Residence GRITs still offer estate tax savings

Article Abstract:

Qualified personal residence trusts (residence GRITs) can provide significant estate tax savings. Residence GRITs allow a residence to be transferred to a trust, while permitting the retention of the right of use for a fixed period of years. The use of a residence GRIT permits a grantor's heirs to take possession of the residence at a deep discount, thereby providing significant savings in gift taxes. A residence GRIT is typically used only when a grantor intends to use a residence for a considerable period of time in the future. A residence GRIT may also be retained when a residence is sold, provided that the proceeds of the sale are used to reinvest in a new residence.

Analysis, Usage, Housing, Dwellings, Transfer taxes, Grantor trusts, Gift tax

---

Immediate action needed to prevent unwanted distributions from qualified plans in 1987

Article Abstract:

The government has issued proposed regulations on minimum distributions from qualified pension plans. Failure to follow these rules may result in a plan being disqualified. The new regulations clarify planning possibilities that had previously been in doubt. The proposed regulations cover distribution starting dates, lifetime distributions, distributions of incidental benefits, distributions following death, the tax consequences of naming a trust as the beneficiary of a pension, and the transition rules. Under the transition rules, in some cases, deferred payments for as many as three years must be made by the end of 1987.

Laws, regulations and rules, Tax accounting, Compensation management

---

Post-mortem transfers of pension plans offer opportunities

Article Abstract:

Practitioners need to consider a variety of issues in planning for clients who wish to ensure that their designated beneficiaries receive advantageous tax treatment on post-mortem pension plan distributions and transfers. The principal objective in such cases should be to allow all benefits accruing to designated beneficiaries to grow tax-free even after the death of a client. Issues that must be considered include the qualification of designated beneficiaries and the timing of payments to ensure compliance with minimum distrubution regulations.

Pension, health, and welfare funds, Methods, Estate planning

Similar abstracts:

• Abstracts: Revisions to simplified employee pension plans increase their usefulness. Receipt of partnership interest for services not always subject to immediate tax
• Abstracts: Concentration and competition in banking. Meeting the needs of multinational corporations
• Abstracts: Choice or change of taxable year still offers opportunities for tax savings. part 2 IRS provides annual update of procedures for obtaining a letter ruling
• Abstracts: Institutional investors: here today, gone tomorrow? Foreign exchange transactions: maintaining internal control
• Abstracts: Pay for it with the pension plan. Take stock of your tax burden. Pension mortgages

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