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Howard and Glosier Accepted into STEP

February 7, 2018

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Associates, Brent Howard, Atlanta,  and Linsey Glosier, Denver/St.Louis, were accepted into the Society of Trust and Estate Practitioners (STEP). STEP is a global professional association for practitioners who specialize in family inheritance and succession planning.

When Military Wills Do Not Contemplate Future-Born Children

February 7, 2018

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Estate planning probably isn’t high on the priority list for many 20-year-olds, even if they are 20-year-olds serving in uniform.  While the Armed Forces may make it easy for those serving our country to get a will, these testators may need to be reminded to update those wills they executed as certain life events occur, like getting married or having children.  So it was in Hobbs v. Winfield, where the Georgia Supreme Court determined that the military will executed by a 20-year-old did not contemplate the birth of future children and, therefore, the birth of those children revoked his will.

At 20-years-old, while serving in the military, the testator executed a will.  The will named the testator’s mother as his sole beneficiary and personal representative, and, if his mother predeceased him, his ‘grandmother’ was the successor beneficiary and personal representative.  The testator then had the first

The Effect of Tax Changes On Transfers from IRAs to Charity

The Tax Cuts and Jobs Act of 2017 (TCJA) eliminated all miscellaneous itemized deductions that are subject to the 2% floor, capped state and local taxes deduction at $10,000, and doubled the standard deduction for single persons to $12,000 and married couples to $24,000.  As a result of this triumvirate of changes, the individual taxpayer who is over age 70½ is now faced with new computation to make to determine how best to report deductions on the Form 1040 beginning this year and a new opportunity, if managed correctly, to maximize deductions and minimize taxable income.

 

IRC § 408(d)(8) permits anyone who is over age 70½ to transfer up to $100,000 per year from his/her IRA directly to public charities without reflecting the distribution in taxable income on the taxpayer’s Form 1040.  This technique allows the IRA owner to satisfy the taxpayer’s charitable giving and his/her Required Minimum Distribution

NEW TAX CHANGES – WHAT YOU NEED TO KNOW

Today, Congress passed a sweeping tax bill, as widely expected over the last few weeks. The bill passed solely along party lines, with no Democrats voting for the bill.  President Trump is expected to sign the bill into law, shortly.

The changes in the transfer tax laws made by this bill are as follows:

  • The gift and estate tax exemption is doubled beginning January 1, 2018, from $5,000,000 per person to $10,000,000, indexed for inflation.  For 2018, this equals $11,200,000 for individuals and $22,400,000 for married couples. The increase applies to the generation-skipping transfer tax exemption, as well
  • The foregoing increase of the gift, estate, and GST exemptions is set to expire in 2026, when the exemptions would revert to $5,000,000/$10,000,000 figures, adjusted for inflation.  This raises the question of whether, upon such expiration, there could be a so-called claw-back/penalty on any gifts made prior to 2026 which exceeded

More Scrutiny of Donor Advised Funds

More Scrutiny of Donor Advised Funds

December 8, 2017

Authored by: Keith Kehrer

Notice 2017-73, released on December 4, 2017, describes potential approaches that may be taken to address issues raised regarding the use of donor advised funds (“DAF”). The Treasury and IRS are considering developing proposed regulations under § 4967 of the Internal Revenue Code (Code) that would, if finalized, provide that: (1) certain distributions from a DAF that pay for the purchase of tickets that enable a donor, donor advisor, or related person to attend or participate in a charity-sponsored event result in a more than incidental benefit to such person under § 4967; and (2) certain distributions from a DAF that the distributee charity treats as fulfilling a pledge made by a donor, donor advisor, or related person, do not result in a more than incidental benefit under § 4967 if certain requirements are met. In addition, the Treasury Department and the IRS are considering developing proposed regulations that would

Summary of Income, Business, and International Provisions in New Tax Bill

November 3, 2017

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Our colleagues in our Tax Advice and Controversy group have also summarized the proposed changes to individual, business, and international taxes in the new bill released on November 2 by the House Ways and Means Committee.

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