In the complex landscape of tax law, the IRS plays a significant role in shaping and enforcing tax laws and regulations. One of the key strategies employed by the IRS is the careful selection of cases to litigate, particularly when previous decisions have favored taxpayers. By patiently waiting for the right set of facts to…
Category: Estate & Gift
Estate & Gift
Counsel on estate planning and gift tax issues, including trust creation and administration, wealth preservation, and minimizing tax liabilities. Give us a call to see how we can help, (713) 909-4906.
Navigating the Deductibility of Investment Advisory Fees for Trusts
The tax treatment of investment advisory fees paid by trusts has become a hotly debated topic in recent years. The conflicting decisions of various circuit courts of appeals have led to discrepancies in tax treatment across different jurisdictions. While some courts have ruled that investment advisory fees paid by trusts are subject to the same…
Estate Tax Valuation vs. Income Tax Valuation
Valuation often becomes a point of contention in tax disputes where the taxpayer asserts one value while the IRS puts forth another. The preferred valuation in disputes can vary depending on the circumstances. For instance, a higher valuation for buildings and building structures is advantageous when claiming depreciation deductions, while a lower valuation for real…
IRA Beneficiary Designation Planning Opportunities
Designating a beneficiary for an IRA may not be a top priority for most IRA owners, and even those who do give it some thought may not have planned it correctly due to the complex rules surrounding IRA beneficiary designations. However, as investments held in IRAs grow tax-free, it’s important to structure affairs so that…
Estate Plans in Uncertain Times
As 2006 approaches, I can’t help but pause to think about our estate and gift tax regime. The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001 changed the rules of the game. Following the enactment of EGTRRA, estate planners and tax attorneys went to work defining and clarifying how estate plans should be…
Key Tax Considerations for Administering Estates
Administering estates from a tax perspective can be a complex and challenging task, particularly for non-tax attorneys who may not have extensive experience in this area. Estate administration is all about managing finances, including making key elections and timing distributions, income, and expenses. Failure to make the right choices could result in significant tax liabilities…
Charitable Remainder Unitrust and NIMCRUT: Tax-Savvy Giving
Developing a tax strategy that allows for income and current income tax benefits is a key goal for many individuals and families. One potential solution to this challenge is to establish a charitable trust. These trusts can offer donors the ability to make a charitable gift while retaining an income stream from the donated assets,…
Estate Tax Valuation Disputes (Explained)
Estate taxes are applied based on the value of assets that the decedent owned. Thus, unlike income tax which looks to sources of income, the estate tax focuses on the value of assets owned. This raises questions as to what the fair market value is for assets on the date the decedent died. Opinions can…