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Taxation-Federal Estate and Gift Commons™
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Articles 1 - 15 of 15
Full-Text Articles in Taxation-Federal Estate and Gift
Individual, Couple Or Family? The Unit Of Taxation For Transfer Tax Purposes: A Shifting Focus, Anne-Marie Rhodes
Individual, Couple Or Family? The Unit Of Taxation For Transfer Tax Purposes: A Shifting Focus, Anne-Marie Rhodes
Akron Law Review
This paper examines the shifting focus of the transfer tax system from the perspectives of the articulated primary purpose for the taxes and the appropriate unit of taxation given that purpose. The historical progression shows that as a sense of purpose became less clear, the unit of taxation similarly became less focused.
Who Killed The Rule Against Perpetuities?, Grayson M. P. Mccouch
Who Killed The Rule Against Perpetuities?, Grayson M. P. Mccouch
Pepperdine Law Review
During the last two decades more than half the states have either abolished or substantially weakened the traditional rule against perpetuities. The increased demand for perpetual trusts is widely attributed to the ability of such trusts to avoid federal wealth transfer taxes. Furthermore, recent empirical studies confirm a correlation between repeal of the rule against perpetuities (coupled with favorable state income tax treatment) and increased personal trust assets and average account size. This symposium article discusses the asymmetric benefits and drawbacks of perpetual trusts and concludes that the decline of the rule against perpetuities cannot be explained solely in terms …
Effectively Curbing The Gst Exemption For Perpetual Trusts, Lawrence W. Waggoner
Effectively Curbing The Gst Exemption For Perpetual Trusts, Lawrence W. Waggoner
Articles
In "Effectively Curbing the GST Exemption for Perpetual Trusts," I criticized the Treasury Department’s proposal for dealing with perpetual trusts. My objection is that Treasury’s approach would leave many trusts and much wealth GST-exempt for much longer than Congress originally intended. For perpetual trusts created before enactment, Treasury’s approach would allow them to continue to be unburdened by a durational limit. For perpetual trusts created after the effective date of enactment, Treasury’s approach would still allow them to qualify for the GST exemption, but would have the exemption expire 90 years after the trust was created.
Us Perpetual Trusts, Lawrence W. Waggoner
Us Perpetual Trusts, Lawrence W. Waggoner
Articles
In 2009, the UK reconfirmed tis long-standing public policy against perpetual trusts. America has been moving in the opposite direction. Recent years have seen a movement in the states to pass legislation allowing settlors to create family trusts that can last forever or for several centuries. Sadly, and embarrassingly, the American perpetual-trust movement has not been based on the merits of removing the traditional curb on excessive dead-hand control. The policy issues associated with allowing perpetual trusts have not been seriously discussed in the state legislatures. The driving force has been interstate competition for trust business.
I Dig It, But Congress Shouldn't Let Me: Closing The Idgt Loophole, Daniel L. Ricks
I Dig It, But Congress Shouldn't Let Me: Closing The Idgt Loophole, Daniel L. Ricks
ACTEC Law Journal
By combining three tools that independently are beneficial to taxpayers, clever estate planners have devised a transaction - the installment sale of discounted assets to an intentionally defective grantor trust - that saves their ultra-wealthy clients millions of dollars in estate and gift taxes. This transaction, which is a foundational part of many estate plans, takes advantage of rules that Congress never intended to be used in this way. Becasue the Internal Revenue Service has conceded its inability to challenge the transaction based on current law, any solution lies with Congress. This Article proposes an amendment to § 2036 that …
Message To Congress: Halt The Tax Exemption For Perpetual Trusts, Lawrence W. Waggoner
Message To Congress: Halt The Tax Exemption For Perpetual Trusts, Lawrence W. Waggoner
Articles
The federal estate tax is in abeyance this year. The popular press has picked up on the possibility that the estates of billionaires such as the late George Steinbrenner, who owned the New York Yankees, will escape the tax. The House Ways and Means Committee, chaired by Representative Sander Levin of Michigan, and the Senate Finance Committee, chaired by Senator Max Baucus of Montana, are now considering two questions: what the maximum rate and exemption will be when the estate tax returns and whether the tax will be reinstated for this year. Lurking behind the headlines but equally important is …
How Important Are Perpetual Tax Savings?, James R. Hines Jr.
How Important Are Perpetual Tax Savings?, James R. Hines Jr.
