October 2018 7520 Rate

No change. For October 2018, the 7520 rate will again be 3.4%. This is the fourth month in a row at this rate. A chart showing historical rates since 2008 is here. Some estate planning techniques benefit from rising rates. These include Qualified Personal Residence Trusts (QPRTs) and Charitable Remainder Annuity Trusts (CRATs). On the other hand, Grantor Retained Annuity Trusts (GRATs), sales to grantor trusts, and Charitable Lead Annuity Trusts (CLATs) perform worse when interest rates are higher. Source: Rev. Rul. 2018-27 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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September 2018 7520 Rate

Still flat. For September 2018, the 7520 rate will again be 3.4%. This is the fourth month in a row at this rate. A chart showing historical rates since 2008 is here.

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Tennessee’s Unitrust Conversion Statute is Broken

If you are considering converting an income-only trust to a unitrust, think again. 

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7520 Rate for August 2018

Again, no change. After steadily ticking up for the first four months of the year, the 7520 rate remains flat for the third month in a row. For August 2018, the 7520 rate will again be 3.4%. A chart showing historical rates since 2008 is here. Some estate planning techniques benefit from rising rates. These include Qualified Personal Residence Trusts (QPRTs) and Charitable Remainder Annuity Trusts (CRATs). On the other hand, Grantor Retained Annuity Trusts (GRATs), sales to grantor trusts, and Charitable Lead Annuity Trusts (CLATs) perform worse when interest rates are higher. Source: Rev. Rul. 2018-21 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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Gift-Splitting When Spouse is Trust Beneficiary

Wife transfers property to a trust for the benefit of Husband. The trust is intentionally structured so as not to qualify for the gift tax marital deduction. Wife files a gift tax return in connection with the gift, and Husband consents to split the gift. Husband is the primary beneficiary of the trust during his life. When Husband dies, will any part of the trust be includible in his estate for federal estate tax purposes?

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7520 Rate for July 2018

No change. The 7520 rate remains the same. For July 2018, the 7520 rate will be 3.4%. A chart showing historical rates since 2008 is here. Some estate planning techniques benefit from rising rates. These include Qualified Personal Residence Trusts (QPRTs) and Charitable Remainder Annuity Trusts (CRATs). On the other hand, Grantor Retained Annuity Trusts (GRATs), sales to grantor trusts, and Charitable Lead Annuity Trusts (CLATs) perform worse when interest rates are higher. Source: Rev. Rul. 2018-19 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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Backdoor Roth IRA Contributions after Tax Reform

It pays to read the footnotes.

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7520 Rate for June 2018

Another increase. The 7520 rate continues to tick up for inflation. For June 2018, the 7520 rate will be 3.4%. A chart showing historical rates since 2008 is here. Some estate planning techniques benefit from rising rates. These include Qualified Personal Residence Trusts (QPRTs) and Charitable Remainder Annuity Trusts (CRATs). On the other hand, Grantor Retained Annuity Trusts (GRATs), sales to grantor trusts, and Charitable Lead Annuity Trusts (CLATs) perform worse when interest rates are higher. Source: Rev. Rul. 2018-16 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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Holding the Agent under GPOA Accountable

A family member (the “principal”) has given power of attorney to a third party (the “agent”). The principal is now incapacitated, and you have concerns about the agent’s management of the principal’s assets. What do you do? Here are two options.

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Marriage + Birth = Revocation of Will?

Tennessee has a statute for that.

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7520 Rate for May 2018

Unchanged The 7520 rate is unchanged from April. For May 2018, the 7520 rate will be 3.2%. A chart showing historical rates since 2008 is here. Some estate planning techniques benefit from rising rates. These include Qualified Personal Residence Trusts (QPRTs) and Charitable Remainder Annuity Trusts (CRATs). On the other hand, Grantor Retained Annuity Trusts (GRATs), sales to grantor trusts, and Charitable Lead Annuity Trusts (CLATs) perform worse when interest rates are higher. Source: Rev. Rul. 2018-12 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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7520 Rate for April 2018

Another increase. The 7520 rate has increased again. For April 2018, the 7520 rate is 3.2%. A chart showing historical rates since 2008 is here. Some estate planning techniques benefit from rising rates. These include Qualified Personal Residence Trusts (QPRTs) and Charitable Remainder Annuity Trusts (CRATs). On the other hand, Grantor Retained Annuity Trusts (GRATs), sales to grantor trusts, and Charitable Lead Annuity Trusts (CLATs) perform worse when interest rates are higher. Source: Rev. Rul. 2018-09 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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2018 Federal Income Tax Rates: Estates and Trusts

These numbers will be adjusted annually for inflation based on the chained consumer price index (C-CPI-U). For more on the Tax Cuts and Jobs Act, click here. Source: Joint Explanatory Statement of the Committee of Conference, p. 13 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS  

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SLATs: When the Beneficiary Spouse Dies Before the Grantor Spouse

Consider adding a testamentary limited power of appointment to make SLATs more effective.

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Effect of Last Will’s Revocation on Earlier Will

Under Tennessee law, does revocation of a last will and testament automatically reinstate the immediately preceding last will?

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Keeping Real Estate Purchases Private

For reasons of privacy and asset protection, clients sometimes seek to conceal or obscure their ownership of real property. Tennessee law, however, does not make it easy to do so.

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Grantor as Chief Manager of Family LLC

Retaining control of a family limited partnership or family limited liability may create trigger estate tax consequences.

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March 2018 7520 Rate Announced

The 7520 rate continues to tick up. For March 2018, the 7520 rate will be 3.0%. A chart showing historical rates since 2008 is here. Some estate planning techniques benefit from rising rates. These include Qualified Personal Residence Trusts (QPRTs) and Charitable Remainder Annuity Trusts (CRATs). On the other hand, Grantor Retained Annuity Trusts (GRATs), sales to grantor trusts, and Charitable Lead Annuity Trusts (CLATs) perform worse when interest rates are higher. Source: Rev. Rul. 2018-06 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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Is a Trust Protector a Fiduciary under Tennessee Law?

Yes, generally, but it does not have to be. 

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Trust Protectors in Tennessee: The Basics

Trust protectors (also known as trust advisors) are becoming a common feature of irrevocable trusts. But what is a trust protector? 

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New IRS FAQs Address 2017 Roth Conversion Concerns

The IRS has issued new guidance on recharacterization of Roth conversions, and it is good news for taxpayers who converted in 2017.

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February 7520 Rate: Another Increase

The 7520 rate for February 2018 will be 2.8%. A chart showing historical rates since 2008 is here. Some estate planning techniques benefit from rising rates. These include Qualified Personal Residence Trusts (QPRTs) and Charitable Remainder Annuity Trusts (CRATs). On the other hand, Grantor Retained Annuity Trusts (GRATs), sales to grantor trusts, and Charitable Lead Annuity Trusts (CLATs) perform worse when interest rates are higher. Source: Rev. Rul. 2018-5 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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529 Plans: Not Just for College Anymore

Starting in 2018, 529 plans can be used to pay tuition expenses for elementary and secondary schools, thanks to the Tax Cuts and Jobs Act.

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Charitable Giving Under the Tax Bill

The Tax Cuts and Jobs Act includes three provisions related to charitable giving.

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No Change in Jan. 2018 7520 Rate

The 7520 rate for January 2018 will be 2.6%. A chart showing historical rates since 2008 is here. Source: Rev. Rul. 2018-1 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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