Articles Posted in Estate Planning

Ownership of real estate is determined by how title is held. Different kinds of ownership interests: Tenants in Common Tenants in common is when two or more people own real estate together. Tenancy in common can have equal ownership or they can each own in different percentages. Tenants in common can obtain the property together,…

The Internal Revenue Service has issured final regulations relating to the life expectancy and distribution period tables used to calculate required minimum distributions from IRAs, and qualified retirement plans. These regulations are of importance to plan participants, designated beneficiaries, and plan administrators of these qualified retirement plans, as well as owners, beneficiaries, trustees and custodians…

A key element of the unified estate and gift tax system is the unlimited marital deduction. The estate and gift tax structure permits essentially unlimited transferability of property between spouses (gifts during lifetime and transfers upon death) free of any tax. This policy is embodied in the gift tax marital deduction, and the estate tax…

Non-grantor trusts, are separate taxpaying entities. Income taxes generated by the trust are paid for by the trust. The trust must file fiduciary income tax return (Form 1041). In simple terms, if any portion of trust income is distributed to a beneficiary, the trust will take a deduction and the beneficiary will be responsible for…

For federal gift tax purposes, the value of a gift of property is the fair market value of the property at the time of the gift. Where property is transferred for less than full consideration, the amount by which the value of the property exceeds the value of the consideration is considered a gift and…

What is a trust? A trust exists when one person (the trustee) holds title to property for the benefit of another person (the beneficiary). A person called the grantor (also known as the settlor or trustor) creates the trust and transfers property in the trust. The grantor, trustee, and beneficiary can be different people. It…

For federal estate tax purposes, the terms “spouse,” “husband,” and “wife” includes individuals of the same sex who were lawfully married. However, the terms “spouse,” “husband,” and “wife” do not include individuals (whether of the opposite sex or the same sex) who have entered into a registered domestic partnership, civil union, or other similar formal…

The Federal Estate Tax is a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the time of your death. The total of all of these items, valued at their fair market value, is your “Gross Estate.” The property…

A United States citizen who inherits foreign real property from a nonresident alien receives a stepped-up basis in such property under section 1014 of the Internal Revenue Code (“Code”) even though the property is not includible in the value of the decedent’s gross estate. Section 1014(a)(1) of the Code states that the basis of property…

The New York Attorney General’s Charities Bureau protects the public interest in charitable gifts and bequests contained in wills and trust agreements. Which estates must register? Estates When a will makes a bequest to charity, the estate must register with the Attorney General. Are any charitable estates exempt from registration? Registration is not required if…