning, a coin toss is not needed to address unpredictable tax law.
This two-part article examines three approaches to cure the discrepancy between I.R.C. § 1014 and I.R.C. § 1015, as well as drafting and reporting considerations for the exercise of a grantor's substitution power.
The personal representative of a decedent's estate is subject to a potential risk of personal liability for paying a debt of the estate before paying a claim of the U.S. With proper planning and estate administration, the risk of personal liablity is avoided. This article summarizes the federal priority statute, recurring fact patterns, and options for addressing liens and the risk of personal liability.
The Internal Revenue Code provides favorable income tax rules that impact all individuals. There is a risk, however, of inadvertently foregoing favorable results. This treatise provides a resource for income tax considerations in estate planning.
