Real Estate Developers May Be Able to Avoid Gift Taxes When Passing On Developer Units

In February 2016, two Central Park condos owned by then-candidate Donald Trump had an estimated market value of $790,000 and $800,000. In April 2016, Trump sold these condos to his son, Eric Trump, for pennies on the dollar ($350,000 each, to be exact). For most people, this family-friendly sweetheart deal would typically incur hundreds of thousands of dollars in gift taxes. Not so for Donald Trump. Why? Because he was a real estate developer. A real estate owner who sells a piece of property for less than it’s estimated worth typically has to pay gift tax on the difference between the sale price and the true market value, according to MSN.com. Any personal gifts worth more than $14,000 in a given year are subject to a federal tax that could be as high as 40 percent. However, in Trump’s case, since he the building’s developer selling the condos for the first time, he...

15 September

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How to Plan Your Estate When Married to a Noncitizen Spouse

Posted by Bobby Feisee

in Bobby's Blog

If your spouse does not possess U.S. citizenship, estate planning becomes somewhat complicated. A unique set of rules applies for noncitizens to inherit property so you should really take the time to sit down with an experienced estate planning attorney to discuss your options. But take comfort in knowing that noncitizen spouses and loved one can inherit your property. So when you draft your will or name beneficiaries for your retirement accounts, you are free to name your noncitizen spouse as a beneficiary. Here’s the rub - for tax purposes, non-citizens who are permanent U.S. residents are categorized as “resident aliens” and resident aliens are unable to access the unlimited marital deduction privilege that most married couples enjoy, according to marketwatch.com . This means that if your resident alien spouse inherits your estate, it could be subject to a huge estate tax bill (depending on the size of the estate). ...

27 June

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Big Changes Coming to D.C. Estate Tax Laws

Posted by Bobby Feisee

in Bobby's Blog

Starting in 2016, D.C. residents will be exempt from having to pay estate taxes if their estate is $2 million or less. This is a big change from the current exemption cap of $1 million. However, keep in mind that the language of the new law is somewhat vague. For example, one section of the new law appears to condition the higher estate tax exemption on “available revenue” which means the higher estate tax exemption may not take effect immediately in 2016, but another section implies that the exemption will automatically go into effect in 2016. Check out the actual language of the estate tax bill here. In addition to doubling the exemption cap, there will be 11 tax brackets above the $2 million threshold with a top tax rate of 16 percent for estates valued at $10 million. The new law also plans to eventually increase the D.C. estate tax exemption to...

11 June

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Casey Kasem Legal Battle Illustrates the Importance of Preparing for a Loved One’s Incapacitated State

Posted by Bobby Feisee

in Current Events

In an ideal world, an elderly loved one would get to enjoy their golden years and pass away peacefully and painlessly. Unfortunately, such an ideal world doesn’t exist. In reality, when an elderly loved one becomes stricken with a disease like dementia, the end is painful and traumatizing. Case in point: the heartbreaking state of affairs for Casey Kasem (picture on right), a beloved radio personality. Mr. Kasem has Lewy body disease, an agreesive form of dementia. He was in the headlines recently after disappearing for a number of days. A California judge issued an order prohibiting Mr. Kasem from traveling anywhere without a court order until he is examined by a doctor. If Mr. Kasem’s deteriorating health wasn’t bad enough, there is a legal battle between his daughter, Kerri Kasem, and his wife, Jean Kasem. The battle is over who has legal authority to care for Mr. Kasem. The family...