July 2009 Posts

  • Your IRA may be at Risk

    In North Carolina standard IRAs are exempt from creditors’ claims, under state law and federal bankruptcy law. Also, qualified retirement plans, such as 401(k)s and 403(b)s, are protected under the federal ERISA law....
  • Tired of Your CRT? Sell It!

    If you set up a Charitable Remainder Trust (CRT) in the past but now wish you could get a lump sum back from the trust, it may be possible to sell your interest in the trust. ...
  • NC Democrats Agree on Tax Increases

    Democrats in the North Carolina House and Senate reached a compromise on tax increases yesterday. Briefly, the proposal would: Increase income taxes by 2% Increase sales tax by 1% (to 7.75% in most counties)...
  • Bequests Under Will to Drafting Attorney to be Prohibited

    Beginning January 1, 2010, it will be unlawful for North Carolina attorneys to prepare a Will or Codicil naming the attorney as a beneficiary unless the attorney is within five degrees of kinship of the testator, a present or former spouse of the testator, or a parent, sibling or child of a spouse or former spouse of the testator....
  • Changes to Effect of Will Caveat on Probate Proceeding

    Beginning October 1, 2009, when a lawsuit is filed to contest a Will (Caveat), the probate administration will no longer be fully suspended until the caveat is resolved. ...
  • Spousal Year’s Allowance to Increase to $20,000

    The "Years Allowance" for spouses is intended to provide support for a surviving spouse during the year after the death of the deceased spouse, and has priority over creditors claims and other beneficiaries. ...
  • Small Estate Amount to Increase by $10,000

    Effective October 1, 2009 the threshold for small estate proceedings (often called Affidavit for/of Collection) under North Carolina General Statutes Section 28A-25-1 will increase to $20,000 for estates where there is no surviving spouse or he or she is not the sole heir, and $30,000 where the surviving spouse is the sole heir....
  • Judicial Creation of Special Needs Trusts Clarified

    Governor Bev Perdue recently signed into law Session Law 2009-267, which: modifies North Carolina General Statutes Section 36C-2-203(a)(9) to state the proceedings may be brought before the Clerk of Superior Court to create a trust....
  • Intra-Family Loans – Make Sure You Follow the Rules

    Loans among family members, especially from parents to children, are very common. However, most people are not aware of the tax laws regarding such loans. ...
  • Governor Perdue’s Tax Proposal

    Yesterday North Carolina Governor Beverly Perdue revealed her proposed tax plan, which is designed to raise $1.6 billion in taxes. Here are some of the highlights:...
  • Assignment of IRA by Estate to Charity is Not a Transfer

    These are the facts from a recent Private Letter Ruling from the IRS: The Decedent had a "pour-over" will requiring that his probate estate be added to his living trust. ...
  • Independence

    I’m down in Amelia Island Florida this weekend for a Florida Bar Tax Section meeting. Today is a day off for many, and will be an afternoon off for me, as I head to the pool and then a movie with the family....