Tax Authorities Weren’t Chicken: The widow of Colonel Sanders estate left charitable bequests to two colleges. The will was silent as to which beneficiaries should pay estate taxes. Kentucky law doesn’t exempt charitable beneficiaries from sharing in their allocable share of estate taxes. So, since the will was silent, the charities had to kick…
Prudent Executors: Most executors make one of two (or sometimes a combination of both) errors: [1] Liquidate most estate assets leaving the proceeds in a checking and/or money market account; [2] Hold onto securities under the mistaken belief that they can do so without exposure since the decedent died holding them. While liquidity is…
HOLMAN Part I Summary: A recent Tax Court case, Thomas Holman, 130 TC No. 12, 5/27/08, has some several important lessons for planners and taxpayers using family limited partnerships (“FLPs”) and limited liability companies (“LLCs”). While it received much attention in the professional literature, most regular folk haven’t heard much. www.leimbergservices.com had no…
Summary: Estate planning when you have heirs of significantly different means can be quite a challenge. When your kids are the financial version of Danny DeVito and Arnold Schwarznegger in the movie Twins do you bequeath assets equally? If equal is not equitable, do you use a different non-equal approach? * Rich Kid;…