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                                                                                                                        November 2015

 To our Friends and Clients:

          As the fall leaves have come down, we all begin to think about the approaching holiday season. As we have seen in the past, many of our clients use this season to reflect on their lives and to think about the legacy they will leave behind. Estate planning has been around since the days of Pharaoh and the building of Pyramids. Now it is of course much easier to plan your estate and we encourage you to contact us to assist you with this delicate but necessary topic.

          Every client that uses our legal services to devise their estate plan will complete what we like to call the triple play of estate planning. Each client executes:

1) Last Will and Testament;

2) Power of Attorney; and

3) Health Care Proxy.

      WHAT SHOULD YOU BE THINKING ABOUT?

  • A Plan For The Disposition Of Your Assets
  • Estate Tax Planning To Minimize Estate Taxes Paid
  • Naming An Executor To Administer Estate
  • Naming Guardians And Trustees To Raise Children & Manage Their Assets
  • Creating Trusts to Benefit Children and Grand Children
  • If Married, to Utilize Maximum Exemptions To Reduce Estate Taxes

      What Else Should You Be Thinking About

  • A Plan For The Succession Or Sale Of A Family Business Or Practice
  • A Plan For Charitable Giving
  • Life Insurance To Support Your Family Or Provide Liquidity For The Estate And Methods to Keep Life Insurance Free of Estate Taxes
  • A Durable Power Of Attorney To Manage Finances Without Expense & Publicity Of Guardianship Hearing
  • A Health Care Proxy Which Names An Agent To Make Healthcare Decisions In The Event You Can’t Make Those Decisions
  • Living Trusts to Avoid Probate

We recommend that estate plans be reviewed every 2-4 years. Please call myself or Andrew Kirwin, Esq. to get the proverbial ball moving. As a courtesy to our clients, we shall provide a free half hour consultation regarding estate planning.

                                    

                                                                                                  We look forward to hearing from you.

 

                                                                                                                    


The Senate has approved a bipartisan IRS reform bill, which now heads to President Trump’s desk. Trump is expected to sign the bill into law.


Taxpayers may rely on two new pieces of IRS guidance for applying the Code Sec. 199A deduction to cooperatives and their patrons:


The IRS has issued final regulations that require taxpayers to reduce the amount any charitable contribution deduction by the amount of any state and local tax (SALT) credit they receive or expect to receive in return. The rules are aimed at preventing taxpayers from getting around the SALT deduction limits. A safe harbor has also been provided to certain individuals to treat any disallowed charitable contribution deduction under this rule as a deductible payment of taxes under Code Sec. 164. The final regulations and the safe harbor apply to charitable contribution payments made after August 27, 2018.


Final regulations address the global intangible low-taxed income (GILTI) provisions of Code Sec. 951A. The final regulations retain the basic approach and structure of the proposed regulations published on October 10, 2018. The final regulations address open questions and comments received on the proposed regulations.


Newly issued temporary regulations limit the application of the Code Sec. 245A participation dividends received deduction (the participation DRD) and the Code Sec. 954(c)(6) exception in certain situations that present an opportunity for tax avoidance. The temporary regulations also provide related information reporting rules under Code Sec. 6038.


Final regulations reduce the Code Sec. 956 amount for certain domestic corporations that own stock in controlled foreign corporations (CFCs). The regulations are intended to ensure that Code Sec. 956 is applied consistently with the participation exemption system under Code Sec. 245A.


Final rules allow employers to use health reimbursement arrangements (HRAs) to reimburse employees for the purchase individual insurance coverage, including coverage on an Affordable Care Act Exchange. The rules also allow "excepted benefit HRAs," which would not have to be integrated with any coverage. The rules generally apply for plan years starting on or after January 1, 2020.


Final regulations provide requirements that a person must satisfy to become and remain a certified professional employer organization (CPEO), as well as the CPEO’s federal employment tax liabilities and other obligations.