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

Certain Changes Effective in 2019

The gift, estate and generation-skipping exemptions are $11.4 million per taxpayer in 2019. Keep in mind that if a Credit Shelter Trust was earlier created at the death of a family member, that trust ordinarily will not be included in the estate of the beneficiary. With the larger estate tax exemption, the family may not care about estate tax inclusion, but they may want a “stepped up basis” for the assets in the trust at the death of the current beneficiary to minimize capital gains taxes. If this applies to your situation, you probably need to take some actions now in order to obtain the stepped-up basis for the trust assets on the death of the current beneficiary.

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49 Hits

U.S. Supreme Court Declines to Hear Same Sex Marriage Appeals

On Monday the U.S. Supreme Court let stand appeals court rulings from five states which legalize same sex marriage.  This clears the way for same sex marriages in Indiana, Oklahoma, Utah, Virginia and Wisconsin.  The Court gave no explanation for its decision not to hear those cases.  This non-action lets stand decisions from three federal appeals courts, which together have jurisdiction over additional states of Colorado, Kansas, North Carolina, South Carolina, West Virginia and Wyoming.  This brings the number of states with legal same sex marriage to 30.  Colorado’s Attorney General, John Suthers, stated county clerks will now issue same sex marriage licenses in every county.  It is unknown what will happen to Colorado civil unions, and the state’s civil union statutes.  For some clients, the legalization of same sex marriage will impact tax related estate planning, and you should review your current estate plan if you believe this change will impact you. And if this change in Colorado’s law signals wedding bells, be sure to contact us to discuss whether preparation of a prenuptial agreement is right for you. For more information, see Denver Post.

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1512 Hits

IRS Wants $500 Million in Taxes From Michael Jackson's Estate

The Los Angeles Times recently reported that, according to documents filed with the U.S. Tax Court in Washington, the executors of Michael Jackson's Estate placed his net worth at the time of his June 2009 death at slightly more than $7 million. The IRS placed it at $1.125 billion. The L.A. Times article said, "Jackson's return was so inaccurate, the IRS said, that it qualified for the gross valuation missstatement penalty, which would allow the government to double the usual 20% penalty for underpayment." For the full story, go to http://articles.latimes.com/2014/feb/07/local/la-me-jackson-taxes-20140208.

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1796 Hits

2014 Probate Numbers Indexed for Inflation

The 2014 numbers have been posted by the Colorado Department of Revenue at Nominal and Indexed Amounts by Year of Death. Small Estate Affidavit is now $64,000; Exempt Property Allowance is $32,000; Exempt Family Allowance is $32,000; Supplemental Elective-Share amount is $53,000.

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1874 Hits

President Signs Bill Decreasing IRS' Funding for 2014

On January 17, 2014, President Obama signed into law H.R. 3547, the Consolidated Appropriations Act of 2014, which funds the government through the 2014 fiscal year. The provision also provides for $11.2 billion in funding for IRS - i.e., a $526 million decrease from 2013 funding - and includes a mandate that at least $200,000 should be earmarked for intensive training of employees in the Exempt Organization division. The Senate, by a vote of 72 to 26, had previously approved H.R. 3547 on January 16. The House, by a vote of 359 to 67, had approved the bill on January 15.

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1697 Hits

Expiring Tax Provisions

There are a number of tax provisions that will expire at the end of 2013 unless they are extended, which has usually happened over the past 10 years or so, on a one- or 2-year basis.  Senate Majority Leader Harry Reid tried to bring a one-year extender bill to the Senate on December 19, but it failed.  The Chair of the House Ways and Means Committee announced earlier in December that he would not bring an extender bill this year.  The expiring provisions include: tax-free distributions from IRAs to charities for persons at least age 70 ½; enhanced conservation easement deduction; a number of energy credits and deductions as incentives for alternative fuel cars, energy efficient appliances and improvements to homes and businesses; enhanced depreciation and credits for equipment purchased by businesses; research credits for businesses; and special rules for capital gains on small business stock.

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1803 Hits

Federal Tax Update & No-Contest Clauses

Our November, 2013 Newsletter features a Federal Tax Update by Laurie Hunter and an article by Herb Tucker on No-Contest Clauses. For more information, go to http://www.wadeash.com/publications/newsletters.html and select the link for November, 2013.

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1824 Hits