Tax


BEWARE: Redemption Agreement Funded with Corporate-Owned Life Insurance
June 25, 2024 | Walter J. Gumersell | Joseph T. La Ferlita | Patricia C. Marcin | Lindsay M. Brocki | Tax | Corporate | Trusts & Estates

On June 6, 2024, in the case of Connelly v. United States, the United States Supreme Court determined that corporate-owned life insurance proceeds used to redeem a decedent’s shares in the corporation must be included when valuing those shares for federal estate tax purposes.

A decedent’s taxable estate includes the fair market value of shares

Read More
To Gift, or not to Gift: Income Taxes vs. Estate Taxes
June 13, 2024 | Patricia C. Marcin | Tax | Trusts & Estates

Giving assets away during lifetime to reduce estate taxes due upon your death is not the “no-brainer” it used to be. Sometimes, holding onto assets until your death lowers total taxes.

Income tax, gift tax and estate tax benefits can differ dramatically, depending on the income tax basis of the assets to be gifted or

Read More
The New York State Estate Tax Cliff and the ‘Santa Clause’ Fix
April 8, 2024 | Patricia C. Marcin | Tax | Trusts & Estates

New York has an “estate tax cliff,” which can result in heirs paying New York estate tax at a rate exceeding 100%.

The current per-person NYS estate tax exemption is $6.94 million, which is the amount you can leave to your heirs at your death without paying NYS estate tax. If your taxable estate, however,

Read More
Plan Now for Sunsetting Estate & Gift Tax Exemption
February 12, 2024 | Wendy Hoey Sheinberg | Tax | Trusts & Estates

As we’ve previously discussed, portability is an important feature of an estate plan. Portability allows the surviving spouse to die to “save” any of their predeceased spouse’s unused federal estate and gift exemption amount. A federal tax of 40% is imposed on each dollar that exceeds a decedent’s federal estate and gift exemption amount.

The

Read More
Spousal Lifetime Access Trusts: A Way to Have Your Cake and Eat It Too
February 1, 2024 | Patricia C. Marcin | Trusts & Estates | Tax

You may have heard of Spousal Lifetime Access Trusts (SLATS) lately, especially if you have been thinking about using your federal estate and gift tax exemption before the current higher exemption amount of $13.61 million is automatically reduced to about $7 million on January 1, 2026, assuming Congress takes no action. (See my column from last

Read More
Consider Making Large Gifts before the 2026 Exemption Reduction Kicks In
January 18, 2024 | Patricia C. Marcin | Tax | Trusts & Estates

The current combined federal estate and gift tax exemption amount of $13.61 million per person ($27.22 million per married couple) is scheduled to “sunset” automatically on January 1, 2026, and revert to $5 million indexed for inflation (guesstimated at $7 million), unless Congress takes action. This exemption amount applies to the total taxable gifts made

Read More
Don’t Give Your House to Your Children (While You’re Alive)
January 2, 2024 | Jeffrey S. Greener | Tax | Trusts & Estates

Many of us would like our children to inherit our home once we are gone. More than a few of us think it makes sense to give our home to our children while we are still living. That is not a good idea! Here’s why.

Loss of Step-Up in Basis

Gifting your home to someone

Read More
Planning for the Interest Charge on Installment Sales: Decanting a Grantor Trust?
October 20, 2022 | Louis Vlahos | Tax | Trusts & Estates

Louis Vlahos’ article, “Planning for the Interest Charge on Installment Sales: Decanting a Grantor Trust?”, was published in the New York State Bar Association Trusts and Estates Law Section Journal. Rivkin Radler member Nicholas G. Moneta is the publication’s Editor-in-Chief.

The article discusses the concept that the special interest charge imposed on the deferred tax

Read More
Treasury Issues Final Rule on Disclosure of Beneficial Ownership
September 29, 2022 | Katherine A. Heptig | Bernadette Kasnicki | Louis Vlahos | Tax | Compliance, Investigations & White Collar

In an effort to help prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity, the United States Department of the Treasury just issued a final rule [RIN: 1506-AB49]. The rule requires certain businesses to file reports with FinCEN (Financial Crimes Enforcement Network) that identify two categories of individuals: the beneficial

Read More
NJ Publishes Guidance on Cannabis Sales & Use Tax and Social Equity Excise Fee
September 19, 2022 | Louis Vlahos | Tim Gonzalez | Tax | Cannabis

The New Jersey Division of Taxation recently provided guidance[1] on registration and licensing requirements, Social Equity Excise Fees, and the Sales & Use tax applicable to companies operating in the cannabis industry.[2]

The following provides important takeaways from the Division’s publication.

Registration & Licensing

To operate a cannabis business in New Jersey a company must

Read More
Next Page

Get legal updates and news delivered to your inbox