You Were Saying . .

Posted by Dan Steven on Jul 26, 2012

Every few years, certain phrases take hold in conversation and the media.  Phrases that, typically, are inaccurate, ungrammatical, redundant, nonsensical — or all of the above.   Some recent examples: 1. “The reason why…”   Saying both “the reason” and “why” is redundant: “The reason I went to bed is because I was tired,” has the same...

Federal Court Rules That Gay Widow Is Entitled to Estate Tax Refund

Posted by Dan Steven on Jul 17, 2012

Finding that the Defense of Marriage Act’s (DOMA’s) denial of equal benefits to same-sex couples violates the Equal Protection Clause of the Fifth Amendment, a federal court judge has awarded the surviving spouse of a lesbian couple reimbursement for the tax bill she paid on her wife’s estate. Edith Windsor and Thea Spyer became engaged in 1967 and were married in Canada in...

Should You Do It Yourself?

Posted by Dan Steven on Jul 1, 2012

LegalZoom™ advertises itself as a cheaper alternative to an attorney.  Intuit, through its “Quicken WillMaker™”, and other do-it-yourself programs, entice people to forgo professional advice, assuring them that the documents they create will be “just as good as one created by an attorney.” These programs and web sites are popular with lawyers, too!  Why? Because they make more work...

Judge Orders Refund to Estate That Paid Tax Before Madoff Con Was Revealed

Posted by Dan Steven on Jun 19, 2012

When New Jersey resident Theodore Warshaw died in 2006, his estate was valued at more than $1.8 million. Because in New Jersey any amounts in an estate above $675,000 are subject to estate tax, Mr. Warshaw’s executors paid $88,677 to the state. The bulk of Mr. Warshaw’s assets were held in an IRA, and when he died the IRA went to a trust to benefit his widow.  The IRA assets were allegedly being...

Should You Give It Away?

Posted by Dan Steven on Jun 4, 2012

For wealthy individuals and couples, gifting has always been an important part of estate planning.  And now that the gift tax exemption stands at $5 million (5.12 million adjusted for inflation in 2012) and the top gift tax rate is 35%, the tax environment is especially favorable for making large gifts.  Gifts of up to $5.12 million ($10.24 million for couples) in 2012 incur no gift tax.  BUT...