JULY, 2009
Warning: Your Decision Does Matter
When creating an estate plan, especially in your will and/or trust, an important decision is who to name as your fiduciary. A fiduciary is a fancy legal term for the person who will take care of your property for you if you are unable to do it yourself, such as the executor of an estate, the trustee of a trust, or an attorney-in-fact under a power of attorney. Your first instinct might be to name one of your children as a fiduciary, but if you want to avoid conflict among your children, this might not be the best option.
When naming a fiduciary, it is important to be able to trust the individual, which is why people often name family members as fiduciaries. However problems can arise when a parent with two or more children names ... >> full
posted by ADMIN July 17, 2009 10:40 AM NJ Probate
JUNE, 2009
In a recent legal memorandum, the IRS stated that it can assess, under IRC Sec.
6695A, a gross valuation misstatement penalty against an appraiser for preparing
erroneous estate- and gift-tax appraisals after May 25, 2007. The Pension
Protection Act of 2006 (P.L. 109-280) added IRC Sec. 6695A to the tax law.
Generally, it states that if (1) a person prepares an appraisal and knows, or
reasonably should have known, that it will be used in connection with a return
or a claim for a refund, and (2) the claimed value of the property based on the
appraisal results in a substantial or gross valuation misstatement within the
meaning of IRC Sec. 6662(h), then a penalty should be assessed against the
appraiser. Under IRC Sec. 6695A, the penalty to be assessed is the grater of
$1,000 or 10% of the amount ...>> full
posted by ADMIN June 24, 2009 8:19 AM Estates
Widows and widowers who don’t want to sell their house right away will get a tax break under a new law. The law gives surviving spouses two years to sell their house and receive the full $500,000 capital gains exclusion that married couples are entitled to.
Couples who are married and file taxes jointly can sell their main residence and exclude up to $500,000 of the gain from the sale from their gross income. Single individuals can exclude only $250,000. Under the previous law, if a spouse died, the surviving spouse could file jointly — and therefore get the full $500,000 exclusion — only for the year in which the spouse died. The new law allows surviving spouses to get the full $500,000 exclusion if they sell their house within two years of the date of the spouse’s death and other ownership and use requirements have been met. The result ... >> full
posted by ADMIN June 09, 2009 2:15 PM Estates
Once you've taken the step to create a will and get your estate plan in order, you need to figure out what to do with the will itself. It is important to keep track of the location of your current will as well as any old wills.
Where to keep a will
The safest place to keep the original copy of your will is in a bank safe deposit box. If you keep the will at home, even if it is in a safe–you run the risk of it being stolen or being destroyed in a fire. Some attorneys may keep the original copy of the will. But if you leave the will with your attorney, make sure the attorney receives updated contact information from you when you move. That way if the attorney moves offices or retires, he or she will know where to find you and you will know ... >> full
posted by ADMIN June 09, 2009 2:05 PM Wills
MAY, 2009
Gift Tax Returns - The same general rules applicable to income tax returns apply to annual gift tax returns. That is, a 3-year statute of limitations applies to the initiation of an audit. The IRS has issued regulations describing substantiation requirements to ensure the protection of the statute of limitations for gift tax purposes. At this time, we have no cases or rulings on these new requirements. It is possible that the IRS could challenge the substantiation or appraisal information on gift tax returns many years after the expiration of the statute of limitations. The challenge will be based on the adequacy of the substantiation provided with the initial return and will most likely occur when the donor’s estate is audited. Our recommendation at this time is that all records, such as valuation reports, bank records, and any other items substantiating a gift tax return, should be kept until the ... >> full
posted by ADMIN May 27, 2009 10:05 AM Estates
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