California Society of CPAs / Estate Planning / CalCPA Discussion Forum

Can a surviving spouse disclaim property that is owned by the survivor in his survivor's trust?

Mike Hagedorn — Wed, 04 Nov 2009 16:38:47 GMT

I have a situation whereby I may need to amend a 706 for the first spouse to die. The trust had 2.8 million of assets in it, including a 2 million dollar home. The surviving spouse also had 3.5 million of retirement accounts, that are in his name.

The trust document has a provision for three trusts to be formed. Since the decedent died in 2008 and one half of the trust estate is 1.4 million, there are not enough assets to fund a QTIP Trust. The surviving spouse wanted to max the credit trust out if possible. We may have misinterpreted the trust document in trying to fully fund the credit trust.

The Trust Document has the following clause:

Right of Surviving Spouse to Disclaim Part of Survivor's Survivor's Trust - If the Surviving Spouse effectively disclaims his or her entire beneficial interest in the income, or in the principal, or in both the income and principal of the assets of the Deceased Spouse transferred to the Survivor's Trust, or an undivided portion of such interest or interests, then, to the extent of the disclaimer, the property subject to such interest or interests, or such undivided portion thereof, shall become part of the Tax Free Trust (credit trust) and shall be disposed of in accordance with its provisions. The words "effectively disclaims", as used in this Paragraph shall mean the making of a disclaimer which meets and satisfies the requirements of Internal Revenue Code Section 2518, as amended.

We had the surviving spouse disclaim part of his community property assets allocated to the survivor's trust.

An attorney who was going to transfer title of the house over to the credit trust, says she doesn't believe a survivor can disclaim his or her own trust assets. She went on to say that she consulted four other tax attorneys, who believed the same.

I know in a CPE seminar several years ago that the attorney said a survivor can disclaim their own property in a survivor's trust if it is within nine months of the date of death of the deceased spouse. I'm not talking about disclaiming income that may be coming from one of the decedent's trusts or principal from a 5 and 5 provision, but outright assets in the survivor's trust.

I'm having difficulty in finding anything in my research that backs my point up.

I did however find the following passage from a book titled "How to Settle Your Living Trust" by Henry W. Abts III.

The following excerpt is from his book:

Filling the Decedent's B Sub-Trust

I am often asked if the surviving spouse can increase the asset value in the decedent's B sub-trust (e.g. by adding some of the surviving spouse's assets to the decedent's sub-trust) in order to fully utilize the decedent's federal estate tax exemption. The quick answer is no, but let me explain an exception to this pat answer.

For example, let's assume an estate of $800,000. Let's further assume that the assets are all marital assets (i.e. community property); one-half of the assets ($400,000) would flow into the survivor's A sub-trust and the other half of the assets would flow into the decedent's B sub-trust.

As you can see, the normal allocation (half of the assets going into each sub-trust) does not fully utilize the decedent's federal estate tax exemption of $600,000. Unfortunately, a surviving spouse may not gift assets to a decedent spouse. However, the surviving spouse may disclaim a part of the survivor's estate, as described in the next section. In this manner, and in this manner only, the surviving spouse could transfer assets from the survivor's A sub-trust to the decedent's B sub-trust. Remember, however, that this arrangement is best suited for couples who are not involved in a second marriage.

Disclaiming an Interest in Assets

Upon the death of the first spouse, the surviving spouse may disclaim an interest in part of his or her assets and pass the disclaimed assets to the decedent's B sub-trust and/or C sub-trust. The disclaimer must be made within nine months from the date of death of the first spouse, and it must be made before the disclaimant receives any income whatsoever from the asset to be disclaimed. The surviving spouse, as the trustee and beneficiary of the decedent's B sub-trust, retains full rights to use or sell his or her disclaimed assets.

http://books.google.com/books?id=2a-I_6eoblEC&pg=PA223&lpg=PA223&dq=disclaim+survivor's+assets&source=bl&ots=eaT-uKETp3&sig=MhQu0e4d46S8V37rgyDyGl3LUXU&hl=en&ei=2-PxSvvoBo2qtgOoyYX4AQ&sa=X&oi=book_result&ct=result&resnum=4&ved=0CBEQ6AEwAw#v=onepage&q=disclaim%20survivor's%20assets&f=false

We disclaimed part of the survivor's assets and funded the 2 million dollar home to the credit trust. Of course there was no income received from this asset within the nine month period after death.

