By Robert S. Keebler, CPA, MST, AEP (Distinguished), CGMA Earlier this year, the IRS released PLR 201417027 in which it refused to extend the deadline to begin required minimum distributions (RMDs), for taxpayers who were not even aware that they were beneficiaries of a decedent’s retirement plan. Because of their seemingly innocent mistake, the missed RMDs might be sliced in half by the 50% excise tax for missed distributions under IRC § 4947(a) and the beneficiaries might be exposed to negligence and understatement penalties under IRC § 6662. This ruling is a reminder of the importance of proper naming of…
Frank Aragona Trust: What Now Constitutes Trustee “Material Participation”?
By Robert S. Keebler, CPA, MST, AEP (Distinguished), CGMA | Volume 2, Issue 5 (May 2014) [1] In Frank Aragona Trust v. Commissioner, the U.S. Tax Court held that a trust can qualify for the IRC Section 469(c)(7) real estate professional exception.[2] Furthermore, the court held that the trust materially participated in real property businesses it owned. Don’t get excited quite yet, though. Although the holding that a trust can be a real estate professional is very favorable, the case does little to resolve the issue of whose participation can be counted for purposes of determining whether a trust materially participates in an…
Steve Oshins Releases Decanting State Rankings Chart
Thanks to generosity of Leimberg Information Services, we are pleased to provide to you a recently published article on LISI, where nationally renowned estate and asset protection attorney, Steve Oshins, discusses the creation and release of his 1st Annual Trust Decanting State Rankings Chart. “The 1st Annual Trust Decanting State Rankings Chart was created to serve as a single page guide to various states’ differences among their decanting statutes. The states are ranked based on the ease of use and amount of flexibility provided by their statutes, not based on the public policy issues that may exist based on one’s…
Books Now Available Through The Ultimate Estate Planner
At The Ultimate Estate Planner, Inc., we are always trying to find the best products and resources available to assist practitioners. One of the ways that many estate planning professionals learn is through the more traditional method of reading books (yes, actual books!). We are pleased to team up with The National Underwriter Company and bring to you a number of books available for purchase through our website. We will be adding more publications in the next few weeks, so be sure to come back for more! ESTATE PLANNING BOOKS The Tools & Techniques of Estate Planning, 16th Edition Authors:…
Alan Gassman & Jonathan G. Blattmachr: Stepping Up Efforts to Step-Up Basis for Married Couples
Thanks to generosity of Leimberg Information Services and nationally renowned estate planning attorneys, Jonathan G. Blattmachr, J.D., LL.M. (Taxation) & Alan S. Gassman, J.D., LL.M. (Taxation), Florida State Bar Certified Specialist in Wills, Trusts & Estates, we are pleased to provide to you a recently published article on LISI, where they discuss the importance of stepped-up basis planning for married couples. Also, for more information about Alan Gassmans’ JEST Trust Legal Document Form, click here. Alan Gassman & Jonathan G. Blattmachr: Stepping Up Efforts to Step-Up Basis for Married Couples EXECUTIVE SUMMARY: The capital gains tax may be the most…
LISI: The Beginning of the Post-Windsor Cases
Thanks to generosity of Robert Keebler, CPA, MST, AEP (Distinguished) of Keebler & Associates, LLP, and Leimberg Information Services, we are pleased to provide to you a recently published article on LISI, which discusses two recent cases deciding issues facing same-sex married couples. “As we all know, on June 26, 2013, the Supreme Court of the United States held that Section 3 of DOMA is unconstitutional as a deprivation of the equal liberty of persons that is protected by the Fifth Amendment. Section 3 of DOMA defined ‘marriage’ to mean ‘only a legal union between one man and one woman…
Steve Oshins on ILM 201330033: Ruling on Gift and Estate Tax Consequences of Self-Cancelling Installment Notes
Steve Oshins on ILM 201330033: Ruling on Gift and Estate Tax Consequences of Self-Cancelling Installment Notes Thanks to generosity of Leimberg Information Services and nationally renowned estate planning attorney, Steven J. Oshins, J.D., AEP (Distinguished), we are pleased to provide to you a recently published article on LISI, which discusses two recent cases deciding issues facing same-sex married couples. “In this case, the value of the notes was based upon the §7520 tables. The decedent accounted for the self-cancellation mechanism by adjusting the principal to be repaid or the interest rate that applied to the principal. However, the IRS did…
Is the JEST Trust a Joke?
By Alan Gassman, J.D., LL.M. (Taxation), Florida State Bar Certified Specialist in Wills, Trusts & Estates, AEP (Distinguished), and Christopher J. Denicolo, J.D., LL.M. Can a married couple in a non-community property state establish a joint revocable trust that will facilitate obtaining a date of death stepped-up basis on the death of the first dying spouse, and the full funding of a credit shelter trust (to the extent of the first dying spouse’s estate tax exemption) that can benefit the surviving spouse and descendants without being subject to federal estate tax on the surviving spouse’s death? After extensively researching these…
Beneficiary Designation Problems with IRAs: More Than Just the RMD Rules!
By Kristen M. Lynch, J.D., AEP, CISP, CTFA with Robert S. Keebler, CPA, MST, AEP (Distinguished) In the world of estate and retirement planning, I have been fortunate enough to have been cross-trained as both a trust officer and an attorney. As a trust officer, I was charged with being the divisional manager and administrator for all of the IRAs within a large regional bank’s trust department. In that role, I was responsible for ensuring that the bank’s IRA clients took their required minimum distributions (“RMD’s”), coordinated estate planning and post-mortem issues with the IRA client’s legal and tax…
The Supreme Court Overturns DOMA
In a landmark ruling, the United States Supreme Court in a 5-4 decision, overturned the Defense of Marriage Act (DOMA), passed by bipartisan majorities and signed by President Bill Clinton. They found it to be an unconstitutional violation of the Fifth Amendment. We are holding a special 60-minute teleconference with renowned CPA, Robert S. Keebler, on Tuesday, July 9th at 9am Pacific (12pm Eastern) on this topic. For more information, click here. Also, with permission by and courtesy of Leimberg Information Services, Inc. (LISI) (for information about how to subscribe to LISI, click here), Bob Keebler did a 60-Second Planner…