Articles
State and local expenditure and tax revenue respond less to the business cycle than do federal spending and revenue, thereby reducing the countercyclicality of total government expenditure and revenue. This paper considers forces responsible for the cyclical pattern of state expenditure and revenue. Annual fluctuations in state personal income are associated with small changes in state spending and significant changes in tax receipts; receipt of federal grants is associated with greater state spending. Tax collections, and to a lesser degree expenditure, of larger states are more closely associated with annual income fluctuations than are the tax collections and expenditure of …
The Estate And Gift Tax Implications Of Self-Settled Domestic Asset Protection Trusts: Can You Really Have Your Cake And Eat It Too?, Phyllis C. Taite
The Estate And Gift Tax Implications Of Self-Settled Domestic Asset Protection Trusts: Can You Really Have Your Cake And Eat It Too?, Phyllis C. Taite
Faculty Articles
Self-settled asset protection trusts are wealth preservation trusts coupled with the spendthrift provisions. This type of trust permits the settler to have the benefit of treating the trust as a separate entity thereby protecting his assets from creditors while maintaining a pecuniary interest, as well as some level of control over what ultimately happens to the trust property. By providing asset protection from potential creditors while still having the ability to maintain a beneficial interest in the trust, the settler can essentially “have his cake and eat it too.” The typical domestic self-settled asset protection trust may not be treated …
Family Limited Partnerships: Discounts, Options, And Disappearing Value, Karen C. Burke, Grayson M.P. Mccouch
Family Limited Partnerships: Discounts, Options, And Disappearing Value, Karen C. Burke, Grayson M.P. Mccouch
UF Law Faculty Publications
Family partnerships have been become increasingly popular as a means of avoiding estate and gift taxes. As other estate freezing techniques have been closed off by statutory anti-abuse rules, estate planners have increasingly resorted to partnerships as a vehicle for transferring assets within a family at deeply discounted values. Discounts ranging from one-third to over one-half of the value of the underlying assets are routinely claimed, and often allowed, based on lack of marketability and lack of control, even where these disabilities have no lasting or ascertainable economic effect. Nevertheless, the use of family partnerships to suppress value for transfer …
The 2003 Revised Uniform Estate Tax Apportionment Act, Douglas A. Kahn
The 2003 Revised Uniform Estate Tax Apportionment Act, Douglas A. Kahn
Articles
Editors' Synopsis: This Article describes the significant sections of the 2003 Uniform Estate Tax Apportionment Act (the "2003 Uniform Act'). The Article explains the purpose and operation of the 2003 Uniform Act's various sections and notes some of the differences between the 2003 Uniform Act and its prior version.
The Rise Of The Perpetual Trust, Jesse Dukeminier, James E. Krier
The Rise Of The Perpetual Trust, Jesse Dukeminier, James E. Krier
Articles
For more than two centuries, the Rule against Perpetuities has served as the chief means of limiting a transferor's power to tie up property by way of successive contingent interests. But recently, at least seventeen jurisdictions in the United States have enacted statutes abolishing the Rule in the case of perpetual (or near-perpetual) trusts. The prime mover behind this important development has been the federal Generation-Skipping Transfer Tax. This Article traces the gradual decline of the common law Rule against Perpetuities, considers the dynamics behind the recent wave of state legislation, examines the problems that might result from the rise …
Death Without Taxes?, Karen C. Burke, Grayson M.P. Mccouch
Death Without Taxes?, Karen C. Burke, Grayson M.P. Mccouch
UF Law Faculty Publications
In recent years the role of the estate, gift and generation-skipping transfer taxes within the federal tax system has become increasingly controversial. The future of the transfer taxes remains unsettled, despite recently enacted legislation that moves in the direction of repeal with a delayed effective date. This paper looks at transfer tax repeal in terms of its repercussions on the rest of the tax system, with special emphasis on the income tax treatment of property transferred by gift or bequest. Repeal of the transfer taxes would reduce the progressivity of the overall tax system, exacerbate existing inequities with respect to …
Equitable Apportionment In Oklahoma: What Hath The Courts Wrought?, Mark R. Gillett
Equitable Apportionment In Oklahoma: What Hath The Courts Wrought?, Mark R. Gillett
Faculty Articles
No abstract provided.
Donee Payment Of Gift Tax: Crane, Old Colony Trust, And The Need For Congressional Action, Michigan Law Review
Donee Payment Of Gift Tax: Crane, Old Colony Trust, And The Need For Congressional Action, Michigan Law Review
Michigan Law Review
The net gift theory achieves results that comport with congressional policy, but its focus on donative intent finds little support in the Code. The part-sale, part-gift theory undermines Congress' policy toward gifts, but follows logically from the Supreme Court's decision in Old Colony Trust. The Note concludes, therefore, that Congress should amend the Code to make clear that liability for gift taxes is shared by donors and donees. By ensuring that donee payments of gift taxes would riot constitute taxable gain to donors, this amendment would eliminate the inconsistency between Congress' goals and its operative language.
Taxation - Jurisdiction - Classification Of Property As Tangible Or Intangible, John L. Rubsam
Taxation - Jurisdiction - Classification Of Property As Tangible Or Intangible, John L. Rubsam
Michigan Law Review
Respondent's decedent died testate in 1936 and was at the time of his death a resident of and domiciled in Oregon. In earlier years when he resided in Wisconsin he placed various stocks, bonds and other intangibles in the possession of an Illinois trust company, which acted as his agent in collecting and investing the principal and income on these securities. These securities were always physically present in Illinois, never in Oregon. About six months before his death respondent's decedent directed the trust company to sell some of his bonds and purchase $450,000 worth of federal irrevocable trust for the …