Tax apportionment clauses that carry out a client's intent
Article Abstract:
Estate taxes can eat up a large part of an estate, and deciding how they should be paid is crucial to an accurate estate plan. The probate attorney must find out all available facts regarding the client's property and family . The next step is to review the pertinent law with the client. This includes both federal and state apportionment law and tax reduction planning. The estate planner must then determine the client's intent and come up with the best plan for carrying it out. Tax provisions in the plan should be as specific as possible since the applicable law may change.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1992
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Deferring estate tax is not always a beneficial move
Article Abstract:
Many executors have sought time extensions for paying estate taxes so as not to have to sell assets at prices reduced due to the recession. The disadvantage of this practice is the interest obligation, which may not be possible for some smaller estates to pay. Extensions granted pursuant to IRC 6163 and 6166 may not be practicable due to the limited or nonexistent ability to defer interest. Extensions for 'reasonable cause' pursuant to IRC 6161 may be a better idea because of the longer extension possible, but the inability to defer interest also applies here.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1993
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Deferred comp. package affected by estate plans
Article Abstract:
A well executed nonqualified deferred compensation plan can bring about considerable estate and income tax savings. For estate tax purposes, such plans must be structured as death benefit plans so that they can avoid IRC 2039 and inclusion in the decedent's estate for estate tax purposes. Inclusion in the estate depends on whether money was payable to the decedent at the time of death. Thus, a death benefit plan must specify that payment can only be made to persons other than the decedent.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1992
User Contributions:
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