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Bryan Cave Ranked in Chambers High Net Worth 2016 List

June 28, 2016

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Bryan Cave’s St. Louis and Atlanta offices were named in the Chambers 2016 High Net Worth (“HNW”) Private Wealth Law list.

Chambers HNW is its first directory for the private wealth market.  Objective, independent and research-based, the guide recognizes the world’s leading high net worth advisers.

Lawrence Brody, Kathleen SherbyStephen Daiker, Bill Linkous, Frank McGaughey and Kimberly Civins were all also named as notable practitioners.

Click here to visit Chambers HNW directory.

JUST HOW IS BASIS ACQUIRED AFTER ALL?

Dorrance v. U.S., 2015 WL 8241954 (9th Cir. 2015)

This case is the latest in the cases involving tax impact of the sale of stock received by a policy holder from a mutual life insurance company on demutualization, and a case of first impression at the Federal circuit court level.  Here, the Dorrances purchased life insurance policies from several mutual life insurance companies in 1996 to replace the then estimate of their anticipated estate tax liability.  In 2003, the Dorrances received stock in the resulting stock company when each of these mutual life insurance companies demutualized in a tax free transaction into a stock company.  The Dorrances then sold this stock also in 2003, and reported the sales on their 2003 income tax return as capital gain transactions, reporting a zero cost basis.  The Dorrances later filed a claim for refund, now asserting that the stock received in

ALL ASSETS ARE NOT CREATED EQUAL WHEN IT COMES TO IRA ROLLOVERS (PLR 201547010)

When the taxpayer in PLR 201547010 decided to invest his IRA assets in a partnership, he forgot to check whether his IRA provider was able to hold an interest in a partnership as an investment in the IRAs for which it served as custodian.  While all IRA accounts are able to hold investments in publicly traded securities, i.e. stocks, bonds and mutual funds, not all IRA custodians are set up to handle alternative investments, such as direct ownership of a business, real estate, partnership interests and LLC member interests, in their IRA accounts managed pursuant to their IRA account agreements.  In fact, some IRA account agreements specifically preclude ownership of such alternative assets in the IRA accounts covered by the IRA custodian’s account agreement.

In this PLR, Taxpayer A instructed the IRA Custodian to invest his IRA assets in a percentage partnership interest of Partnership C.  The IRA Custodian issued

Will Inherited IRAs Be Used As A Tool for Protecting An Inheritance from Creditors?

Originally posted on the Bryan Cave Bankruptcy & Restructuring Blog, found here.

A recent decision out of a New Jersey Bankruptcy Court highlights a loophole in the Bankruptcy Code which may allow Chapter 7 debtors to keep significant assets out of the hands of trustees and creditors.

In In re Norris,[1] the Bankruptcy Court considered whether an inherited individual retirement account is property of the bankruptcy estate.  Prior to the Debtor filing her bankruptcy case, her stepmother passed away, leaving an inherited IRA naming the Debtor as the beneficiary.  In her amended schedules, the Debtor listed the inherited IRA, claiming it as fully exempt under 11 U.S.C. § 522(d)(12), but also claiming the inherited IRA was not property of the estate.[2]  The Chapter 7 Trustee objected to the exemption and requested the inherited IRA be deemed property of the bankruptcy estate.

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