Are assets transferred by your parents into a trust for your benefit subject to your tax liabilities? In general, no, provided the trust has the proper spendthrift language. Longstanding common law has recognized spendthrift clauses in trusts which restrain voluntary alienation of trust assets, thereby preventing a beneficiary’s creditors from reaching trust assets to satisfy…
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The Ninth Circuit recently upheld a 2016 Tax Court case that the charitable deduction for estate taxes was limited to the post-death value of the property actually received by the charity rather than the value of such property that was included in the decedent’s gross estate. Following its decision in Ahmanson Foundation v. U.S., 674…
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The Mississippi House of Representatives is currently considering a pair of bills that could have a major impact on trust and estates in Mississippi. The bills, H.B. 1375 and H.B. 1425, are the product of a study committee formed by the Secretary of State and touch on a broad range of subjects, including non-probate transfers, transfer…
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Whenever I attend a large conference, I try to take some time afterwards to consider the most important takeaways. Having just returned from the 53rd Annual Heckerling Institute of Estate Planning which was held from January 14-19, 2019, I spent the last week reviewing the conference materials and my notes. From this, I have compiled…
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One of the more common engagements for our firm is to assist with business sales and acquisitions. This article is part of a series of articles which will walk through and discuss the steps typically associated with the sale of a business. This series of articles will discuss the process and means of selling a…
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Overview As of November 23, 2018, the Internal Revenue Service (“IRS”) published proposed regulations providing some valuable guidance with respect to the upcoming sunset of the increased estate and gift tax exemption in the Tax Cuts and Jobs Act (“TCJA”). With the TCJA, the estate tax exemption amount was increased from $5.49 Million to $11.18…
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Overview The Tax Court recently held that a partnership interest assigned to a revocable trust was not an assignee interest but rather was a limited partnership interest, and as result, the discounts for lack or marketability and lack of control were reduced and eliminated respectively. The Estate of Frank D. Streightoff (the “Estate”) argued that…
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In the wake of the Tax Cuts and Jobs Act, P.L. 115-97 (Dec. 22, 2018), estate planning has seen a return to its genesis. At its core, estate planning is about making sure assets pass to the right people, at the right time, and in the right manner. For most estates, the estate tax tail…
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