Recently, I sent out an alert that the IRS was on the verge of issuing regulations that would have a significant and drastic impact on family limited partnerships. What is at stake is taxes – gift taxes, estate taxes and generation-skipping taxes. All of those sorts of taxes – gift taxes, estate taxes and generation-skipping…
Special Alert – FLPs in Danger
At the American Bar Association Tax Section meeting in May, Cathy Hughes of Treasury/IRS announced that Treasury and the IRS are on the verge of issuing regulations under Section 2704(b) that will restrict substantially the ability of holders of family limited partnership interests to get the discounts in valuation those interests have so long held…
Simplified Probate Forms
The Texas legislature has passed and sent to the Governor S.B. No 512, which amends the Government Code, and requires the Texas Supreme Court “as the court considers appropriate” to prepare and offer for distribution forms “for use by individuals representing themselves in certain probate matters.” The language goes on to include, in the list…
Transfer on Death Deed
The Texas legislature has passed and sent to the Governor S.B. No. 462, originally introduced by Senator Joan Huffman of Houston, named the “Texas Real Property Transfer on Death Act.” As the name of the statute implies, it provides a method for a person (grantor) to execute and record a deed that has no legal…
Is the Wrong Form Effective with the IRS?
On occasion, the IRS issues what are called “field service advice.” These are legal opinions designed to assist IRS employees in dealing with taxpayers. The opinions are not legally binding on taxpayers, but knowing what they say can be helpful. In a field service advice dated March 31, 2015, the question was raised when one…
Loss of IRA’s Exemption
One question which comes up a lot is the extent to which assets inside an IRA can be utilized by the participant in various transactions. The problem is the so-called “prohibited transaction rules” in Section 4975 of the Internal Revenue Code.The United States Bankruptcy Court for the Eastern District of Arkansas issued its opinion on…
Speaking June 12 to 500+ Texas Attorneys
For 39 years, the State Bar of Texas has presented a three-day seminar in June dealing with advanced estate planning topics. This year, I will be presenting on one of the featured topics: spendthrift clauses in trusts and the extent and limits of the protections such clauses offer with respect to creditors and in divorce….
ABA RPTE Spring Symposium – Hot Topics Breakfast
This edition is the first of a “few” which will be devoted to information gleaned from the American Bar Association’s Real Property, Trusts and Estates’ Spring Symposium in Washington, DC and will be my summary of a few selected sessions. Hopefully this will be of some interest to all of you. Hot Topics Breakfast Richard…
Income Tax Item – Charitable Deduction Fails
Sadly, Kenneth and Susan Kunkel were turned down by the United States Tax Course on April 8, 2015 in their case against the Commissioner of Internal Revenue. The bulk of their dispute revolved around non-cash donations. For all donations of $250 or more, taxpayers generally must obtain a contemporaneous written acknowledgment from the donee. Additional…
Finished Outline for Advanced Estate Planning Course
Yesterday, I finished and turned in my outline/article for the Advanced Estate Planning Course. I’ve been honored to be selected to be one of the speakers. The title of my talk is, “Extent and Limits of Spendthrift Protection – Creditors and Divorce.” For those of you who are attorneys and who will be attending the…