New ruling turns golden handcuffs of stock options into estate planning ball and chain

Article Abstract:

Rev. Rul. 98-21 shifted the timing for gift transfers of executive stock options from the date the gift is completed to when the gift vests. The ruling created substantial estate planning problems with greater tax burdens and a subsequent loss of planning flexibility. The allowed application of the Computed Expected Life method provides minimal planning choices.

Methods, Stock options, Estate planning, Gift tax, Deferred compensation

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Estate hit with $14.8 million fraud penalty

Article Abstract:

The Tax Court in the Estate of Trumpeter faced conduct patently fraudulent and verging on professional incompetence. The decedent set his affairs in order before his death, but the co-executors entirely shredded the decedent's planning goals and ultimately his estate. The case exemplifies the risks paid preparers of an estate tax return should avoid.

Cases, Decedents' estates, Estate tax, Estate taxes, Tax evasion, Tax penalties

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