Category: Estates & Trusts
New Rules Proposed for NJ Death Tax Escrows
The New Jersey Division of Taxation has proposed new rules for title insurance companies holding escrow amounts from real estate closings for the payment of transfer inheritance and/or estate taxes. New N.J.A.C.18:26-11.21 would require title companies to notify the Division in writing, within 10 days of receipt of the transfer…
Estate Planning and Circular 230
“Circular 230” is the body of federal government regulations which regulate individuals that “practice before” the Internal Revenue Service on tax matters. By now, many professionals have either adopted firm procedures for dealing with “Circular 230” or have begun to notice Circular 230 “disclaimers” plastered over letters, memos and even…
Many More Taxpayers Will Create Trusts Because of IRS Ruling
In Revenue Ruling 2004-64, the IRS settled a long-standing question about the gift and estate taxation of grantor trusts. As a result of this favorable ruling, many more advisers will recommend that clients place income-producing assets into irrevocable trusts in order to achieve estate tax benefits. A grantor trust is a trust…
What Every Pennsylvania Estate Planner Needs to Know about the New Jersey Estate Tax
In 2002, the Commonwealth of Pennsylvania, like the State of New Jersey, “decoupled” the state estate tax from the federal state death tax credit amount allowed by 2011 of the Internal Revenue Code. This may be where the similarity between the two states ends. After the Economic Growth Tax Relief…