Take-Away: A surviving spouse who is named as the designated beneficiary of their deceased spouse’s IRA has options to choose from when taking required minimum distributions. Background: Often overlooked is the option of a surviving spouse who is designated as the beneficiary of their deceased spouse’s IRA to delay taking required minimum distributions (RMDs.) Eligible […]

Take-Away: The SECURE Act’s Proposed Regulations create a potential trap that require the inheritor of an IRA to monitor concurrent life expectancies. Background: The SECURE Act’s Proposed Regulations impose a complex requirement that forces a designated beneficiary to monitor the decedent’s phantom life expectancy and their own life expectancy when it comes to calculating required […]

Take-Away: The SECURE Act’s Proposed Regulations provide a safe harbor when a trust is named as a retirement account beneficiary and one beneficiary holds a power of appointment over the trust assets. Background: Earlier missives have summarized some of the key changes that appear in the SECURE Act’s Proposed Regulations, including the surprise that if […]

Take-Away: The President’s (or Treasury’s) 2023 Budget proposal contains a provision that would require trusts to annually file financial statements and possibly disclose the trust beneficiaries. Background: Recall that a year ago some Senators, including Bernie Sanders, proposed the Sensible Taxation and Equity (STEP) Act. The STEP Act included provisions that required annual reporting by […]

Take-Away: The SECURE Act’s Proposed Regulations provide a safe harbor when a trust is named as a retirement account beneficiary and one beneficiary holds a power of appointment over the trust assets. Background: Earlier missives have summarized some of the key changes that appear in the SECURE Act’s Proposed Regulations, including the surprise that if […]

Short-term (less than 3 years) Annual (2.37%), Semi- (2.36%), Quarterly (2.35%),  Monthly (2.35%) Mid-term (3 years up to 9 years) Annual (2.99%), Semi- (2.97%), Quarterly (2.96%), Monthly (2.95%) Long-term (9 years and more) Annual (3.22%), Semi- (3.19%), Quarterly (3.18%), Monthly (3.17%)  The IRC 7520 Rate used to value life estates and interests in CRTs, QPRTs, […]

Take-Away: Clients with foreign bank accounts need to be made aware of the civil penalties for not filing the annual FBAR form required under the Bank Secrecy Act. Some federal courts interpret the civil penalty for not filing the FBAR form very liberally, which results in the imposition of excessive civil penalties. Background:  The 1990 […]

Take-Away: Like last March, President Biden’s 2023 proposed Budget includes many tax increases. Given the state of gridlock in Washington these days, it is highly unlikely much (if anything) will come of these proposed tax changes, at least until after a new Congress is seated in 2023.   [Disclosure: I feel almost guilty clogging your […]

Take-Away: While the settlor’s spouse can hold several powers over a trust created for his/her benefit, holding too much power over the trust for his/her benefit, such as the power to remove and replace the trustee, can bring unexpected estate tax problems for the spouse. Background: Many trusts are created these days for the settlor’s […]

Take-Away: There is a pretty good chance that many of the provisions in HR 2954, aka the SECURE Act 2.0, will become law. The bill passed in the House of Representatives by a vote of 414 in favor and 5 against. Background: Unlike most of the proposed legislation that Congress squabbles over these days, there […]