Bryan Cave  Life Death and Taxes

Trust Bryan Cave

Other Posts

Main Content

Recent Tax Court Case Rules on Treatment of Madoff Account

Recent Tax Court Case Rules on Treatment of Madoff Account

October 3, 2016

Authored by: Stacie J. Rottenstreich and Karin Barkhorn

In a recent Tax Court decision, Harry H. Falk, and Steven P. Heller, Co-Executors, v. Commissioner of the Internal Revenue, the United States Tax Court ruled that in the case of the Madoff Ponzi scheme, an estate which paid estate tax on Madoff assets which subsequently have become worthless can claim a theft deduction.

James Heller, a New York state decedent, died in January 2008 owning a 99% interest in James Heller Family, LLC (the “LLC”).  The only asset held by the LLC was an account with Bernard L. Madoff Investment Securities, LLC.  In November of 2008, the Executors of Mr. Heller’s estate withdrew some money from the LLC’s Madoff account in order to pay estate taxes and other administrative expenses.  Shortly thereafter, the news of the Madoff Ponzi scheme became public. Suddenly, the LLC’s interest and the estate’s interest in the LLC became worthless.

In April 2009, the Executors

HELPING YOUR ADULT CHILDREN

HELPING YOUR ADULT CHILDREN

November 11, 2015

Authored by: Stacie J. Rottenstreich and Karin Barkhorn

ThinkstockPhotos-475946938

 

Open up any newspaper or magazine across the county and likely you will read an article about the difficulties facing young adult looking for their first jobs.  More and more young adults are turning to their parents for financial assistance. How can parents help their children? And what are the gift tax implications of such assistance?

Each individual has the ability to gift $14,000 a year to each person without using up any of his or her lifetime exclusion. A married couple can then gift $28,000 to an adult child without any gift tax impact at all. However, you must keep in mind that this $14,000 amount is inclusive of all gifts. You cannot give $14,000 directly to your child and then give them additional withdrawal rights under a trust.

Yet One More Word on New York Estate Taxes

Yet One More Word on New York Estate Taxes

August 3, 2015

Authored by: Stacie J. Rottenstreich, Karin Barkhorn and Edward Peck

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 –

Will New York State Join the List of Directed Trust States?

Will New York State Join the List of Directed Trust States?

May 26, 2015

Authored by: Stacie J. Rottenstreich and Karin Barkhorn

statuteoflibertyThe New York State legislature is considering becoming a directed trust state. In a directed trust, the trustee is allowed to act under the advice or direction of someone else, an advisor or protector, who could make decisions regarding investments, distributions or other trust matters. Earlier this year, the New York State Senate referred a bill to its Judiciary Committee which would expressly allow grantors to establish directed trusts in New York State and sets out general parameters for such trusts.

Celebrity Family at War Over Estate

Celebrity Family at War Over Estate

February 6, 2015

Authored by: Stacie J. Rottenstreich and Karin Barkhorn

The untimely death of Robin Williams shocked and distressed many of his admirers. Now six months after his death many of his admirers are further distressed by the legal battle between Williams’s widow and his children from prior marriages.

Mr. Williams seems to have gone to great lengths to care for and protect his three children from two different marriages. Yet, he also made provisions for his wife. His home in Tiburon, California, along with its contents, subject to certain reservations, was to pass to his wife on his death. However, the trust which, according to news sources, disposes of this home and its contents also provides that his children are to receive his clothing, jewelry and personal photos taken prior to his last marriage as well as his “memorabilia and awards

Proposal to Reform New York State Estate Tax System

Proposal to Reform New York State Estate Tax System

January 26, 2015

Authored by: Stacie J. Rottenstreich and Karin Barkhorn

177572431As reported on this blog last year, New York State modified its estate tax system by gradually increasing the estate tax exemption along with some other changes. The hope and intent were to keep New York State’s estate tax more competitive and in line with other states within the country to prevent a migration of New Yorkers from the state to avoid state estate tax. However, the language in the New York State stature which made these modifications created some significant problems for New Yorkers. The New York State Society of Certified Public Accountants, through its Estate Planning Committee, has proposed some additional reforms to the New York tax law (the “Proposal”) which attempt to eliminate some of the perceived unfairness in current New York law.

As it currently stands, for a New Yorker

Law Meets Science

Law Meets Science

November 24, 2014

Authored by: Stacie J. Rottenstreich and Karin Barkhorn

451428613Advances in medical technology have made it possible for a child to be conceived after the death of one or both of his or her genetic parents with the use of stored sperm or ova. Recently, the New York State Legislature has sent a bill to Governor Coumo which clarifies when a child born after the death of his or her genetic parents, a so called posthumously conceived child, will be deemed a child of such parents for the purpose of inheritance and intestacy law. This issue may arise when a genetic parent who will ultimately have a posthumously conceived child dies without a Will or with a Will using the generic term child or issue. Does the posthumously conceived child take a share

Proponents of Estate Tax Still Estate Plan

Proponents of Estate Tax Still Estate Plan

July 14, 2014

Authored by: Stacie J. Rottenstreich and Karin Barkhorn

ClintonSenateWhile constant attention is being given to Hillary Clinton’s potential decision to run for the presidency in 2016 and the release of her latest book, Hard Choices, last month, news sources recently reported that she and former President Bill Clinton have taken advantage of several of the estate planning techniques recommended by trusts and estates attorneys for high net worth individuals.

This is interesting, in part, because the Clintons support the estate tax and have not been in support of its repeal.

According to reported sources, each of the Clintons created a qualified personal residence trust and each contributed his or her 50% ownership interest in their Chappaqua, New York house to his or her respective trust. A qualified personal residence trust, commonly called by its acronym QPRT, is an IRS sanctioned

Wedding Bells are Ringing: Should you get a Prenuptial Agreement?

Wedding Bells are Ringing: Should you get a Prenuptial Agreement?

June 2, 2014

Authored by: Stacie J. Rottenstreich and Karin Barkhorn

123820206It’s June.  Wedding season is upon us.  It is a good time to think about prenuptial agreements. If you are engaged to be married, should you have a prenuptial agreement? At the minimum, you should at least consider the implications of marriage with or without such an agreement.

New York Budget Bill Makes Changes to Trust Income Tax

New York Budget Bill Makes Changes to Trust Income Tax

April 16, 2014

Authored by: Stacie J. Rottenstreich and Karin Barkhorn

The New York Budget bill made changes not only in the estate tax arena, as previously reported on this blog, but also to the income taxation of certain trusts.

Under law prior to the passage of the Budget bill, a resident trust created by a New Yorker was entirely exempt from New York income tax if there was (i) no New York resident trustee, (ii) no assets located in New York and (iii) no New York source income. The new law, effective for calendar years beginning January 1, 2014, provides that a New York resident beneficiary receiving a distribution of income from a New York State resident trust which is exempt from New York State income tax, will be taxed on that “accumulated distribution”. The new accumulation distribution tax, will not apply if the accumulated income was earned before 2014 or if the trust itself is subject to New

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.