Is the author wrong about this, or am I misreading what he wrote? There are no references or footnotes listed in the passage to give back up to what he has stated.

Any help would be appreciated.

Property tax reassessment for a somewhat complicated situation

Mike Hagedorn — Thu, 15 Oct 2009 09:56:54 GMT

Please bear with me as I give you the facts, because there are several events that took place.

1. Taxpayer and spouse created a living trust and wife died in 2008.

2. Taxpayer had a house worth 2 million plus about 800,000 in other assets in the living trust.

3. Taxpayer also has retirement accounts worth 3.5 million in his name. The named beneficiary on the retirement accounts is the living trust. None of these retirement accounts are currently in the living trust.

4. Ordinarily the bypass trust can not be funded for the full 2 million dollar amount because the decedent's community property share of the trust estate was 1.4 million. However, the trust has a provision whereby any disclaimed property is to be added to the bypass trust.

5. We went ahead and prepared the 706. The surviving spouse made a valid disclaimer and we transferred the 2 million dollar house to the bypass trust.

We would now like for the survivor's trust to buy half of the house back and for the bypass trust to carry a demand note at a fair market interest rate. The note would be secured so that the surviving spouse can take the interest deduction. The bypass trust would recognize the interest income, but would distribute it back to the taxpayer because it is a simple trust. Only a million or half of the house is being sold, because you can only deduct mortage interest on a loan up to one million dollars.

The reason we would like to do this is in case the real estate market should rebound, and the surviving spouse should sell the house some day. we would like to be able to take advantage of the Section 121 deduction for the portion of the house owned by the survivor's trust.

The big question in all of this is whether or not the house can be reassessed by the county tax assessor, on the sale of 50% of the house back to the survivor's trust?

I can't seem to reach the right person at the assessor's office.

Conservatorship for married couple

Bill — Tue, 13 Oct 2009 14:40:48 GMT

I am helping with a report to the court of a conservator. Daughter is conservator for both her parents. There is one bank account, in the name of all three, the two parents and the daughter.

I'm wondering if we can make one report to the court for the combined (community) assets of both elderly parents, or if we have to split this into two.

And since it's community property, wouldn't the split be 50-50, even though H receives more Soc Security and retirement than W does.

TIA
Bill Downs, CPA
Sherman Oaks, CA

Interest due on amended 706

nteplin — Fri, 09 Oct 2009 10:08:27 GMT

I am amending a 706 and there is a significant tax due. I don't know how to compute the interest since this would be a deduction from the amended return. Will the IRS bill the estate a net interest (like a 6166 rate)?
Neal Teplin

Schedule R on form 706

Susan E. Cohen — Fri, 25 Sep 2009 09:56:08 GMT

Skip persons share of estate on 706 Part 4, page 2 is 495,000 and there is no GST tax. The schedule R, Part 1 Line 4 shows 505,000 which is the share of the assets without regard to the expenses reported on J,K,L. I am wondering if I have to work around the program or if it is correct to use the share of the gross estate without regarding to expenses when preparing the schedule R. Since there is no GST tax it is not a tax issue, I would just like to understand the proper way to report this for the future.

Thank you for your help.

