Tag: Estate & Gift

Can the IRS Ignore Your Request for an Estate Tax Valuation Explanation?

When a family member dies and leaves behind interests in a closely held business, the estate has to figure out what those interests are worth. This is rarely straightforward. There is no ticker symbol, no public market, no closing price to look up. The estate hires an appraiser, applies valuation methodologies, and reports a number… Continue reading Can the IRS Ignore Your Request for an Estate Tax Valuation Explanation?

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April 26, 2026
Gift Tax Triggered for Termination of Trust After Death

When someone sets up their estate plan, one would hope that the probate process would result in the terms of the estate plan being carried out. State law often allows beneficiaries and heirs to change the terms of someone’s estate plan after they die. For example, in Texas, beneficiaries can usually agree to override the… Continue reading Gift Tax Triggered for Termination of Trust After Death

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September 22, 2024
Navigating Late GST Tax Elections: Maximizing Exemptions for Trusts

Those who create or come into significant wealth often face difficult decisions about what to do with it. What is one to do with excess wealth—the wealth that will have no material impact on the owner’s life? The most common solution is to simply do nothing and let the estate tax take about half of… Continue reading Navigating Late GST Tax Elections: Maximizing Exemptions for Trusts

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June 23, 2024
Buy-Sell Agreements & Perils of the Estate Tax

Taxes punish success. They are a consequence of hard work or, in some cases, ingenuity. Even seemingly common business transactions can trigger this type of punishment, and the consequences can be sizeable. This is especially true when it comes to the Federal estate tax. The tax itself can amount to 40% of the value of… Continue reading Buy-Sell Agreements & Perils of the Estate Tax

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June 10, 2023
Gift Tax Return for Wrong Year Starts IRS Statute of Limitations

The IRS receives a vast amount of information, which can make it challenging for them to act on all the information they possess. However, taxpayers have the ability to alert the IRS to potential tax issues and wait for the IRS’s response. The IRS generally cannot ignore information it has received. For example, in the… Continue reading Gift Tax Return for Wrong Year Starts IRS Statute of Limitations

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May 28, 2023
Court Recasts Gift of LLC Interests

Real estate has been a great investment. In addition to the potential for appreciation of the property, it may also have the added benefit of producing rental or other income. Real estate can also have income tax advantages. This can help reduce one’s income tax liability during their peak earning years. Many taxpayers buy real… Continue reading Court Recasts Gift of LLC Interests

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November 14, 2021