Estate of Fields – A Limit on “Death Bed” Estate Tax Planning

If you anticipate that you will be subject to Federal and/or state estate tax liabilities, the time to begin gifting or other “estate tax planning” strategies is well before you are in a “death bed” situation. You should not wait to be in your own “death bed” situation before you commence proper estate tax planning. The use of limited partnerships and limited liability companies to claim “valuation discounts”, and reduce estate tax liabilities, has been a longstanding practice in estate tax planning. However, the Estate of Fields opinion is authority that it can be very difficult to achieve a “valuation discount” in a “death bed” situation.

Transferring Your Asset Protection Structure to the Next Generation

While we may not expressly consider asset protection for our children, transferring an asset protection structure to your children is consistent with the objective of estate planning. This concept of transferring your asset protection structure to the next generation derives from the view that an established asset protection structure has value. If you transfer your asset protection structure to the next generation, you continue this “investment” to provide value for the next generation. You save your children the legal fee and filing fee costs that they would otherwise need to incur to create their own asset protection structure.

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United States v. Huckaby – Domestic Asset Protection Trusts and Real Estate

At its root, the Huckaby case concerns what state law should be applied to real estate owned in a trust – the law where the real estate is located or the law by which the trust is to be administered. If you are trying to implement asset protection for real estate located in a “non-DAPT” or otherwise “non-asset protection favorable” state, you should consider the possible benefit from a “real estate – personal property” conversion approach.

The New “Senior” Deduction

The White House has at times used the phrase, “No Tax on Social Security”, in generally describing the new “senior” deduction. Such description is not correct. Social Security benefits remain taxable under current law. In addition, the eligibility requirements for Social Security do not match up with the eligibility requirements for the “senior” deduction. For example, you can start collecting Social Security benefits as early as age 62, but cannot claim the “senior” deduction until age 65.

In the Matter of the CES 2007 Trust – A Victory for the Delaware Domestic Asset Protection Trust

Among the many tools available for persons seeking asset protection is the “domestic asset protection trust” (the “DAPT”). Broadly speaking, DAPTs are U.S. domestic trusts established by a grantor, who generally retains certain rights over the trust, but wants the assets of the trust to be protected from creditors.

Estate of Rowland – An Important Federal Estate Tax Case Concerning Portability

Given that asset values tend to increase over time, and Federal estate tax liability tends to arise more on the death of a “second-to die” spouse than on the death of a “first-to-die” spouse, portability can be a critical concept to minimize Federal estate tax liability. Additionally, Revenue Procedure 2025-28 is relevant for taxpayers seeking to amend their tax returns for taxable years 2022 through 2024 and claim a 100% full deduction of their “domestic research or experimental expenditures” in those taxable years.

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The 2025 Tax Act – Key Individual Tax Provisions

Whether it is called by its popular name, the “One Big Beautiful Bill Act”, or by its official legal name, “An Act . . . To provide for reconciliation pursuant to title II of H. Con. Res. 14”, the legislation enacted by Congress on July 3, 2025 and signed into law by President Donald Trump on July 4, 2025 (the “2025 Tax Act”), will have a significant impact on taxpayers. This article describes the key individual tax provisions of the 2025 Tax Act.

“Related Party” Transactions

This article focuses on “related party” transactions under Internal Revenue Code Section 267(a)(1) and Internal Revenue Code Section 1239(a). While there is some overlap, it should be noted that the specific scope of “related parties” for purposes of a “related party” transaction under Internal Revenue Code Section 1239(a) is different than the specific scope of “related parties” under Internal Revenue Code Section 267(a)(1).

The SLAT – A Possible New Estate Tax Planning Technique for Married Couples

Effective estate tax planning often involves two competing objectives. On one hand, there is an objective to remove assets from a person’s taxable estate, so that estate tax liability can be reduced on such person’s death. On the other hand, there is an objective to retain the income and principal from a person’s assets, so that such person’s activities are not disrupted during such person’s lifetime.

Trump’s Tax Proposals

President-elect Trump has proposed various new specific exemptions from income tax liability. First, he would exempt tips from income tax liability. Second, he would exempt overtime pay from income tax liability. Third, he would exempt Social Security benefits from income tax liability. There is no guarantee that some or any of President-elect Trump’s tax proposals will be enacted into law.

Private Foundations – Know the Advantages and Benefits But Understand the Possible Penalties

Charitable activities are favored under the Internal Revenue Code. The income of a charitable entity can be subject to favorable income taxation, and transfers to a charitable entity can realize income tax and estate tax deductions. One type of charitable entity is a private foundation. This letter refers to the “private non-operating foundation.”

Connelly v. United States – An Important Supreme Court Estate Tax Valuation Case

“Buy sell” agreements often are funded by life insurance policies. Life insurance proceeds can affect the “estate tax” valuation of a deceased business owner’s ownership interest. And can have material implications for the terms of “buy-sell” agreements, business valuations, and other estate tax liability and estate planning issues.

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