Still relatively new to domestic trusts, trust protectors can be traced back to early implementation in offshore trusts. Here is a brief timeline of trust protectors.
Virtually all estates and most trusts require filing of the Form 1041 to report income earned by the estate and/or trust. Our tax attorneys routinely assist trustees and executors with preparing the Form 1041. From these experiences we noticed that certain issues surfaced more frequently than others. Review these tips before filing.
Certain tax forms are required for estates and trusts that earn income. The executor or trustee is responsible for identifying necessary forms, completing proper accounting, and filing and paying any tax due by the deadline.
While trusts may minimize liabilities that could compromise trust assets for beneficiaries, the party responsible for administering the trust carries their own risks. Trustees bear tremendous personal liability.
The Senate Finance Committee recently voted unanimously to eliminate stretch IRAs for non-spousal beneficiaries. The pending legislation imposes a five-year payout deadline for accounts left to non-spousal beneficiaries, with an exemption of $450,000 per account holder. While elimination of the stretch IRA has been a recurrent item among lawmakers, a few factors suggest the stretch IRA will ultimately phase out in 2017.
Guest contributor Dennis Gayness, a certified firearms appraiser with Triangle Shooting Academy, discusses the personal values behind a proper estate plan for one's firearms.
The procedures for releasing estate tax liens on real estate sales 'changed' in 2016. The IRS quietly decided that an ever-present rule that had not previously been enforced would be actively imposed. Instead of the IRS waiving the lien, with the "new" process they will issue a 'conditional commitment.'
In February, professionals can learn about applicable firearms laws and using gun trusts in elder and special needs practices, and receive guidance on dealing with firearms in estate planning and administration cases.
Trusts may be known for their tax advantages, but these tools have benefits beyond tax savings. As discussions about federal estate tax adjustments continue, use of a trust to minimize the impact of the estate tax may not be as valuable as it was in the past. However, effective wealth planning and asset management comprises more than merely tax issues.
Tennessee implemented new fees and requirements for certain gun permits effective January 1, 2017. The changes provide for a reduced lifetime handgun carry permit fee.