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Last update: Mar 19, 2007
Greenberg Traurig: Evaluating the Potential Success of a GRAT Against Comp... Jan 26, 2006
Unless that transfer falls under some exception, exclusion or deduction, it will be subject to gift tax, although the tax will be offset by any unused unified credit (also known as the applicable credit amount) allowed under §2505(a). Such a trust is one that has its income, deductions and credits against tax attributed to the grantor essentially as though the trust does not exist for income tax purposes
Gibbons: Charitable Remainder Trusts: Effective Planning for Ret... Jan 01, 2006
In the case of an inter-vivos charitable remainder trust, the grantor is entitled to a charitable income and gift tax deduction for the fair market value of the remainder interest that passes to charity. If the income beneficiary is the grantor's spouse, Code Section 2523(g) allows for a marital deduction with respect to the annuity or unitrust interest given to the grantor's spouse as the sole non-charitable beneficiary other than the donor
Gibbons: Deferral of Capital Gains Nov 14, 2005
In the case of an inter-vivos charitable remainder trust, the grantor is entitled to a charitable income and gift tax deduction for the fair market value of the remainder interest that passes to charity. If the income beneficiary is the grantor's spouse, Code Section 2523(g) allows for a marital deduction with respect to the annuity or unitrust interest given to the grantor's spouse as the sole noncharitable beneficiary other than the donor
Greenberg Traurig: The Decoupling of Federal and State Estate Taxes Mar 22, 2005
2 Effective 2005, the credit has been replaced with a deduction for state death taxes paid. This perhaps temporary repeal of the federal state death tax credit and its replacement with a deduction for state death taxes paid will have a significant economic impact on those states that base their estate taxes on the amount of state death tax credit available to an estate, that is a "pick-up tax" state
Fox Rothschild: Estate Planning for Non-Citizens Residing in the United... Oct 01, 2004
Death Taxes The Internal Revenue Service ("IRS") generally permits an unlimited marital deduction for assets passing at death to or for the benefit of the surviving spouse. However, that deduction is not freely available when the
Lowenstein Sandler: New Jersey Enacts Income Tax Increase and Domestic Part... Aug 01, 2004
However, the Act does not permit domestic partners to file joint New Jersey income tax returns, nor does it provide a deduction akin to the "marital deduction" for purposes of the New Jersey Estate Tax for bequests made to a qualified domestic partner. There are a number of estate planning alternatives available to domestic partners (of the same or opposite sex) that can be implemented in appropriate circumstances to minimize transfer taxes
Poyner and Spruill: Estate Planning Bulletin (August 2004) Aug 01, 2004
If the marital deduction was taken for federal estate tax purposes in the estate of the deceased spouse, the surviving spouse may compel the conversion from an income interest to a unitrust interest, or the reconversion of the trust from a unitrust to an income trust. As with any unitrust, the amount may not be less than 3% or more than 5
Sidley Austin: Illinois Total Return Trust Law - June 2004 Jun 01, 2004
"Tax Law RestrictedTrust" means either a trust for which an estate tax or a gift tax marital deduction was or may be claimed in whole or in part (but only during the lifetime of the spouse for whom the trust was created) or a trust that was exempt in whole or in part from generation-skipping transfer tax on August 22, 2002 by reason of any effective date or transition rule. Further, the amendments made to subparagraph 5
Pepper Hamilton: How the Disconnect Between the Income and Estate Tax Ru... Apr 22, 2004
"This provision, which is designed to prevent avoidance through the use of contingent powers, corresponds to the similar provision in section 39.22 (a)-21 (d) of the regulations."9 Additional difficulties facing the Treasury were the potential for taxpayers to use trust deductions or losses to offset their individual income - the problem in Stoddart v. Eaton - and the potential for a taxpayer to, in effect, get a double tax benefit by claiming a current charitable deduction for the actuarial
Riker Danzig: Answers to your Estate Planning Questions March 2004 Mar 01, 2004
CONTENTS Wills, Trusts and Probate Basic Estate Planning Probate and Probate Avoidance Trusts Wealth Transfer Taxes NJ Estate Taxes NJ and Gifts Federal Estate Taxes Marital Deductions Bypass Trusts Estate Tax Repeal Generation Skipping Transfer Tax Gifts and Trusts Educational Trusts Life Insurance Trusts Real Property Issues Taxable Gifts Special Planning Situations Family Businesses Blended Families Planning with IRAs Real Property in Other States Charitable Giving Healthcare Directives and
Pepper Hamilton: Prudent Estate Planning Items to Consider for the New Y... Feb 09, 2004
Mileage deductions for federal income tax purposes in 2004 are: for business - 37. 5 million, more assets will be allocated to the non-marital deduction trust under standard allocation formulas
Sullivan & Worcester: 2003 Medicare Act Provides Tax-Favored Savings Plan for... Jan 01, 2004
Section 213 of the Internal Revenue Code of 1986, as amended (the "Code"), allows a Schedule A deduction for expenditures for qualifying medical care only to the extent they exceed seven and one-half percent of adjusted gross income. Because this is an above-the-line deduction, contributions to HSAs can be deducted even if the account holder does not itemize his or her deductions
Michael Best & Friedrich: Wealth Planning Services Update (Fall 2003) Oct 01, 2003
Planning for the Non-Citizen Spouse [click on title for full article] While most people know that the estate and gift tax includes an unlimited deduction for amounts given or left to a spouse, many are unaware of the significant limitations on that deduction when the spouse receiving the gift is not a U.S. citizen. For transfers at death, there is no marital deduction unless the transfer is in a qualified trust for the spouse
Sutherland Asbill & Brennan: Interview: Lloyd Leva Plaine Interviewed by Jerald Davi... Aug 01, 2003
In addition, gifts and transfers at death, in an unlimited amount, can be made to or for the benefit of a U.S. citizen spouse if the transfer is made in a manner that qualifies for the gift or estate tax marital deduction. The marital deduction is also available for transfers to noncitizen spouses but lifetime transfers cannot exceed $112,000 a year and have to be made outright or in a certain type of trust
Thompson Hine: Download PDFView HTML Aug 01, 2003
