Prompt assessment of federal tax related to a decedentBy Mary CascinoTrusts and Estates, June 2005An executor or administrator of a decedent's estate can request a prompt assessment of a tax relating to returns filed by the representative of a decedent's estate, i.e., income tax of a decedent (Form 1040); estate income tax (Form 1041); and/or the decedent's gift tax (Form 709). (I.R.C. §6501(d)).
Recent developments in estate, gift, and income taxBy David A. BerekTrusts and Estates, June 2005Three recent cases, Estate of Bongard, Estate of Bigelow and In re Ehman illustrate the importance of non-tax reasons for creating family limited partnerships.
Estate and gift tax updateBy Joseph P. O’KeefeFederal Taxation, March 2005With the recent re-election of President Bush and the aggressive agenda he has put forward, it looks like our estate and gift tax system is headed for further reform.
Other recent developments and casesBy David A. BerekTrusts and Estates, March 2005The Service issued Proposed Regulations under section 2702, 69 Fed. Reg. 44476 (2004), consistent with the holdings in Walton v. Commissioner, 115 T.C. 589 (2000), acq., Notice 2003-72, 2003-44 I.R.B. 964 (Nov. 3, 2003), and Schott v. Commissioner, T.C. Memo 2001-110, rev'd and remanded 319 F.3d 1203 (9th Cir. 2003).
Proposed regulations to elect out of deemed allocationsBy Katarinna McBrideTrusts and Estates, March 2005The Internal Revenue Service issued Proposed Regulations under section 2632 concerning (i) guidance for making the election under section 2632(c)(5)(A)(i) to elect out of the deemed allocation of unused Generation Skipping Tax ("GST") exemption under section 2632(c)(1) to a GST trust, (ii) guidance for making the election under section 2632(c)(5)(A)(ii) to treat a trust as a GST trust, and (iii) guidance with regard to electing out of deemed allocations to a specific transfer or a specific transfer and all subsequent transfers to a trust.
Recent developments and cases in IllinoisBy Paul A. MeintsTrusts and Estates, March 2005Illinois has been quietly and effectively stepping up its collection program to recover benefits paid to people in nursing homes.
Appellant beware: Trust fees and administrative costs disallowed on appealBy Donald A. LoBueGeneral Practice, Solo, and Small Firm, January 2005Since early in law school, attorneys have heard the phrase "Buyer Beware." A recent Fourth District case, NC Illinois Trust Co. v. Madigan et al, is an example of a situation where the Appellant needs to beware.
Comparison of transfer techniquesBy Jay S. GoldenbergTrusts and Estates, December 2004Tax planning is a quantitative matter. No matter how good a technique sounds, we don't know anything until we actually run the numbers.
Family Limited Partnerships: Yes!… No!… Well, maybe!By Robert WeberTrusts and Estates, December 2004After the Courts came in with their decisions in the Strangi case, and the Hackl case, the IRS rubbed their hands in glee, and estate planners went out looking for black clothes and sack cloth to mourn the end of the Family Limited Partnership method to try to preserve estate assets.
Recent decisionsBy James K. SayTrusts and Estates, December 2004National City Bank of Michigan/Illinois v. Northern Illinois University, et al, No. 2-03-1281 (Ill. App. 2nd Dist) (Nov. 5, 2004).
Overdue for a raise—Small estate affidavit limit increased to $100,000By Katarinna McBrideTrusts and Estates, October 2004The highly-anticipated and widely followed Senate Bill SB2630, which raised the gross value permitted for a Small Estate Affidavit to $100,000, was signed into law by the Governor on August 6.
Total Return technical amendmentsBy Lyman W. WelchTrusts and Estates, October 2004Technical amendments to the Illinois Total Return Trust Law became effective August 23, 2004 when HR 1080 became Public Act 930991.
Intestate transfer does not satisfy “otherwise given” for purposes of stock purchase agreementBy Christopher M. Tietz & David A. BerekTrusts and Estates, September 2004In Opiela v. Roth, decided June 17, 2004, the Illinois Supreme Court held that stock of a closely held company which was subject to a Stock Purchase Agreement (“the Agreement”) between the company and a decedent, was not given by the decedent on his death to his descendants through intestate succession, but rather remained subject to the Agreement, and accordingly the company was entitled to purchase the shares.
The alternate valuation dateBy Alexander DenenbergTrusts and Estates, June 2004In the Private Letter Ruling 2003-43-002 (June 11, 2003), the Internal Revenue Service addressed the issue of whether the earnings of a corporation during the six-month period after decedent's death that were not distributed to the decedent's estate should be treated as "included property" or "excluded property" for purposes of Code § 2032.
Appraisal updateBy Carol Klima MartinTrusts and Estates, June 2004On occasion, trust and estate attorneys must evaluate or sell interests in real property. Attorneys who deal with clients' real property need to know that both Federal and Illinois laws concerning appraisers have changed.
Did you ever wonder…?By Philip E. KoenigTrusts and Estates, June 2004Did you ever wonder why most standard will and trust clauses direct an executor to pay all of the Decedent's debts "except those debts which are secured by an interest in real estate, beneficial interest in a land trust, a cooperative or by an assignment of a life insurance policy?"
Recent decisionsBy James K. SayTrusts and Estates, June 2004In re Estate of Schlenker, Docket No. 96402 (Ill. Sup. Ct. April 1, 2004). Levi Schlenker had executed four wills before his death in July of 2001, of which only three were found.
Recent developments in Family limited partnerships-Section 2036By Leonard S. DeFrancoBusiness Advice and Financial Planning, June 2004The proliferation of Family Limited Partnerships ("FLPs") with their attendant estate tax benefits has, for some time, raised the specter of a challenge from the Internal Revenue Service ("IRS").
Trusts for companion animalsBy Lin HansonGeneral Practice, Solo, and Small Firm, June 2004Pet animals are a very important part of the lives of many people. Companion animals significantly improve the lives of individuals with disabilities, such as "seeing eye" dogs for the visually impaired, and dogs used to "fetch" for physically challenged and chair-bound people.
Using the irrevocable insurance trustBy Jay S. GoldbergTrusts and Estates, June 2004Many of us are familiar with the Irrevocable Insurance Trust ("ILIT") as a direct means of leaving tax-free benefits to the family. This article will discuss other uses of the tool.
What can Kansas teach us? Casenote-Beware of spousal marital rights of electionBy Greg JohnsonElder Law, June 2004Testamentary trust principal can easily be considered an available asset to a Medicaid applicant if the Medicaid applicant is considered to have access to the principal because of a failure to elect a marital share.
Grantor retained annuity trusts: The ideal estate planning vehicle for your clients?By Susan KubarTrusts and Estates, February 2004If you believe you have clients who would be interested in transferring assets to their children at a reduced tax cost, a grantor retained annuity trust, called a GRAT, is an ideal vehicle for you to recommend in today's low interest rate environment.
Illinois decisionsBy Mark E. ZumdahlTrusts and Estates, February 2004In re Estate of Madison Rae Poolwas first noted in the June 2002 newsletter when the Third District Appellate Court reversed the decision of the circuit court of Putnam County, denying Petitioner Randy Pool's Petition to Revoke Letters of Administration issued to Debra Jean Clausen.
529 college plans: An estate planning and education planning toolBy Gregg A. GarofaloYoung Lawyers Division, December 2003Over the past 10 years, the cost of a college education has grown dramatically and there is little sign of that trend slowing over the next 10 years.
