Gifts are subject to estate tax even if gift tax s/l has expired

Article Abstract:

Gifts are subject to estate taxes even after the statute of limitations on gift taxes has expired, according to recent court decisions. A taxpayer had decided that project notes were not subject to estate tax, and if they were the taxpayer would have still offset the tax liability with unified credit breaks. The court determined that not claiming the project notes gave the estate a larger unified credit deduction than it was entitled to. As such, it was ruled to be part of the estate tax and therefore not subject to the gift tax statute of limitations.

Limitation of actions (Taxation), Statute of limitations (Taxation)

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Power to replace trustee did not cause gifts to be incomplete

Article Abstract:

The Eighth Circuit ruled in Estate of Vak that grantor transfers of interests in a trust to family members were completed gifts at the time of transfer, in spite of the retention by the grantor of some rights such as removal of one trustee and appointment of another. The court based its decision on the fact that the grantor could not reacquire the transferred interests. This reversed a Tax Court decision which held that the gifts were incomplete until the grantor's right to substitute another trustee was terminated.

Management, Trusts and trustees, Trustees, Trusts (Law)

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Interest on deferred tax doesn't reduce TPT credit

Article Abstract:

The Tax Court in Estate of Whittle had to determine the relationship between Section 6166 and Section 2013, two isolated provisions of the Internal Revenue Code. Section 6166 deals with interest paid on deferred estate taxes, while Section 2013 deals with the credit for estate taxes paid on previous transfers. The court has ruled that the interest paid on deferred estate taxes does not reduce the tax credit.

Laws, regulations and rules, Interest deductions, Tax credits, Deferred tax (Accounting)

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