Susan E. Cohen

scohen@sscllp.com

Loss on sale of residence

HWilliams — Mon, 07 Sep 2009 09:43:54 GMT

I have a first-to-die estate with a Section 645 Election in place for a continuing revocable trust. I understand the surviving spouse's 1/2 is still considered a revocable, grantor trust. The surviving spouse is a resident of an adult care facility. I think that I am correct that the surviving spouse's share is reported on his Form 1040. Does the surviving spouse's share of the loss on a residence sold by the trust estate get reported on the surviving spouse's Form 1040 as a non-deductible capital loss?

Sec 121 for trust property

cpabob — Fri, 11 Sep 2009 13:42:24 GMT

Mother sets up a living trust, then dies, leaving her house to her children, X, Y & Z. There is no debt on the property at any time. X is the successor trustee. Z has lived with mother for the past 35 years and continues to live alone in the residence after mother's death. The house remains in mother's trust for 5 years (while unrelated disputes between X, Y & Z were being settled), and then sold.The proceeds are distributed equally between X, Y & Z. There is total gain of (using stepped up basis) of $150K. The trustee issues K-1's to each beneficiary reporting their respective share of the gain.

Z wants to claim the Sec 121 exclusion for gain on sale of principal residence becasue he lived in the residence for 2 of the past 5 years. He is arguing that even though he is not on title that his beneficial ownership of 1/3rd of the residence entitles him to receive the exclusion.

Rev Rul 85-45 indicates that a sole beneficiary is treated as the owner and would therefore qualify for the Sec 121 exclusion, but it does not address a split-ownership scenario. What do you think?

Bob Abelson, CPA

Torrance, CA

Amended 706

HWilliams — Mon, 07 Sep 2009 09:34:39 GMT

This is just a quick question. Do you file just the return when amending Form 706 or do you need to attach all of the supporting documents (i.e. appraisals, etc.) sent with the original return?

Personal expenses paid by an FLP

kruspodin — Thu, 06 Aug 2009 10:44:16 GMT

I have a new client who had his estate planning done by an estate attorney who is now deceased. The attorney set up a Nevada FLP for my client and told the client to transfer all of their investments (mostly brokerage accounts) into the FLP. According to my client, the attorney also told them to set up a checking account in the name of the FLP and pay all of their personal expenses from this checking account in the name of the FLP. Thus, all personal expenses (deductible and non-deductible) get paid from this account. Also, the W-2 income from my client's 100 percent owned professional corporation gets deposited directly into the FLP's the same checking account. I understand the validity of transferring the investment accounts into an FLP but I am unclear about the reasoning of paying ongoing personal expenses from the FLP account and depositing regular W-2 earnings into the FLP. I would think that personal expenses and earned income should be handled by a personal bank account rather than an FLP account. I am wondering if my client misunderstood their estate attorney. Does anyone have an opinion about whether personal expenses should be paid from a personal account or if there is a reason to pay them from an FLP account?

Thank you for your help.

Mark Kruspodin, CPA

Does a GRAT file its own tax return?

title26usc — Thu, 23 Jul 2009 23:36:07 GMT

Since a GRAT by definition is a grantor trust, is there any reason to file a separate GRAT return? The GRAT owns appreciating S Corp stock. Stock was distributed this year in order to make its annuity payment to the grantor. Thank you in advance for your help.

Court Accounting Preparation Software...Does it exist?

Susan Woods — Wed, 24 Jun 2009 15:12:42 GMT

I've just gotten back into preparation of court accountings after many years. I find that there are not many options for court accounting software. Every program I used to use seems to have disappeared. Does anyone have a program they use for the preparation of court accountings?

living trust as LLC member

Allmon — Wed, 15 Jul 2009 13:46:09 GMT

my experience is that several of our married clients who have LLCs want them to be two member so that the LLC files its own returns (to keep details off of the personal returns).
in the past I have shown the owners as husband and wife as trustees- and use two k-1s. i have never had this questioned by any taxing authority (no surprise there, since they do not understand trusts of any type!).
but, i just had an attorney tell me that this is not correct- his solution was to make .10% as joint tenancy and the rest as the living trust (so that there would be two partners).
guess i do not see the downside- worst case, can not imagine IRS getting upset that we filed a return that we did not need to file !!

is this attorney being too picky?
anyone have other solutions?

