Bryan Cave  Life Death and Taxes

Trust Bryan Cave

Other Posts

Main Content

NEW TAX CHANGES – WHAT YOU NEED TO KNOW

Today, Congress passed a sweeping tax bill, as widely expected over the last few weeks. The bill passed solely along party lines, with no Democrats voting for the bill.  President Trump is expected to sign the bill into law, shortly.

The changes in the transfer tax laws made by this bill are as follows:

  • The gift and estate tax exemption is doubled beginning January 1, 2018, from $5,000,000 per person to $10,000,000, indexed for inflation.  For 2018, this equals $11,200,000 for individuals and $22,400,000 for married couples. The increase applies to the generation-skipping transfer tax exemption, as well
  • The foregoing increase of the gift, estate, and GST exemptions is set to expire in 2026, when the exemptions would revert to $5,000,000/$10,000,000 figures, adjusted for inflation.  This raises the question of whether, upon such expiration, there could be a so-called claw-back/penalty on any gifts made prior to 2026 which exceeded

Summary of Income, Business, and International Provisions in New Tax Bill

November 3, 2017

Categories

Our colleagues in our Tax Advice and Controversy group have also summarized the proposed changes to individual, business, and international taxes in the new bill released on November 2 by the House Ways and Means Committee.

SUMMARY OF NEW TAX BILL PROPOSAL

November 3, 2017

Categories

SUMMARY OF NEW TAX BILL PROPOSAL

November 3, 2017

Authored by: Charles Lin

House Republicans released their new tax bill on November 2, 2017.  As expected for such a significant proposal, the final bill, if passed, will likely look different.  Nonetheless, the bill, in its current form, provides the base starting point from which the House GOP intends to negotiate, both within their party and without.

The changes in the tax bill related to transfer taxes are as follows:

  • The transfer tax exemption for gift, estate, and GST purposes is doubled in 2018, from $5,000,000 per person to $10,000,000, as previously indexed for inflation – $11,200,000 per person – and indexed from there.
  • The estate and generation-skipping transfer tax will be fully repealed on January 1, 2024.
  • “Step-up” basis on death for income tax purposes of inherited property (presumably other than retirement plan benefits and other items of “income in respect of a decedent”) would remain in effect, even after 2023,

IRS Gives Relief to Victims of Hurricane Harvey

September 1, 2017

Categories

Due to the devastation and upheaval caused by Hurricane Harvey, the Internal Revenue Service is providing extra time for certain individuals and businesses to file their returns and pay taxes.  Among the relief provided is a new January 31, 2018 filing deadline for individual taxpayers who have valid extensions until October 16 and businesses which have extensions until September 15.  According to IR-2017-135:

“The IRS is now offering this expanded relief to any area designated by the Federal Emergency Management Agency (FEMA), as qualifying for individual assistance. Currently, 18 counties are eligible, but taxpayers in localities added later to the disaster area will automatically receive the same filing and payment relief.”

The IRS has set up a landing page to assist victims of Hurricane Harvey.

Update: The IRS has extended similar relief to victims of Hurricane Irma.  

Bryan Cave’s Kathleen Sherby Recognized by Marquis Who’s Who

August 29, 2017

Categories

 

Congratulations to Kathleen Sherby of Bryan Cave’s Private Client Services team for her “Lifetime Achiever” recognition by Marquis Who’s Who:

“Supported by more than 40 years of professional experience, Ms. Sherby serves as a partner with Bryan Cave LLP, where she started in 1976 as an associate. In addition to her work with the firm, she lends her services to her community through the Saint Louis Science Center, where she has served on the board of trustees since 2010. Over the years, she has also worked with her community in various board positions for the Junior League in Saint Louis, the Bequest and Gift Council of Saint Louis University, the Clayton Education Foundation, and the bi-state chapter of the American Red Cross.”

Bryan Cave’s Private Client Team Members Make 2018 “Best Lawyers in America” List

August 29, 2017

Categories

 

 

 

 

 

 

 

 

 

Congratulations to the attorneys at Bryan Cave who made the 2018 “Best Lawyers in America” List, including the following members of our Private Client Services team:

Kimberly E. Civins (Atlanta)

William Linkous Jr. (Atlanta)

Renee M. Gabbard (Irvine)

Shannon K. Barks (Kansas City)

B. John Readey III (Kansas City)

Lawrence Brody (St. Louis)

Stephen B. Daiker (St. Louis)

John D. Schaperkotter (St. Louis)

Kathleen R. Sherby (St. Louis)

Douglas J. Stanley (St. Louis)

Shannon K. Barks of our Kansas City office was also recognized as a “Lawyer of the Year“.

THE STATUTE “SAYS WHAT IT MEANS AND MEANS WHAT IT SAYS”

U.S. v. McNICOL 829 F.3d 77 (1st Cir. 2016) (cert. denied 1/9/2017)

Trusts and Estates practitioners often focus solely on the Tax Code found in Title 26 of the United States Code and ignore other parts of the United States Code (U.S.C.). However, it is a mistake to do so as Marci McNicol learned first-hand. In this case, the Federal Priority Statute found in 31 U.S.C. § 3713 came into play to impose liability on Marci for the decedent’s unpaid Federal income tax liability.

Here, at the time of his death, the decedent owed over $300,000 in Federal income taxes. As a result of this and other liabilities, the decedent’s estate, which consisted almost entirely of interests in two closely held companies, was insolvent. Marci, the decedent’s widow, transferred decedent’s interest in one of the companies to herself even before the court had appointed

COPYING IS BEST IN THE ING WORLD

PLR 201642019

Not only is strict adherence to the structure set out in prior favorable rulings best, it is essential when it comes to obtaining a favorable ING ruling. The provisions in the trust document need to carve a very fine line through the grantor trust/incomplete gift rules to obtain a favorable ING ruling. The goal is to have the Service rule that a trust is not a grantor trust for income tax purposes yet not a completed gift for gift tax purposes and included in the grantor’s estate to get a basis adjustment at death.

The earliest ruling, ILM 201208026, fell short of a favorable ruling with the Service finding that the retained testamentary power of appointment was insufficient to avoid a completed gift. By 2014, practitioners had carefully studied this early ruling and devised a set of trust provisions that

The attorneys of Bryan Cave LLP make this site available to you only for the educational purposes of imparting general information and a general understanding of the law. This site does not offer specific legal advice. Your use of this site does not create an attorney-client relationship between you and Bryan Cave LLP or any of its attorneys. Do not use this site as a substitute for specific legal advice from a licensed attorney. Much of the information on this site is based upon preliminary discussions in the absence of definitive advice or policy statements and therefore may change as soon as more definitive advice is available. Please review our full disclaimer.