Another possibility is to leave everything in the marital deduction share and allow the surviving spouse to create the non-marital share by disclaimer. A problem with relying exclusively on disclaimer, however, is that mental incompetence, the natural insecurity of widows and widowers, or any of many other factors may prevent a survivor from acting wisely when the time comes
Poyner and Spruill: Estate Planning Bulletin (April 2003) Apr 01, 2003
The Democrats then introduced legislation to raise the federal estate tax exemption to $4,000,000 and to provide a full tax deduction for family owned businesses effective January 1, 2003. A credit is a dollar per dollar reduction of tax liability and is, therefore, preferable to a deduction
Venable: "Evolving Rules of Thumb for Marital Planning"... Mar 01, 2003
...xable LLP Home Publications Articles Printer Friendly Version ARTICLES Maryland Bar Journal Evolving Rules of Thumb for Marital Planning By Jeffrey J. Radowich and Jennifer A. Pratt March 1, 2003 General Impact Of the 2001 Act On June 7,2001, President Bush signed into law the 2001 Act. Trusts, and/or sales to defective grant trusts, and/or a systematic annual gift program using the $11,000 per person per year present interest exclusion, typically involving discounted assets like limited
Sidley Austin: Estate Planning - Private Clients Group Newsletter Marc... Mar 01, 2003
More specifically, the allowable state death tax credit has been reduced to 50% for 2003, will be further reduced to 25% for 2004, and in 2005 will be completely phased out and replaced by a deduction for state death taxes paid. In addition, if a charity is a beneficiary of the trust and is not paid out in full by September 30 of the year after the IRA owner's death, or if the trust permits the IRA to be used to pay estate taxes or estate expenses or debts, then a much shorter payout period may
Winstead: Representing Closely-Held Businesses: Succession Planni... Feb 04, 2003
28 Impact of Marital Property Characterization. Creditor's Rights to Marital Property
Blank Rome: Winter 2003 Jan 01, 2003
Miller Canfield: Hot Points Winter 2003 Jan 01, 2003
Because the unlimited marital deduction is not available to non-citizens, a tool called a qualified domestic trust, or QDOT, may prove to be a good tax-planning strategy. residuary trust may pass to a surviving spouse--directly or via a marital trust
Bricker & Eckler: Planning Your Estate: Some Common Questions Regarding W... Jun 01, 2002
Q. What is the so-called "marital deduction". The federal and Ohio marital deduction statutes give a spouse the right to leave an unlimited amount of property to the surviving spouse tax-free
Foley Lardner: Florida Adopts New Uniform Principle and Income Act (PD... May 16, 2002
Adjustments are restricted in certain circumstances, such as when they diminish the income interest in a trust that requires all of the income to be paid at least annually to a surviving spouse and for which an estate tax or gift tax marital deduction would be allowed, or when the trustee is a beneficiary of the trust. In 1976, in Marvin v. Marvin, 18 Cal. 3d 660 (1976), the California Supreme Court decided the time had come to recognize the "prevalence of nonmarital relationships in modern
Lane Powell: Some Post-Mortem Planning Ideas After EGTRRA May 06, 2002
Finally, the Act reduces the federal credit for state death taxes, eventually converting it into a deduction. Fixing the Marital Deduction Another common use of disclaimers is in connection with marital deduction planning
Winston Strawn: Alert for New Automatic Allocation Rules for GST Exempt... May 03, 2002
Bullivant Houser Bailey: Spring 2002 Apr 01, 2002
FROF: Giving to Charity A Good Move for Athlete Apr 01, 2002
McGuire Woods: THE CHALLENGE OF ESTATE PLANNING IN 2002 AND BEYOND: FE... Mar 01, 2002
With very narrow exceptions, this means that any amount of state inheritance or estate tax paid in excess of the statutory cap cannot be used to reduce the federal estate tax liability, either as a dollar-fordollar credit or as a deduction. In 2005, the credit is eliminated altogether and is replaced with a general deduction for amounts paid for state estate and inheritance taxes
Hodgson Russ: Avoiding Probate Fees Feb 02, 2002
Similarly, estate tax implications arise, raising questions as to whether the property qualifies for a marital deduction under the US qualified domestic trust rules or for a marital credit under the treaty. In this relatively new planning area, the full range of US tax issues should be considered: the trust formation, income realized in the trust, trust distributions, interaction of US estate tax and Canadian income tax at death, the availability or possible loss of treaty benefits, and US
Benesch Friedlander: Time For Estate Plan Review Jan 01, 2002
In many cases, the Trust provides that upon death, assets are allocated between a Marital Deduction Trust and a Family Trust. This means that less asset value will be allocated to the Marital Deduction Trust for the benefit of the spouse that survives
Ballard Spahr: Download a PDF version of this newsletter Jan 01, 2002
Typical planning in the past had been to fund the credit shelter trust for the spouse with the maximum amount of assets to reduce the federal estate tax to zero, with all other assets either going outright to or in a marital deduction trust for the surviving spouse. As the exemption increases, unless the formula in the Will is changed, then the amount going into the credit shelter trust will be increased with less passing outright or in a marital deduction trust for the spouse
Greenberg Traurig: Estate and Gift Taxation of Nonresident Aliens Dec 13, 2001
C. D. Caution: Situs Rules are Inconclusive for Many Types of Assets Deductions from Estate Tax. Expenses and Debts Charitable Deduction Marital Deduction No Deduction for Foreign Death Taxes
McGuire Woods: WHERE THERE IS A WILL - DOES A TRUST GET IN THE WAY? A ... Dec 01, 2001
Michael Best & Friedrich: Planning Under the New Tax Law Oct 01, 2001
A majority of estate plans prepared since 1981 for married couples use a combination of a trust for the Exclusion Amount and the Marital Deduction (an estate tax deduction for all amounts passing to a surviving spouse) to create a plan which will defer all estate taxes until the death of both spouses. In those plans, the Exclusion Amount is generally defined by a formula that refers to the estate tax law, so that the plan will automatically adjust as the Exclusion Amount increases
McGuire Woods: SEPARATE SHARE RULES AND SECTION 645 ELECTING TRUSTS Sep 01, 2001
McGuire Woods: OVERVIEW OF GRANTOR RETAINED ANNUITY TRUSTS (GRATs) Sep 01, 2001
King & Spalding: Trusts & Estates Client Alert: New Tax Act and Other De... Aug 28, 2001
Formula Wills with Bypass and Marital Shares. A majority of our married clients' Wills leave to a bypass trust the maximum amount that can be sheltered by the estate tax exemption, with the balance of the estate passing to the spouse, either outright or in trust, to qualify for the estate tax marital deduction and eliminate all tax otherwise due at death
