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Full-Text Articles in Tax Law
Elaine Gagliardi On The Family Limited Partnership In 2018: Powell, Cahill, And Income Tax Basis At Death, Elaine H. Gagliardi
Elaine Gagliardi On The Family Limited Partnership In 2018: Powell, Cahill, And Income Tax Basis At Death, Elaine H. Gagliardi
Faculty Journal Articles & Other Writings
The Tax Court’s 2017 holding in Estate of Powell v. Commissioner1 followed by its 2018 decision in Estate of Cahill v. Commissioner,2 signals a need to rethink how best to structure the family limited partnership and the terms of the partnership agreement. In a shift away from its historical approach to analyzing gross estate inclusion of family limited partnership assets, the Powell court endorses application of Section 2036(a)(2)3 to include the value of partnership assets in decedent’s gross estate, and in an unprecedented step employs Section 2043 to determine the value of family limited partnership assets includible in the gross …
Elaine Gagliardi On Uncertain Times: Anticipating Change And Reacting To Recent Wealth Transfer Tax Developments, Elaine H. Gagliardi
Elaine Gagliardi On Uncertain Times: Anticipating Change And Reacting To Recent Wealth Transfer Tax Developments, Elaine H. Gagliardi
Faculty Journal Articles & Other Writings
Looming on the horizon is the very real possibility of estate tax repeal. In the interim for those clients needing to immediately make estate planning decisions, the question becomes what planning strategies best meet client needs in the face of an uncertain estate tax. Acknowledging that the ultimate answer depends on individual circumstances and goals, some common planning strategies nevertheless emerge as better options than others to address particular client goals, especially those of married couples. These planning strategies work well now and can be adapted to work well under the most likely Congressional response to repeal. Republicans have alluded …
Professor Elaine Gagliardi On The Magical Power Of Appointment: Allows Trustor To Achieve Targeted Tax Consequences And Flexibility Of Control, Elaine H. Gagliardi
Professor Elaine Gagliardi On The Magical Power Of Appointment: Allows Trustor To Achieve Targeted Tax Consequences And Flexibility Of Control, Elaine H. Gagliardi
Faculty Journal Articles & Other Writings
As children, and sometimes as adults, we wish for magical powers to order the world in the way we want. Estate planners can make that wish come true for some clients and beneficiaries with judicious use of powers of appointment. Powers of appointment are uniquely suited to achieving targeted planning goals and increasing trust flexibility. Planning techniques, old and new, including the oft used Crummey trust1 and the more recently developed array of acronym trusts designed to achieve specific tax consequences, such as the intentionally defective grantor trust (IDGT)2 and the Delaware incomplete non-grantor trust (DING)3 to name a few, …
Elaine Hightower Gagliardi On Proving Estate And Gift Tax Value: Evolving Lessons From Recent Cases, Elaine H. Gagliardi
Elaine Hightower Gagliardi On Proving Estate And Gift Tax Value: Evolving Lessons From Recent Cases, Elaine H. Gagliardi
Faculty Journal Articles & Other Writings
The term, “fair market value,” proves one of the most litigated in the Federal estate and gift tax code. Value lies in the eyes of the appraiser, often resulting in wide disparities between the Service’s and taxpayer’s appraised values.2 The underlying assumptions, and at times the legal principles, on which an appraisal rests can vary greatly based on the particular asset and the appraisal method. The Tax Court claims wide latitude in deciding an asset’s value, reserving the right to draw from each appraisal submitted as it deems appropriate to arrive at ultimate value based on a preponderance of the …
Elaine Hightower Gagliardi On Flipping The Lens Of Estate Planning: An Examination Of The Effectiveness Of Lifetime Transfers To Achieve Federal And State Tax Savings, Elaine H. Gagliardi
Elaine Hightower Gagliardi On Flipping The Lens Of Estate Planning: An Examination Of The Effectiveness Of Lifetime Transfers To Achieve Federal And State Tax Savings, Elaine H. Gagliardi
Faculty Journal Articles & Other Writings
Estate planners are recalibrating their planning focus in response to recent tax modifications at the federal and state levels. The need to refocus planning emanates from changes wrought by recent federal tax acts, beginning in 20011 and ending in 20132 with enactment of “permanent” provisions which increase the basic exclusion amount for federal estate and gift tax and generation skipping transfer tax exemption to an inflation adjusted $5,340,000 as of 2014,3 institute the portability election for federal estate tax purposes,4 alter the transfer tax rate to essentially a flat 40 percent,5 and eliminate the state death tax credit in favor …
Elaine Hightower Gagliardi On Treasury Transforms The Portability Election: Making The Dsue Amount A Reliable Planning Tool, Elaine H. Gagliardi
Elaine Hightower Gagliardi On Treasury Transforms The Portability Election: Making The Dsue Amount A Reliable Planning Tool, Elaine H. Gagliardi
Faculty Journal Articles & Other Writings
With the issuance of temporary regulations, Treasury pulls back the cloak of uncertainty and reveals a portability election that proves to be relatively dependable and a useful planning tool. The temporary portability regulations,1 issued June 15, 2012, remove the “now you see it, now you don’t”2 quality of the deceased spousal unused exclusion (“DSUE”) amount as enacted by Congress. With a sleight of hand, Treasury rewrites the plain wording of the statute to eliminate uncertainty. The temporary regulations provide a clear path for avoiding loss of the DSUE amount on remarriage. The regulations allow donors to make gifts without fear …
Elaine Hightower Gagliardi On The Deceased Spousal Unused Exclusion Amount: Now You See It, Now You Don't, Elaine H. Gagliardi
Elaine Hightower Gagliardi On The Deceased Spousal Unused Exclusion Amount: Now You See It, Now You Don't, Elaine H. Gagliardi
Faculty Journal Articles & Other Writings
Spousal portability of the applicable exclusion amount promises estate planning simplicity.70 No longer will a married couple need to make lifetime transfers of assets to ensure that each spouse holds sufficient assets to fully use the unified credit of each regardless of the order of death.71 A couple can also avoid the attendant costs of placing property in a credit shelter trust following the first death.72 Portability achieves these purposes and at the same time aligns with testamentary goals of clients when all the children of the couple are from the marriage, neither spouse anticipates remarriage following the first death, …