Crummey withdrawal notices – recommended practices *

USA - September 10 2012
Under current tax law, an individual is entitled to make gifts of up to $13,000 per donee per year without being subject to gift tax.

Co-authors: David Pratt, Albert W Gortz, Andrew M Katzenstein, George D Karibjanian, Mitchell M Gaswirth.

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Use it or lose it - increased gift and GST exemption amounts expire on 12/31/12 *

USA - September 10 2012
On December 17, 2010, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the "2010 Act") was signed into law, making significant modifications to the estate, gift and generation-skipping transfer ("GST") taxes.

Co-authors: David Pratt, Albert W Gortz, Andrew M Katzenstein, George D Karibjanian, Mitchell M Gaswirth.

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Income tax deductions for charitable donations may be denied without a qualified appraisal Mohamed v. Commissioner, T.C. Memo 2012-152 *

USA - September 10 2012
Obtaining a qualified appraisal is an essential requirement for claiming an income tax deduction for charitable donations of property worth more than $5,000.

Co-authors: David Pratt, Albert W Gortz, Andrew M Katzenstein, George D Karibjanian, Mitchell M Gaswirth.

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IRS Notice 2012-21 (3/5/2012) *

USA - April 2 2012
In order for a surviving spouse to retain use of a deceased spouse's unused estate tax exemption, he or she must make a portability election on a timely filed federal estate tax return for the deceased spouse, even if no federal return needs to be filed because the decedent's assets were below his or her remaining federal estate tax exemption amount.

Co-authors: David Pratt, Albert W Gortz, Andrew M Katzenstein, George D Karibjanian, Mitchell M Gaswirth.

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Chief Counsel Advice Memorandum 201208026 (9/28/2011) *

USA - April 2 2012
In a recently released Memorandum, the IRS Office of Chief Counsel concludes that contributions made by Settlors to a discretionary trust for their descendants were taxable gifts, since (1) the Settlors had not retained any rights that would make the gifts incomplete and (2) the withdrawal powers granted to the beneficiaries were unenforceable in state court and thus illusory.

Co-authors: David Pratt, Albert W Gortz, Andrew M Katzenstein, George D Karibjanian, Mitchell M Gaswirth.

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