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 […]

Take-Away: Earlier today a summary was provided of some of the key provisions that are part of the SECURE Act 2.0 that was passed by the House of Representatives this week. [HR 2954.] A few more changes in have surfaced as I leaf through the legislation, summaries of which follow: IRA Prohibited Transactions Less Onerous: […]

Take-Away: On March 25, 2022, the House passed HR 2954, the so-called SECURE Act 2.0. This bill proposes many additional changes to existing rules that are intended to encourage retirement savings. The bill also purports to simplify and clarify retirement plan requirements (ha!) A summary of some of the changes in HR 2954 follow. Required […]

Take-Away: If a trust instrument is drafted that gives a trust protector extraordinary powers, such as the power to consent to the trustee’s exercise of discretion, it is critical that the same trust instrument include an alternate dispute mechanism in order to avoid an impasse between the two fiduciaries. Otherwise, there will probably be a […]