May 2009 Posts

  • Offshore Trust Cases – Trading Jail for Protection?

    Offshore trusts continue to be an effective asset protection tool, including in bankruptcy, tax litigation, and divorce situations, even when the facts are not favorable to the trust grantor. ...
  • NC Needs to do More to Combat Fraud Against the Elderly

    The North Carolina Center for Public Policy Research just issued a press release with the results of a study indicating that North Carolina needs to do more to protect its senior citizens against fraud. ...
  • Possible Tax Increases to Pay for Health Care Reform

    As reported in the Giftlaw eNewsletter, the potential tax increases to pay for healthcare reform may include the following: 1. Employer Health Care Exclusion...
  • Caring for an Elderly Parent – Letting Go

    For those who have been through a similar experience, this poignant article Letting Go of My Father, which details Jonathan Rauch’s struggles in caring for his elderly father, will solicit empathy. ...
  • Is your IRA heir-tight? Probably not…

    The recent Kiplinger.com article How to leave an IRA that’s heir-tight contains lots of good information and advice about IRA distribution planning, but there’s a glaring omission – no discussion of the use of trusts to protect IRAs for the benefit of one’s heirs. ...
  • A Short Story on Asset Protection

    I had a new client come in yesterday, and we were discussing including asset protection in his estate plan. He mentioned he had recently been sued for lead paint related issues by the tenant of an older rental home he owned in another state....
  • U.S. Tax Court Rules on Exceptions to IRA Early Distribution Penalty

    The United States Tax Court, in Benz v. Commissioner, 132 TC No 15, recently ruled that a taxpayer taking a series of equal periodic payments as an exception to the 10% early distribution penalty for IRA withdrawals could also take advantage the early distribution penalty exception for payment of higher education expenses without the education payment being considered a modification of the series of equal payments. ...
  • “Green Book” Proposals on Estate and Income Tax

    President Obama’s Green Book contains proposals for modifying the GRAT rules, eliminating valuation discounts for transfers of interest in many family limited partnerships and limited liability companies, and increasing income tax rates and limiting deductions for high income taxpayers. ...
  • NC 529 Plan Eliminates Two Investment Options

    North Carolina’s 529 College Savings Plan will be eliminating two investment options – the CollegeHorizonFunds and the Balanced Fund – due to their higher fees. ...
  • IRS to Hire 4500 New Revenue Agents

    Taxes are going up, and so is the number of revenue agents at the IRS! This is from the latest GiftLaw eNewsletter: In the 2010 budget proposed by President Barack Obama, there is an increase of $400 million dollars for the IRS. ...
  • Explanation of Obama’s Revenue Proposals

    WASHINGTON – As part of the Administration’s effort to develop a budget that invests in our nation’s future, the U.S. Treasury Department today released the General Explanations of the Administration’s Fiscal Year 2010 Revenue Proposals (Greenbook) to provide details of plans to cut taxes for small businesses and middle class families and close unfair corporate tax loopholes. ...
  • NC’s Repeal of Rule Against Perpetuities Upheld

    I previously blogged about NC’s repeal of the Rule Against Perpetuities, which limited the amount of time a trust could stay in existence, and some questions that existed regarding the repeal’s validity....
  • Charitable Trusts – Save Taxes While Benefiting Charity

    There are two primary types of charitable trusts – charitable remainder trusts (CRTs) and charitable lead trusts (CLTs). CRTs are far more common, and are generally funded with a minimum of about $100,000 worth of assets....