Taxation-Federal Estate and Gift Commons^™

Our Wealth Transfer Tax System -- A View From The 100th Year, Carlyn S. Mccaffrey, John C. Mccaffrey

ACTEC Law Journal

No abstract provided.

Front Matter

ACTEC Law Journal

No abstract provided.

With Marriage On The Decline And Cohabitation On The Rise, What About Marital Rights For Unmarried Partners?, Lawrence W. Waggoner

ACTEC Law Journal

This article draws attention to a cultural shift in the formation of families that has been and is taking place in this country and in the developed world.

Part I uses recent government data to trace the decline of marriage and the rise of cohabitation in the United States. Between 2000 and 2010, the population grew by 9.71%, but the husband and wife households only grew by 3.7%, while the unmarried couple households grew by 41.4%. A counter-intuitive finding is that the early 21st century data show little correlation between the marriage rate and economic conditions.

Because of the Supreme …

The Dueling Transferors Problem In Generation-Skipping Transfer Taxation, Austin Bramwell, Sean R. Weissbart

ACTEC Law Journal

Whether a transfer of property is subject to generation-skipping transfer ("GST") tax depends in part on the identity of the individual who is considered the "transferor." Yet a deep uncertainty as to the identity of the transferor may arise when a beneficiary of a trust assigns his or her beneficial interest to another. Taxpayers, commentators, and the Internal Revenue Service have proposed three possible theories for resolving the question of who is the transferor in those circumstances. A careful analysis of relevant authorities reveals that only one of these theories -- namely, that an assignment of a beneficial interest has …

Family Values: An Evaluation Of Internal Revenue Code Sections 2703 And 2704(B), David Berke

ACTEC Law Journal

No abstract provided.

Portability, Marital Wealth Transfers, And The Taxable Unit, Bridget J. Crawford

Elisabeth Haub School of Law Faculty Publications

Prior to 2011, the most efficient estate tax planning for married couples required a minimal level of asset equalization. In order to take maximum advantage of all existing wealth transfer tax exemptions and credits, each spouse needed to own, in an estate tax sense, enough assets to be able to fully utilize the estate tax credit or applicable exemption. This changed with the enactment of estate tax portability in the Economic Growth and Economic Recovery and Relief Act of 2011, which became permanent under the American Taxpayer Relief Act of 2012. “Portability” refers to the ability of a surviving spouse …

The Moving Target Of Tax Reform, Karen C. Burke, Grayson M.P. Mccouch

UF Law Faculty Publications

In 2000, Professor William Turnier proposed a package of three reforms to make the estate tax more “equitable” and “taxpayerfriendly.” All of his proposals—allowing a surviving spouse to inherit a deceased spouse’s unused exemption, replacing the state death tax credit with a deduction, and indexing the exemption for inflation—were eventually enacted. Today, the estate tax remains on the books, but changes in rates and exemptions have severely curtailed its role in the larger federal tax system. Income tax rate reductions for capital gains and dividends have further lightened the tax burden on capital income, and international pressure to reduce the …

A Simpler Verifiable Gift Tax, Wendy G. Gerzog

All Faculty Scholarship

The purpose of this article is to propose a simpler verifiable gift tax, to reassert basic principles of transfer taxes, to encourage simple, outright gifts, and to eliminate some of the major abuses in the current gift tax regime. To accomplish these goals, the proposed tax would simplify gift completion rules, adopt a hard-to-complete rule of transfer taxation, reduce the annual exclusion while expanding the consumption exclusion, and employ loss of preference inducements to increase gift tax compliance.

Change And Continuity In Fringe Benefit Taxation: Seeking Sense And Sensibility, Richard L. Kaplan, Dawson J. Price

NYLS Law Review

No abstract provided.

The New World Of Estate Planning After The 2012 Tax Act 15 (Abbreviated Outline) An Estate Planner's Perspective On Recent Tax Developments: The Year In Review, John B. O'Grady, Howard M. Zaritsky

William & Mary Annual Tax Conference

No abstract provided.

Strange Bedfellows: The Federal Constitution, Out-Of-State Nongrantor Accumulation Trusts, And The Complete Avoidance Of State Income Taxation, Jeffrey Schoenblum

Vanderbilt Law Review

With the maximum rate of federal income tax at 39.6 percent, the Medicare surtax on investment income of 3.8 percent, and some state income tax rates exceeding 9 percent, taxpayers in the highest brackets have been seeking to develop strategies to lessen the tax burden. One strategy that has been receiving increased attention is the use of a highly specialized trust known as the NING, a Nevada incomplete gift nongrantor trust, which eliminates state income taxation of investment income altogether without generating additional federal income or transfer taxes. A major obstacle standing in the way of accomplishing this objective, however, …

Alms To The Rich: The Facade Easement Deduction, Wendy G. Gerzog

All Faculty Scholarship

This article presents the case for repeal of the façade easement deduction. Proponents of this benefit argue that the deduction encourages historic preservation by reimbursing property owners for relinquishing their right to alter the façade of their property in a way inconsistent with that conservation goal; however, this article shows that there are many reasons to urge its repeal: the revenue loss, the small number of beneficiaries, the financial demographics of that group of beneficiaries; the dubious industries that are supported by the deduction; and the continual marked overvaluation and abuse despite Congressional, court, and administrative review and expense.

