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Estate Planner - May June 2016

in Estate, Trust & Probate, News

Here’s a brief glance at what you’ll find in the 2016 – Estate Planner – May June issue:

Carlin Comments – Inexperience Does Not Excuse Late Filing of a Tax Return or Payment of Taxes (Part 1)

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 1

Charitable IRA rollover offers significant benefits

At the end of last year, Congress reinstated — and made permanent — qualified charitable distributions from IRAs, also known as charitable IRA rollovers. For those age 70½ or older and who plan to make charitable donations this year, a charitable rollover can provide significant tax benefits. This article details the benefits of a rollover and its requirements. A sidebar explains how the rollover may satisfy one’s required minimum distributions for the year.

Postmortem planning

Add decanting provisions to a trust to increase trustee flexibility

An estate plan shouldn’t be a static document — meaning it should continue to be revised and updated as needed in light of major life changes or estate tax law changes up until death. Postmortem, trustees can have similar power to adapt a trust to changing circumstances. This technique is called “decanting” the trust. This article details the ins and outs of decanting a trust.

Don’t overlook tax apportionment when planning your estate

If one expects his or her estate to have a significant estate tax liability at death, he or she should pay attention to the tax apportionment clause in a will or revocable trust. An apportionment clause specifies how the estate tax burden will be allocated among beneficiaries. Omission of this clause, or failure to word it carefully, may result in unintended consequences. This article explains how an apportionment clause works and the pitfalls if it’s omitted.

Estate Planning Red Flag

You’re setting up trusts in your home state

While it’s natural to set up trusts in the state where one lives, this may result in losing out on significant benefits available in more “trust-friendly” states. This brief article explores the benefits of moving a trust to another state.