Friday, July 30, 2010 Press Coverage of Estate Planning this Week (July 30, 2010)
Mary Pilon of the Wall Street Journal discusses the problems of passing art, jewelry and other family heirlooms to children this year when the federal estate tax has been replaced by the modified carryover basis regime. Under the carryover basis rules, children inherit items at their original cost basis, rather than a stepped-up cost basis, and are subject to capital gains taxes if they later sell the item. One silver lining: estates qualify for at least $1.3 million of basis step-up. Nonetheless, inheriting items from decedents dying in 2010 is far more complicated than it was last year. See Looking a Gift Horse in the Mouth (July 23, 2010).
Kelly Greene of the Wall Street Journal reviews what to consider when contemplating a trust for IRA accounts. The benefits include being able to pass on large IRA accounts and limit a child’s distributions so that the child will have a lifetime of income, rather than a one-time cash windfall. However, creditor protection and whether to use an accumulation trust or a conduit trust are issues to be discussed with an estate planning attorney. See When Trusts Meet Retirement Accounts (July 24, 2010). |