Monday, August 31, 2015


Last month, the UK government announced sweeping changes to the taxation of “resident non doms,” a classification of individuals who receive favorable tax treatment from the UK government.

The UK tax obligations of an individual depend in large part on the individual’s “domicile” under generally applicable English common law principles. (Unlike the US tax system, the citizenship of an individual is irrelevant under the UK tax system.) The UK income tax and capital gains tax systems (which operate as two separate regimes of tax) take into account the “residence” status of an individual, as well. The residence rules were massively overhauled with effect from 6th April 2013. Note that a UK tax year runs from April 6 to April 5 of the following years.

Because of quirks in the English common law approach to determining domicile, in extreme cases it is possible for several generations of a family whose patriarch was domiciled at birth outside of the United Kingdom to live in the United Kingdom without becoming UK domiciled. As a result, these “non-doms” enjoy certain UK income and capital gains tax advantages, which various political parties in the United Kingdom have threatened for years to restrict or eliminate altogether. (more…)

Tuesday, August 25, 2015

The 7520 rate for September has remained at 2.2%.

The September 2015 Applicable Federal Interest Rates can be found here.

Friday, August 21, 2015

ThinkstockPhotos-186176261As part of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, signed into law by President Obama on July 31, 2015, Sections 1014(f) and 6035 were enacted.

Section 1014(f) provides rules requiring that the basis of certain property acquired from a decedent may not exceed the basis of that property as finally determined for federal estate tax purposes, or, if not finally determined, as reported on a statement made under section 6035.

Section 6035 imposes new reporting requirements  for the executor of an estate of a decedent where a federal estate tax return is required to be filed.  The executor must furnish, to both the IRS and to each person who holds a legal or beneficial interest in the property listed on the estate tax return,  a statement “identifying the value of each interest in such property  as reported on such return and such other information with respect to such interest as the Secretary may prescribe.”

Section 6035 requires that such statements must be furnished no later than the earlier of (1) the date which is 30 days after the date on which the federal estate tax return was required to be filed (including extensions, if any) or (2) the date which is 30 days after the date such return is filed.

The Internal Revenue Service today released Notice 2015-57, which delays the due date for filing that statement until February 29, 2016, giving the Treasury Department and the IRS time to prepare the necessary guidance implementing the new reporting requirements.

Thursday, August 20, 2015


Congratulations to Kathy Sherby for being named “Lawyer of the Year”  2016 by Best Lawyers®, the oldest lawyer-rating publication in the U.S!

Best Lawyers names a single lawyer in each specialty in each community as “Lawyer of the Year.” Kathy was named in the Trusts & Estates specialty group. Those honored have received particularly outstanding ratings in the surveys by earning a high level of respect among their peers for their abilities, professionalism and integrity.

Wednesday, August 19, 2015

ThinkstockPhotos-480130649In the past, when an estate of a deceased taxpayer filed a Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, the Internal Revenue Service would automatically issue an estate tax closing letter, signifying that the Return had been accepted by the IRS. At that time, the estate could be assured that, unless the estate took an action that re-opened the estate tax return to review, no additional estate tax would be imposed by the IRS.

Recently, a change was made on the IRS website that indicates this procedure has been changed. Per

When can I expect the Estate Tax Closing Letter?

For all estate tax returns filed on or after June 1, 2015, (more…)

Tuesday, August 18, 2015

Congratulations are in order for the following attorneys listed as Best Lawyers in America 2016 for Trusts & Estates and Tax Law:

William Linkous, Jr.

Frank S. McGaughey, III

Renee M. Gabbard

Shannon K. Barks

B. John Readey, III

Lawrence Brody

Stephen B. Daiker

John D. Schaperkotter

Michael N. Newmark

Kathleen R. Sherby*

The Best Lawyers in America©, the oldest lawyer-rating publication in the U.S., has selected 168 Bryan Cave lawyers for inclusion in the 2016 edition.

Best Lawyers’ lists are compiled based on an exhaustive peer-review evaluation. For the 2016 edition, 6.7 million votes were analyzed.  Click here to view all Bryan Cave lawyers listed in the 2016 edition of The Best Lawyers in America, and the practice area or areas for which each is recognized.


Monday, August 3, 2015

ThinkstockPhotos-466616312The New York State Department of Taxation and Finance recently issued a Technical Memorandum explaining the 2015 legislative amendments to the major New York State estate tax reform provisions enacted in 2014 and reported on this blog last year. The amendments are all effective retroactive to April 1, 2015.

The amendments made clear that the following tax tables are permanent.

Basic Estate Tax Exclusion Amount increases are to be phased in as follows for New York residents or non-residents owning real property located in New York State during the period listed:



April 1, 2014 – March 31. 2015: $2,062,500;

April 1, 2015 – March 31, 2016: $3,125,000;

April 1. 2016 – March 31, 2017: $4,187,500;

April 1, 2017 – December 31, 2018: $5,250,000;

January 1, 2019 and beyond: the basic exclusion amount corresponds with the Federal exemption ($5,000,000 indexed for inflation beginning in 2010). (more…)