Have you ever heard someone referred to as a “trust fund baby?” Such term usually carries a negative connotation and references a younger person whose parents established a trust fund which provides for the child’s financial security for life. Such term also perpetuates an unfortunate misconception: that trusts are only available to, and utilized by,…
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A recent Private Letter Ruling (“PLR”) issued by the IRS highlighted the importance of a properly prepared Form 706 Estate (and Generation Skipping Transfer) Tax Return (“706”).[1] The PLR granted the requesting Estate a 120-day extension to make a QTIP election (discussed below) as well as divide the QTIP Trust into a Generation Skipping Transfer…
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In a newly released Chief Counsel Advice opinion[1], the transfer of assets from a foreign entity referred to as the “Foundation” directly to a third party (the “Recipient”) at the request of the beneficiary of the Foundation (the “Beneficiary”) was deemed to be a gift from the Beneficiary to the Recipient. This is a logical…
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In a recent Tax Court Memorandum opinion, the Court was not too pleased with the operations and the administrative proceedings of the IRS involving Notices of Deficiency issued to a taxpayer. The taxpayer represented himself and was subjected to a confusing series of communications with the IRS causing the Court to sympathize with the taxpayer in…
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