Missives

Death bed estate planning like the transfer of assets to an LLC to manufacture valuation discounts often do not work when there is no non-tax purpose for the transfer. If the initial reaction to a proposed asset transfer is that ‘it’s too good to be true,’ then it is too good to be true, and the IRS and the courts will let you know it.

Florida recently changed its laws to permit a summary procedure to settle the trustee’s accounts and enable the discharge of the trustee from liability without any court proceedings.

After 3+ years of the SECURE 2.0 Act, we are still waiting for guidance from the IRS on when the 15-year 529 ‘existence’ requirement applies to a new 529 beneficiary.

Because of the restrictive rules associated with a QTIP trust, it is difficult for the surviving spouse-beneficiary to plan for his/her own estate, considering the value of the trust assets will be included in his/her gross estate.

With the disappearance of defined benefit pensions, many individuals are turning to nonqualified deferred annuities a ‘private’ replacement for those lost pensions. The rules associated with NQDA’s and for those who may inherit them are highly complex and, at times, not all that intuitive.

There are several details, however, on how existing trusts would be valued or the valuation methodologies used to avoid having to appraise trust assets each year.

As Congress continues to cut back on federal program grants and entitlements, it should come as no surprise that the shortfall in that governmental support will have to be met through local charities and nonprofit organizations.

Probably one of the biggest dangers associated with Trump Accounts is the assumption that they work and are reported exactly like traditional IRAs.

As we near the Trump Account starting date of July 4, we now have access to an app to assist with opening, funding and managing such an account.

The choice of a funding formula in a trust, often with a marital deduction trust funding formula can affect how the bequest is funded. Similarly, a trust funding formula can be used to fund a nonspousal trust, e.g., a credit shelter trust, or simply a pecuniary, i.e., dollar amount bequest, allocated to an individual.