Articles Posted in Estate Planning

The federal estate tax is based upon the decedent’s “gross estate.” While the term “gross estate” refers primarily to the property which the decedent owned as of the date of his death, it includes certain other property with which the decedent had a connection, as discussed in a series of blog posts (see links to…

A transfer to a surviving spouse who is not a U.S. citizen will not qualify for the marital deduction. An exception is made, allowing the marital deduction, in cases where the surviving spouse becomes a U.S. citizen between the date of decedent’s death and the day on which the estate tax return is file, if…

In general terms, Internal Revenue Code Section (“I.R.C. §”) 2036 requires the inclusion in the gross estate of property which the decedent, while living, had transferred as a gift (i.e., without adequate and full consideration in money or money’s worth), but in which he retained for himself a beneficial interest to last for the rest…

If one of the social purposes of taxing wealth per se is to prevent massive accumulations within families, this theoretically could be accomplished through a tax on net worth which could be imposed periodically, without regard to the death of the property owner or the passage of the property to others. However, the U.S. system…

Generally speaking a hardship distribution from a 401(k) can be made if there is an immediate and heavy financial need of the employee, the employee’s spouse, or the employee’s dependent. Whether a need is immediate and heavy depends on facts and circumstances. The law and Treasury Regulations provide that certain expenses are assumed to be…

In order to elect portability of the decedent’s unused exclusion amount (deceased spousal unused exclusion (DSUE) amount) for the benefit of the surviving spouse, the estate’s representative must file an estate tax return (Form 706) and the return must be filed timely. The due date of the estate tax return is nine months after the…

How can tax planners and their clients meaningfully plan for a tax that may or may not be in place, in presently definable form, in the year that an individual eventually dies? Planners are faced with a quandary of multiple potential tax scenarios. Now that the estate tax has become a political football, with diminished…

The insured buy-sell agreement is a good solution to the problem of close corporation management continuity. No other plan carries with it the same degree of assurance that the purposes of the plan will be achieved. The plan is simplicity itself. Under it, the stockholders enter into a binding buy-sell agreement among themselves. They contract…

A will is a legal document that sets forth your wishes regarding the distribution of your property and the care of your minor children after your death. If you’re like millions of Americans, a will is among the most important legal documents that you will ever sign. When you create a will, you will be…

A trust is a device for the management of property where one person, the grantor (sometimes called the settler, trustor or trust maker), transfers property to another person (or a bank or trust company), the trustee, for the benefit of the trust beneficiary. A trust exists when a grantor transfers the legal title to the…