January 6, 2013
Ron Aucutt's "Top Ten" Estate Planning Developments
10. Courts will still analyze the facts of whether a particular family limited partnership should be included in a decedent gross estate in Estate of Kelly v. Comm'r.
9. A court held that the Partial Special Use Valuation Under § 2032A of the Tax Code was invalid again in Finfrock v. United States.
8. The IRS continues to press taxpayers on the deduction they can take for the donation of an historic façade or conservation easement.
7. The IRS published Private Letter Ruling 20126034, which discussed beneficiary-owned trusts and S corporation stock.
6. The IRS also published CCA 2012208026, which "concluded that donors had made a complete gift to a trust, despite their retention of what the CCA described as 'a testamentary limited power of appoint so much of [the trust property] as would still be in the Trust at his or her death.'"
5. "The cessation of grantor trust status would be subject to gift tax if it occurred during the grantor's life or subject to estate tax if it occurred at the grantor's death (as it must if grantor's life status has not ceased sooner)."
4. The court upheld the use of a defined-value clause for gifts made of a partnership in Wandry v. Comm'r.
3. The Supreme Court decided to hear Windsor v. United States, a case that challenges the constitutionality of the federal definition of marriage.
2. The developments in the portability of the estate tax exemption that allows the surviving spouse to retain the unused portion of their former spouse's lifetime gift and estate tax exemption.
1. The fiscal cliff, which thankfully was averted by a last minute compromise by Republicans and Democrats in Congress.
See Ron Aucutt, "Top Ten" Estate Planning and Estate Tax Developments of 2012, McGuireWoods, Dec. 28, 2012.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
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