Adler & Adler Blog

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…

In New York State, the Surrogate’s Court decides what happens to a person’s property when that person dies. The Judge in Surrogate’s Court is called the Surrogate. The person who died is called the Decedent. That person’s property is called the estate. When a person dies and leaves a Will then they died testate. If…

The spousal right of election must be made within 6 months from the date of the issuance of letters testamentary. New York Estates Powers and Trust Law (EPTL) Section 5-1.1-A provides a right of election for the surviving spouse to take a share of his or her spouse’s estate, no matter what the will provides.…

You may have read or heard news about two bills recently introduced in the Senate that, if enacted, could have a significant impact on many estate plans. I am writing to you, as a valued allied professional, to provide you with some additional information on these proposals, and the effect they may have on estate…

It has been this authors experience that the engagement agreements of many divorce attorneys specifically disclaim the divorce attorney’s responsibility for any tax or estate planning issues involved in the divorce settlement. When divorce occurs, there are important tax law and estate planning issues that need to be addressed. — especially by high net worth…

ABATEMENT Cutting back certain gifts under a will when it’s necessary to meet expenses, pay taxes, satisfy debts or take care of other bequests that are given priority under law or under the will. ADEMPTION The failure of a testamentary gift of real or personal property due to the absence of the item given in…

Internal Revenue Code §72 governs the income taxation of annuity contracts. This post deals with the estate taxation of annuities. Internal Revenue Code §2039 deals with traditional annuity contracts as well as other types of contractual arrangements under which a decedent was entitled to receive a periodic payment, effectively for life, and upon decedent’s death…

Internal Revenue Code (I.R.C.) Section 2037 requires the inclusion in the gross estate of property which had been transferred by gift during lifetime if — (1) possession or enjoyment of the property by the transferee can be obtained only at or after the transferor’s death, or (2) the decedent retained a possibility (referred to as…

A power of appointment is essentially the right to designate who is to own certain specified property. The essence of the concept can be illustrated through the following simple example: D dies and his will provides that certain rental property which he owned be placed in a trust, from which all future income is to…