Kramer Levin: Highlights of the Economic Growth and Tax Relief Reconc... Jun 07, 2001
Unlimited Marital Deduction: In general, a 100% deduction for gift tax and estate tax purposes is allowed for transfers (outright or through a qualified trust) between spouses, both at death and during life. Marriage Penalty: The basic standard deduction for a married couple filing a joint return is increased to double the basic standard deduction for an unmarried individual
Sullivan & Worcester: The Impact of Recent Estate and Gift Tax Changes on Est... Jun 01, 2001
For a good number of years now the estate tax has provided an unlimited marital deduction so that, if a Bill Gates or a Ross Perot wanted to leave $5 billion to his wife, he could do so without any taxes being due at his death. The balance would go to the surviving spouse outright or in a so-called marital deduction trust
Foley Lardner: The Economic Growth and Tax Relief Reconciliation Act o... Jun 01, 2001
The illustrated plan establishes a Family Trust for the amount of the estate tax exemption and Marital Trust for the rest of the estate upon the death of the first spouse. Utilizing the exemption amount and the marital deduction, there would be no estate tax due until the death of the surviving spouse
McDermott: Death of the Death Tax? Some Questions and Answers for ... Jun 01, 2001
Furthermore, Congress did not make any substantive changes in the federal estate tax laws, many of which dictate how we prepare documents, such as how gifts to spouses qualify for the marital deduction and who can act as a trustee of certain trusts. It is possible, however, that the intended effect of some estate plans may change with the large increases in exemptions
McDermott: Death of the Death Tax? Some Questions and Answers for ... Jun 01, 2001
Furthermore, Congress did not make any substantive changes in the federal estate tax laws, many of which dictate how we prepare documents, such as how gifts to spouses qualify for the marital deduction and who can act as a trustee of certain trusts. It is possible, however, that the intended effect of some estate plans may change with the large increases in exemptions
Morgan Lewis: Current U.S. Expatriation Issues Affect Employees on Lo... Jun 01, 2001
The unlimited marital deduction is not available for U.S. citizens' transfers to non-citizen spouses except under prescribed conditions. Because the tax rules of the U.S. and foreign jurisdictions are not the same and relief is through foreign tax credits, U.S. citizens residing abroad often find themselves subject to whichever jurisdiction's tax on a given transaction is the higher
Morgan Lewis: United States Taxation of the International Private Cli... Mar 01, 2001
The gross income subject to tax is reduced by allowable deductions to arrive at the taxable income. He or she is also entitled to a limited charitable gift tax deduction, but not to the unified credit which shelters $675,000 from gift tax in 2000 or to the splitting of gifts with a spouse
McGuire Woods: INSTALLMENT SALES TO GRANTOR TRUSTS Mar 01, 2001
McGuire Woods: ESTATE FREEZE TECHNIQUES AND FREEZE RELATED ISSUES Feb 01, 2001
Pepper Hamilton: Rebirth of the Disappearing Marital Deduction Trust - A... Dec 01, 2000
FROF: Estate Planning in the Post-Estate-Tax World Nov 14, 2000
FROF: Frequently Asked Questions about IRA and Retirement Pla... Nov 07, 2000
Paul Weiss: Should Use of QTIPs Be Advised? Do Not Dismiss This Ma... Sep 05, 2000
DO NOT DISMISS THIS MARITAL DEDUCTION VEHICLE OUT OF HAND. PAUL, WEISS, RIFKIND, WHARTON SON The Internal Revenue Code (IRC) provides preferential estate tax treatment for testamentary transfers between spouses by granting an unlimited estate tax marital deduction for assets passing from a decedent to or for the benefit of the decedent's spouse in a variety of ways
FROF: Estate Planning For A Post-Estate Tax World Jul 18, 2000
FROF: IRS Issues Guidance on IRA-QTIP Elections Jun 13, 2000
Michael Best & Friedrich: Estate Planning Update (June 2000) Jun 01, 2000
MARITALDEDUCTION A tax is imposed on the value of an individual's estate. This is known as the "marital deduction." The marital deduction provides the single most important estateplanningtoolavailabletomarriedindividuals
FROF: Disclaimers - Planning Opportunities and Limitations May 16, 2000
" This approach is most prevalent in the area of planning for the maximum use of the marital deduction and the unified gift and estate tax exemption. For a married couple with assets in excess of $675,000, the traditional planning approach would be to create a "credit shelter trust" which would be funded upon the death of the first spouse with an amount equal to the decedent`s available unified gift and estate tax exemption amount ($675,000 in 2000), with the balance passing either directly or
Poyner and Spruill: Estate Planning Newsletter (January 2000) Jan 01, 2000
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Chapman and Cutler: December 1999 Dec 01, 1999
A second exception to the general rule regarding the taxation of transfers of property is the unlimited marital deduction. If a husband and wife are both United States citizens, the unlimited marital deduction permits an unlimited amount of transfers between spouses either during life or at death without incurring any gift or estate tax
Lane Powell: The Uniform Prudent Investor Act: Trust Drafting Dec 01, 1999
Caplin & Drysdale: Letter Ruling Alert: A New Option for Private Foundatio... Nov 01, 1999
In addition, the donating family members might also receive significant charitable contribution deductions for the value of the donated stock. Under section 512(c)(1), if an unrelated trade or business is carried on by a partnership in which an exempt organization is a partner, the exempt organization partner's share of the partnership's gross income and deductions are included in the partner's unrelated business taxable income
Morgan Lewis: Income and Estate Planning Opportunities Upon the Sale ... Oct 14, 1999
The grantor is allowed a deduction for the charitable contribution of the present value of the remainder interest given to charity. In addition, the grantor will have a charitable contribution deduction of $1,000,000, which assuming marginal tax rate of 50%, saves $500,000 in taxes
Morgan Lewis: International Aspects of Family Business Succession Pla... Oct 04, 1999
A. B. C. Foreign Marital Property Laws Foreign Inheritance Laws Foreign Estate and Inheritance Tax Laws. A non-U.S. donor who makes a gift of property subject to the Federal gift tax is entitled to the benefit of the annual gift tax exclusions (Section 2503 of the Code) and a limited charitable gift tax deduction (Section 2522(b)),but not to the unified credit (Section 2505) or"gift-splitting"(Section2513)
