Journal of Passthrough Entities

Much discussion has been had since Estate of Strangi ("Strangi II"), on that mysterious section, 2036 (a) (2) of the Code, and its implications. But estate planners have been dealing with 2036 (a) (2) and trusteeship issues for a long time.

Trusts and Estates

Debate still rages over whether trusts can do it. Different courts give different answers on differing grounds. If only some higher authority would provide a definitive answer with a solid rationale

Journal of Passthrough Entities

Last month, this column examined the McCord’s analysis on the definitional gift issue, in which the 5th Circuit reversed the Tax Court and upheld the validity of a definitional gift for gift tax purposes. This month the column examines the discussion in the 5th Circuit’s opinion of the unusual net gift concept.

Journal of Passthrough Entities

This is part one of a two part article on the important 5th Circuit ruling, and focuses on the 5th Circuit’s reversal of the Tax Court’s invalidation of a so called formula clause used to make a gift.

Journal of Passthrough Entities

Many of our recent estate planning columns have focused on developments in the partnership area. The reason: the law in this area keeps evolving as more partnership decisions are handed down. And practitioners keep using partnerships as an estate tax strategy.

Trusts and Estates

The grantor retained annuity trust (“GRAT”) has been statutorily allowed by Congress since 1990. Used properly, the GRAT can transfer part or all of a wealthy person's business to the next generation, free of gift tax and in a way that removes the business from estate taxation.

Journal of Passthrough Entities

Prior to the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001, in the majority of states the state death tax was purely a function of the federal estate tax.

Taxation of Exempts

Picture the smiling face of a child staring at a cookie jar. What joy to see the cookies loaded in, knowing that, in time, the occasional cookie will be dispensed. Now imagine the joy on that same child’s face when he or she raids the cookie jar, cradling as many cookies as a child can hold.

September 30, 2005
Journal of Passthrough Entities

From prior articles, we know that the Grantor Retained Annuity Trust (or “GRAT”) is one of the leading estate tax strategies available to the estate planning attorney.

Journal of Passthrough Entities

Joint trusts-avant garde and often confused with that horrible species of instruments known as a "joint Will"-have been shunned as an estate planning vehicle by most practitioners in common law states, such as Illinois. They are used almost exclusively for estate planning for married couples in community property states, but that is because the community property laws lend themselves (and often demand) that a jointly owned trust be used to hold community assets.

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