Formula clauses are used when property with uncertain value is transferred by gift or sale. The objective is to set the amount that is transferred for gift tax purposes, even if the IRS later is successful in asserting that what was transferred was worth more than what was reported. This can avoid gift tax by keeping the value below available exemption amounts. The use of formula clauses received a boost in Wandry v. Commissioner, T.C. Memo.…

An irrevocable trust included provisions for the removal of a trustee by reason of the trustee’s disability. A beneficiary brought an action to remove the trustee, but not based on the specific definition and removal provisions of the trust. Could the beneficiary use Trust Code provisions to remove the trustee when the trust instrument had different provisions? In a recent case, the trial court held that the terms of the trust required that removal could…

A number of measures have cleared the Florida legislature that may be of interest. These are awaiting the signature of the Governor. It is likely that most, if not all of these will be signed into law. This is not an exhaustive list.  CS/HB 505. Precious metals, such as bullion or coins, are tangible personal property under the Probate Code.  Fla.Stats. § 731.1065. “Property” is defined under the Probate Code to include causes of action.…

For the applicable federal rates for the above month, preceding months, and a data table that visually shows trends, click here. Follow @crubincrubin !function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0];if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=”//platform.twitter.com/widgets.js”;fjs.parentNode.insertBefore(js,fjs);}}(document,”script”,”twitter-wjs”);…

When I posted the table on Sunday, the link went to a prior version of the table, not my final table. I have updated the link to the final version. The prior version’s description of the treatment of NOL carryovers and capital loss carryovers was not correct. If you downloaded the table, you can download the correct version here. Apologies – and thanks to those who noted the problem! Follow @crubincrubin !function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0];if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=”//platform.twitter.com/widgets.js”;fjs.parentNode.insertBefore(js,fjs);}}(document,”script”,”twitter-wjs”);…

Nonresident alien individuals present in the U.S. for too many days in a calendar year may be classified as residents for federal income tax purposes under the substantial presence test. If such individuals are stuck in the U.S. due to medical conditions, those days of presence may be excluded in making the days computations pursuant to statutory provisions. There are nonresident alien individuals who are in the U.S. during the current COVID-19 crises who are…