California Tax Attorney Blog

Since there are no California estate taxes due when a person dies, this post is about federal estate and gift taxes. Estate and gift tax law may be one of the most complex subjects in the Internal Revenue Code. For tax help, I strongly recommend that you consult with an estate tax practitioner (attorney or CPA) who has a lot of experience in these areas of law. You may also find additional information in Publication 950 or some of the other forms and publications offered on the IRS Forms Page as well as on the Forms Page dedicated to estate and gift taxes.

Below are some of the more common questions and answers about Estate Tax issues:

When can I expect the Estate Tax Closing Letter?
What is included in the Estate?
I own a 1/2 interest in a farm (or building or business) with my brother (sister, friend, other). What is included?
What is excluded from the Estate?
What deductions are available to reduce the Estate Tax?
What other information do I need to include with the return?
What is "Fair Market Value?"
What about the value of my family business/farm?
What if I do not have everything ready for filing by the due date?
Who should I hire to represent me and prepare and file the return?
Do I have to talk to the IRS during an examination?
What if I disagree with the examination proposals?
What happens if I sell property that I have inherited?

Below are some of the more common questions and answers about Gift Tax issues:

Who pays the gift tax?
What is considered a gift?
What can be excluded from gifts?
May I deduct gifts on my income tax return?
How many annual exclusions are available?
What if my spouse and I want to give away property that we own together?
What other information do I need to include with the return?
What is "Fair Market Value?"
Who should I hire to represent me and prepare and file the return?
Do I have to talk to the IRS during an examination?
What if I disagree with the examination proposals?
What if I sell property that has been given to me?

Finally, you may need to know about filing estate and gift tax returns which you can read about by clicking here.

In a policy statement issued by the Internal Revenue Service about the Freedom of Information Act, the IRS states the following:

The Internal Revenue Service is committed to full compliance with the Freedom of Information Act (FOIA), 5 U.S.C. § 552. The FOIA provides that agency records are to be made available to the public unless required or permitted to be withheld. The FOIA accommodates the countervailing interests in disclosure and nondisclosure. The IRS is committed to administering the FOIA with respect to agency records in a manner consistent with preserving the fundamental values held by our society, including public accountability, safeguarding national security, enhancing the effectiveness of law enforcement agencies and the decision-making processes, protecting sensitive business information, and protecting personal privacy.

The Freedom of Information Act (FOIA), 5 U.S.C. § 552, provides public access to agency records unless protected from disclosure by one of the FOIA’s nine exemptions or three exclusions. The FOIA applies to records created by Federal agencies and does not cover records held by Congress, the courts, or state and local government agencies. Each state has its own public access laws which should be consulted for access to state and local records.

The IRS provides guidance accessing FOIA information. Click on any of the following:

IRS FOIA Guide

How to Write Your Request

Example FOIA Letter

Optional Items

Proof of Identity and Right to Access

Fee Schedule

IRS Disclosure Offices

CAF Client Listing Request

Here's a sampling of frequently asked questions about FOIA:

This page answers Frequently Asked Questions about FOIA. Please also see How to Write a FOIA Request and the Guide to Accessing Treasury Records .

Who can make a request under the Freedom of Information Act?

What is a reasonable description of records?

What authorization is required if I make a FOIA requests about myself?

What authorization is required for FOIA information to be released to a third party?

What the FOIA does not require.

When can I expect a response?

How and Under what circumstances may I receive expedited processing?

What is the 30-day rule?

What will cause a delay in the processing of a request?

What if I can't specify exactly where the records are located, but I have some information?

Contract records, solicitation and winning bid records are sometimes available to the public. How do I know when a FOIA request is needed?

Will the FOIA allow me to see records on my neighbor/coworker who is being investigated by the Treasury?

Why should a request sent by fax also contain my signature?

Why should I send my request to the specific Treasury bureau and not one office at Departmental Offices (DO)?

Why should requests for tax records go to the IRS when the Secretary of the Treasury is authorized by law to make tax assessments?

Are there fees associated with a FOIA request and what are they?

What are the various requester fee categories?

What services are free and what are chargeable for the various fee categories?

How are fees determined?

Can a fee be waived?

Under what circumstances may records be withheld?

Can I appeal a denial of request?

The Internal Revenue Service and California’s tax agencies (Franchise Tax Board, Employment Development Department and Board of Equalization) have formed a partnership called the Joint Tax Agency Communications Committee. The mission of the committee is to “speak with one voice” where feasible with regards to tax issues and to enhance education and outreach efforts by leveraging resources. The website is: California Tax Service Center.

These tax agencies have joined together to streamline and improve taxpayer resources and educational programs. One-stop tax help is the goal.

Income tax, payroll tax, and sales and use tax FAQs are now at one joint website. Information is available in one place for things like forms and publications, filing online, payment options, reporting requirements, rates and schedules, important dates, as well as credits and deductions.

"In this world nothing can be said to be certain, except death and taxes."

For tax help from a tax lawyer, call Mitchell A. Port at (310) 559-5259.

Funding your California living trust with your property while you are alive results in the direct transfer to heirs and beneficiaries when you die without the time and expense of a probate proceeding.

There are times when people don’t include all of their property in their living trust before they die. When this happens, a simpler type of probate referred to as a Heggstad petition may be available for the California property left outside of the trust that should have been in the trust but for some reason wasn’t.