Cohen & Wolf: Generation Skipping Transfer. Jun 01, 1999
Morgan Lewis: Adding GRATs to Your Arsenal of Trusts May 17, 1999
The regulations provide transitional rules: for gift tax purposes, if the valuation date of a transfer is after April 30, 1999, but before July 1, 1999, the donor may determine the value of the gift (and/or any applicable charitable deduction) based on the new table or the prior table. In addition, if it is intended that the GRAT qualify for the marital deduction if the assets are includable in the estate of the grantor who dies during the term, there is no downside to including the contingent
Lane Powell: Accelerated Charitable Trusts Provide New Gift Giv Feb 01, 1999
In particular, a donor with her own private foundation can use the ACT to transfer indirectly highly-appreciated assets to that foundation while avoiding the limitations on the income tax charitable deduction for transfers directly to the foundation. 4 In the year the CRT is created, the grantor is entitled to an income tax charitable deduction equal to the present value of the remainder interest passing to charity
FROF: Charitable Gift Annuities Aug 11, 1998
Hinshaw & Culbertson: Lawyers' Professional Liability Update - August 19... Aug 01, 1998
Hinshaw & Culbertson: Lawyers' Professional Liability Update Aug 01, 1998
Jones Day: Using Beneficiary Guarantees in Defective Grantor Trust... Dec 31, 1997
See generally August, "IRS Reverses Prior Ruling on the Impact of Guarantees on the Marital Deduction," 80 JTAX 324 (June 1994). Over the years, the IRS has often attempted to disallow bad debt deductions for income tax purposes by contending that the guarantees and payments under the guarantees were gifts
Heller Ehrman: Wealth Management & Estate Bulletin (October 2001) Sep 30, 1997
Gifts to Spouses Since 1982, gifts made to spouses who are U.S. citizens qualify in their entirety for the marital deduction from gift tax. For married couples living in community property states, this means that in addition to transfers of separate property between spouses being taxfree, transmutations of community property to separate property and from separate property to community property also qualify for the marital deduction from gift tax
Arnold Porter: Executive Compensation -- Transferable Stock Options: A... Aug 01, 1997
Gift and Estate Taxes--OverviewImposition of Gift and Estate TaxesFederal gift and estate taxes are imposed under a unified system which, subject to certain exclusions and deductions, taxes gifts and decedents' estates at rates generally ranging from 37 percent to 55 percent. Federal estate taxes are imposed on decedent's "taxable estate," which consists of the decedent's "gross estate" less certain deductions
Jones Day: Further Reflections on Transfer Tax Reform and Repeal (... Jul 31, 1997
...(The balance of the Husband's estate passes to his Wife in a manner that qualifies for the marital deduction; for example, as an outright gift or in a "Marital Trust.") The Family Trust is held for the benefit of the Wife and the children. The balance of the Wife's estate passes to her Husband as an outright gift or in a Marital Trust that qualifies for the marital deduction Example 3: Childless individual provides for the amount that is exempt from estate tax to pass to her siblings (or their
Davis Graham & Stubbs: Revenue Ruling 2000-2 -- What Does it Mean for You? Jun 24, 1997
The Code does not require that all the income be distributed currently to qualify a trust for the marital deduction. The result is that a QTIP Trust need not require that all income be distributed to the surviving spouse in order to qualify for a marital deduction
Davis Graham & Stubbs: Planning for Distributions from Qualified Plans and IRA... Jun 23, 1997
VII. MARITAL DEDUCTION AND FUNDING ISSUES. A. B. The Marital Deduction
Cohen & Wolf: In Life Insurance We Trust. Feb 01, 1996
Tax e-bulletin Issue #4 (May 23
Emphasis would be on using the exemption of each spouse to reduce the taxable estate, and then using the marital deduction to defer the balance of the tax, hopefully until after repeal is effective. Thus, in late-term transition planning, the emphasis will be to utilize the exemption available to avoid tax and then to defer the balance using the marital deduction, just like in near-term planning
State Estate Tax Law Changes Provide New Challenges
Under EGTRA, for tax years 2005 through 2009, estates may claim a deduction for state death taxes paid. A deduction from federal estate tax, however, provides less than one-half of the benefit that a death tax credit provides
State Estate Tax Law Changes Provide New Challenges
Under EGTRA, for tax years 2005 through 2009, estates may claim a deduction for state death taxes paid. A deduction from federal estate tax, however, provides less than one-half of the benefit that a death tax credit provides
Congress Passes Broad Estate
Reduction of credit for state death taxes followed by replacement with a deduction. Under the new legislation, the state death tax credit first is reduced, then repealed and replaced with a deduction
Prudent Investing
Illinois' New Total Return Legislation (PDF)
For any trusts where a marital deduction was taken, conversion to a total return trust is allowed only if the distribution amount is not less than the net income of the trust. Total return would appear then to be available for QTIP trusts, as long as the net income is distributed in all situations and the surviving
Update on Federal and North Carolina Estate
The Democrats then introduced legislation to raise the federal estate tax exemption to $4,000,000 and to provide a full tax deduction for family owned businesses effective January 1, 2003. A credit is a dollar per dollar reduction of tax liability and is, therefore, preferable to a deduction
Deferred Payment Sates to Grantor Trusts
Assuming the assets sold qualified for reporting on the installment method, the unrealized gain is reported by his estate as income in respect of a decedent ("IRD")92 with a deduction under § 691(c) of the estate tax attributable to the $1,000,000, leaving $450,000 net gain subject to a tax of $90,000. If we are wrong and Senior or his estate is liable for capital gains tax on the deferred payment note, the net cost is only $90,000 whether the adjustment is for the $110,000 reduction in estate
: Ding
There are two important aspects of trusts in the context of planning for IRAs and qualified plan distributions: whether the trust qualifies as a "designated beneficiary" and whether the trust qualifies for the marital deduction. Qualifying a Trust That Receives Plan Assets as a QTIP Trust As all estate planning practitioners know, gifts to trusts for the benefit of a spouse do not qualify for the estate or gift tax marital deduction unless they qualify under §§ 2056(b) or 2523(b)
Ballard Spahr: Federal Estate Tax Reform and Its Impact Upon Estate Pl...