After …

Virtual Currency Estate Planning, Bit By Bit, Abigail J. Farmer, Cory Elizabeth Tyszka

ACTEC Law Journal

This article addresses the issues that virtual currencies, specifically bitcoins, pose for the mindful estate planner. First, it explains what bitcoins are, where they come from, and what their legal status is. Next, it identifies special problems that bitcoins pose in estate planning. Finally, it concludes by offering solutions to these problems, including recommended transfer mechanisms and gifting strategies.

Predispute Arbitration Agreements Between Trustees And Financial Services Institutions: Are Beneficiaries Bound?, Mary F. Radford

ACTEC Law Journal

No abstract provided.

Beyond Donor Intent: Leveraging Cy Pres To Remedy Unintended Burdens Caused By Charitable Gifts, Katie Magallanes

ACTEC Law Journal

No abstract provided.

Saving For Education: Creating Educational Dynasty Trusts Using 529 Plans, Susan T. Bart

ACTEC Law Journal

No abstract provided.

Means To An End: Electively Forcing Vesting To Suit Tax Rules Against Perpetuities, James P. Spica

ACTEC Law Journal

Editor's synopsis: Exercising special powers of appointment over tax advantages trusts in a jurisdiction that has enacted perpetuities reform can be hazardous in light of the so-called "Delaware tax trap" and the "constructive additions" and trust-modification rules of the Treasury's GST-tax effective date regulations. Compliance with these federal tax rules against perpetuities may or may not be guaranteed by the applicable reform legislation. This Article examines a particular situation in which self-help is required for compliance, offers a set of forced-vested provisions to fit the bill, and indicates how those provisions can be adatpted for use in other situations in …

Front Matter

ACTEC Law Journal

No abstract provided.

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 …

The Tax Code's Crowdfunding Dilemma: The Temptation Of Kickstarter Creators To Use The Gift Exclusion Under Section 102(A), Eric Dietz

Hamline Law Review

abstract

The Contemporary Tax Journal’S Interview Of Pam Olson, Stuti Seth

The Contemporary Tax Journal

No abstract provided.

What's Wrong With A Federal Inheritance Tax?, Wendy G. Gerzog

All Faculty Scholarship

Scholars have proposed a federal inheritance tax as an alternative to the current federal transfer tax, but there are serious flaws with that idea. In existing inheritance tax systems, those problems include: (1) different tax rates and exemptions based on the decedent’s relationship to the beneficiary; (2) the lack of a tax on lifetime gratuitous transfers, including gifts with retained interests or control; and (3) the persistence of most current valuation distortion abuses. In any inheritance tax model, moreover, there would be significantly decreased compliance rates and increased administrative costs because by focusing on the transferees instead of the transferor, …

The Physician Orders For Life-Sustaining Treatment (Polst) Coming Soon To A Health Care Community Near You, Robert B. Wolf, Marilyn J. Maag, Keith Bradoc Gallant

ACTEC Law Journal

No abstract provided.

Front Matter

ACTEC Law Journal

No abstract provided.

Book Review: Robespierre Meets The Foreign Tax Credit: Reflections On Piketty's "Capital In The Twenty-First Century" And The Contemporary Tax Policy Debate, Michael A. Livingston

ACTEC Law Journal

No abstract provided.

The Terms Of The Trust: Extrinsic Evidence Of Settlor Intent, Fred Franke, Anna Katherine Moody

ACTEC Law Journal

Each edition of the Restatement of Trusts defined the phrase "the terms of the trust" exactly the same. It means the manifestation of the settlor's intent expressed in a manner that admits of its proof in judicial proceedings. This definition weds the language of the instrument to the evidentiary rules governing Trust contests. This article explores the extent to which extrinsic evidence of settlor intent is admissable and consequently a consideration for those puzzling out the meaning of a trust.

The Persistent Preference For Inception Assets, Trent S. Kiziah, J. Clay Singleton, Stewart A. Marshall Iii

ACTEC Law Journal

Often trusts contain assets which were formerly owned by the grantor. This article addresses whether trustees should give any preference to these assets in managing the trust portfolio. Particular attention is given to how the law has treated these assets over time and the current state of the law. For those trustees who wish to retain inception assets, the article contains practical guidelines to assist trustees.

Van Alen: A Reasonable Consistency, Wendy G. Gerzog

All Faculty Scholarship

In Van Alen, the Tax Court held that the duty of consistency required that two of the decedent’s children use the section 2032A basis valuation figures to determine gain on the sale of their interest in the decedent’s ranch, which was left to them in trust. The siblings had argued that their stepmother erroneously completed their father’s estate tax return.

The Geography Of Marriage, William P. Lapiana

Articles & Chapters

No abstract provided.

Front Matter

ACTEC Law Journal

No abstract provided.