When a decedent’s estate includes interests in a closely held business, and it is large enough to incur federal estate taxes, the executor has the option of deferring the tax and paying it off in installments. In theory, this avoids having to sell the business to pay the tax. Selling a closely held business for […]
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The Trouble With “Portability”
Frank died in 2012. His estate elected the deceased spousal unused estate tax exclusion (DSUE), in an amount of $1.2 million—or the “portable” estate tax exemption, as it is more commonly referred to by non-lawyers. An estate tax return was filed showing no estate tax due, and the IRS sent a closing letter to the […]
Read MoreReview Estate Plans in 2018
DEAR TRUST OFFICER: I heard that the exemption from the federal estate tax has doubled. What does this mean for my estate plans? — Following Up DEAR FOLLOWING UP: Whenever there is a major change in the federal taxation of estates and gifts, that moment is a good one for the review of estate plans […]
Read MoreTax reform and estate planning
The tax reform legislation signed by President Trump on December 22 last year included an important change for many wealthier families. As of January 1, 2018, the amount exempt from the federal estate and gift tax has doubled, to $10 million plus inflation adjustments since 2011 (so $11.2 million in 2018, still higher in the […]
Read MoreInherited IRAs
DEAR TRUST OFFICER: I’ve inherited a substantial IRA from my parent. What are my choices? Can I roll over the money into my own IRA? What I’d really like to do is convert the inherited IRA to a Roth IRA. — FORTUNATE HEIR DEAR FORTUNATE: Those approaches are not available to you. Because you are […]
Read MoreModern bounty hunters?
The October 9, 2017, issue of The New Yorker included a shocking article titled “How the Elderly Lose Their Rights.” The author, Rachel Aviv, was interviewed by National Public Radio. This article should be read carefully by everyone who is 65 or older, and by everyone who has a relative who is 65 or older. […]
Read MoreReview Your IRA Beneficiary
Sometimes mistakes in an estate plan can be repaired after death. Sometimes not. Charles Sukenik executed his will on November 4, 2004. His estate was to be divided between his surviving spouse, Vivian, and the couple’s private foundation. His revocable trust was restated at the same time, giving Vivian certain real property and the balance […]
Read MoreEstate planning for the married
DEAR TRUST OFFICER: Most married couples will never need to worry about filing a federal estate tax return, will they? I’ve heard that for couples the federal estate tax exemption is over $10 million. — AFFLUENT, NOT WEALTHY DEAR AFFLUENT: On the contrary, in the vast majority of cases of an estate with a surviving […]
Read MoreAging in place
The percentage of Americans over 85 is growing steadily, and with it a new conundrum: Where will the elderly live? For a growing number of folks who are still healthy, the answer is “right at home.” According to the federal Consumer Expenditure Survey, from 1987 to 2003 the percentage of persons over age 85 living […]
Read MoreFeuding heirs
“I sincerely ask that all beneficiaries are sensible and do not argue.” This wish, expressed by Australian coal-mining billionaire Ken Talbot in his will, has gone unfulfilled. Talbot’s will was drafted in 2002, when his fortune was estimated at $130 million. At his death in an airplane accident in the Congo in 2010, his wealth […]
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