Joint trusts-avant garde and often confused with that horrible species of instruments known as a "joint Will"-have been shunned as an estate planning vehicle by most practitioners in common law states, such as Illinois. They are used almost exclusively for estate planning for married couples in community property states, but that is because the community property laws lend themselves (and often demand) that a jointly owned trust be used to hold community assets.
Scattered throughout the Code are archaic estate and trust tax sections crying out for change because of their inappropriate applications in a quickly evolving investment and entity planning environment.
For decades, estate planners have used variations of the family limited partnership (FLP), family limited liability company, and family corporation to achieve federal estate tax (estate tax) savings through valuation discounts in computing client’s taxable estates. Since the early 1990s, the use of the investment FLP as a sophisticated estate tax reduction technique has grown.
The purpose of this chapter is to provide a clear, understandable evaluation of the current standards for awarding attorneys' fees in Illinois in estate administration and closely related matters, such as guardianship and will contest proceedings.
This article will describe and set forth examples of various fiduciary income tax planning strategies that are available after the Tax Reform Act of 1986, the Revenue Act of 1987 and the Technical and Miscellaneous Revenue Act of 1988. The article will also demonstrate that the tax savings from certain traditional techniques may now be so small as to be outweighed by the administrative costs of implementing them.
The phase in of the Massachusetts estate tax to a "pickup" tax system was completed in 1997. Under this system, each estate pays a state death tax in an amount equal to the maximum state death tax credit allowable for federal estate tax purposes. This so-called pickup tax reduces the federal estate tax by an equivalent amount; thus, there is no increase in the overall death taxes paid by the estate.
The Michigan estate tax imposes a tax on the transfer of the estate of both residents and nonresidents. On its face, the tax appears straightforward and, in effect, represents a relatively fair death tax approach. Nevertheless, it contains unexpected nuances.