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Fleeing New York for a Tax Home in Florida

Fleeing New York for a Tax Home in Florida

January 8, 2020

Authored by: Stacie J. Rottenstreich and Karin Barkhorn

As we deal with the first snowfall of the season in New York, many New Yorkers may think about picking up and moving to Florida to avoid the cold winter.  Many New Yorkers also think about making Florida their tax home, to take advantage of the favorable estate and income tax laws there.  Florida has no personal income tax and no state estate tax, whereas New York currently has an income tax rate as high as 8.82% and estate taxes on estates over $5,850,000.00 at a rate as high as 16%.  President Trump has recently publicized his decision to make such a move.  But the switch to make Florida one’s legal domicile for tax purposes is not as easy as one might think.

For income tax purposes, if you start off as a New Yorker and file New York state resident income tax

BCLP Senior Counsel Lawrence Brody in December 2019/ January 2020 STEP Journal

Lawrence Brody authored an article in the December 2019/ January 2020 STEP Journal titled US Taxation of Death Benefits.  This article discusses the US income taxation of life insurance death benefits, particularly the exceptions to the general rule that proceeds paid by reason of the death of insured are not included as a part of the beneficiary’s taxable income. The complete article can be accessed by STEP members here.

BCLP Partner Stephanie Moll in November STEP Journal

December 19, 2019


Stephanie Moll was quoted in the November issue of the STEP Journal article, “All to Play For.” This article discusses potential changes in trust and estate law and taxation as the United States and Canada move into an election year. In particular, Moll discusses current issues faced by US taxpayers with foreign bank accounts as a result of certain reporting requirements. The complete article can be found here.

RIP Stretch Inherited IRA?

October 24, 2019


RIP Stretch Inherited IRA?

October 24, 2019

Authored by: Kathy Sherby

While the Setting Every Community Up for Retirement Enhancement Act of 2019 (the “SECURE Act”) has not yet been enacted, there are many who anticipate that it will be enacted by year end, primarily because it passed the House 413 to 3 and was on the fast track in the Senate to enactment until Senator Ted Cruz took it off the consent calendar (purportedly because it did not contain the prior version’s provision that would have authorized the use of 529 accounts for home schooling and not because he disagreed with the contents of the SECURE ACT remaining).  In addition, as pointed out in an October 15, 2019 letter from 7 Senators to Mitch McConnell, there are provisions in this Act that would “expand access to retirement plans for millions of Americans.”  Most of the provisions of the SECURE ACT do not have a direct impact on estate planning.  However

Thomson Reuters Checkpoint Calculates Projected Inflation-Adjusted Figures for Estate and Gift Taxes for 2020

September 17, 2019


Based on the inflation measure provided by the Tax Cuts and Jobs Act and Consumer Price Index for the 12-month period ending August 31, 2019, Thompson Reuters Checkpoint has released their projected inflation-adjusted Estate, Gift, GST tax, and other exclusion amounts for 2020, as follows:

The unified estate and gift tax exclusion amount (gift and estate tax exemptions) for gifts made and decedents dying in 2020 will be $11,580,000 (up from $11,400,000 in 2019).

The generation-skipping transfer (GST) tax exemption for transfers made in 2020 will be $11,580,000 (up from $11,400,000 in 2019).

The gift tax annual exclusion amount for gifts made in 2020 will be $15,000 (the same amount as for gifts made in 2019 and 2018).

The annual exclusion for gifts to noncitizen spouses in 2020 will be $157,000 (up from $155,000 in 2019).

The special use valuation reduction limit for estate of decedents dying in 2020 will

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