Typical planning in the past had been to fund the credit shelter trust for the spouse with the maximum amount of assets to reduce the federal estate tax to zero, with all other assets either going outright to or in a marital deduction trust for the surviving spouse. As the exemption increases, unless the formula in the Will is changed, then the amount going into the credit shelter trust will be increased with less passing outright or in a marital deduction trust for the spouse
Briggs & Morgan: Minnesota Estate Tax Update
On the other hand, if the trust were funded with the lesser Minnesota estate tax exemption amount and if the balance of your estate were distributed to your spouse (or to a trust that qualified for the marital deduction for estate tax purposes), there would be no federal or Minnesota estate tax at your death. If you die in 2004 or thereafter, the Minnesota estate tax will increase
Brown McCarroll: Personal Estate Planning
Marital Property and Liabilities. Marital Property Liabilities
Fox Rothschild: New Medicare Act/Health Savings Accounts
If there is a surviving spouse and the spouse is designated as the beneficiary of the HSA, a marital deduction is available. The HSA then will continue on as an HSA for the surviving spouse
Goodwin Procter: Summary of the Federal Transfer Tax System
Federal law allows for certain deductions in computing the "taxable estate." These include deductions for your debts, funeral expenses, the expenses of administering your estate, certain state. taxes, and the value of assets passing to your spouse1 (the "marital deduction") or to charities (the "charitable deduction")
Goodwin Procter: Technical Changes to New Massachusetts Estate Tax Law P...
Since, under the newly announced technical rules, the trust will qualify for the Massachusetts marital deduction, no Massachusetts estate tax will be payable at the death of the first spouse to die. We have included a chart illustrating one possible variation of this type of estate plan (see Appendix A at the end of this alert)
Greenberg Traurig: Divorce: A Window For Estate Planning Opportunities
10 F. Marital Deduction. 11 Even with these special rules, payments arising out of the dissolution of the marital relationship
Greenberg Traurig: Beyond the Basic Freeze: Further Uses of Deferred Payme...
3 For those with charitable inclinations, the charitable lead annuity trust (CLAT) for a fixed term accomplishes the freeze objective, also at a reduced gift tax cost because the annuity given to a charity qualifies for the charitable gift tax deduction as well as the charitable income tax deduction. 17 Under Section 691(a)(4), the successor-in-interest will report the capital gain and interest income as payments are made on the promissory note, subject to a deduction under § 691(c) for any
Hinshaw & Culbertson: Estate Planning: An Overview of Estate and Gift Taxes a...
Hinshaw & Culbertson: The New Estate Tax Law/The Long Goodbye
McGuire Woods: AN INTRODUCTION TO ESTATE PLANNING
The taxable estate is the value of your assets, plus all taxable gifts made after 1976, less available deductions. This amount could be given outright to the surviving wife or placed in another trust (called a "Marital Trust") for the wife's benefit during her life, ultimately passing to the couple's children when she dies
Miller Canfield: Hot Points Spring 2004
In addition, each U.S. citizen, RA, or NRA is allowed an unlimited marital deduction that permits the unlimited tax-free transfer of assets through lifetime gifts or post-death bequests--to a U.S. citizen spouse. TRANSFERRING ASSETS TO NON-CITIZEN SPOUSES Unfortunately, the unlimited marital deduction doesn't apply to the transfer of assets to an alien spouse
Parsons Behle & Latimer: Retirement and the Estate Tax
If an arrangement does not qualify, the employer may get a current deduction with current inclusion in the employee’s income. Alternately, the deduction and income inclusion may be deferred until the employee receives the funds
Poyner and Spruill: Estate Planning with Traditional IRAs
In addition, the value of the balance in a participant's IRA is subject to estate tax unless the marital or charitable deduction applies or it is covered by the participant's applicable credit equivalent ($675,000 in 2000, increasing to $1 million by 2006). Depending upon the participant's goals and the income and estate tax consequences of each beneficiary option, the proper beneficiary designation may be (1) the participant's spouse; (2) a trust for the benefit of the participant's spouse that
Poyner and Spruill: The Benefits of Private Foundations in Charitable Gift ...
In addition, the value of the balance in a participant's IRA is subject to estate tax unless the marital or charitable deduction applies or it is covered by the participant's applicable credit equivalent ($675,000 in 2000, increasing to $1 million by 2006). Depending upon the participant's goals and the income and estate tax consequences of each beneficiary option, the proper beneficiary designation may be (1) the participant's spouse; (2) a trust for the benefit of the participant's spouse that
Poyner and Spruill: New Principal and Income Act Provides Greater Flexibili...
If the marital deduction was taken for federal estate tax purposes in the estate of the deceased spouse, the surviving spouse may compel the conversion from an income interest to a unitrust interest, or the reconversion of the trust from a unitrust to an income trust. As with any unitrust, the amount may not be less than 3% or more than 5
Poyner and Spruill: How the Health Insurance Portability and Accountability...
