Perhaps no recent taxpayer victory is more important to estate and gift tax planning than the case of Wandry v. Commissioner, T.C. Memo 2012-88. The Court in Wandry held that a taxpayer may use a defined value gift clause (“DVGC”) to make a gift expressed in terms of a dollar figure rather than as a specified… Continue Reading
Category Archives: Gift Tax
Subscribe to Gift Tax RSS FeedEstate Tax Changes in 2013 Spark More Concise Business Succession Planning
Posted in Business, Estate Tax, Gift Tax, Succession Planning, Taxes, Wealth PreservationUncertainty surrounding possible changes to estate and gift tax law in 2013 is prompting many business owners to reevaluate their succession strategies. Essentially, business owners are considering trying to maximize the value of their gifting now, rather than run the risk that taxes on such transfers will be higher in 2013. The current $5.12 million… Continue Reading
IDENTIFYING SANDBOX ISSUES
Posted in Asset Protection, Estate Planning, Family Business, Family Wealth, Gift Tax, Power of AttorneyIdentifying Sandbox Issues In the prior post from February 21st, I identified circumstances that resulted in the destruction of family wealth. In this post, I want to address what Frank Brunetti terms “Sandbox Issues. Sandbox issues are conflicts among siblings during childhood that remain unresolved into adulthood, until they erupt in direct conflict over the… Continue Reading
‘Tis the Season…to be Charitable!
Posted in Gift Tax, TaxesIt is that time of the year again, but do you know how to take advantage of your charitable donations? If you don’t, the IRS has published its Tips for Year-End Giving Individuals and businesses making charitable gifts should be mindful of some basic guidelines: To deduct a monetary charitable donation, a taxpayer must have… Continue Reading
Is the $5 Million Gift Tax Exemption About to End?
Posted in Gift TaxThe Tax Relief Act of 2010 made significant changes to the gift, estate and generation-skipping transfer tax regimes by increasing the amount each individual can give without incurring tax from $1 million to $5 million. The increase was not permanent however, and rumor has it that it may be in jeopardy. To avoid any risk, those who… Continue Reading
Should you make a loan to your child?
Posted in Gift TaxYes! During the month of October is the time to make a loan to you child (assuming that the child is not subject to the “kiddie tax.” Why? Because the imputed interest rate for October is at an all time low and therefore as a planning tool you can move wealth to your children gift and… Continue Reading