Friday, September 16, 2011

Charitable Lead Trusts Revisited

Who is an ideal candidate for a Charitable Lead Trust (CLT)? First and foremost, the person must be charitably-inclined. Another obvious factor is that the person has wealth. I mean wealthy from the standpoint that the person does not need the income from the property to be placed in the trust. What is an ideal asset for a CLT? An asset that will significantly appreciate in value. An asset that is liquid and/or produces enough income to cover the charitable annuity.

Use It or (Possibly) Lose It

Currently, the federal gift tax exclusion amount is $5,000,000. If Congress does nothing, which we know from recent years is a real possibility, the law sunsets on December 31, 2012 and the exclusion amount will drop to $1,000,000. If Congress does act, it is possible (maybe even likely) that the exclusion amount will be lower than $5,000,000. This means that the wealthy may have less than two years to gift significant wealth tax-free.

Automatic Extension of Time Shortened

The automatic extension of time to file a Form 1041 Fiduciary Income Tax Return was recently shortened from six months to five months by the IRS. The amendment to Treasury Reg. Section 1.6081-6T is effective as of June 24, 2011. Of course, the automatic extension to file the return does not extend the payment deadline.

Friday, July 01, 2011

Ohio to Bid Adieu to Estate Tax

Ohio Governor John Kasich signed House Bill 153 (Ohio Budget Bill) yesterday, which, among other things, repeals the Ohio Estate Tax for decedents dying on or after January 1, 2013. On one hand, the repeal of the tax will be a major loss of revenue for local governments. On the other hand, it makes Ohio a more attractive state tax-wise. For many years, Ohio residents with homes in other states, like Florida, have changed their residences for more tax-friendly treatment. Currently, the applicable exclusion amount in Ohio is $338,333, meaning that a decedent's estate would have to file an estate tax return if the decedent died with over that amount. Last I checked, that was the smallest exemption amount of all the states in the United States.

Thursday, April 14, 2011

Blogging for Lawyers

On April 19, 2011, from noon to 1:00 P.M., the CBA will be presenting a basic course on Blogging for Lawyers. This discussion will cover the pros and cons of undertaking the creation of a blog. More information can be found here at the CBA website.