If the marital deduction was taken for federal estate tax purposes in the estate of the deceased spouse, the surviving spouse may compel the conversion from an income interest to a unitrust interest, or the reconversion of the trust from a unitrust to an income trust. As with any unitrust, the amount may not be less than 3% or more than 5
Poyner and Spruill: A Better Vehicle for Educational Planning?
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: Why You Need a Will
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: New Prudent Investor Act Will Be Important To Both Trus...
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: Private Split Dollar Life Insurance- "Mr. Clean&qu...
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: A Better Vehicle for Educational Planning?
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: Why You Need a Will
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: New Prudent Investor Act Will Be Important To Both Trus...
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: Private Split Dollar Life Insurance- "Mr. Clean&qu...
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: Planning for the Personal Residence and Undeveloped Rea...
As a result, trust deductions will typically flow through and be used by the grantor on his own personal income tax return. However, including such a provision may be too restrictive and prevent the trustees from effectively managing the assets and could possibly cause unintended results such as jeopardizing the marital deduction for a marital trust
Poyner and Spruill: Avoiding Fraudulent Claims
As a result, trust deductions will typically flow through and be used by the grantor on his own personal income tax return. However, including such a provision may be too restrictive and prevent the trustees from effectively managing the assets and could possibly cause unintended results such as jeopardizing the marital deduction for a marital trust
Poyner and Spruill: Gifting Stock Options
As a result, trust deductions will typically flow through and be used by the grantor on his own personal income tax return. However, including such a provision may be too restrictive and prevent the trustees from effectively managing the assets and could possibly cause unintended results such as jeopardizing the marital deduction for a marital trust
Poyner and Spruill: Ensuring Income Tax Status of Trusts Primer on Family L...
As a result, trust deductions will typically flow through and be used by the grantor on his own personal income tax return. However, including such a provision may be too restrictive and prevent the trustees from effectively managing the assets and could possibly cause unintended results such as jeopardizing the marital deduction for a marital trust
Poyner and Spruill: North Carolina Estate and Gift Tax Made More Consistent...
The Democrats then introduced legislation to raise the federal estate tax exemption to $4,000,000 and to provide a full tax deduction for family owned businesses effective January 1, 2003. A credit is a dollar per dollar reduction of tax liability and is, therefore, preferable to a deduction
Poyner and Spruill: Trusts As Beneficiaries of Retirement Plans In Light of...
The Democrats then introduced legislation to raise the federal estate tax exemption to $4,000,000 and to provide a full tax deduction for family owned businesses effective January 1, 2003. A credit is a dollar per dollar reduction of tax liability and is, therefore, preferable to a deduction
Riker Danzig: 2/93 Qualified Plan Benefits Create Problems For Non-...
Since the enactment of the Technical and Miscellaneous Revenue Act of 1988, the marital deduction for federal estate tax purposes is disallowed for property passing to a non-citizen spouse, unless that property is held in a qualified domestic trust (QDOT). The ruling held that the benefits would qualify for the marital deduction
Riker Danzig: 6/01 Planning Considerations ? What Should You Do?
...v “Credit shelter” (also called “bypass trust,” “marital deduction,” or “A/B” plans) and generation-skipping formula clauses need to be reviewed to make certain that the plans are properly balanced as exemptions increase. E.g., a number of clients, particularly those in second marriages, leave the amount of their estate tax exemption to their children at the first death, with the balance of the estate passing outright or in a marital trust for the spouse (or perhaps to charity, if they are
Riker Danzig: 1/00 Building Charitable Trusts Into A Client's Es...
Lifetime con-tributions to charitable organizations allow the donor to take an income tax deduction, subject to certain limitations. The effect of this transfer is as follows: Donor takes a $1,000,000 income tax deduction and the potential capital gain of $900,000 is eliminated
Riker Danzig: 6/01 Estate Tax Suspended in the Largest Tax Cut In T...
In 2005 the state death tax credit will be replaced with a new deduction for state death taxes actually paid to any state or to the District of Columbia. Qualified Domestic Trusts for Non-Citizen Spouses There will continue to be an estate tax imposed on (i) any distribution before 2021 from a qualified domestic trust (a special trust that qualifies for the marital deduction for a non-citizen surviving spouse) before the date of the death of the non-citizen surviving spouse and (ii) the value of
Riker Danzig: 3/03 Tax and Trusts & Estates UPDATE
For example, in 2003, for married couples with traditional "bypass wills" (which use the federal marital deduction and a fully funded credit shelter trust), the estate of the first spouse to die will now pay a New Jersey estate tax of $33,200 - even though their estate plan was intended to cause no tax at all to be payable at the first death. Additionally, if you intend to have your estate pass primarily through a marital/QTIP trust, you may not achieve that result if most of your assets are
Testa: New Tax Act Makes Major Changes To
The division of property between a credit shelter trust and a marital trust is often determined by a formula based on the then available estate tax exemption amount. As the exemption increases, the formula will result in more property passing to the credit shelter trust and less to the marital trust and, in some cases, all property passing to the credit shelter trust and none to the marital trust, whether or not intended
Ulmer & Berne: Ohio Estate Tax Reduced
The basic Ohio estate tax is levied on the value of an Ohio resident's taxable estate, which generally is the value of all property in which the decedent had an interest at the date of death, minus certain exclusions and deductions. Senate Bill 108 includes an Ohio estate tax deduction modeled closely after the federal deduction for a qualified family owned business interest
Vandeventer Black: Planning for the Marital Deduction
In order to qualify for the marital deduction, the property must generally be transferred to the surviving spouse outright and free of trust. For example, if property is left to a surviving spouse for as long as he or she does not re-marry, the gift would not qualify for the marital deduction , because the spouse s interest would "terminate" upon the occurrence of an event (i
Weil: Death Tax Relief -- The Road Not Taken
