Adler & Adler Blog

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…

Artists and collectors face unique estate planning considerations. Artists and collectors should keep a comprehensive inventory of their works with detailed information about each work. A useful inventory lists the name of each work and the date it was created and fixed in a tangible medium. The medium, the dimensions, and any historical information should…

Usually, when a taxpayer transfers assets to an irrevocable trust for the benefit of another person, the transferor pays gift tax on the full value of the property transferred to the trust. However, in some cases, the value of an interest in the trust that is retained by the transferor (the “grantor”) may be subtracted…

A charitable remainder trust is an irrevocable trust wherein the grantor/donor can effectively sell appreciated assets without immediate capital gains taxes, increase current cash flow, generate a current income tax charitable deduction, and ultimately reduce estate taxes. Typically, a charitable remainder trust provides that the non-charitable beneficiary (the grantor) receives payments, at least annually, during…

A qualified disclaimer is an irrevocable and unqualified refusal to accept an interest in property. Because the system of wealth transfer taxation in the United States (i.e., the federal estate, gift, and generation-skipping transfer tax) operates to impose a tax on the privilege of transferring property, the punch-line about disclaimers, for purposes of those wealth…

A durable power of attorney is a legal document that authorizes an individual to legally act on behalf of another individual. The individual granting the authority to someone else to act on their behalf is referred to as the principal, and the individual being given the authority is referred to as the agent. Executing a…