An individual's death does not terminate federal tax return filing requirements. In fact, subsequent to a decedent's death ("postmortem") income tax returns may be required for the decedent, the decedent's estate, and certain trusts established by the decedent.
Prior to Chapter 14, a commonly-recommended estate tax reduction strategy was what practitioners and others referred to as "corporate estate freezes." This strategy was pertinent to families with substantial wealth that were involved in one or more closely held businesses. In the corporate context, it typically involved recapitalization of a family business to a multi-stock corporation, followed by the transfer (either by gift or purchase) of one class of stock, the perceived growth stock, to children and grandchildren.
The credit for state death taxes plays an important role in minimizing the overall burden of death taxes. This article examines drafting to use the credit and analyzes the best method for paying state death taxes.
The second set of Proposed Regulations on Chapter 14 focuses on adjustments relating to retained interests and on lapsing rights and restrictions. Although the Regulations clarify the rules, a number of issues remain unresolved.
This article analyzes provisions of and amendments to the Illinois General Not-For-Profit Corporation Act of 1986 that increase the level of fault required to recover damages from an uncompensated director or officer.
Recent limitations on estate freezes have caused greater reliance upon alternative lifetime giving strategies. Now, however, the IRS, in its rulings, has created a roadblock to making lifetime gifts from a revocable trust. This article examines the IRS' ruling position and how to overcome it.
A grantor retained income trust (GRIT) is an irrevocable trust established by the grantor (the "contributor" of funds to the trust) in which the grantor retains the right to the income from the trust for a term of years (or for a period ending on the first to occur of the grantor's death or the expiration of the term of years).