Tax apportionment and the pour-over will

Article Abstract:

The US District Court in Kansas ruled in Leavenworth National Bank & Trust Co. that the decedent had intended to have estate taxes charged against the estate in general and not only against the family trust that was to receive the portion of revocable trust assets not received by the spouse. The case demonstrates the importance of properly coordinating the language in wills, trusts and related instruments. The estate was forced to pay the estate taxes before distribution to the spouse and the family trust.

Distribution of decedents' estates, Wills

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IRS loosens rules on gifts from revocable trusts

Article Abstract:

The IRS has announced that it will stop arguing that gratuitous distributions from a revocable trust are a withdrawal followed by a gift. The IRS has argued that these transfers should be included in the gross estate of the decedent grantor. The exclusion of gifts is consistent with the US Court of Appeals for the Eighth Circuit's decision in Kisling, Jr. Better drafting of the revocable trust can ensure that gifts are consistent with the intent of the grantor.

Distribution, Trusts and trustees, Trustees, Trusts (Law)

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The joys of a taxable CRT

Article Abstract:

Financial planners should pay special attention to the investments made for charitable remainder trusts. These trusts are popular because they combine charitable tax deductions with a unitrust or annuity interest, while avoiding capital gains in converting assets. Differing investment strategies create both desirable and undesirable trust income and capital gains tax consequences for these usually tax-exempt trusts.

Taxation, Charitable remainder trusts

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