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If you own real property outside of your state of residence when you die, you will have to conduct an ancillary probate in that state to transfer title to the property to your beneficiaries. In some states, like Texas, ancillary probate is a simple process of recording copies of the out of state probate in …
As we wait to see if Congress can pass a tax bill, we now know that estate taxes for the very wealthy will not be repealed immediately or at all. The House bill that was passed yesterday bumps the lifetime exemption to $10 million indexed for inflation and retains the estate tax through 2023. The Senate …
A power of attorney is a document in which you give someone else the power to act on your behalf for financial transactions. Texas, like many states, has adopted a statutory durable power of attorney form. The form has a laundry list of transactions from which you can pick and choose from, and you can …
Proposed Valuation Discount Regulations Under Section 2704 This week the Treasury pulled proposed regulations under Code Section 2704 that would have virtually eliminated valuation discounts for family limited partnerships. https://www.journalofaccountancy.com/news/2017/oct/treasury-will-pull-sec-2704-and-other-burdensome-rules-201717601.html This was not surprise, as a prior blog post noted. So there is a window that is wide open for discount planning, and this planning will …
Bring Out Your Dead-2704 Regs Dead, But Estate Tax Isn’t Read More »
A recent Tax Court case, Estate of Minnie Lynn Sower, http://www.ustaxcourt.gov/UstcInOp/OpinionViewer.aspx?ID=11392, illustrates that, even though there is no estate due and a 706 return is filed to claim a deceased spouse’s unused exemption amount (“DSUE”) to preserve portability, care must still be exercised in preparing that return. In Sower, the Tax Court re-examined the estate of the …
Eternity Is a Long Time- Reopening of Portability Return for DSUE Read More »
Texas has one of the most expansive homestead laws in the country. Homestead designation protects the homeowner from creditors claims, other than certain taxes and loans secured with the homestead. This blog post will cover the types of Texas homesteads, and who benefits from homestead designation. Types of Homesteads There are two types of …
The probate question I get asked the most often is whether a client should use a living trust to avoid probate. In many states the answer is an unqualified “yes.” In Texas, the answer is “it depends, but probably not.” A living trust is a revocable trust to which the client will transfer his or …
In my last blog post I noted that it might be a good time to reconsider discount planning with family limited partnerships (FLP). That thought has only increased over the last few weeks as the chances for tax reform dwindle. Indeed, while political predictions are a fools game, we now have to seriously consider a …
It Might Be Time to Party Like It Is 2012 With The Spousal Lifetime Access Trust Read More »
Earlier in the year the Treasury announced that it would undertake a review of regulations issued since January 1, 2016. Recently, in Notice 2017-38, the Treasury identified eight regulations for burden reduction, including the controversial proposed regulations under Internal Revenue Code 2704. Those proposed regulations would have severely restricted the use of valuation discounts in family …
As we watch Congress for clarity on tax reform, I am reminded of the Tom Petty song “The Waiting.” Many clients are frozen, unwilling to do any planning. However, the fact is tax law changes all of the time, and any “reform” today may be gone tomorrow. Life and death go on. The real …