Private Wealth Services | Trusts & Estates Archives - Page 2 of 8

Aug 22, 2017

Georgia’s New Uniform Power of Attorney Act in Review (Part One)

Effective July 1st of this year, Georgia’s new Uniform Power of Attorney Act (“UPOAA”) applies to most written, general, financial powers of attorney. A power of attorney (“POA”) allows for one party (the “principal”) to grant authority to another party (the “attorney-in-fact” or “agent”) to act in the principal’s stead with regard to the principal’s financial matters. If an individual is no longer capable of handling his or her own financial affairs, and does not have a valid durable POA in place, it may be burdensome or impossible for another person to ensure that individual’s bills are paid and his… Read more

Jun 29, 2017

The Prospect of Estate Tax Repeal: What to Do Now

With the election of Donald Trump as the 45th President of the United States, the prospect of tax reform, and specifically repeal of the Federal estate tax has become more plausible. Repeal of the Federal estate and generation-skipping transfer tax was part of the “Blueprint” for tax reform announced by Republicans in June 2016. Predicting what will happen, when it will happen, and what form it will take are difficult. If repeal occurs: Will repeal happen all at once, or be phased in? Will the gift tax also be repealed? Will repeal be “permanent?” Or will it “sunset,” much like… Read more

May 24, 2017

The Importance of Reviewing Your Will

Many people neglect to review their Wills, which often can have devastating results. We have advised clients that have found themselves in unfortunate situations and needed legal advice and counsel to deal with the consequences of an outdated will. Recounting a recent experience – When did I last review my Will? 1997. Yes, I remember it was when we sold the house and moved into Manhattan. The house sold for what then seemed like a huge sum so my husband and I decided that if anything happened to either of us there was enough money for the survivor of us… Read more

Apr 25, 2017

National Health Care Decisions Day: Do You Know Where Your Advance Directive Is?

National Health Care Decisions Day was recognized this year the week of April 16-22. The purpose of the week was to focus on weaving Advance Directives and end-of-life care planning “into the fabric of life1.” Although the week has passed, it is critical to understand the importance of Advance Directives. What is an Advance Directive? Often called a living will, it details a patient’s wishes for treatment when the patient is seriously ill and unable to make or communicate his or her own medical decisions. Often, in the same or a separate document, it will name a health care agent or… Read more

Sep 7, 2016

Call to Action: Proposed Regulations May Limit Valuation Discounts

The Internal Revenue Service published proposed regulations on August 4, 2016, that will severely limit valuation discounts on the transfer of ownership interests to family members in family-controlled entities, such as corporations, partnerships, and limited liability companies. The proposed regulations will apply to all family-controlled entities, even those that own operating businesses. Generally, when a minority interest in a family-controlled entity is being transferred the value of the interest is reduced for transfer tax purposes since the interest being transferred lacks control over the entity, as well as because the interest is not freely marketable outside of the family. These… Read more

Nov 23, 2015

2016 Estate Planning Update

As soon as the last of the turkey is made into turkey soup, ‘tis the season to focus on year-end tax planning, particularly taking advantage of the gift tax annual exclusion. An individual can make gifts free of gift tax and without using any of his or her lifetime gift tax exemption of up to $14,000 per person per year. A married couple can make gifts of up to $28,000 per person per year regardless of which spouse actually makes the gift. (The annual exclusion amount is adjusted annually for inflation but will remain at $14,000 for 2016.) However, if… Read more

Sep 14, 2015

Lost and Found: Musings on the Tax Consequences of a Found Violin

Recently it was reported that Roman Totenberg’s Stradivarius was found 35 years after its suspected theft. The Stradivarius disappeared in 1980, believed by most to have been stolen. The violin surfaced this past June when an appraiser identified the Stradivarius as the missing violin. Eventually, Roman Totenberg’s daughters recovered the violin as his heirs. Mr. Totenberg died in 2012. Generally, it is not a taxable event when a property owner recovers stolen property. However, taxable income will be realized if the taxpayer took an income tax deduction for the theft loss. In such case, the value of the recovered property… Read more

Aug 31, 2015

Anticipated 2704 Valuation Discount Regulations

Authored by: Dana L. Mark In 1990 Chapter 14 (Special Valuation Rules) was added to the Internal Revenue Code to prevent the manipulation of the transfer tax value of a proprietary interest in certain entities in the context of transfers between related parties. In other words, what discounts ought to be taken into account in valuing the transferred interest if control of the entity remains within the family. Included among the new rules was Section 2704 dealing with the treatment of certain lapsing rights and restrictions. Essentially, in the context of a family held entity, if the interest in the… Read more

Dec 16, 2013

EYES ON NEW YORK STATE (Estate Tax Update)

Authored by: Roy P. Kozupsky, Esq. Every once in a while (admittedly not often in this author’s opinion) do our elected officials get tax policy right. There just seems to be too many special interest groups clogging up the essential arteries of our nation’s government. However, in October of this year, Governor Andrew M. Cuomo announced the formation of the Tax Relief Commission. Its aim: “devising a series of targeted tax relief proposals” to lower the tax burden(s) of living and doing business in New York State. Quite admirable in scope, but obviously not an entirely unique aspiration. Skeptics among… Read more

Jul 2, 2013

The Overturning of DOMA has Broad Tax Implications

Authored by: Paul J. Sowell, Esq. In a 5-4 decision issued this past Wednesday, the U.S. Supreme Court ruled that the Defense of Marriage Act (DOMA) is unconstitutional, paving the way for the federal recognition of same-sex marriages. Justice Anthony Kennedy, writing for the majority, said that the act wrote inequality into federal law and violated the Fifth Amendment’s protection of equal liberty: “DOMA singles out a class of persons deemed by a State entitled to recognition and protection to enhance their own liberty. It imposes a disability on the class by refusing to acknowledge a status the State finds… Read more