The State Death Tax Credit Reduction and Change to Deduction Although most estates will benefit from reduced estate taxes over the next nine years, as Table II shows, this will not be so for all estates in all years. In 2005 it eliminates the state death tax credit entirely and replaces it with a deduction
White & Case: Asia-Pacific Tax Report (Autumn 2000)
Distributions of profits by the vehicle to investors are treated as deductions in the computation of taxable income, provided that all of following conditions for each respective entity are satisfied: Investment Corporation q More than JP¥100 million of Investment Units are issued to general investors under the Securities Law at the time of establishment, Investment Units are owned by more than 50 investors, or all of the Investment Units are owned by qualified institutional investors. PLANNING
White & Case: Asia-Pacific Tax Report (Winter 2000)
Tax Deduction for Share Donations To encourage philanthropy, individuals who donate shares listed on the Singapore Exchange or unit trusts readily tradable in Singapore to institutions of a public character will receive tax deductions. In the area of individual income taxation, there are revisions to the pension tax system, expanded tax relief for the middle class, and increases in the deductions available for wage and salary income
State Estate Tax Law Changes Provide New Challenges
Under EGTRA, for tax years 2005 through 2009, estates may claim a deduction for state death taxes paid. A deduction from federal estate tax, however, provides less than one-half of the benefit that a death tax credit provides
State Estate Tax Law Changes Provide New Challenges
Under EGTRA, for tax years 2005 through 2009, estates may claim a deduction for state death taxes paid. A deduction from federal estate tax, however, provides less than one-half of the benefit that a death tax credit provides
Congress Passes Broad Estate
Reduction of credit for state death taxes followed by replacement with a deduction. Under the new legislation, the state death tax credit first is reduced, then repealed and replaced with a deduction
McGuire Woods: AN INTRODUCTION TO ESTATE PLANNING
The taxable estate is the value of your assets, plus all taxable gifts made after 1976, less available deductions. This amount could be given outright to the surviving wife or placed in another trust (called a "Marital Trust") for the wife's benefit during her life, ultimately passing to the couple's children when she dies
Poyner and Spruill: A Better Vehicle for Educational Planning?
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: Why You Need a Will
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: New Prudent Investor Act Will Be Important To Both Trus...
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: Private Split Dollar Life Insurance- "Mr. Clean&qu...
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Testa: New Tax Act Makes Major Changes To
The division of property between a credit shelter trust and a marital trust is often determined by a formula based on the then available estate tax exemption amount. As the exemption increases, the formula will result in more property passing to the credit shelter trust and less to the marital trust and, in some cases, all property passing to the credit shelter trust and none to the marital trust, whether or not intended
Weil: Death Tax Relief -- The Road Not Taken
The State Death Tax Credit Reduction and Change to Deduction Although most estates will benefit from reduced estate taxes over the next nine years, as Table II shows, this will not be so for all estates in all years. In 2005 it eliminates the state death tax credit entirely and replaces it with a deduction
White & Case: Asia-Pacific Tax Report (Autumn 2000)
White & Case: Asia-Pacific Tax Report (Winter 2000)
State Estate Tax Law Changes Provide New Challenges
Under EGTRA, for tax years 2005 through 2009, estates may claim a deduction for state death taxes paid. A deduction from federal estate tax, however, provides less than one-half of the benefit that a death tax credit provides
State Estate Tax Law Changes Provide New Challenges
Under EGTRA, for tax years 2005 through 2009, estates may claim a deduction for state death taxes paid. A deduction from federal estate tax, however, provides less than one-half of the benefit that a death tax credit provides
Poyner and Spruill: A Better Vehicle for Educational Planning?
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: Why You Need a Will
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: New Prudent Investor Act Will Be Important To Both Trus...
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: Private Split Dollar Life Insurance- "Mr. Clean&qu...
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Testa: New Tax Act Makes Major Changes To
The division of property between a credit shelter trust and a marital trust is often determined by a formula based on the then available estate tax exemption amount. As the exemption increases, the formula will result in more property passing to the credit shelter trust and less to the marital trust and, in some cases, all property passing to the credit shelter trust and none to the marital trust, whether or not intended
Vandeventer Black: Planning for the Marital Deduction
In order to qualify for the marital deduction, the property must generally be transferred to the surviving spouse outright and free of trust. For example, if property is left to a surviving spouse for as long as he or she does not re-marry, the gift would not qualify for the marital deduction , because the spouse s interest would "terminate" upon the occurrence of an event (i
Weil: Death Tax Relief -- The Road Not Taken
The State Death Tax Credit Reduction and Change to Deduction Although most estates will benefit from reduced estate taxes over the next nine years, as Table II shows, this will not be so for all estates in all years. In 2005 it eliminates the state death tax credit entirely and replaces it with a deduction
White & Case: Asia-Pacific Tax Report (Autumn 2000)
White & Case: Asia-Pacific Tax Report (Winter 2000)
State Estate Tax Law Changes Provide New Challenges
Under EGTRA, for tax years 2005 through 2009, estates may claim a deduction for state death taxes paid. A deduction from federal estate tax, however, provides less than one-half of the benefit that a death tax credit provides
State Estate Tax Law Changes Provide New Challenges
Under EGTRA, for tax years 2005 through 2009, estates may claim a deduction for state death taxes paid. A deduction from federal estate tax, however, provides less than one-half of the benefit that a death tax credit provides
Congress Passes Broad Estate
Reduction of credit for state death taxes followed by replacement with a deduction. Under the new legislation, the state death tax credit first is reduced, then repealed and replaced with a deduction
Poyner and Spruill: A Better Vehicle for Educational Planning?
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: Why You Need a Will
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: New Prudent Investor Act Will Be Important To Both Trus...
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: Private Split Dollar Life Insurance- "Mr. Clean&qu...
