Electing Portability Treatment Every person is entitled to give away a certain amount of money tax-free, either during life or at death. The amount has varied over the years due to acts of Congress, inflation adjustments, or both. In 2000, the amount that could be given estate and gift tax-free was $600,000. Congress then passed a law that increased the amount over the next decade to as high as $3.5 million per taxpayer. In 2010, the estate tax was eliminated, but it reappeared in 2011 with a … [Read more...] about Electing Portability Treatment

Courts Disagree on Intent of Marie Callender Heir Donald W. Callender was heir to the royalties from the Marie Callender restaurant chain. Donald passed away in 2009, leaving his wife, Catherine T. Callender (“Katy”), and his children, Cathleen Callender (“Cathe”) and Donald Lucky Callender (“Lucky”). Cathe is Donald’s daughter by his first marriage and Lucky is his son by his marriage to Katy. Donald’s estate was valued at approximately $143 million, with the largest percentage of the value … [Read more...] about Courts Disagree on Intent of Marie Callender Heir

New Basis Reporting Requirements The IRS has long held that some taxpayers were cheating the system, claiming a low value for an asset on the estate tax return, while claiming a higher value for purposes of establishing basis for the asset when it is later sold (and thereby reducing any gain that must be reported for income tax purposes). The IRS has now enlisted the assistance of executors and trustees in ferreting out the income tax basis for beneficiaries of inherited assets from trusts … [Read more...] about New Basis Reporting Requirements

Fixing David Bowie’s Will David Bowie died on January 10, 2016, just two days after the release of his final album, Blackstar. The last song on the album, “I Can’t Give Everything Away,” seems prophetic both in its title and its initial verse. “I know something is very wrong.” News stories estimate Bowie’s estate at $100 million. His legal name is David Robert Jones. He was a citizen of the United Kingdom and a resident of the United States (New York City). He left a Will dated August 25, … [Read more...] about Fixing David Bowie’s Will

Eva Johanna Rova Barnes (“Eva”) was born on July 17, 1916. She grew up on a parcel of land that was homesteaded by her parents. The property included a residence, where Eva lived alone after the death of her husband and daughter. The parcel of land also included a residential rental property that was owned one-half by Eva and one-half by relatives (“The Rovas”) and farmland. Michelle Wells (“Michelle”) was a rural mail carrier who befriended Eva. After Eva fell at home, Michelle and her husband, … [Read more...] about Will Invalid Due to Undue Influence

Passage of the Disabled Military Child Protection Act Expands Special Needs Planning Opportunities Adult disabled children often receive government assistance that is based on need. An example of two common programs are: (1) Supplemental Security Income (SSI) and (2) Medi-Cal. To qualify for SSI the recipient must be disabled (as defined by the Social Security Administration) or age 65 or older and meet certain strict income and asset guidelines. A person on SSI will automatically qualify for … [Read more...] about Passage of the Disabled Military Child Protection Act Expands Special Needs Planning Opportunities

Celebrities Can Set A Good Example NOTE: The IRS has announced its gift and estate tax limits for 2016. The lifetime gift and estate tax exclusion amount is $5,450,000, up from $5,430,000 in 2015. This means a married couple can pass as much as $10,900,000 during life or at death with proper planning. The annual gift tax exclusion amount remains at $14,000. Now on to the main topic of our eAlert. Antoine de Saint-Exupéry said: “As for the future, your task is not to foresee it, but to enable … [Read more...] about Celebrities Can Set A Good Example

No Good Deed Goes Unpunished: The Continuing Saga of the Brooke Astor Estate Philip Marshall, the grandson of noted socialite and philanthropist Brooke Astor, managed to save his grandmother from the financial and physical elder abuse she was suffering at the hands of her son, Anthony Marshall. But Anthony managed to extract a bit of revenge on his sons. In 2006, Philip first noticed that his grandmother was being isolated by Anthony and that Anthony was grabbing more control over her … [Read more...] about No Good Deed Goes Unpunished: The Continuing Saga of the Brooke Astor Estate

Planning for the Unexpected: A Review of Whitney Houston’s Estate Plan   The recent tragic death of Whitney Houston’s daughter, Bobbi Kristina Brown, creates an opportunity to review Ms. Houston’s estate plan to determine what she did right and where there was room for improvement. Whitney Houston died on February 11, 2012, at age 48. With the surge in popularity of her songs as the result of her death, various news agencies put the value of her estate at between $20 million and $115 … [Read more...] about Planning for the Unexpected: A Review of Whitney Houston’s Estate Plan

  Supreme Court: Same-Sex Marriage is a Right   In the 5-4 decision of Obergefell v. Hodges, 574 U.S. ___ (June 26, 2015), the United States Supreme Court ruled that the Fourteenth Amendment to the Constitution gives same-sex couples the right to marry and requires states to recognize a marriage lawfully licensed and performed in another state. While this decision settles the issue of the legality of same-sex marriage in the United States, there will be ongoing litigation for … [Read more...] about Supreme Court: Same-Sex Marriage is a Right