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It is happening with more and more frequency…someone knocks on the door and announces him or her self as the child of the man answering the door.  DNA and the rise of Ancestry.com and the like have created this potentially awkward moment over and over again.   In many cases it is a beautiful moment.  I have read cases, where strong bonds have been formed between the man and the child.  I have even read about…
I have been involved in many premarital agreement situations where the parties got upset and decided the negotiations were hurting their relationship, so they decide to drop it.  In Texas, there is an option, however, for the person of means to pursue that can be done without the knowledge or consent of their fiancee. The moneyed fiancee can create a limited partnership and contribute the assets he or she wants protected to it.  This should…
March of Dimes was created to deal with polio, and was left without a mission once a vaccine was developed.  So with a nationwide infrastructure in place, it decided to change its mission from polio to premature children.  Today, if a 501(c)(3) wants to broaden or change its mission it doesn’t need to file a new 1023 and seek a new determination letter.  Instead, all it needs to do was notify the IRS on its…
Recently, the Alaska Supreme Court in Toni 1 v. Wacker put a nail in the coffin of domestic asset protection trusts as effective creditor protection for out of state donors.   After a Montana state court issued a series of judgments against Donald Tangwall and his family, the family members transferred two pieces of property to the “Toni 1 Trust,” a trust allegedly created under Alaska law. A Montana state court and an Alaska bankruptcy court…
Proposed regulations were issued in November under Code Section 2010 addressing the possibility of “clawback” when the temporary high exemption amount reverts to pre TCJA levels (adjusted for inflation).  The good news is that the proposed regulations state that clawback will not occur if one fully uses his or her exemption amount prior to sunset.  The bad news is that the proposed regulations did not address the issue of what happens if you only gift…
In theory conservation easements are simple- a landowner grants a perpetual easement on a portion of his land for a charitable purpose and gets an income tax deduction for the reduction in value to the land encumbered by the easement.   Many wealthy landowners have successfully done conservation easements.  However, they have been highly abused over the years with inflated appraisals and syndication of the concept. Recently, the Tax Court in Pine Mountain Preserve channeled Meatloaf’s…
Proposed regulations on Qualified Opportunity Funds (QOF) were released at the end of October.  The regulations are complex, and a complete analysis is beyond the scope of a blog post.  However, there are some interesting provisions to note:  There was some confusion over whether the deferred gain had to be recognized 12/31/2026 if the property is not sold.  The answer is “yes.” Investment in a QOF can be directly in a Qualified Business Zone Property…