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Estate Planner - July August 2016

in Estate, Trust & Probate, News

Here’s a brief glance at what you’ll find in the 2016 – Estate Planner – July August issue…

Carlin Comments – Inexperience Does Not Excuse Late Filing of a Tax Return or Payment of Taxes (Part 2)

The U.S. Court of Appeals for the Sixth Circuit on September 22, 2016, in Janice C. Specht and Jon Hoffheimer as Co-Fiduciaries of the Estate of Virginia L. Escher v. United States of America, upheld the decision of the district court in granting the motion for summary judgment in favor of the Internal Revenue Service by affirming that an estate fiduciary was liable for late filing and late payment of an estate tax return when the fiduciary unreasonably relied upon her attorney who committed malpractice in representing the estate. 2016 – Estate Planner – Carlin Comments – Inexperience Does Not Excuse Late Filing of Tax Return or Payment of Taxes – Part 2

Covering your basis

Tax basis planning offers significant benefits

If gift and estate taxes aren’t a concern for many affluent families, it pays for them to focus planning efforts on income taxes — in particular, basis planning. This article details the benefits of a stepped-up basis. A sidebar explains how a recent IRS rule may affect basis reporting.

Is a self-directed IRA right for you?

Traditional and Roth IRAs can be powerful estate planning tools. With a “self-directed” IRA, a person may be able to amp up the benefits of these tools by enabling them to hold nontraditional investments that offer potentially greater returns. However, self-directed IRAs present pitfalls that can lead to unfavorable tax consequences. This article explains the ins and outs of a self-directed IRA.

A CLT’s effectiveness depends on Sec. 7520 rate

A CLT can help achieve philanthropic and estate planning goals. This trust type is most effective in a low-interest-rate environment. And while rates have risen slightly as of late, they remain low. That said, it’s better to act soon before interest rates rise more significantly.

Estate Planning Red Flag

You haven’t properly funded your revocable trust

If an estate plan includes a revocable trust — also known as a “living” trust — it’s critical to ensure that the trust is properly funded. Revocable trusts offer significant benefits, including asset management and probate avoidance. But these benefits aren’t available if the trust isn’t funded. This brief article explains how to fund a revocable trust.