Schlapfer v. Commissioner, T.C. Memo. 2023-65 (U.S. Tax Court May 22, 2023), is the first reported case to contain a detailed discussion of the adequate disclosure requirements under the gift tax adequate disclosure regulations set forth in Treas. Reg. Sec. 301.6501(c)-1(f). The Internal Revenue Service (IRS) generally has three years from the date a gift tax return … Continued

Decisions of Interest, Recent Updates in Florida Law and Practice Tip for Non-Florida Lawyers A Revocation of a Will by a Subsequent Holographic Will Is Invalid Under Florida Law Rory Ernest MacDowell (the “decedent”) executed a will in 2014 while he was a resident of Louisiana. The decedent then executed a holographic will in Louisiana … Continued

In 1992, New York became the first state in the nation to enact a decanting statute, namely, New York Estates, Powers and Trusts Law (EPTL) 10-6.6. The statute subsequently was modified several times. The 2011 amendment was notable because it greatly liberalized the statute’s application. Today, New York’s decanting statute is a tool frequently used … Continued

By Julia Chu1 and Jacqueline Valouch2 Introduction As many of the provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) are set to sunset at the end of 2025, planning for the ultra-high net worth client now has a much more urgent timeline. The federal lifetime estate and gift tax exemption amount, currently at … Continued

10. Planning Remains Critical To Minimize New York Estate Tax The 2024 New York estate exemption amount has increased to $6.94 million. Since the benefits of the exemption are phased out for estates between 100-105% of the exemption amount and estates that exceed 105% are taxable from dollar one (N.Y. Tax Law §952(c)(1)), planning to bring estates in … Continued

Should your practice group or firm implement a client maintenance program? Yes! Client maintenance programs serve many benefits to planning attorneys: greater touchpoints to keep you and your services top of mind for your clients; consistent cash flow from annual fees; the opportunity to keep current with changes in your clients’ lives and assets and … Continued

Introduction to Client Termination Terminating a client relationship is rarely an easy or pleasant topic. No attorney wants to intentionally lose a client relationship and the billing stemming from that relationship. But the reality is that bad clients can present substantial challenges. They can drain a practitioner’s energy and time and create more stress in … Continued

In 2023, the Internal Revenue Service greatly simplified the process by which a Canadian charity may apply to be recognized as a public charity for U.S. income tax purposes. Under the U.S.-Canada Income Tax Treaty, a Canadian charity is automatically recognized as an Internal Revenue Code Section 501(c)(3) tax-exempt organization for U.S. income tax purposes … Continued

Construction In a proceeding seeking the construction of three inter vivos trusts allegedly established by the decedent and his wife, the Surrogate’s Court, Queens County, in In re Follman, was confronted by a motion for summary judgment by the petitioner requesting a determination that the filing of a petition seeking information and/or accountings concerning the assets of … Continued

Pennsylvania Law Changed To Recognize Grantor Trusts Effective for tax years beginning on or after January 1, 2025, Pennsylvania will join the rest of the United States in recognizing grantor trusts.1 Historically, Pennsylvania has not recognized irrevocable grantor trusts; rather, it has treated all irrevocable trusts as non-grantor trusts, or separate income taxpayers. This new provision, … Continued