By: David L. Crockett, Attorney, CPA UCLA Law School , J.D. ’69, UC Berkeley ’66 901 Dove St., Ste 120, Newport Beach, CA 92660 Phone: 949-851-1771 Email: David@CLCNewport.com Website: TrustandProbateLawyers.com THREE TAXES WHICH MUST BE…
By: David L. Crockett, Attorney, CPA UCLA Law School , J.D. ’69, UC Berkeley ’66 901 Dove St., Ste 120, Newport Beach, CA 92660 Phone: 949-851-1771 Email: David@CLCNewport.com Website: TrustandProbateLawyers.com WHAT TAX RETURNS HAVE TO BE FILED AFTER A REVOCABLE (LIVING) TRUST IS FORMED? Answer: NONE, as long as both…
AN APPRAISAL IS NEEDED UPON DEATH OF A PROPERTY OWNER. A routine part of trust administration or probate administration is to obtain an appraisal of each property owned. This is for income tax reasons. Because the income tax basis is increased “stepped up” upon death to fair market value an…
SORT OUT WHAT NEEDS TO BE FILED. A routine part of trust administration or probate administration is for the Probate Executor or the Successor Trustee of a living trust to sort out the income tax situation. First, you have to determine if the individual income tax return filings of…
CAN A DECEASED PERSON’S ESTATE ESCAPE PAYING DEBTS & TAXES? PROBATE ESTATE ADMINISTRATION If a person passes away leaving money or property there may need to be a probate court administration of the estate. If there is a living trust and all of the deceased person’s assets have been placed…
INCOME TAX & PROPERTY TAX TRAP FOR PREMATURE GIFT OF HOUSE WAYS TO HANDLE THE FAMILY HOME TRANSFER Retired couples typically have choices about how to pass on the family home. Might they make a mistake and give away the house too soon? They could sell the home and put…
Can I Really Spend All My Inheritance Money, or Does Uncle Same Get a Portion? DOESN’T MATTER IF IT COMES FROM AN ESTATE OR TRUST Is My Inheritance Taxable – Your inheritance of money or property may come from the estate of a deceased person or from a trust established…
Subtitle: Pull out tax free gain while downsizing INCOME TAX “GAIN” CONCEPT Under our system of federal and state income tax, if your personal residence is sold before death for more than what was paid for it then there is a capital gain. For example, if you purchased your home…
Partners pay tax on income earned even if it is not paid out to them The taxation of Family Limited Partnerships should be carefully considered in advance of setting up and rolling out your new FLP. FAMILY LIMITED PARTNERSHIP DEFINED State laws have provisions allowing people to establish limited partnerships. …
Purposes of Family Limited Partnerships People form family limited partnerships (FLP’s) to (i) transfer ownership of properties or assets to family members while still maintaining control; (ii) to save on estate and gift taxes; (iv) to shift income from parents’ higher tax brackets to children’s lower tax brackets; (iii) to…