Trust language didn't result in general power of appointment

Article Abstract:

The 'health, support, maintenance and education' language contained in the IRS Regulations on trusts should be strictly adhered to as any deviation will likely result in the trust's assets being deemed part of the decedent's estate for tax purposes. A recent hearing overturned a Tax Court's decision to claim a decedent as owner of the trust when the phrase 'required for the continued comfort' was added to the Regulation phrase. While this would seem an easy enough issue to decide, it is not worth the risk the practitioner takes in changing the Regulation phrasing.

Interpretation and construction, Law, Trusts and trustees, Trustees, Trusts (Law), Legal language

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Are transfers from marital trust included in wife's estate?

Article Abstract:

The Tax Court ruled in Estate of Halpern that gifts from a marital trust made by the decedent after she became incompetent were included in her estate. Lillian Halpern could take distributions from the marital trust left to her, but she did not have a general power of appointment. Consents were obtained from interested parties before making the gifts. The court found the agreement to be effective for gifts made before she became incompetent from a stroke, but the court ruled that the gifts made after the year of her stroke should be included in the estate.

Laws, regulations and rules, Decedents' estates, Powers (Law)

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CA-8 holds that estate tax lien is durational, not limitational

Article Abstract:

The Fifth Circuit ruled in the case of Davis that tax liens are durational, not limitational, meaning that the government must enforce the lien within the ten-year statute of limitations, not merely file it. Failure to act on a lien within ten years, even if it has been filed, makes any later government action moot. The case in question involved a lien on estate taxes, which was appealed. The appeals process proved unfruitful for the government until the ten years had expired, at which time it was to late to take action, the court ruled.

Tax liens

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