Recent Articles

Bergquist v. Commissioner: Not Quite What These Doctors Ordered

Kimberly Martinez-Lejarza
August 01, 2008 14:55

In Bergquist v. Commissioner, the Tax Court  came down hard on a group of doctors who attempted (quite unsuccessfully) to obtain significant charitable deductions on their income tax returns in connection with the consolidation of their medical practice group with a...

Another FLP Fact Pattern: Holman v. Commissioner

Kimberly Martinez-Lejarza
July 31, 2008 14:58

In Holman v. Commissioner, the latest family limited partnership (FLP) case to go before the Tax Court, victories were had on behalf of both the taxpayer and the IRS.  After all was said and done, the Tax Court increased the value of the taxpayer's gifts of FLP units to his children...

Personal Injury Settlement Proceeds: Special Concerns When Dealing with Special Needs Children

Kimberly Martinez-Lejarza
October 23, 2007 22:51

In Estate of Hicks, the Tax Court permitted the estate of a special needs child to deduct a loan made by the child’s parent to a non-special needs trust established for the benefit of the child as part of a transaction intended to preserve the child’s future Medicaid...

Estate Planning Considerations for Individuals with Special Needs

Kimberly Martinez-Lejarza
October 15, 2007 18:37

As the population growth rate (both in North America and world-wide) continues to rise, so to does the number of individuals diagnosed every year with mental and/or physical disabilities. This makes it increasingly likely that, at some point in your estate planning practice, you will...

The Blame Game

Kimberly Martinez-Lejarza
August 24, 2007 14:08

In Estate of Zlotowski v. Commissioner, the U.S. Tax Court held the estate's two executors liable for the untimely filing of the estate's 706 return.  While an individual may escape liability if it is shown he or she reasonably relied on the legal advice of counsel, the Tax Court found no...

How Many Trustees Do You Need?

Kimberly Martinez-Lejarza
July 31, 2007 16:21

In this recent Wall Street Journal article, the pros and cons of the increasing trend toward employing multiple trust advisors to manage a single trust are explored.  The article points out that in the past, when it came time to appoint a trustee, most families opted to appoint a single...

IRS Releases CLAT Sample Language and Annotations

Kimberly Martinez-Lejarza
July 11, 2007 14:43

In Revenue Procedures 2007-45 and 2007-46, the IRS released sample language to be utilized in drafting both inter vivos (Rev. Proc. 2007-45) and testamentary (Rev. Proc. 2007-46) charitable lead annuity trusts (CLATs). A CLAT is an irrevocable split-interest trust which provides that during the...

Congress to Tighten Kiddie Tax Loophole

Kimberly Martinez-Lejarza
June 21, 2007 14:38

Beginning in 2008, Congress will ratchet up the restrictions imposed by the so called "kiddie tax " by increasing the age under which children are taxed at their parents' marginal rate for unearned income.  The new cut off age will be age 18 and younger, or age 23 and...

Claims Against Estates: Proposed Amendments to the Regulations Under Section 2053

Kimberly Martinez-Lejarza
June 20, 2007 18:35

In the April 23, 2007 publication of the Federal Register, the U.S. Treasury proposed several amendments to the regulations on claims against estates governed by Section 2053 of the Internal Revenue Code. The most notable proposed changes include:1.  Events occurring after a decedent's...

Another One Bites the Dust...

Kimberly Martinez-Lejarza
May 31, 2007 21:26

In Estate of Erickson, the U.S. Tax Court finds the assets of yet another family limited partnership includable in the decedent's gross estate for estate tax purposes.   With a fact pattern strikingly similar to that of Estate of Korby, (a case I previously wrote about here) it is no...