This past weekend I spent some time looking at a client’s proposed transfer of a real estate partnership interest into a Charitable Remainder Annuity Trust (CRAT), year-end tax planning strategy. A contemplated gift to charity at this time of the year often takes on a priority  for income tax minimization purposes. Moreover, a gift to […]

One thing I learned over the years practicing law is that few clients ever understood life insurance, or more accurately the tax implications of borrowing against their life insurance policy and never repaying their loan. The Tax Court provided a not-so-surprising decision this past summer that is a helpful reminder that borrowing against the cash […]

As I recently reported, last month the IRS actually showed that it had a heart when it issued Revenue Procedure 2016-47. It provides relief for plan participants and IRA owners who blow the 60 day IRA rollover period. A plan participant or an IRA owner can pull money from their qualified plan account or their […]

Last month the IRS surprised us with a gift when it published Rev. Proc. 2016-42. This is welcome news for older clients who want to adopt a charitable remainder annuity trust (CRAT). It is also good news  for those tax exempt entities that rely on CRATs for part of their planned giving campaigns. The surprise […]

I had a brief discussion this morning about disclaimers with regard to a trust that she is currently administering and how disclaimer planning is becoming  more prevalent in estate plans these days. You will recall that a disclaimer is the exercise of a right to reject a gift or inheritance [e.g. bequest, interest in a […]

I read an article over the weekend that surprised me as to the impact of naming a noncitizen or a U.S. citizen- nonresident as a trust beneficiary. While the topic admittedly seems a bit off our normal beaten path, keep in mind that in the globalization of our world, the chances of a family member […]

On August 2nd,  the IRS published its long awaited proposed IRC 2704 Regulations. These proposed rules would make sweeping changes to valuation discounts perhaps almost completely eliminating lack of control discounts with regard to the transfer of an interest in a family owned entity. The IRS has asked for public comment and has scheduled December […]

Facts: Assume that Greenleaf Trust agrees to serve as the trustee of an irrevocable trust instrument which contains the appointment/acceptance of a trust protector. One of the powers that is expressly conferred on the trust protector under the trust instrument is the ability to ‘remove the trustee with or without cause.’ Rhetorical Question: If Greenleaf […]

I ran across an unpublished Michigan Court of Appeals decision that reaffirmed my fears that adult children often cannot be trusted to carry out their parents’ testamentary wishes when they are named as co-trustees. Trupp v. Naughton, No. 320843, May 26, 2015. [Let me know if you want to read the decision and I will […]

Estate planners often use the gift of S corporation stock to improve retirement income as part of a much broader business succession plan. Frequently included in such planning is the gift of S corporation stock to charities. But some gift strategies work much better than others. Outright Gift of Stock to Charity: While a donor […]