Colorado Probate Blog - Wade Ash Woods Hill & Farley, P.C.

Is It Time to Update Your Estate Plan?

We recommend that our clients review their estate plan every few years to make sure that it remains current. Here is a list of “life events” and other things that should trigger a review of your estate plan.

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Death, Taxes, and the Business of Dead Celebrities

Prince, the artist formerly known as Prince Rogers Nelson, died on April 21, 2016 at the age of 57. While people all over the world are mourning the loss of this music icon, his surviving family and the lawyers for his estate may soon be mourning his lack of legal planning for his death.

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IRS Delays Basis Reporting for the Third Time

In Notice 2016-27, 2016-15 IRB 1, the IRS again delayed until June 30, 2016 the due date for filing new Form 8971 by an estate to report basis in a decedent's estate both to the IRS and to the beneficiaries.  As noted in earlier blogs, the "Highway Bill" signed into law on July 31, 2015 requires executors of estates filing U.S. Estate Tax Returns (Form 706) on or after that date to file a statement with the IRS within 30 days, and to report the fair market value of assets on the return to the beneficiaries.  The 2015 Form 1041 (U.S. Fiduciary Income Tax Return) includes provisions requiring consistent basis reporting.  The IRS had delayed the due date for new Form 8971 until February 29, 2016, then to March 31, 2016, and now to June 30, 2016.  The Form and Instructions are posted on the IRS website and proposed regulations have been released, but numerous questions have been raised.  The requirement to file Form 8971 does not apply to "portability returns" (those filed for estates with gross value less than the filing threshold solely to increase a surviving spouse's exemption), nor to assets that qualify for the charitable or marital deductions.  Basis must only be reported to beneficiaries who may receive property from an estate where those assets increased the federal estate tax.

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