Tax tacks: this year's estate plan check-up

Article Abstract:

IRS rulings and tax cases on trust, estate tax, minority discount and generation-skipping transfer tax issues in 1995 should be incorporated into practitioners' reviews of estate plans in 1996. Two cases were decided in favor of the taxpayer regarding discounts on close corporation stock for lack of marketability and lack of control. An IRS ruling affirmed the nonrecognition of gain for assets repurchased from a grantor trust. Anticipated legislative changes include increased exemptions under the estate, gift and generation-skipping transfer tax schemes.

Analysis, Transfer taxes, Trusts and trustees, Trustees, Trusts (Law), Marital deduction

---

1998 estate plan check-up

Article Abstract:

Legislative, judicial, and administrative changes in tax law in 1997 create a need for estate planners to review estate plans with their clients in 1998. The Taxpayer Relief Act of 1997 made several important changes including those to the unified credit and charitable remainder trusts and added an exclusion for family-owned businesses. IRS action in the areas of family limited partnerships, Crummey powers, and net income makeup charitable remainder trusts (NIMCRUTs) may affect estate plans, as well as the US Supreme Court's decision in Estate of Hubert.

Evaluation

---

The estate tax family-owned business exclusion: will the complexity outweigh the benefits?

Article Abstract:

IRC section 2033A, created by the Taxpayer Relief Act of 1997, contains an estate tax exclusion for estates which are constituted primarily by family-owned businesses. The benefit of the exclusion is tenuous because the eligibility requirements and recapture rules are complex and burdensome. Additionally, the exclusion is effectively phased out over a ten year period concomitantly with the phase in of the unified credit until it becomes only a $300,000 exclusion. Time will tell if the benefits to family-owned businesses are worth the efforts.

Estate tax, Estate taxes, Tax exclusion

Similar abstracts:

• Abstracts: Back to the Code: a reexamination of the continuity doctrines and other current issues in reorganizations. Emerging doctrines in the tax treatment of environmental cleanup costs
• Abstracts: Insiders staying put. Time to gauge the January barometer effect. Tax-loss selling candidates and insiders
• Abstracts: Not gambling, just hedging your bets. Why the Footsie's party might not be over. Pacific Basin: Basin bets
• Abstracts: Rescue on hold. The discreet charms of private banking. Modest beginnings but growing all the time
• Abstracts: The gilts market after Mr Clarke. UK economy: a Clarke boomlet. Britain moves into a money muddle

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.