Category: Estate & Gift Tax
Harris Plans to Dramatically Increase Estate Taxes
Vice President Kamala Harris announced her endorsement of the estate tax provisions contained in the American Housing and Economic Mobility Act of 2024 (the “Act”). Many of these provisions are changes that President Biden wanted to make in 2020 but was not successful. Note that the Harris provisions are independent…
IRS ISSUES CONSEQUENTIAL RULING ON TRUST MODIFICATIONS
Chief Counsel Advice (“CCA”) 202352018, an internal legal advice memo from the IRS National Office to field agents, released December 29, 2023, addressed the gift tax consequences to the beneficiaries of modifying an irrevocable trust that is a “grantor trust” under the tax code provisions of Internal Revenue Code (“I.R.C.”…
U.S. Supreme Court Agrees to Decide Valuation Dispute Involving “Buy-Sell” Agreements
Shareholder “Buy-Sell” Agreements (or similar terms contained in the Operating Agreement of an LLC or Partnership Agreement) are a common key element of the business plan for owners of closely held entities. These agreements generally restrict transfer of interest outside of a close group and are often used as part…
The Use of Irrevocable Trusts in Long-Term Care Planning
The Use of Irrevocable Trusts in Long-Term Care Planning In Revenue Ruling 2023-2 the IRS has ruled that assets held in a trust that is a “grantor trust” (a trust that is treated for income tax purposes as the alter ego of the grantor to the trust because of the…
IRS proposes new “clawback” regulations
There is a computational quirk (that tax lawyers call “clawback”) in the manner in which the federal estate tax is calculated. What is “clawback” of estate tax? Because the estate tax and the gift tax are accumulated into a single “transfer” tax, a problem occurs when the lifetime exclusion from…