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Taxation-Federal Estate and Gift Commons™
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- Family limited partnerships (3)
- Estate planning (2)
- United States v. Byrum (2)
- Adequate and full consideration (1)
- Business method patents (1)
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- Discounted partnership interests (1)
- Estate and gift tax avoidance (1)
- Estate tax (1)
- Federal estate tax (1)
- Federal estate tax laws (1)
- Federal gift tax (1)
- Federal transfer tax system (1)
- Fifth Circuit (1)
- Grantor trust rules (1)
- Helvering v. Clifford (1)
- Intellectual property protection (1)
- Kimbell v. United States (1)
- Patent protection for tax planning (1)
- Section 2036 (1)
- Section 2036(a) (1)
- Tax court (1)
- Tax planning innovation (1)
- Taxation of trusts (1)
Articles 1 - 8 of 8
Full-Text Articles in Taxation-Federal Estate and Gift
Strings Are Attached: Revealing The Hidden Subsidy For Perpetual Donor Limits On Gifts, Roger Colinvaux
Strings Are Attached: Revealing The Hidden Subsidy For Perpetual Donor Limits On Gifts, Roger Colinvaux
Scholarly Articles
Charitable gifts often come with strings attached. Donors limit their gifts in many ways, by restricting an asset’s use or purpose, controlling the timing of spending (as in an endowment), securing naming rights, or by retaining effective control over the distribution or investment of the asset by giving to a charitable intermediary such as a donor advised fund or private foundation. Most donor limits are perpetual in nature and a form of dead hand control. The Article explains that default rules strongly favor donor limits. Property law allows donors wide latitude to place limits on gifts, and they are easy …
On Discounted Partnership Interests And Adequate Consideration, Brant J. Hellwig
On Discounted Partnership Interests And Adequate Consideration, Brant J. Hellwig
Scholarly Articles
Early cases involving the government's invocation of section 2036(a) to combat the use of family limited partnerships to intentionally suppress the value of a decedent's gross estate focused on whether the decedent retained the beneficial enjoyment of the partnership property under section 2036(a)(1) or, perhaps, the right to control such beneficial enjoyment under section 2036(a)(2). In recent years, however, the focus of the section 2036(a) inquiry in the family limited partnership context has shifted almost exclusively to the issue of whether the decedent's contribution of property to the entity satisfies the statute's parenthetical exception for a "bona fide sale for …
Questioning The Wisdom Of Patent Protection For Tax Planning, Brant J. Hellwig
Questioning The Wisdom Of Patent Protection For Tax Planning, Brant J. Hellwig
Scholarly Articles
The topic of federal patent protection for tax planning strategies has received considerable recent attention, much of it from a tax bar whose overall incredulity concerning the patentability of tax advice has been transformed into anxiety and disgust by the prospect of infringement actions. In their article Patents, Tax Shelters, and the Firm, Dan Burk and Brett McDonnell approach the subject from a broader perspective by employing theory of the firm principles to evaluate the effects of stronger intellectual property protection in the tax planning arena. While conceding that the possible effects are complex and ambiguous, the authors predict that …
Kimbell V. United States: The Rise And Apparent Fall Of The Section 2036 Argument Against Flps, Brant J. Hellwig
Kimbell V. United States: The Rise And Apparent Fall Of The Section 2036 Argument Against Flps, Brant J. Hellwig
Scholarly Articles
In this report, Professor Hellwig examines the application of section 2036 to family limited partnerships in the context of the Fifth Circuit's recent opinion in Kimbell v. United States. After describing how the government developed section 2036 into an effective tool in combating the use of family limited partnerships to generate transfer tax savings, the report details how the Fifth Circuit's interpretation of the adequate and full consideration exception to section 2036 in Kimbell severely curtails the government's position. The report concludes with criticisms of the Kimbell decision, namely that the court failed to properly follow its own precedent in …
Revisiting Byrum, Brant J. Hellwig
Revisiting Byrum, Brant J. Hellwig
Scholarly Articles
In the landmark case of United States v. Byrum, the Supreme Court determined that a majority shareholder's retention of voting rights over stock transferred in trust did not cause the stock to be included in his gross estate under Section 2036(a)(1) or (a)(2). The Court grounded its decision in the fiduciary duty owed by the board of directors and the majority shareholder to exercise their discretion over corporate distributions to promote the best interests of the entity. Despite legislative action quickly reversing the Court's holding in Byrum, the case continued to influence decisions concerning the estate tax consequences of a …
Kimbell: Is The Party Over For Family Limited Partnerships, Brant J. Hellwig
Kimbell: Is The Party Over For Family Limited Partnerships, Brant J. Hellwig
Scholarly Articles
Professor Brant J. Hellwig of the University of South Carolina School of Law examines the impact of the recent Kimbell decision on the future use of family limited partnerships for estate planning purposes.
Estate Of Strangi, Section 2036, And The Continuing Relevance Of Byrum, Brant J. Hellwig
Estate Of Strangi, Section 2036, And The Continuing Relevance Of Byrum, Brant J. Hellwig
Scholarly Articles
This report analyzes the potential application of section 2036(a) to limited partnerships employed for estate planning purposes, using the facts of Tax Court case of Estate of Strangi v. Commissioner as a guide. Particular emphasis is placed on the Commissioner's argument for inclusion under section 2036(a)(2) based on the taxpayer's control over the property transferred to the partnership, as well as the taxpayer's argument under the Supreme Court case of United States v. Byrum that the existence of the taxpayer's fiduciary duty to the partnership negates the application of section 2036 altogether. The report concludes that, because the essential facts …
A Proposal For Integrating The Income And Transfer Taxation Of Trusts, Robert T. Danforth
A Proposal For Integrating The Income And Transfer Taxation Of Trusts, Robert T. Danforth
Scholarly Articles
Present law fails to integrate the income and transfer (i.e., estate and gift) taxation of trusts; a gratuitous transfer to a trust may be incomplete for income tax purposes (producing a so-called grantor trust, the income of which is taxed to the grantor), but complete for transfer tax purposes. Grantors create trusts that exploit two features of this tax law dichotomy: the grantor's income tax payments on trust income enhance the value of the trust by allowing it to appreciate in value income tax free; and present law provides no basis for subjecting this enhanced value to gift or estate …