Tax and Estate Planning
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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.
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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.
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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.
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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.
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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.
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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.
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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.
