ILN Today Post
May 28, 2020
An ‘estate freeze’ is a common tax planning strategy. The owner of shares of a private company can ‘freeze’ the value of his/her shares and transfer the future growth of the company to other family members. The benefit of a freeze from an income tax perspective is that the future taxation of the growth of the company can be transferred to other family members particularly children, thus limiting the tax liability of the owner on death and deferring the tax to the next generation. If the shares qualify as ‘qualified small business corporation’ shares, a freeze can enable such other family members to claim the lifetime capital gains exemption. A freeze is most commonly used to freeze the value of a company that owns a business, real estate or public securities. If the owner has already implemented a freeze, a ‘re-freeze’ at a lower value can be effected if the value of the company has dropped.
A freeze or re-freeze should be considered in a down market because it may provide the owner with the opportunity to freeze his/her shares at a lower value than would otherwise have been possible.
ILN Today Post
April 28, 2020
As discussed in our last article, on April 7, 2020 The Lieutenant Governor in Council made an order under s.7.0.2(4) of the Emergency Management and Civil Protection Act (the “Order“), to temporarily permit virtual execution of Wills and Powers of Attorney through audio-visual communication technology during the COVID-19 emergency. Read the full article.
ILN Today Post
April 14, 2020
On April 7, 2020 The Lieutenant Governor in Council made an order under s. 7.0.2(4) of the Emergency Management and Civil Protection Act, to temporarily permit virtual execution of Wills and Powers of Attorney through audio-visual communication technology during the COVID-19 emergency. Read the full article.
April 3, 2020
By Marilyn Piccini Roy, Ad. E., and William Dion-Bernard, from our Estates, Wills and Trusts Practice Group
April 3, 2020 — While we are witnessing the unfolding of unprecedented times, the coronavirus pandemic should also serve as a stark reminder of the importance of keeping your estate planning documents current. Although we do not presently and, perhaps will not for some time in the future, have the luxury of face-to-face personal meetings with our clients to review and up-date their estate plan, we are available remotely to serve clients’ needs in this extraordinarily challenging time.
July 24, 2018
In its 2018 guide, Chambers High Net Worth ranked Connolly Gallagher LLP for Private Wealth Law in Delaware. Sources report the Trusts & Estates team are “hugely knowledgeable about the law as well as the various procedures and the court system in Delaware.” Another source praises the team saying, “They are very oriented toward client service, their responsiveness is second to none and their level of commitment is unmatched.”
ILN Today Post
December 16, 2015
by William F. Griffin, Jr.
The Internal Revenue Code contains numerous traps for the unwary foreign investor in U.S. real estate or businesses. The tax law provisions applicable to nonresident foreign investors are very often quite different – and more onerous – than the tax rules applicable to U.S. citizens and foreign residents. This article identifies some of the most common areas where nonresident foreign investors may need specialized tax advice to avoid costly mistakes.
Estate Tax. An estate of a U.S. citizen or resident is subject to an estate tax based upon the value of the worldwide property, tangible and intangible, owned by the decedent on the date of death or over which he or she has certain rights or powers. The current estate tax rate for 2015 is 40% for taxable estates in excess of a $5.34 million exemption, which is adjusted annually for inflation. A U.S. estate may also deduct from the taxable estate a marital deduction equal to the value of property left to a surviving spouse. The amount of lifetime taxable gifts during the decedent’s life is also included in calculating the gross estate.
ILN Today Post
August 21, 2015
The Chancellor announced in the recent summer budget that the Government intends to bring all UK residential property held directly or indirectly by non-doms into the scope of UK Inheritance Tax, and this would include such property owned through an indirect structure such as an offshore company or trust. One reason holding UK residential properties in offshore companies has long been attractive to non-doms is that shares in the offshore company could be an excluded asset for Inheritance Tax and not taxable on the non-dom’s death. More…
ILN Today Post
July 10, 2015
In July 1992, Cyprus enacted the International Trusts Law 69(I)/92 (the “Law“). The Law regulates the establishment and administration of international trusts and is designed to complete the spectrum of services the island offers as an international financial centre. It should be noted that, since Cyprus is a common law jurisdiction, the concept of trusts has always been part of Cyprus law. Thus, the object of the Law has been to modernise and update the existing legal framework in order to reaffirm the position of Cyprus as a significant trust jurisdiction. As of 23 March 2012, the Law has been extensively amended in order to bring the same in line with the laws of other jurisdictions, allowing for the creation of international trusts. More…
July 5, 2015
It’s the stuff of parents’ worst anxieties when headed out of town for business or vacation, leaving their minor children at home in the care of a friend of family — their child is injured or becomes sick in their absence. Imagine, leaving with your spouse on a long-planned vacation, many states away or even out of country, leaving your children safely in the care of beloved grandparents. But, life happens, and one child breaks his arm at baseball practice, while you are thousands of miles away and cannot immediately return home. Grandma takes your son to the hospital, where all but necessary emergency treatment is denied because Grandma does not have legal authority to grant treatment on behalf of your minor child. You call the hospital in attempt to authorize treatment, but unfortunately, the hospital will not accept your verbal authorization, requiring a written authorization, properly executed and witnessed. After many phone calls, a faxed authorization form, and locating witnesses in your hotel lobby, hours after the accident you occurred, you finally get the documentation required by the hospital to proceed with treating your son. Unfortunately, I have heard first-hand stories of a real life occurrences of this very scenario.
June 15, 2015
Beginning in 2016, all trusts (whether created during an individual’s lifetime, or in their will) will be subject to tax at the highest marginal rate unless the trust meets one of two exceptions. The first exception applies if the trust qualifies as a “graduated rate estate” (GRE). This exception, which has been discussed in previous posts, will allow most estates to have access to graduated rates of taxation for up to 36 months, if certain requirements are met. The second exception applies where the trust qualifies as a “qualified disability trust” (QDT). This exception will allow certain trusts that are created for the benefit of a person with a disability to have access to graduated rates of taxation.