Category: Compromise Tax
Dynasty and Generation Skipping Trusts Can Trigger a Compromise Tax
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
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 […]