Car dealers—Don’t get stuck with a lemon for an estate planBy Martin P. Ryan, Bill Kelly, & Ira LevinCorporate Law Departments, October 2007Automobile dealers spend their lifetimes building dealerships into profitable and valuable enterprises.
Estate tax update: Estate tax reform proposalsBy Gregg M. SimonTrusts and Estates, October 2007On March 21, 2007, while the Senate was considering the fiscal 2008 budget resolution (S. Con. Res. 21), Congress hinted that it just may take up estate tax reform.
A lesson in discretion: Leona Helmsley’s last will and testamentBy Katarinna McBrideTrusts and Estates, October 2007Many clients regard the content of their wills to be a private matter. Unfortunately, state law often requires that wills be recorded, and therefore open to public inspection by the media, creditors, distant relatives—essentially anyone.
Regulating the acronyms: GRAT, GRUT, QPRT, CRAT and CRUTBy Gregg M. SimonTrusts and Estates, October 2007The 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.
Major “Kiddie Tax” changesBy Edward J. FellinTrusts and Estates, September 2007The 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.
Memorials for families with minor childrenBy Paul A. MeintsAgricultural Law, September 2007Normally the memorials selected represent a charitable interest that was important to the person while he or she was alive.
Adventures in dying: The journey of a Law ClerkBy Cynthia K. HagemeyerTrusts and Estates, June 2007I first became fascinated, or rather disgusted, with estate litigation when my grandmother’s estate became the subject of a heated will contest.
Estate and gift tax recent cases and rulingsBy Joseph P. O’Keefe & Elizabeth C. HesselbachFederal Taxation, June 2007At issue in this case was the estate tax valuation of a decedent’s shares in a publicly traded company.
Illinois land trusts: Five statutes that can compromise the anonymity of beneficiariesBy Seth A. KaplanTrusts and Estates, June 2007In Illinois, land trusts have long been a device in which estate planning and real estate lawyers can assist clients in managing and controlling real estate while the title of the real estate is in the hands of a trustee.
Legislative Update: Section success and opportunity in the 95th SessionBy Ray J. Koenig, IIITrusts and Estates, June 2007During the 95th session of the Illinois General Assembly, the Trusts and Estates Section Council monitored nineteen (19) pieces of proposed legislation impacting our area of practice.
Simple steps to avoid perjury in will signingBy Eugenia C. HunterElder Law, June 2007The article titled, “Do Witnesses of a Will Commit Perjury?” by Michael H. Erde in the June, 2006, Elder Law Section Council Newsletter prompted me to describe the will execution procedure in my office which I suggest would avoid the potential problems about which Mr. Erde writes.
Stranger than fiction: The Illinois Attorney General wants trustees to WHAT!By Mary CascinoTrusts and Estates, June 2007Under 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.
The departed and divorcedBy Katarinna McBrideTrusts and Estates, March 2007Which is legally more complicated, death during a divorce or death after a divorce?
Here we go ‘round the Rosen bush—An FLP roadmapBy Richard A. SugarTrusts and Estates, March 2007The Rosen case sets out one of the best roadmaps for how to avoid the failure of family limited partnerships as governed by Section 2036(a)(1).
IRS still not charitably driven when clients steer IRAs to trustsBy Michael CyrsTrusts and Estates, March 2007The 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).
Federal estate and gift tax updateBy Michelle L. HellerFederal Taxation, January 2007The Tax Court decided that the fair market value of decedent’s personal residence, which was transferred to a partnership formed shortly before the transfer, was includable in her gross estate under section 2036(a)(1) because she retained the “possession” and “enjoyment” of the property after the transfer.
In Terrorem Clauses—Bark but no biteBy Seth A. KaplanTrusts and Estates, December 2006It is the duty of the courts to carry out the wishes of testators and settlors, and the duty of lawyers representing those testators and settlors to advise them as to the best chance of their directives being followed.
Inflation Adjustments: 2007 and beforeBy Gregg M. SimonTrusts and Estates, December 2006On November 9, 2006 the IRS released its official inflation adjustments for 2007. The following tables show the 2007 adjusted items that relate to estate taxes:
Sample year-end letterTrusts and Estates, December 2006There are several estate tax issues which are critical for us to review the upcoming year.
A season for giving: Organ donation in IllinoisBy Justin J. KarubasTrusts and Estates, December 2006There is a need for greater awareness about organ donation. People die waiting for donations and people die without donating.
Selected developments in income, estate, gift & generation-skipping transfer taxBy David A. BerekTrusts and Estates, December 2006Consistent with the holding in O’Neill, the Second Circuit affirmed the Tax Court in Rudkin v. United States, 124 TC No. 19 (June 27, 2005) that investment advisory fees paid by a trust are deductible only to the extent those fees exceed 2 percent of the trusts adjusted gross income.
Tax and estate planning for year-end and looking ahead to 2007By Karen MacKay & Gregory M. WintersCorporate Law Departments, December 2006A summary of some of the more noteworthy changes to the tax law over the past year, along with planning opportunities you might consider prior to year-end.
Hines v. Department. of Public AidBy Philip E. KoenigTrusts and Estates, November 2006Beverly Tutinas died in 2001, leaving a house and an automobile.
Estate Planning Update for the Solo, Small Firm & General Practice & ProbateBy James F. DunnebackGeneral Practice, Solo, and Small Firm, July 2006With the increase in the applicable exclusion amount to $2 million this year, increasing to $3.5 million in 2009 and the promised (but yet to be fulfilled) removal of the estate tax in 2010, the emphasis on the tax planning element of our estate planning practices may seem to be diminishing.
Estate planning update: Recent case decisionsBy James F. DunnebackGeneral Practice, Solo, and Small Firm, June 2006The Estate of Helen H. Noble, 89 TCM 649 stands for the proposition that sales following death, so long as the transaction occurred within a reasonable time, can be used to establish value as much as a sale prior to the date of death.
