Estate Planning

How to Organize Your Financial and Legal Affairs

Posted on June 02, 2008
I recently came across a publication entitled If Something Should Happen - How to Organize Your Financial and Legal Affairs.  The booklet is authored by Marla Brill and is published by the American Institute for Economic Research.  Copies can be ordered from the website...

Federal Estate Tax Return Statistics for 2004 Decedents Released

Posted on May 29, 2008
For you true tax geeks out there, you can find all kinds of interesting statistics in this report published by the IRS.  In 2006, North Carolina ranked 11th in the country in number of estate tax returns filed (1089), and 12th in terms of estate size...

House Passes Extension of Charitable IRA Rollover

Posted on May 24, 2008
On May 21,  the U.S. House passed the Renewable Energy and Jobs Creation Act of 2008 (H.R. 6049). The act includes a one year extension of the Charitable IRA rollover and similar tax provisions and updated tax incentives for renewable energy.  The state and local sales tax deduction, and tuition deduction extensions are also included...

Organ Donation in North Carolina

Posted on May 22, 2008
Most North Carolinians know that when they renew their driver's license, they can indicate their desire to be an organ donor by having a red heart placed on the license.  This alone is now sufficient to establish ones' intent to donate organs (but not tissue)...

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Top 10 Questions to Ask Your Financial Advisor

Posted on May 21, 2008
How do you go about deciding which financial advisor to hire?  The following, from the Paladin Registry , provides an important list of questions to ask when interviewing prospective advisors.All advisors claim to be financial experts. They make this statement to win your trust and your assets...

IRA Charitable Rollover and Other Tax Extensions Passed by House Committee

Posted on May 19, 2008
The House Ways and Means Committee passed H.R. 6049, the Energy and Tax Extenders Act of 2008, on May 15, 2008. The bill includes a one-year extension of the $100,000 IRA Rollover for taxpayers age 70 and over, as well as many other tax extenders and renewable energy provisions...

Beyond the Basics - a Trio of Considerations for Succession Planning

Posted on May 16, 2008
When doing estate planning, one needs to consider to whom to leave one's property, which is usually not much of a problem.  Next, one must decide who will be in charge of the administration the Will - the executor .  This choice is sometimes more difficult, but even without suitable family or friends, a professional or corporate fiduciary can be named...

Good News for Family LLCs

Posted on May 11, 2008
As a proponent of Family Limited Liability Companies (LLCs) for asset management, creditor protection, and ease of gifting, I was please to read about the U.S. Tax Court's decision in Mirowski v. Commissioner, T.C. Memo 2008-74.  March 26, 2008.Mrs...

North Carolina Probate Not Too Bad? Think Again...

Posted on April 27, 2008
They other day a client came in and said that he had heard that probate in North Carolina was a "breeze."  Wrong!  While probate here is less expensive than in some states, I still counsel my clients to avoid it in most cases.  Here are 10 Reasons to Avoid Probate in North Carolina: Court fees can exceed $6,000...

Where's My Refund?

Posted on April 23, 2008
Excerpts from a recent IRS Memo:WASHINGTON — Taxpayers who have filed their federal income tax returns and are expecting their refunds can use the Internal Revenue Service’s online tool, “Where’s My Refund?,” to check on the status of their refunds...

Continuation of $100,000 IRA Charitable Rollover Proposed

Posted on April 22, 2008
On April 17, Senators Max Baucus (D-MT) and Charles Grassley (R-IA) introduced a bill for 2008 and 2009 which would extend certain tax laws until December 31, 2009. The bill includes an increase in the AMT exemption for 2008 to $46,200 for individuals and $69,950 for couples, energy credits and tax extenders...

National Health Care Decisions Day

Posted on April 16, 2008
Today is National Health Care Decisions Day. I personally encourage everyone who is at least 18 years of age to have a Health Care Power of Attorney and Living Will (also known as Advance Directives).  These documents will help ensure that your wishes, and not someone else's, will be followed should you be in an end of life situation and unable to communicate.

Tax Day - I'm Exhausted!

Posted on April 15, 2008
For better or worse, this has been my busiest tax season ever.  That's the reason I haven't blogged in a while.  I do a lot of returns for decedents, estates and trusts, as well as gift tax returns, most of which are due April 15.  It's now after 7:00 p...

IRS Allows Roth Conversions for Inherited Retirement Plans

Posted on April 06, 2008
In an unexpected announcement (Notice 2008-30), the IRS has stated that it will allow non-spouse beneficiaries of qualified plans (such as a 401(k), 403(b) or employer pension plan) to convert those funds directly to a Roth IRA.  However, at least for the time being, beneficiaries of an IRA do not have this option...

Senate Finance Committee Discusses Gift and Estate Tax Reform

Posted on April 04, 2008
Yesterday a public hearing on possible gift and estate tax reform was scheduled before the Senate Finance Committee.  Click "Continue Reading" for the full text of the report by the staff of the Joint Committee on Taxation.  I could not get the proper formatting to reproduce, so it's a bit difficult to read...

NC Gift Tax Reform Under Consideration

Posted on April 01, 2008
The Revenue Laws Study Committee of the North Carolina General Assembly is taking a look at reforming the North Carolina Gift Tax.  I previously blogged about House Bill 235, describing the proposed changes.  In general the NC Gift Tax would be made similar to the federal gift tax, with a $1 million lifetime exemption...

