House Ways & Means Committee Passes Tax Bill With Potentially Significant Effects on Estate Planning

Written by Allan B. Cutrow and Jeffrey K. Eisen On September 15, 2021, the House Ways and Means Committee passed a tax bill designed to raise revenue for President Biden’s “Build Back Better” plan.  It contains significant changes to the estate and gift tax laws, and the income tax laws related to them.  Of course, this is only another step down a very uncertain road.  … Continue reading House Ways & Means Committee Passes Tax Bill With Potentially Significant Effects on Estate Planning

Proposed Legislation Would have a Dramatic Impact on Donor Advised Funds

Written by David Wheeler Newman The “Accelerating Charitable Efforts Act”, or the “ACE Act”, introduced on June 9th by Senators Grassley and King, would have major impacts on donor advised funds (DAFs) and private foundations. Our prior post discussed the proposed changes to the private foundation rules, and this post will discuss those affecting DAFs. Under existing law, a donor may generally claim a charitable … Continue reading Proposed Legislation Would have a Dramatic Impact on Donor Advised Funds

Proposed Legislation Would Affect Private Foundations

Written by David Wheeler Newman Senators Chuck Grassley and Angus King on June 9 announced their intention to introduce tax legislation, dubbed the “Accelerating Charitable Efforts Act”, or the “ACE Act”, that would have major impacts on donor advised funds (DAFs) and private foundations.  This post will discuss the proposed changes to the private foundation rules, and the next post will discuss those affecting DAFs. … Continue reading Proposed Legislation Would Affect Private Foundations

Administration Proposal Would Negatively Affect Tax Benefits of Charitable Remainder Trusts

Written by David Wheeler Newman Since its introduction into the Internal Revenue Code in 1969, the charitable remainder trust has been the “Swiss Army Knife” for charitable gift, financial and estate planners because of its flexible features that allow a balancing of financial planning or estate planning objectives with philanthropic objectives.  Those features include two CRT tax benefits provided in the Code – the charitable … Continue reading Administration Proposal Would Negatively Affect Tax Benefits of Charitable Remainder Trusts

New COVID Relief Legislation Provides Tax Benefit

Written by Jeffrey D. Davine The new COVID relief bill extends (and modifies) certain provisions that were included in the CARES Act that was enacted in March.  This legislation, signed by the President on December 27, will provide $900 billion of additional financial assistance to individuals and businesses that have been affected by the pandemic. Among the provisions contained in the new legislation is funding for additional … Continue reading New COVID Relief Legislation Provides Tax Benefit

Proposition 19 Set to End Major Property Tax Exemption

Written by Rachel Ronca Proposition 19 will essentially end your ability to transfer real estate to your children free of property tax reassessment.[1]  If you have a legacy property that you intend to pass to the next generation (regardless of whether it is your home, or it is a rental, commercial or industrial property), you must act quickly. Generally, when real estate changes ownership, the property … Continue reading Proposition 19 Set to End Major Property Tax Exemption

Do CRTs and CLTs Need To Be Registered With the CA Attorney General?

Charitable Remainder Trusts and Charitable Lead Trusts: California Attorney General Registration Rules Written by Jeffrey Davine It is common knowledge in the nonprofit community that a charitable entity operating in California is required to register with the California Attorney General.  The initial registration is accomplished by filing Form CT-1 with the California Attorney General and paying the registration fee.  The Form CT-1 should be filed … Continue reading Do CRTs and CLTs Need To Be Registered With the CA Attorney General?

The Sky Is Falling

What to do about potential tax hikes with a possible change in Presidential Administrations Written by Allan Cutrow A recent commentary by Philip DeMuth in the Wall Street Journal suggested that a tax hike under a Biden administration would be quite severe. In addition to warning about income tax adjustments affecting rates and capital gains taxation, Mr. DeMuth cautioned that potentially significant changes to the … Continue reading The Sky Is Falling

THE MAGIC HOUR FOR GRATs

Written by Lia Momtsios There are not many things to be thankful for during the time of COVID-19, but Grantor Retained Annuity Trusts (or “GRATs”) are one of them.  GRATs are a tax planning vehicle that allows the donor to transfer income-producing assets into a trust and out of his or her estate (thereby reducing or eliminating the imposition of estate tax upon death), while … Continue reading THE MAGIC HOUR FOR GRATs

Time to Make Gifts of California Real Property May be Running Out

Written by Rachel Ronca On November 3, 2020, Californians will vote on Proposition 19, the “Property Tax Transfers, Exemptions, and Revenue for Wildlife Agencies and Counties Amendment,” a measure that seeks to amend the California Constitution with respect to the current property tax system.  If the proposed constitutional amendment passes, it will significantly narrow one of the most commonly used exemptions from property tax reassessment: … Continue reading Time to Make Gifts of California Real Property May be Running Out