Fans of Young Frankenstein, Blazing Saddles, The Producers, and Willy Wonka were saddened by the death of Gene Wilder. Unlike others who die from Alzheimer’s disease, the comedian’s death was attributable entirely to this deadly disease. The fact is that Alzheimer’s disease is the real cause of death of millions of people, causing a slow death of the brain until the body succumbs, most often to contributing conditions such as pneumonia, sepsis, kidney failure or heart disease. Wilder’s family … [Read more...] about Alzheimer’s Disease Claims the Life of Actor, Comedian and Philanthropist Gene Wilder
IRS Issues Proposed Regulations Affecting Advanced Estate Planning – Clients Should Act Now!
Section 2704 of the Internal Revenue Code was enacted to limit the discounts available to certain transfers of limited partnership or limited liability company ownership interests among family members. Section 2704(a) deals with lapsing rights. An example of a lapsing right might be an LLC in which the parents own the voting shares and the children own non-voting shares. There is a provision that upon death the voting shares become non-voting shares. Should the shares be valued as voting shares … [Read more...] about IRS Issues Proposed Regulations Affecting Advanced Estate Planning – Clients Should Act Now!
Protect Against Creditor Claims – Even Tax Liens
In U.S. v. Adent, 117 AFTR 2d 2016-1505 (7th Cir. 5/10/16), Leonard and Joyce Advent owned a commercial property as joint tenants with their son, Derek. Leonard and Joyce owed tax to the federal government. The Internal Revenue Service placed a lien on the property for the amount owed by Leonard and Joyce. The IRS then sought to foreclose and force a sale of the property and Leonard and Joyce objected to the sale, claiming it would prejudice Derek who was not a party to the tax liability owed … [Read more...] about Protect Against Creditor Claims – Even Tax Liens
Electing Portability Treatment
Electing Portability Treatment Every person is entitled to give away a certain amount of money tax-free, either during life or at death. The amount has varied over the years due to acts of Congress, inflation adjustments, or both. In 2000, the amount that could be given estate and gift tax-free was $600,000. Congress then passed a law that increased the amount over the next decade to as high as $3.5 million per taxpayer. In 2010, the estate tax was eliminated, but it reappeared in 2011 with a $5 … [Read more...] about Electing Portability Treatment
Fixing David Bowie’s Will
Fixing David Bowie’s Will David Bowie died on January 10, 2016, just two days after the release of his final album, Blackstar. The last song on the album, “I Can’t Give Everything Away,” seems prophetic both in its title and its initial verse. “I know something is very wrong.” News stories estimate Bowie’s estate at $100 million. His legal name is David Robert Jones. He was a citizen of the United Kingdom and a resident of the United States (New York City). He left a Will dated August 25, 2004, … [Read more...] about Fixing David Bowie’s Will
Courts Disagree on Intent of Marie Callender Heir
Courts Disagree on Intent of Marie Callender Heir Donald W. Callender was heir to the royalties from the Marie Callender restaurant chain. Donald passed away in 2009, leaving his wife, Catherine T. Callender (“Katy”), and his children, Cathleen Callender (“Cathe”) and Donald Lucky Callender (“Lucky”). Cathe is Donald’s daughter by his first marriage and Lucky is his son by his marriage to Katy. Donald’s estate was valued at approximately $143 million, with the largest percentage of the value … [Read more...] about Courts Disagree on Intent of Marie Callender Heir
New Basis Reporting Requirements
New Basis Reporting Requirements The IRS has long held that some taxpayers were cheating the system, claiming a low value for an asset on the estate tax return, while claiming a higher value for purposes of establishing basis for the asset when it is later sold (and thereby reducing any gain that must be reported for income tax purposes). The IRS has now enlisted the assistance of executors and trustees in ferreting out the income tax basis for beneficiaries of inherited assets from trusts and … [Read more...] about New Basis Reporting Requirements
Will Invalid Due to Undue Influence
Will Invalid Due to Undue Influence Eva Johanna Rova Barnes (“Eva”) was born on July 17, 1916. She grew up on a parcel of land that was homesteaded by her parents. The property included a residence, where Eva lived alone after the death of her husband and daughter. The parcel of land also included a residential rental property that was owned one-half by Eva and one-half by relatives (“The Rovas”) and farmland. Michelle Wells (“Michelle”) was a rural mail carrier who befriended Eva. After Eva … [Read more...] about Will Invalid Due to Undue Influence
Celebrities Can Set A Good Example
Celebrities Can Set A Good Example NOTE: The IRS has announced its gift and estate tax limits for 2016. The lifetime gift and estate tax exclusion amount is $5,450,000, up from $5,430,000 in 2015. This means a married couple can pass as much as $10,900,000 during life or at death with proper planning. The annual gift tax exclusion amount remains at $14,000. Now on to the main topic of our eAlert. Antoine de Saint-Exupéry said: “As for the future, your task is not to foresee it, but to enable … [Read more...] about Celebrities Can Set A Good Example
New Year’s Resolution Checklist
New Year’s Resolution Checklist Make a New Year’s resolution to review your finances to assure your estate plan is in good shape. 1. Beneficiary Designations. Make sure the beneficiary designations of IRAs, 401-Ks, and life insurance policies are up-to-date and coordinated with the estate plan. Often, when a spouse dies, the beneficiary designations for the surviving spouse are not updated and there is no contingent beneficiary – leaving the assets payable to the estate of the surviving … [Read more...] about New Year’s Resolution Checklist
