Jackson Walker partner Nate Smithson has prepared an updated guide to tax reform which reflects the senate’s newly-proposed tax bill. The guide covers tax brackets, deductions, capital gains, and other relevant topics in tax law.
Taxpayers who wait until the ink is dry on the sweeping Republican tax-reform plan could leave some money on the table. While the vast majority of changes won’t take effect until January, procrastinators might miss out on key tax breaks before then.
read rest of article here: With tax reform pending, it’s time to consider actions now
On October 19, IRS issued Revenue Procedure 2017-58, announcing inflation adjustments for 2018 for dozens of important figures across the Internal Revenue Code, including the following two key numbers regarding the estate tax, gift tax and generation-skipping transfer (GST) tax
Being a caregiver for someone who has a memory deficit can be extremely challenging. It becomes even more difficult when that person is unaware of their dementia or any other limitations associated with it. Dementia can directly impact a person’s ability to follow directions, can compromise their safety, impedes problem-solving and abstract reasoning. It can cause them to be impulsive or unrealistic about their abilities. There are things you can do and approaches you should avoid as a caregiver facing these parameters.
A Third-Party Special Needs Trust (also referred to as a “Supplemental Needs Trust”) allows parents or other relatives of a special needs beneficiary to dedicate assets to the beneficiary by gift or inheritance without affecting his or her eligibility to receive government benefits and without any need for reimbursement of benefits that are provided by government agencies. Although Supplemental Security Income (SSI) and Medicaid programs require that applicants have limited income and resources in order to be eligible for assistance, assets which are owned by a Special Needs Trust are not counted in determining the child’s eligibility to receive benefits. Rather, the Special Needs Trust allows the beneficiary to enjoy the use of the assets in the Trust while preserving his or her qualification to receive government benefits.
Being named the executor of a family member’s estate can be overwhelming: At at time when you’re grieving, you’re called on to handle a host of unfamiliar administrative duties.
Daniel Stickel learned that firsthand when his father died in 2013. Mr. Stickel has worked as a software executive for companies including Google. But he found himself challenged by the many tasks required of him as executor of his father’s estate. Executors are charged with settling the deceased person’s affairs, including paying
Yes, it can be painful to pay for estate planning. Lawyers charge a lot. The benefits of a plan are delayed, and you don’t live to see them anyway. Who wants to spend big bucks on a plan when times are so tough and the federal estate tax is in flux? Fewer and fewer Americans, it seems. Only 35% had a will in 2009, and only about half had any estate-planning documents at all–a will, a trust or a financial or medical power of attorney, according to a survey by Lawyers.com. That’s a drop from previous years.
Conveyances for no consideration made between spouses are a common occurrence. Such conveyances may be made for a host of purposes, such as the making of a gift, estate planning, and loan eligibility.
In all of these instances, no money is being exchanged. The transfer is without consideration and is not in connection with a sale. As a consequence, gift transfers or transfers made without consideration are not subject to transfer tax. Both the NYS real estate transfer tax return (TP-584) and the NYC RPT real property tax return (NYC-RPT) list no consideration transfers among the types of conveyances that are exempt from transfer tax.
But what of conveyances made pursuant to divorce decree or separation agreement? In such instances, no money is being exchanged. Is the transfer without consideration and not in connection with a sale?
At first glance, one might assume that because no money is actually being paid, the conveyance is without consideration and not in connection with a sale. Schedule I of the NYC-RPT addresses this issue. It asks for four pieces of information: the fair market value, the existence of any unpaid mortgages, the percentage of ownership interest being transferred to the other spouse, and any alternate value assigned to the transferred interest that is recited in the settlement agreement, separation agreement or divorce decree. The basis for taxation is found in Section 23-03(d)(3) of Title 19 of the Rules of the City of New York (“RCNY”). This section states that “a conveyance of realty from one spouse to the other pursuant to the terms of a separation agreement” is subject to tax.
Read entire article here: TRANSFER TAX CONVEYANCES PURSUANT TO DIVORCE DECREE OR SEPARATION
In New York, the Executor or Administrator of an estate is obligated to address all claims presented within the prescribed time frame and in the form set forth by law. Failure to comply with the requirements of Surrogate’s Court Procedure Act (SCPA) §1802 and §1803 may be disastrous to the creditor. You are a creditor of an estate, if a decedent owed you money (debts) while he or she was alive. Examples of debts include: personal loans, credit card debt, bank loans, unpaid fees for services, medical bills, auto loans, rents, etc.
If you have a valid claim against a decedent, you must follow the procedures prescribed by law.