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Testa: New Tax Act Makes Major Changes To
The division of property between a credit shelter trust and a marital trust is often determined by a formula based on the then available estate tax exemption amount. As the exemption increases, the formula will result in more property passing to the credit shelter trust and less to the marital trust and, in some cases, all property passing to the credit shelter trust and none to the marital trust, whether or not intended
Vandeventer Black: Planning for the Marital Deduction
In order to qualify for the marital deduction, the property must generally be transferred to the surviving spouse outright and free of trust. For example, if property is left to a surviving spouse for as long as he or she does not re-marry, the gift would not qualify for the marital deduction , because the spouse s interest would "terminate" upon the occurrence of an event (i
Weil: Death Tax Relief -- The Road Not Taken
The State Death Tax Credit Reduction and Change to Deduction Although most estates will benefit from reduced estate taxes over the next nine years, as Table II shows, this will not be so for all estates in all years. In 2005 it eliminates the state death tax credit entirely and replaces it with a deduction
White & Case: Asia-Pacific Tax Report (Autumn 2000)
White & Case: Asia-Pacific Tax Report (Winter 2000)
State Estate Tax Law Changes Provide New Challenges
Under EGTRA, for tax years 2005 through 2009, estates may claim a deduction for state death taxes paid. A deduction from federal estate tax, however, provides less than one-half of the benefit that a death tax credit provides
State Estate Tax Law Changes Provide New Challenges
Under EGTRA, for tax years 2005 through 2009, estates may claim a deduction for state death taxes paid. A deduction from federal estate tax, however, provides less than one-half of the benefit that a death tax credit provides
Congress Passes Broad Estate
Reduction of credit for state death taxes followed by replacement with a deduction. Under the new legislation, the state death tax credit first is reduced, then repealed and replaced with a deduction
Blank Rome: Mutual or Joint Wills - Promises? Promises?
Such a signed statement may have other benefits as well, such as the preservation of the marital deduction. Before the Internal Revenue Code (IRC) was changed to allow terminable interest property to qualify for the marital deduction, the marital deduction was not allowed in cases where there was a finding in a joint or reciprocal will situation of a contractual obligation to dispose of the estates of the testators in a specified way
Fox Rothschild: New Medicare Act/Health Savings Accounts
If there is a surviving spouse and the spouse is designated as the beneficiary of the HSA, a marital deduction is available. The HSA then will continue on as an HSA for the surviving spouse
Poyner and Spruill: A Better Vehicle for Educational Planning?
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: Why You Need a Will
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: New Prudent Investor Act Will Be Important To Both Trus...
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: Private Split Dollar Life Insurance- "Mr. Clean&qu...
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Testa: New Tax Act Makes Major Changes To
The division of property between a credit shelter trust and a marital trust is often determined by a formula based on the then available estate tax exemption amount. As the exemption increases, the formula will result in more property passing to the credit shelter trust and less to the marital trust and, in some cases, all property passing to the credit shelter trust and none to the marital trust, whether or not intended
Vandeventer Black: Planning for the Marital Deduction
In order to qualify for the marital deduction, the property must generally be transferred to the surviving spouse outright and free of trust. For example, if property is left to a surviving spouse for as long as he or she does not re-marry, the gift would not qualify for the marital deduction , because the spouse s interest would "terminate" upon the occurrence of an event (i
State Estate Tax Law Changes Provide New Challenges
Under EGTRA, for tax years 2005 through 2009, estates may claim a deduction for state death taxes paid. A deduction from federal estate tax, however, provides less than one-half of the benefit that a death tax credit provides
State Estate Tax Law Changes Provide New Challenges
Under EGTRA, for tax years 2005 through 2009, estates may claim a deduction for state death taxes paid. A deduction from federal estate tax, however, provides less than one-half of the benefit that a death tax credit provides
Congress Passes Broad Estate
Reduction of credit for state death taxes followed by replacement with a deduction. Under the new legislation, the state death tax credit first is reduced, then repealed and replaced with a deduction
Blank Rome: Mutual or Joint Wills - Promises? Promises?
Poyner and Spruill: A Better Vehicle for Educational Planning?
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: Why You Need a Will
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: New Prudent Investor Act Will Be Important To Both Trus...
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: Private Split Dollar Life Insurance- "Mr. Clean&qu...
For example, the marital deduction, which allows a person to pass assets to his or her spouse free of transfer taxes, used to be limited to one-half of the decedent's estate. Currently, the marital deduction is unlimited
Poyner and Spruill: Planning for the Personal Residence and Undeveloped Rea...
As a result, trust deductions will typically flow through and be used by the grantor on his own personal income tax return. However, including such a provision may be too restrictive and prevent the trustees from effectively managing the assets and could possibly cause unintended results such as jeopardizing the marital deduction for a marital trust
Poyner and Spruill: Avoiding Fraudulent Claims
As a result, trust deductions will typically flow through and be used by the grantor on his own personal income tax return. However, including such a provision may be too restrictive and prevent the trustees from effectively managing the assets and could possibly cause unintended results such as jeopardizing the marital deduction for a marital trust
Poyner and Spruill: Gifting Stock Options
As a result, trust deductions will typically flow through and be used by the grantor on his own personal income tax return. However, including such a provision may be too restrictive and prevent the trustees from effectively managing the assets and could possibly cause unintended results such as jeopardizing the marital deduction for a marital trust
Poyner and Spruill: Ensuring Income Tax Status of Trusts Primer on Family L...
As a result, trust deductions will typically flow through and be used by the grantor on his own personal income tax return. However, including such a provision may be too restrictive and prevent the trustees from effectively managing the assets and could possibly cause unintended results such as jeopardizing the marital deduction for a marital trust
Testa: New Tax Act Makes Major Changes To
The division of property between a credit shelter trust and a marital trust is often determined by a formula based on the then available estate tax exemption amount. As the exemption increases, the formula will result in more property passing to the credit shelter trust and less to the marital trust and, in some cases, all property passing to the credit shelter trust and none to the marital trust, whether or not intended
Weil: Death Tax Relief -- The Road Not Taken
The State Death Tax Credit Reduction and Change to Deduction Although most estates will benefit from reduced estate taxes over the next nine years, as Table II shows, this will not be so for all estates in all years. In 2005 it eliminates the state death tax credit entirely and replaces it with a deduction
