“Estate planning is not just about taxes — it is also about family.”
2007 – Valuation For Funding and Distribution Purposes
When an in-kind distribution is made in satisfaction of pecuniary gift (a gift of a dollar amount), or if a non prorata distribution is made of a percentage interest in the residue of an estate, there will be questions about how to value the property distributed, and what to do about appreciation and depreciation between the time the trust was funded or the date of death of a decedent and the date of distribtuion. Actually this subject is every bit as important as it is arcane. It is both. .Usually, the fiduciary (executor or trustee) will have to eithe pay interest on a pecuniary gift (determined how?) or allow the gift to share in appreciation or depreciation. Obvious questions that the fiduciary must address include, whether or not gain or loss is recognized by the estate or trust on the distribution, whether the estate or trust can get a deduction or interest paid, whether the legatee is taxed on the distribution, etc. Until you read the Will or Trust and consult state law on the subject you won't know the answers to any of these questions. This article should be of some help in understanding the issues.
2007 – Paying Debts Allowances and Taxes and Satisfying Gifts Under The Will:
A Guide To The Independent Executor
Guide to the Personal Representative (PR) (or executor) on Paying Debts, Expenses & Taxes Existing at Death and During the Period of Administration.
2003 – Drafting Wills and Trusts from an Income Tax Perspective A Panoply of Forms
This article contains what I consider to be a rather sophisticated discussion of some important, if abstruse, rules governing the income taxation of estates and trusts.
These materials are not meant to and may not be relied upon, but are published for discussion purposes only. Rule 7.04(b) disclosures.
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