3 Rules For Getting Your Economic Stimulus Payments on Time

Posted on March 27, 2008
According to the IRS Commissioner: File Early. File Electronically. Use Direct Deposit.IR 2008-51  

FDIC Insurance Coverage for Trusts

Posted on March 26, 2008
Most folks know that cash accounts in banks are insured up to $100,000, per individual, per bank, by the Federal Deposit Insurance Corporation.  Trusts, of course, can own bank accounts, but often have multiple beneficiaries.  Recognizing this, the FDIC has issued guidelines so that one can calculate the amount of insurance coverage available for trust-owned accounts.

North Carolina Ranked 13th in Taxable Estates in 2006

Posted on March 20, 2008
As reported in the TaxProf Blog, Citizens for Tax Justice has released a state-by-state ranking of the number of estates owing federal estate tax in 2006.  North Carolina ranked 13th, with 523 estates paying estate tax that year.  Not exactly a large number!  The estate tax exemption in 2006 was $2 million, as it is this year, so only estates valued over that amount owed tax...

Retiring? This Study May Make You Think Twice!

Posted on March 19, 2008
A Greek study reported this month in the American Journal of Epidemiology found that retired persons had a greater death rate than employed persons of the same age.  That's good news for me, since with four kids to put through college, I'll be working a good, long time! It would be interesting to see if the same thing holds true for Americans...

Tax Rebate Payment Schedule

Posted on March 18, 2008
Stimulus Payment Schedule for Tax Returns Received and Processed by April 15 Direct Deposit Payments If the last two digits of your Social Security number are: Your economic stimulus payment deposit should be sent to your bank account by: 00 – 20 May 2 21 – 75 May 9 76 – 99 May 16 Paper Check If the last two digits of your Social Security number are: Your check should be in the mail by: 00 – 09 May 16 10 – 18 May 23 19 – 25 May 30 26 – 38 June 6 39 – 51 June 13 52 – 63 June 20 64 – 75 June 27 76 – 87 July 4 88 – 99 July 11 An online calculator is also available to determine eligibility and calculate the amount of the payment for those who are not eligible for the entire $300 or $600 payments...

Estate Tax Changes Likely

Posted on March 14, 2008
From this article in the New York Times yesterday:  Beginning next year, the federal estate tax exemption will increase to $3.5 million. This means that the tax would apply to only about 0.3 percent of people who die each year.  Not exactly the average American...

IRS Says Beware of These Tax Scams

Posted on March 12, 2008
Tax scammers are creative - calling on telephone as well as sending emails.  Heres a liink to a recent list of scammers' ploys from the IRS.The elderly are particularly vulnerable, so if you have an aging relative, make sure you alert them.

IRS Offers Free and Easy Online Filing for Tax Rebates

Posted on March 06, 2008
For those folks who are not legally required to file federal income tax returns but want to get their tax rebates this Spring (who wouldn't?), the IRS offers free online filing.Information about eligibility requirements.

IRS Allows Favorable Gift Treatment for S Corp

Posted on March 05, 2008
This from Professor Chistopher Hoyt at the UMKC Law School, with good news for S Corporation owners:The IRS released a revenue ruling that confirmed many of our hopes  regarding charitable gifts of appreciated property by a Subchapter S corporation...

"Bundled" Fiduciary Fees Fully Deductible - For 2007

Posted on March 04, 2008
The U.S. Supreme Court,  in Michael J. Knight, Trustee of William L. Rudkin Testamentary Trust v. Commissioner, 552 U.S. ___, 128 S. Ct. 782 (2008), ruled that costs paid to an investment advisor by a nongrantor trust or estate generally are subject to the 2% floor for miscellaneous itemized deductions under Internal Revenue Code Section 67(a)...

IRS to Publish New Proposed Regulations for 529 Plans

Posted on March 01, 2008
The IRS has announced that it will soon propose new regulations governing 529 College Savings Plans, which will (I) contain an anti-abuse rule (to prevent using 529 Plans to skirt gift tax rules); (II) determine the estate, gift and GST tax results of contributions, transfers and withdrawals; and (III) create rules for making the 5 year election, address certain income tax issues, and create new record keeping requirements...

Factors for Determining Undue Influence

Posted on February 20, 2008
The North Carolina Court of Appeals' recent decision in In re Will of John A. Jones, Jr.   deals with a Caveat against a Will in favor of the decedent's wife filed by the executor of the prior Will, which provided only a life estate for the wife...

Educational Trusts Provide Flexibility and Protection for 529 Plans

Posted on February 19, 2008
Many parents are deeply concerned about the escalating costs of college and post-graduate education for their children, and how these costs may impact their overall financial and estate planning objectives. If you have college-bound younger family members, you should be aware of an important new technique that can pay for educational expenses, solve income tax issues, and provide an important piece of your estate plan...

Want Your Tax Rebate? Make Sure You File On Time

Posted on February 14, 2008
If you are of of the many Americans eligible for a tax rebate this year, and are expecting a check in May, don't procrastinate.  In order to receive a rebate, you must have already have filed your 2007 return.  So forget the extensions and get your returns done by April 15!

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