Based on the Consumer Price Index for the 12-month period ending August 31, 2016, Thompson Reuters Checkpoint has released their projected inflation-adjusted Estate, Gift, GST tax, and other exclusion amounts for 2017, as follows: (more…)
Effective September 2, 2016, the Internal Revenue Service formally put into place amendments to regulations that define who is married for tax purposes. The new regulations finalize proposed regulations issued in 2015, with only a few minor changes. The IRS Regulation states that it will interpret the term “husband and wife” as any two people who are married to each other, even if they are a same-sex couple. (more…)
In the recent decision, Pfannenstiehl v. Pfannenstiehl, the Massachusetts Judicial Supreme Court overruled the appeals court decision and concluded that assets held in a discretionary trust created by a third party, where the husband is but one potential beneficiary of the trust, is not a marital asset to be divided on divorce. (more…)
The 7520 rate for August 2016 has decreased to 1.4%.
The August 2016 Applicable Federal Interest Rates can be found here.
The 7520 rate for July 2016 has remained at 1.8%.
The July 2016 Applicable Federal Interest Rates can be found here.
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, 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. The Chapter 7 Trustee objected to the exemption and requested the inherited IRA be deemed property of the bankruptcy estate. (more…)
The 7520 rate for June 2016 has remained at 1.8%.
The June 2016 Applicable Federal Interest Rates can be found here.
Update: According to media sources, a lawyer for Bremer Bank and Trust, the corporate fiduciary appointed to administerPrince’s estate, said the bank is continuing to search for a will and the judge in the Court, Judge Kevin W. Eidge, stated “We are not finding that there’s no will, but that no will has yet been found.”
The following was originally published on April 28, 2016.
As we’ve all seen in the news, musician Prince passed away on April 21, 2016 at the age of 57. According to news sources, on April 26, just five days later, one of Prince’s six siblings, his sister Tyka Nelson, filed documents with the Carver County probate court stating “I do not know of the existence of a Will and have no reason to believe that the Decedent executed testamentary documents in any form.” News sources have gone crazy, announcing that Prince died without a Will directing who should inherit his estate and therefore his six siblings will inherit everything. But is this actually true? Maybe, maybe not.
We don’t know about you, but, except for the fact that this is what we do for a living, our brothers (we each only have one sibling) would probably have no idea if we have a Will (or other estate planning) in place. Maybe he would get around to going through all of our files to see if we have one stored somewhere or find the name of our lawyer in six days, but that’s pretty unlikely, given all of the things that typically take place immediately after someone dies (think, funeral, grieving, etc.). Tyka may be absolutely correct – We’re not saying she’s not, but we don’t think that her statement that she doesn’t know of a Will conclusively means there isn’t one. As of yesterday, TIME Magazine online reported that Bremer Trust Company was appointed by a judge to temporarily oversee Prince’s estate for six, which indicates that the court is not closing on the door on a possible Will being produced. (more…)
The 7520 rate for May 2016 has remained at 1.8%.
The May 2016 Applicable Federal Interest Rates can be found here.