Category: Trusts & Estates

Tax, Trusts, Trusts & Estates

California (Finally) Conforms to Federal Treatment of UBTI in Charitable Remainder Trusts

By David Wheeler Newman

One of the most important tax attributes of charitable remainder trusts is that they are exempt from income tax – except, that is, when it comes to unrelated business taxable income (UBTI) of these trusts. For decades the rule was that if a CRT had any UBTI at all, even an amount that was inconsequential compared to the overall net income of the trust, the trust would lose its tax exemption for the year, and become fully taxable just like any other complex trust. This rule could undo some of the best tax planning with CRTs, Continue reading “California (Finally) Conforms to Federal Treatment of UBTI in Charitable Remainder Trusts”

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Tax, Trusts & Estates

Employer Reimbursement of Employee’s Individual Medical Insurance May Subject Employer to Penalty

By Robin C. Gilden

IRS Notice 2013-54 provides that an employer’s reimbursement of healthcare insurance premiums paid by an employee on an individual health insurance contract of the employee on a pre-tax basis (an “employer payment plan”) may violate: Continue reading “Employer Reimbursement of Employee’s Individual Medical Insurance May Subject Employer to Penalty”

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Tax, Trusts & Estates

Tax Issues Related to Settling Employment-Related Claims

By Jeffrey D. Davine

Unfortunately, just about every employer has to deal with claims made by employees or former employees. These claims can be for a variety of alleged “wrongs” such as failing to pay overtime, age discrimination and sexual harassment. In most cases these matters are resolved between the parties without a trial. Continue reading “Tax Issues Related to Settling Employment-Related Claims”

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Tax, Trusts & Estates

Sale of Clippers Will Cost Sterlings Significant Income Taxes

By Robin C. Gilden

People who do not think that Donald Sterling is being impacted sufficiently by the NBA fine and being forced to sell the Los Angeles Clippers are not taking into account the significant federal and California income taxes that the Sterlings are going to be required to pay on the sale of the team. Continue reading “Sale of Clippers Will Cost Sterlings Significant Income Taxes”

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Estate Planning, Trusts & Estates

Hey Kids, Let’s Have An Advance Health Care Directive

 

By Jeffrey K. Eisen

The recent death of Hollywood legend Mickey Rooney immediately was followed by a fight over the disposition of his remains. While Mr. Rooney’s body remained at a funeral home, various factions within his family fought for the right to determine where and how he would be buried. Fortunately for the dignity of Mr. Rooney, the fight was settled quickly, before a court could decide the matter. Continue reading “Hey Kids, Let’s Have An Advance Health Care Directive”

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Retirement Planning, Trusts & Estates

Bankruptcy Protection for Inherited IRA

By Robert J. Lowe

The already complicated subject of how to handle Individual Retirement Accounts following the death of an IRA holder just got a little more complicated with the recent Supreme Court decision in Clark v. Rameker. The issue in this case was whether an “inherited IRA” enjoyed the same protections under federal bankruptcy law as other IRAs. The Supreme Court held that it did not, making it easier for creditors to reach the assets held in these types of IRAs. Continue reading “Bankruptcy Protection for Inherited IRA”

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Estate Planning, Trusts & Estates

Where There’s An iWill, Is There A Way?

By Seth W. Krasilovsky

With the advent of smartphones, handheld devices function as information kiosks. Search upcoming movie showings and order tickets with the click of one button. Open a second window on your phone to review menus and make dinner reservations. But what if you decide that you want to change the dispositive provisions of your existing estate plan, or alternatively, create a brand new estate plan? Can you be just a few clicks away from making a legally enforceable bequest to dear Aunt Sally? Continue reading “Where There’s An iWill, Is There A Way?”

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Payroll & Employment Taxes, Trusts & Estates

Using an Outside Vendor to Process Payroll Has Risks

By Jeffrey D. Davine

Companies who rely on third-party vendors to make their federal and state payroll tax deposits need to be diligent when selecting the vendor. A bad choice can be very expensive.

Processing payroll and remitting the required federal and state income and employment taxes to the appropriate government authorities is burdensome. As a result, many companies delegate these tasks to a third-party payroll company. In most situations, this arrangement works out well. The payroll company withdraws the required funds from the company’s bank account and ensures that employees and the various government agencies are timely paid. This allows company management to focus on more important things, such as satisfying its customers/clients and making money. Continue reading “Using an Outside Vendor to Process Payroll Has Risks”

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Trusts & Estates

Welcome to “Death & Taxes and everything in between”

By Seth W. Krasilovsky

For more than four hundred years, the concepts of death and taxes have been consciously coupled. According to The Yale Book of Quotations, Christopher Bullock wrote the following in The Cobbler of Preston, in 1716:

“Tis impossible to be sure of anything but Death and Taxes.”

This refrain reappeared in 1724, when Edward Ward wrote the following in The Dancing Devils: Continue reading “Welcome to “Death & Taxes and everything in between””

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