Gift Tax - Community Propert

hlcpa — Mon, 27 Jul 2009 15:47:38 GMT

Grandparents gift $500,000 to grandchild and his wife to buy house in 2008. Grandmother has been in bad health for years. I was going to file only one 709 for the grandfather, and have it so that the grandmother gifted $12,000 each to kids, and grandfather gifted 476,000, of which $452,000 would be subject to gift tax. (This would be the first such gift so no tax due)

I thought this would be wise as then if grandmother died, a full $3.5M could go to bypass trust. If the gift was split, then this amount would have to be reduced by $226,000. This assumes that in the future the exemption amount will go up above $3.5M, for when Grandfather dies.

Is this thinking correct, and can this be done in light of CA community property rules.Thank you very much

Intentionally Defective Grantor Trusts - Initial sale

Mike Hagedorn — Thu, 16 Jul 2009 11:25:02 GMT

I fully understand IDGT's and how interest and capital gains are not picked up from a note used by an IDGT to purchase a partnership interest or closely held business interest.

My question of the board is regarding the initial year of the IDGT, when the IDGT makes the initial purchase from the taxpayer or the taxpayer's inter-vivos trust. Do you make any type of notation on the taxpayer's individual return for this sale, or is nothing done? Once again, I realize no gain or loss would be recognized on the sale, but I want to know if you need to note the sale in the tax return?

Gift Tax Unlimited Education exemption

DAVID HALE — Wed, 15 Jul 2009 08:21:56 GMT

When is the line crossed from providing education expenses for your dependent, and when payment of education expenses becomes a taxable gift? Once the education expense becomes optional? I understand there is an unlimited education expense exemption for amounts given directly to the institution, however, in my reading it only covers tuition and not living expenses, books or supplies? I always assumed while the kid was away to college, any expense provided was just normal support for my dependent. However, when is this no longer the case? The code states the exemption is there, no matter the relationship of the donor and donee. But say my child is now age 30 and married and out of the house, and is going back to school, and I pay for all expenses; is only the tuition (if paid directly to the institution) exempt, and any other expenses paid for are gifts?

What if my child is at home, but is a professional student, and at age 30 still going to school. Still support, or a gift? Or is everyone making gifts when they pay for college, but just ignoring it?

Please provide input. Thank you.

Property sold in 1031 exchange shortly after death of taxpayer

Mike Hagedorn — Tue, 30 Jun 2009 13:17:29 GMT

Situation

Taxpayer passed away on 5/5/08. Taxpayer and wife owned a tenant in common interest in a commercial building in Cleveland Ohio, that was in the midst of being sold. The sale closed 9 days after the death of the taxpayer (5/14/08). I'm stepping up the basis of the TIC ownership interest up to equal the sales price of the building. There is almost a $180,000 loss on the sale due to the costs of the sale.

The proceeds from this sale were held with an accomodator and three separate replacement properties were subsequently purchased within six months after the sale and the properties were properly identified within 45 days of the sale.

Oridinarily you can't recognize a loss in a like kind exchange.

My question of the board, is there any way to declare the taxpayers chose not to do a 1031 exchange, even though sales proceeds were held by an independent accomodator? I sure hate to lose out on a 180,000 dollar loss.

Administrative Expenses on Form 706

HWilliams — Mon, 01 Jun 2009 16:21:34 GMT

I hope this post is not beyond the scope of the forum but I have not been able to get any help elsewhere.

FACTS

Washington State decedents (community property state)

Wife died 5/2/2007 and husband died 10/25/2008

Family trust with the standard sub-trusts; Credit Trust, Marital Trust, Survivor Trust. Family trust continued as "administrative" trust and no sub-trusts have been funded.

