Applicable Federal Rates

Applicable Federal Rates – October 2016

See tables here.

This decision involves a strange set of facts under which a purported heir attempted to assert rights as a beneficiary and child of the decedent, even though she was neither the biological child of the decedent nor adopted by him. The decedent’s will specifically provided that the decedent “intentionally made no provision under this will” for his “adopted daughter.” This decision ultimately turned on whether (1) the statute of limitations to determine paternity had expired, and (2) whether certain writings were acknowledgements of paternity under F.S. 732.108(2).

21 Mar 2021

No “All Going to Charity” Exception for Chenoweth/Ahmanson Funding Issue

Taxpayers and planners love to use valuation reductions for partial interests in entities as a method for reducing transfer taxes. Such reductions and discounts can be a two-edged sword, however.

The Ahmanson and Chenoweth cases point out that when a majority interest in an entity is included in a taxpayer’s gross estate, the valuation discounts will typically be substantially less than will apply to a noncontrolling or minority interest, and that this can have undesirable consequences when a portion of the entity is transferred to a charity or a marital deduction trust. For example, assume that a 100% interest owned by a decedent as his sole asset in an operating corporation is valued at $10 million, with little or no discounts taken.

Then assume that 60% of the . . .

16 Mar 2021

Cryptocurrency and the IRS – Some Important Updates

Cryptocurrency is treated like any other investment asset for federal income tax purposes and not “money.” Therefore, taxpayers that sell cryptocurrency for a gain incur taxable capital gains for income tax purposes.

It is likely that a fair amount of cryptocurrency has been sold for gain by U.S. taxpayers without that being reported – either out of ignorance or intentional tax avoidance. Importantly, cryptocurrency transactions are not invisible but are available for review on the blockchain. Some sleuthing may be required to tie a particular transaction to a taxpayer, but this is often not that difficult. Further, cryptocurrency exchanges may be able to identify crypto transactions and tie them to specific persons.

Taxpayers with gains in the past or present years should note Operation Hidden Treasure . . .

16 Mar 2021

Jenna Rubin elected a Fellow of the American College of Trust and Estate Counsel

Gutter Chaves is pleased to announce that Jenna G. Rubin has been elected a Fellow of the American College of Trust and Estate Counsel (ACTEC). ACTEC is a national association of over 2,500 trust and estate lawyers and law professors who are peer-elected to membership based on substantial contributions to the field of trust and estate law and by demonstrating the highest level of integrity, commitment to the profession, competence, and experience as trust and estate counselors.

06 Feb 2021

Beware the Last Minute Signing of a Prenuptial Agreement [Florida]

Marital attorneys know that upon divorce, spouses who signed a prenuptial agreement will often raise arguments of coercion and duress to void the agreement. Factually, such allegations and arguments may or may not be true, and in either case may be hard to prove or disprove many years after the fact. A good story and sympathetic court can spell doom for the agreement. Therefore, practitioners seeking to enhance the likelihood of an enforceable agreement should manage the objective and verifiable facts that mitigate against coercion and duress so as build defenses against future attack. One of those objective facts that can usually be managed is when the prenuptial agreement is signed – signings the day before or the day of the wedding should be avoided.

A recent Florida case presented various facts that both supported and weakened the agreement. The end result was the voiding. . .

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