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……
Tag: Estate & Gift
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……
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……
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……
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……