Form 706 (no tax liability) filed for wife's estate and IRS closing letter received 2/18/2009

Form 1041 for wife's estate and "administrative" trust filed together under Section 645 election for initial year ended 4/30/2009 to include administration expenses

QUESTIONS

1. Husband's estate (2nd to die) will have a significant tax liability so we want to deduct Administration Expenses on Form 706. Will the deduction be limited to those incurred after DOD or when the closing letter was received to current date or some other time period? I presume I will need to allocate expenses paid by the "administrative" trust; those up to husband's DOD to wife's estate, those after to husband's estate? Funding of the sub-trusts is to occur soon so I will be able to allocate expenses paid by the "administrative" trust between the sub-trusts if this appropriate.

2. Husband has received distributions from the "administrative" trust in the form of payment for personal expenses and costs incurred as a resident of an adult care facility. Since he died in 2008 and the "administrative" trust is filing Form 1041 with the estate with a 4/30/2009 year-end I presume these distributions will not carry out DNI, if any.

3. How do I file the Form 1041 for the husband's trust/estate. The Marital and Survivor Trusts will not be funded until 2009 so can I make a Section 645 election at that time and file a combined Form 1041 with a 9/30/2009 year end?

Non-resident CA estate tax return due?

HWilliams — Fri, 15 May 2009 13:00:02 GMT

Ariziona resident who owned rental property in California dies with taxable estate of approximately $4M. Value of CA property is $1M. Is a CA Form 706 due? It is my understanding that California no longer has an estate tax.

Can you also confirm the date the estate tax was repealed?

Inheritance not wanted

npestate — Thu, 23 Apr 2009 18:01:37 GMT

A client's sister passed away and left her assets (approx $200K) to her parents. Her parents don't want need the inheritance and would rather it go to their grandchildren (our client's children). Is there a way to make this happen without having the parents gift it outright to the grandchildren?

706 Filing Requirements 2008

TLynden — Wed, 08 Apr 2009 08:52:45 GMT

It is my understanding that in 2008 when a gross estate exceeds $2,000,000 for a married couple and one dies, that a 706 is required even though no tax is due.

A local attorney has informed me that if the estate does not exceed $4,000,000 no 706 is required.

His reference is a FAQ response.

Is there an authority for this, based on the 706 instructions it appears to be $2,000,000

Form 56

lizf — Wed, 25 Mar 2009 10:41:33 GMT

Hello -

I am completing a final 1040 for my deceased Grandmother. Although we have set up a estate tax id, it is not likely we will have to do a return with it, as the estate earnings will be under $600. The 1040 is just for income before she passed.

For purposes of form 56 that will be attached to the 1040, do I need to do two forms, one for Grandma and one for the Estate, or can I just do one for Grandma? If just Grandma, do I even need to put in the estate tax id as the identifying number, or should I just enter in her SSN as the identifying number?

thanks!

Inclusion of irrevocable trust in grantor's estate

Elliot Shell — Wed, 18 Feb 2009 10:21:02 GMT

If an irrevocable trust provides that the trust shall pay death taxes imposed on the estate of the grantor, does that provision cause the assets of the trust to be included in the grantor's taxable estate?

Amending the 706

Tracy B — Fri, 21 Nov 2008 10:45:23 GMT

We have a 706 that was filed timely in 2004 and resulted in tax liability due to a business owned by the decedent. The valuation on the return for the business was 4.7 million, but the best offer they had when attempting to sell the business was 3.5 million. The business was related to the construction industry and has shrunk in value as has most of the market. The heirs have been making interest payments on the tax liability and are now faced with a principal payment due in Jan 2009.

We need to amend the return to deduct the interest that has been paid, and I would like to include a copy of the offer for 3.5 million and attempt to reduce the overall liability. I have done this successfully several years ago (LA IRS Office), but I'm not sure if it would fly now. Is the statute for 706, 3 years as with other returns? Have any of you had any success in reducing an estate valuation?

