Fees paid by trust for investment advice not subject to 2% floor on deductions, rules CA-6
Article Abstract:
The Sixth Circuit held in O'Neill, Jr Irrevocable Trust that the IRC section 67(a) limit on itemized deductions to 2% of adjusted gross income did not apply to expenses generated by the administration of a trust or estate. This ruling will help administrators, especially when the fees are substantial but still do not exceed the 2% limit. Section 67(a) contains an exemption from the limit for expenses that would not have been accrued if not for the property being in a trust and the Court held that an individual would have been willing to risk investing without advice whereas a trustee could not.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1993
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Special-use valuation denied by Fifth Circuit due to lack of substantial compliance
Article Abstract:
The Fifth Circuit ruled in Estate of Hudgins that an estate's failure to comply with special-use valuation guidelines due to an improperly filed election could not be remedied through later efforts to protect the election. Specifically, in the original election, the estate did not include any single legally binding document signed by all parties. This illustrates the cumbersome process of filing fro a special-use valuation.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1995
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