De-UBIT-izing CRTs: Recent Rulings

Charitable remainder unitrusts and annuity trusts (collectively, “CRTs”) are effectively barred from investing in for-profit enterprises holding “debt-financed” assets, under Internal Revenue Code (“Code”) Section 664(c). Under that provision, a CRT forfeits its exemption from federal income tax for any taxable year in which, in the quaint terminology of the tax legislation, “such trust, for such year, has unrelated business … Continue reading »

Surviving and Thriving in the Tax Patent Era

Just as things seemed to be quieting down after the Pension Protection Act of 2006, along came the latest challenge to the peace of the estate-planning world: tax patents. In early 2006, an infringement suit was filed over the first “business method” patent for a method to reduce taxes by transferring stock options into grantor retained annuity trusts (GRATs). The … Continue reading »

Planning for Community Property: A Primer for the Other 40½ States

For otherwise savvy planners practicing outside the community property states – Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin, and since 1998, Alaska, under a nonmandatory “elective” regime [1] – community property is often the largest “blind spot” in their practices. Although no one seems to keep statistics about this sort of thing, it would not be at … Continue reading »