CRUT Early Dissolution

swojcpa — Wed, 07 Jan 2009 12:28:49 GMT

A client asked what does she do to close out a CRUT, she said that she did not need the income but thought the charity might needed it more. My response was to say give them the assets and we would then file a final return. After giving that advice, I thought, is there some way to get an additional charitable deduction by taking a deduction in the current year for an amount based on the "FMV" of the assets transferred less the original deduction. I only do two CRUTs, am I right?

ID# Required on 706, Part5?

hlcpa — Wed, 14 Jan 2009 08:28:16 GMT

On a first to die 706, I am wondering if it is required to have the Social Security numbers for beneficiaries on page 2, Part 5. There were specific bequests of money to the kids, but I do not have the social security numbers, and would prefer not to have to get them. This is tax free to the kids, but do not want this one issue to trigger anything. Lacerte is giving a diagnostic as well. Thank you.

Distributions- "properly paid or credited"

npestate — Thu, 08 Jan 2009 14:23:02 GMT

Does anyone know what "properly credited" means when it comes to Tier 2 distributions from a decednt's estate? If the amount is "credited" by giving the beneficiary a promissory note before the year end, by when does it actually have to be paid in order for the estate to take a distribution deduction? We want the beneficiary to pay tax on the income and not the decedent's estate.

Another question on a final bypass trust return

swojcpa — Tue, 25 Nov 2008 22:25:26 GMT

After all these years I finally have to do a final return for a bypass trust. Final trust returns require the distribution of capital gains to beneficiaries. Since we are sitting on overpayment from 2007 it would be simpler to just pay the tax on the capital gains at the trust level. Any precedent for doing so or will it come back to haunt me? Or since I am close to the end of the year, don't do a final for 2008 but a short year final in 2009?

If I were to do it the right with a 2008 short year, would I be reporting all capital gains up to the date of death on the decedent's K-1 and those gains or losses after the date of death on the remainder beneficiaries K-1's. Secondly, most of the ordinary income was incurred before the date of death with most of the expenses incurred after that date. Can I commingle the income and expenses or do I have to give the decedent the income and the other beneficiaries the ordinary loss?

Royalties - 706 and Future Income

hlcpa — Thu, 21 Aug 2008 18:03:18 GMT

Deceased recieved royalties for work as director on Broadway shows. He does not own the copyright to the show, only has a right to percentage of royalites recieved for performance of the show. Now after death his wife will be receiving the royalty income.

Is this reflected on the 706 (Sch G?) I suppose I can do a present value of future earnings. How do I reflect the money coming in to the wife after death?

I had a discussion with a colleage that it depends on whether it is owned or unowned copyrights. And that while both owned and unowned are reflected in full on the 706, only the owned are amortized (income is not picked up until fully amortized). It does not seem right to me that if the unowned copyright future income is on the 706, it would still be taxable and not IRD. Thank you for any help. Harlan Levinson, CPA

Form 706 Presentation

awombat — Wed, 03 Sep 2008 10:45:20 GMT

What is the correct presentation on Form 706 for a decedent's QPRT that is disqualified due to death prior to end of QPRT's term. Schedule G with explanation ? Report as prior gift and removal on same schedule with explanation of failed gift ?

Loaning/Gifting Money

hlcpa — Thu, 02 Oct 2008 15:04:00 GMT

In a situation where grandparent is loaning money to grandchild to buy
a house, am I correct in thinking that even if all the interest is
under the annual gift amount, that the lender/giftor still has to pick
up interest income on his 1040? The annual gift just allows the
borrower/giftee not to have to move cash to lender/giftor, but they
still have a mortgage interest deduction, and the lender/parent has
interest income?
Or is this incorrect and as long as the interest amount is less than
the exclusion, no one needs do anything on any tax return.

