Dividing a closely held corporation when a couple divorce
Article Abstract:
The Tax Court and the US Court of Appeals for the Ninth Circuit have developed a split of authority on whether the redemption of close corporation stock pursuant to divorce proceedings is non-taxable under IRC section 1041. The Ninth Circuit ruled in Arnes that the wife's redemption was on behalf of the husband, making the transfer tax-free under section 1041. The Tax Court ruled in Blatt that section 1041 did not apply because the corporation was not acting on behalf of the husband and was not fulfilling any obligation or liability of the husband.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1996
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New types of joint bank accounts resolve many problems
Article Abstract:
The risks involved in using joint bank accounts as a component of estate planning can be minimized by the greater availability of new types of accounts that are better tailored to the needs of accountholders. The risks of joint accounts include access by the creditors of one of the accountholders and death beneficiary claim challenges. Conflicting state laws further complicate the tax and property law treatment of joint accounts. Alternative forms of multiple-party accounts should be offered and promoted by financial institutions.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1995
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New disclaimer regs. and other rules affecting jointly owned property
Article Abstract:
Federal gift, estate, and income tax laws taking effect after 1997 have changed the way jointly held property is acquired and disposed. More liberal regulations permit disclaiming a survivorship interest in joint property within the 9 months following one joint owner's death. Joint owners and their advisers should note the new regulations and proceed cautiously.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1998
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