How to handle stock options held at an employee's death
Article Abstract:
Estate planners should strive to get the best possible tax savings for estates holding unexercised stock options that are part of a deceased executive's compensation package. Stock options are of two kinds, incentive stock options (ISOs) and nonqualified stock options (NSOs). ISOs offer the most post-mortem planning benefits. To qualify as an ISO an option must meet the requirements of IRC Section 422(b) such as being granted pursuant to an approved plan. Post-mortem benefits of ISOs include the step-up in basis at death.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Strategies for large retirement plan account balances
Article Abstract:
Taxpayers likely to be holding retirement plan funds at death must be aware of the potential for estate tax, income tax and income in respect of the decedent tax liability on both the assets and the distribution of the assets. Naming someone other than the surviving spouse as the plan beneficiary can help maximize use of the unified credit and the marital deduction. If the taxpayer wishes to use a charitable remainder trust, retirement benefits should be the first funds considered to fund the trust.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
IRS issues final regs. on treating revocable trust as part of estate
Article Abstract:
The IRS has issued final regulations which allow trustees and executors to choose to have a revocable trust be treated as part of a decedent's estate for income tax purposes. The makes tax filing more simple and had advantages for taxpayers.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 2003
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Tax Court upholds accelerated deduction for vacation and severance benefits funded by irrevocable letter of credit
- Abstracts: The ones to rank law schools are employers. Jones case work causes firm flap; Berger & Montague partner is reprimanded for his work against Clinton
- Abstracts: The relationship between outcomes in collective bargaining and teachers' decisional participation state
- Abstracts: Family law - medical consent - Indiana Supreme Court holds that family may terminate treatment for never-competent patient in persistent vegetative state
- Abstracts: The status-production sideshow: why the antidiscrimination laws are still a mistake. Out of the frying pan or into the fire? Race and choice of venue after Rodney King