The newsletter of the ISBA’s Section on Trusts & Estates
Browse articles by year: 2015 (23)
Newsletter articles from 2007
The delayed QTIP: The Illinois Wait-n-See
After several frustrating and failed attempts to combine efforts with the Attorney General to structure legislation, the ISBA Trusts & Estates Section Council is taking the initiative to propose legislation amending 35 ILCS 405/2 of the Illinois Compiled Statutes.
IRS still not charitably driven when clients steer IRAs to trusts
The Internal Revenue Service is still a miser when it comes to trusts and individual retirement accounts. In a recent internal legal memorandum (Internal Legal Memorandum 200644020 “ILM”) the Internal Revenue Service (“Service”) concluded that a transfer of an individual retirement account (“IRA”) to charity to satisfy a legacy from a trust was taxable to the trust as income in respect of the decedent under Internal Revenue Code Section 691(a)(2).
Major “Kiddie Tax” changes
The Small Business and Work Community Tax Act of 2007 extends the reach of “Kiddie Tax” that is imposed on the investment income of minor children.
MCLE credit and newsletter authors
According to Rule 795(d)(7) of the Supreme Court of Illinois’ Minimum Continuing Legal Education Rules, authors who write “law-related articles in responsible legal journals or other legal sources” can get MCLE credit.
Mike Wiedel reported that the basic LawEd program on Estate Planning for Modest Estates will be held on October 26th at NIU in Rockford and on November 2nd at Eastland Suites in Bloomington.
Regulating the acronyms: GRAT, GRUT, QPRT, CRAT and CRUT
The IRS proposed rules for determining the extent to which a trust in which the grantor has retained the use of property or the right to an annuity, unitrust, or other income payment for life, for any period not ascertainable without reference to the Grantor’s death, or for a period that does not in fact end before the Grantor’s death, is includible in the Grantor’s gross estate under IRC §2036. Prop. Reg. §20.2036-1, Prop. Reg §20.2039-1.
Stranger than fiction: The Illinois Attorney General wants trustees to WHAT!
Under the Charitable Trust Act, 760 ILCS 55/1 et.al., the Attorney General requires an estate representative or a trustee of a trust to notify the Attorney General of charitable bequests in excess of $4,000. Failure to comply with the notice requirements could result in a fine ranging from $500 to $1,000 to be levied against the estate or trust.
What a difference a day makes: Estate of Frazier Jelke III
In a case of first impression, and reversing the Tax Court, the Eleventh Circuit in Estate of Frazier Jelke III held that in determining the estate tax value of company stock, the company’s value is reduced by the entire built-in capital gain as of the date of death.