Reasons to Value a Trust

Posted Posted in Compromise Tax, Estate Tax, Federal Estate Tax, Florida, Inheritance Tax (相続税), New Jersey, New York, Pennsylvania, Trust Planning, Trusts

Recently I gave a lecture on the valuation of trusts.  While I am not an accountant nor am I a valuation expert, I live and breathe trusts… and frequently the question comes up, what is value of a particular beneficiary’s interest in a trust. Keep in mind, just because a trust is worth $1M, it […]

Compromise Tax

Dynasty and Generation Skipping Trusts Can Trigger a Compromise Tax

Posted Posted in Compromise Tax, Dynasty Trust, Inheritance Tax (相続税)

A number of years ago I wrote about the dangers of accidentally triggering a Compromise Tax in New Jersey and in Pennsylvania.  It occurs to me that most dynasty trusts are set up to go to children, grandchildren and more remote descendants, but there is also boilerplate that says if the Grantor doesn’t have any living […]

Beware the Compromise Tax

Beware the Compromise Tax

Posted Posted in Civil Union, Compromise Tax, Estate Administration, Estate Tax, Inheritance Tax (相続税), New Jersey, Pennsylvania

One area of estate administration that often gets overlooked on tax returns is the compromise tax. When a decedent transfers assets that are subject to a contingency or are otherwise difficult to value, the taxing jurisdiction and the estate must compromise on the tax due. There are a variety of reasons an asset may be […]