“Portability” is the ability of a surviving spouse to elect to add his or her predeceased spouse’s unused estate tax exemption to their own estate tax exemption. For many clients, adoption of portability in 2010 (and making portability permanent in 2012) meant that complicated estate plans could be greatly simplified. Prior to portability, any unused…
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In a previous article, we discussed the basics of Spousal Lifetime Access Trusts (“SLATs”).[1] Generally, SLATs are irrevocable trusts established by one spouse during such spouse’s lifetime with the other spouse being a beneficiary of the trust. Often both spouses will establish a SLAT, but they must be carefully structured and administered to prevent application…
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***This article is a follow-up to a prior article from 2019 which can be found here. Life insurance is a great tool that can serve a variety of purposes. Most often, it is thought of as an income replacement/hedge against premature death to provide for one’s family, and it is certainly a great tool to…
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Spousal Lifetime Access Trusts (“SLATs”) are one of the many estate planning tools available to taxpayers, and have seen a surge in popularity recently, such that they are one of the most used options for utilizing taxpayers’ federal lifetime gift and estate tax exclusion (“Exclusion”) during life. Each taxpayer’s Exclusion amount, or the amount which…
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In yet another set of headlines involving a conservatorship, Hank Williams, Jr.’s son, Sam Williams, has posted on social media that his family has placed him in a conservatorship, starting in August 2020, which he wants to end.[1] Apparently, this conservatorship was opened to protect Sam while grieving after the death of Sam’s sister in…
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On February 2, 2022, the Tax Court issued a memorandum opinion in the case of John M. Larson (“Larson”).[1] This case involves a dispute going back more than 20 years. Mr. Larson was an attorney and CPA. He and two other men, Robert A. Plaff and David Amir Makov, promoted a fraudulent tax shelter transaction…
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Since we’re the cool, diamond-handed, trendy-loving, FUD(fear, uncertainty, and doubt)-crushing, FOMO(fear of missing out)-haters and at the same time professionals, now seems just as good of time as ever to discuss what we are doing at our firm to familiarize ourselves and become more competent in the ever-growing and evolving world of magic internet money,…
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A recent Tax Court opinion[1] highlights one of the risks of serving as executor or administrator of an estate, potential liability for a decedent’s tax obligations. The case involves application of the federal priority statute[2] applicable to fiduciaries.[3] That statute provides, in relevant part, that “a representative of a person or an estate (except a…
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