Giving it away the right way; charitable bequests can produce tax savings - if they are done correctly
Article Abstract:
The bequest of a remainder interest must now be in the form must now take the form of a charitable remainder trust to qualify for the estate tax charitable deduction. A remainder interest in a QTIP trust may also be deductible. The estate tax charitable deduction will be limited to the minimum amount that must pass to charity under the will if a person has discretion on the estate's behalf to determine how much property will pass to charity. Moreover, any bequest to a charity must be conditioned on the qualification of the charity for such a deduction.
Publication Name: ABA Journal
Subject: Law
ISSN: 0747-0088
Year: 1998
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How family limited partnerships can protect assets
Article Abstract:
Family limited partnerships make it possible not only to minimize gift and estate taxes but also to some extent to protect partnership assets from creditors. Judgment creditors are allowed to apply for charging orders from courts, but this only makes them an assignee of the limited partnership interest, and assignees cannot force distributions. These partnerships should be funded with assets from business or investment in accordance with IRC 7701(a)(2). Nonrecognition treatment may apply to property transferred to the partnership, as per IRC 721(a).
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1993
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Keeping a vacation home in the family for younger generations
Article Abstract:
Careful estate planning can allow younger generations of family heirs to retain vacation homes after the original owners have died. The form of ownership should be considered in light of relevant tax classification, management, co-ownership, and transfer issues. A conveyancing device such as a nominee trust, created in conjunction with properly drafted terms and conditions, a schedule of beneficial interests, and a beneficiary agreement, can provide partnership tax advantages and allow retention of the home.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1996
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