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

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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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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1696 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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1790 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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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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1739 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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1748 Hits