Take-Away: Lifetime transfers that are includible in the transferor’s taxable estate at death will not be protected from the fear of double taxation, such as GRATs and QPRTs.   Background: We have dealt with this topic before (sadly). The 2017 Tax Act increased a transferor’s basic exclusion amount (BEA) that is sheltered from federal transfer […]

Take-Away: The recent Proposed Regulations identify situations where the use of a donor’s large applicable exemption amount may create estate tax problems in the future at the time of the donor’s death. Background:  After the 2017 Tax Act and its Final Regulations, we all assumed that gifts that were made while the applicable exemption amount […]

Take-Away: With rampant inflation, some predict an 8.9% increase in Social Security retirement benefits for 2023. Background: The Social Security retirement benefits are adjusted annually,  calculated on the Consumer Price Index for Urban Wage Earners and Clerical Workers, or the CPI-W Index. In 2022 the increase was 5.9%. Currently, the Index has increased 9.4% over […]

Take-Away: Charitable giving a major part of the American culture. The culture of giving has pretty much remained static over the last half century. However, it is the form of philanthropy which has greatly changed. Background: The Urban Institute’s Centers on Nonprofits and Philanthropy released in mid-April its Giving Dashboard that provides an interesting overview […]

Take-Away: When rolling over funds from an IRA to an IRA, the same property must be used in the 60-day rollover transfer. Background: For an IRA to an IRA 60-day rollover transfer, or a Roth IRA to Roth IRA 60-day rollover transfer, the same property  that is received must be the same property that is […]

Take-Away: The still working exception to the required beginning date (RBD) for required minimum distributions (RMDs) is a great way to delay having to take taxable RMDs. A problem surfaces, though, if a rollover occurs early in the calendar year and the still working plan participant retires or is laid-off later in the same year, […]

Take-Away: A bill has been filed in Congress, with bipartisan support that would renew some benefits to an investment in a Qualified Opportunity Fund, but it would also increase the reporting requirements with such investments, with corresponding penalties for the failure to report with respect to the Fund. Background: The 2017 Tax Act adopted incentives […]

Take-Away: We have yet another favorable IRS Private Letter Ruling that authorizes a surviving spouse to move a deceased’s spouse’s IRA assets to her own IRA and escape immediate income taxation and accelerated required minimum distributions. Background: Generally if a decedent’s IRA proceeds pass through a 3rd party, like a probate estate, and then are […]

Take-Away: A bill has been filed in the House of Representatives that would permit individuals who receive Medicare benefits to contribute to a health savings account (HSA.) Quick Summary: Representative Ami Bera (D-California) has filed a bill called the “Health Savings for Seniors Act” that would amend the Internal Revenue Code [IRC 223(c)(2)(A)] to provide […]

Take-Away: The SECURE Act’s Proposed Regulations contemplate the flexibility to make changes to an irrevocable trust instrument after an IRA owner’s death in order to optimize required minimum distribution planning (RMDs) to the trust. How that flexibility is implement is the challenge. Background: The SECURE Act Proposed Regulations provide new guidance on how an irrevocable […]