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

Annual Review Checklist

January is the perfect time for the annual review of estate plans, particularly if you have had significant changes in your life such as deaths, relationships or assets. Here are a few questions to help get started.

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189 Hits

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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733 Hits

IRS Determines no Statute of Limitations on Gifts Not Fully Disclosed on 709s

It is important to fully disclose gifts on U.S. Gift Tax Returns (Forms 709), because otherwise, no statute of limitations runs on the gift and possible gift tax. In Legal Advice issued by Field Attorneys 20152201F (issued September 2, 2015), IRS concluded a taxpayer failed to disclose gifts to his daughter in a manner that would start the 3-year statute of limitations. Here, the taxpayer attached a short paragraph to his Form 709 stating that partnership interests were given to his daughter; the partnership assets were primarily farm land and an appraisal of the land had been obtained (but was not filed with the return). The statement also said that discounts were taken for "minority interests, lack of marketability, etc." to determine the fair market value of the gifts reported on the return. IRS concluded the gifts were not adequately disclosed because (1) the partnership interests were not described as either general or limited partnership interests, (2) the partnerships were not correctly identified, (3) no appraisal of the partnership interests was included, (4) no restrictions on the transferred interests were described (such as those contained in the limited partnership agreements) giving rise to any discounts, and (5) the full value of the partnerships based upon the appraised farmland was not disclosed.

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1386 Hits