Tax and Estate Planning

  • IRS clarifies rules for trust interest

    The IRS has released final regulations clarifying the rules on how to treat annuity interest or unitrust interest retained by a grantor who dies during the term of the trust. 

  • July 28, 2008

    Power of attorney permitted distribution of assets before death

    A power of attorney explicitly granting the power to gift to a woman’s stepson authorized his distribution of some of her property among her family before her death, the Utah Supreme Court has ruled.

  • July 14, 2008

    Trust can’t disqualify beneficiaries over interfaith marriages

    Public policy prohibits enforcing a clause in a trust disqualifying grandchildren from being trust beneficiaries if they have married someone who isn’t of the testator’s faith, the Illinois Appellate Court has ruled.

  • June 16, 2008

    FLP transfers don’t qualify for full gift tax discount

    A married couple failed to qualify for full valuation discounts for federal gift tax purposes when they formed a family limited partnership as a device to transfer stock to their children, the U.S. Tax Court has ruled.

  • June 2, 2008

    Medicaid can’t be recovered from estate of spouse

     

    A state could not obtain reimbursement of Medicaid benefits from the estate of a recipient’s spouse because federal law preempts a state law authorizing such actions, the Missouri Court of Appeals has ruled.

     

  • June 2, 2008

    Innocent spouse tax relief granted based on abuse

    The wife of a drug-addicted attorney could obtain innocent spouse relief because equitable factors such as the psychological abuse she suffered outweighed her actual knowledge of nonpayment, the U.S. Tax Court has ruled.

  • June 2, 2008

    Lawyer can’t be sued by beneficiaries of client’s will

    A lawyer could not be sued by the beneficiaries of a will for allegedly making a mistake that increased the tax liability for his client’s estate, the Ohio Supreme Court has ruled in affirming judgment.