If loan is $500,000 @5%, and gift exclusion is 13,000 x 2 in 2009, then
the interest is $25,000 and less than exclusion for h & w to
grandchildren. Would the grandparents still pick up $25,000 in interest
income, even if they gift that amount to the grandchild?

Private Foundations

John Rasmussen — Fri, 07 Nov 2008 10:50:37 GMT

This is off topic, but I am not sure where else to look, hence my question:

I am the CPA for a private foundation with assets around $15,000,000. Founder is deceased. Foundation makes cash gifts each year around $1,000,000.

Does anyone have experience with compensation levels for the managing director/president of the foundation? He is looking for some similar situations and has suggested .0075 of total assets per year. The foundation has no employees.

John Rasmussen

QDOT

cpabob — Mon, 03 Nov 2008 09:34:50 GMT

I am doing my 1st 706-QDT, and dont see any line to deduct expenses (atty & CPA fees, appraisal costs, etc). I also cant find any mention of expenses in the instructions. Aren't they deductible?

Bob Abelson, CPA

Torrance, CA

Step-up issues upon the death of a Californa registered domestic partner

Karen Ginsburg — Tue, 28 Oct 2008 13:41:31 GMT

Do California registered domestic partners or same sex married couples whose assets are all community property assets, get a federal and California step-up on both halves of the community property interests upon the death of one of the domestic partners.

Sale of Residence within Estate

lisa — Tue, 26 Aug 2008 13:03:22 GMT

Hi,

I have taken losses on sales of personal residences sold by an estate since inherited property becomes investment property even if not rented. I'm now trying to find law to substantiate my position and haven't found any. Any ideas?

Thank you, Lisa

National Tax Training School

Tiffany Pillsbury — Fri, 08 Feb 2008 15:02:32 GMT

Has anyone heard of National Tax Traninig School or took course(s) from this school? If so, would you suggest this school to a friend?

Thank you so much in advance for your reply to this message.

Tiffany

Crossed Estimate Payments

John Jacobson — Fri, 20 Jun 2008 16:23:47 GMT

This may be a bit outside the scope of this forum, but perhaps some of you have had the same experience.

A client inadvertently sent the California estimate to the IRS, and vice versa. Both cashed the other's check. (In fact, the IRS ink-stamped "U.S. Treasury" over Franchise Tax Board.) Client didn't find out about it right away, because the bank honored each check, and listed them on the bank statement merely as the check number, amount and date cleared. Client found out about it after tax return was filed, by an IRS notice asking for the difference and penalties.

Seems to me that in the past, when this happened, both taxing authorities stamped the date received on the others' checks, and forwarded them.

Has this happened to any of you?

UBTI and a Charitable Remainder Trust

richkeene — Mon, 19 May 2008 13:43:27 GMT

I have a client who desires to transfer a mini-storage business, currently owned as a sole proprietorship, to a CRT. Is there a method to get around the UBTI issue, and assignment of income generally. One thought, was to create an LLC, and transfer a non-managing member interest to the CRT.

Any thoughts? Thank you.

do "court accountings" require an opinion?

Allmon — Thu, 15 May 2008 15:51:00 GMT

our firm does not prepare "financial statements" and have hired other firms to "prepare" our probate accountings in the past...
we have heard arguments that a probate accounting is a prescribed form (similar to a tax return) and thus not subject to the peer review program. we have also heard that they are considered a type of compilation, subject to peer review.

any thoughts on this?

Risk Premium on SCIN

CMSD108 — Thu, 14 Feb 2008 10:23:48 GMT

I have been asked to calculate the risk premium on an SCIN where interest would be paid monthly, but principal would be paid annually or semi-annually. BNA's Estate & Gift Tax Planner will not do this kind of calculation. Is there any program that will or any guidance on this seemingly unconventional scheme?

Thank you.

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Larkin — Wed, 30 Apr 2008 08:12:39 GMT

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