Wandry v Commissioner: Tax Court Blesses Use of Defined Value Formula Clause
In an extremely important taxpayer victory, the United States Tax Court issued a memorandum opinion upholding the use of a defined value formula clause to fix the value of the donor’s gift for federal gift tax purposes. Wandry v. Commissioner, T.C. Memo 2012-88 (March 26, 2012). This type of formula clause is intended to prevent [...]
Community Property in Florida – A Primer
In Florida, many clients and their attorneys do not consider the effect of community property laws on estate planning or estate and trust administrations. Many clients come to Florida from other states and countries in which they have acquired community property. These clients, and their attorneys, need to identify any community property and carefully consider [...]
Low Interest Rates – The Good and Not-So-Good Planning Opportunities
The IRS issues every month a “7520 rate” (named after the code section to which it relates) which is used as an assumed rate of return to measure the values of gifts in certain advanced estate planning techniques. The 7520 rate for March is at a historically low 1.4%. Generally, many estate planning techniques succeed [...]
Portability Election Deadline Extended
On February 17, 2012, the IRS issued Notice 2012-21, which allows certain estates of married individuals who died during the first six months of 2011 to extend the time to make the portability election. Code section 2010(c) was amended in 2010 to allow the estate of a decedent who dies after 2010 and who is [...]
Florida’s New Designated Representative Statute
Robert Naberhaus co-authored an article that was published in the Fall edition of the electronic version of ActionLine Vol. XXXIII, No. 1 – Fall 2011. The article is entitled: Secret Trusts: (Some) Questions and (Fewer) Answers About Florida’s New Designated Representative Statute By Robert J. Naberhaus III, Esq. (Dean Mead) and Mark R. Parthemer, Esq. [...]
New Legislation Prohibits Tax Strategy Patents
In the 1998 decision of State Street Bank & Trust Co., v. Signature Financial Group, Inc. 149 F.3d 1368 (Fed. Cir. 1998), the Circuit Court of Appeals for the Federal Circuit opened the door to obtaining patents on tax strategies when it generally held that business methods were patentable. Although State Street did not specifically [...]
Form 8939 Notice and Guidance
By Matthew J. Ahearn and Brian M. Malec On Friday, August 5, 2011, the IRS issued Notice 2011-66 and Rev. Proc. 2011-41 to provide guidance concerning the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (TRUIRJCA). Under TRUIRJCA, an election may be made to opt out of the estate tax and into [...]
The New Florida Power of Attorney Act
The Florida law governing powers of attorney and similar instruments is found in Chapter 709 of the Florida Statutes. The Florida legislature on May 4, 2011 voted to pass Senate Bill 670 which significantly revises Chapter 709 in an attempt to achieve greater consistency among the states by conforming Florida’s power of attorney law to the Uniform Power [...]
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