While a full probate proceeding in Los Angeles can take up to nine months and cost up to 6 percent of the full value of the property in the probate estate, a Heggstad petition can be completed in just a few short months and costs much less. Some probate attorneys erroneously refer to a Heggstad petition as a Hegsted, Hegstead or Heggstead petition.

California probate law says that if you die leaving property worth $100,000 or less, then the proper person may claim the property without using the and no probate lawyer is necessary.

For probate help or to file a Heggstad petition, call a probate attorney - call Mitchell A. Port at (310) 559-5259. Want to discuss how to probate a will in California or find out more about death and taxes? Call now.

"The Intelligent Investor" published in the October 3, 2009 Wall Street Journal says that "... with yields near lows, now is the time to stop moaning about the lack of income and to start turning rock-bottom interest rates to your advantage."

The article discusses self-cancelling installment notes (SCINs), grantor retained annuity trusts (GRATs) and intentionally defective grantor trusts (IDGTs).

These techniques, when used properly, move assets out of your estate at discounted prices so that less of your estate is subject to estate tax when you die.

Speak to your estate planning attorney before interest rates rebound. Or, call a tax lawyer; call Mitchell A. Port at (310) 559-5259.

Internal Revenue Code section 2518 allows a California beneficiary to sign a qualified disclaimer, resulting in treatment of the disclaimed property as if the California disclaimant had predeceased the decedent. Utilizing disclaimers as part of the estate plan builds in flexibility.

Treasury Regulation section 25.2518-2 lists the following “Requirements for a Qualified Disclaimer”.

(a) In general. For the purposes of section 2518(a), a disclaimer shall be a qualified disclaimer only if it satisfies the requirements of this section. In general, to be a qualified disclaimer—

(1) The disclaimer must be irrevocable and unqualified:

(2) The disclaimer must be in writing;

(3) The writing must be delivered to the person specified in paragraph (b) (2) of this section within the time limitations specified in paragraph (c)(1) of this section;

(4) The disclaimant must not have accepted the interest disclaimed or any of its benefits; and

(5) The interest disclaimed must pass either to the spouse of the decedent or to a person other than the disclaimant without any direction on the part of the person making the disclaimer.

More of the Regulation is below.

If you would like information about how a qualified disclaimer can keep the IRS at bay, call your tax attorney or call Mitchell A. Port at (310) 559-5259.

Whether your concerns are immediate or long-term, a qualified California estate planning attorney will be able to counsel you on the best options available to you to meet your individual needs.

Continue reading "What Is A Qualified Disclaimer?" »

Los Angeles County Court Locations

LOCATIONS BY NAME

Airport Courthouse
11701 S. La Cienega, Los Angeles, CA 90045

Alfred J. McCourtney Juvenile Justice Center
1040 W. Avenue J, Lancaster, CA 93534

Alhambra Courthouse
150 West Commonwealth, Alhambra, CA 91801

Bellflower Courthouse
10025 East Flower Street, Bellflower, CA 90706

Beverly Hills Courthouse
9355 Burton Way, Beverly Hills, CA 90210

Burbank Courthouse
300 East Olive, Burbank, CA 91502

Catalina Courthouse
215 Summer Avenue, Avalon, CA 90704

Central Arraignment Courts
429 Bauchet St., Los Angeles, CA 90012

Central Civil West Courthouse
600 South Commonwealth Ave., Los Angeles, CA 90005

Chatsworth Courthouse
9425 Penfield Ave., Chatsworth, CA 91311

Clara Shortridge Foltz Criminal Justice Center
210 West Temple Street, Los Angeles, CA 90012

Compton Courthouse
200 West Compton Blvd., Compton, CA 90220

David V. Kenyon Juvenile Justice Center (Delinquency)
7625 South Central Avenue, Los Angeles, CA 90001

Downey Courthouse
7500 East Imperial Highway, Downey, CA 90242

East Los Angeles Courthouse
4848 E. Civic Center Way , Los Angeles, CA 90022

Eastlake Juvenile Court (Delinquency)
1601 Eastlake Avenue, Los Angeles, CA 90033

Edmund D. Edelman Children's Court (Dependency)
201 Centre Plaza Drive, Monterey Park, CA 91754

El Monte Courthouse
11234 East Valley Blvd., El Monte, CA 91731

Glendale Courthouse
600 East Broadway, Glendale, CA 91206

Hollywood Courthouse
5925 Hollywood Blvd., Los Angeles, CA 90028

Huntington Park Courthouse
6548 Miles Ave., Huntington Park, CA 90255

Inglewood Courthouse
One Regent Street, Inglewood, CA 90301

Inglewood Juvenile Courthouse (Delinquency)
110 Regent Street, Inglewood, CA 90301

Long Beach Courthouse
415 West Ocean Blvd., Long Beach, CA 90802

Los Padrinos Juvenile Courthouse (Delinquency)
7281 East Quill Drive, Downey, CA 90242

Malibu Courthouse
23525 Civic Center Way, Malibu, CA 90265

Mental Health Courthouse
1150 North San Fernando Rd, Los Angeles, CA 90065

Metropolitan Courthouse
1945 South Hill Street, Los Angeles, CA 90007

Michael Antonovich Antelope Valley Courthouse
42011 4th Street West, Lancaster, CA 93534

Norwalk Courthouse
12720 Norwalk Blvd., Norwalk, CA 90650

Pasadena Courthouse
300 East Walnut Ave., Pasadena, CA 91101

Pomona Courthouse North
350 West Mission Blvd., Pomona, CA 91766

Pomona Courthouse South
400 Civic Center Plaza, Pomona, CA 91766

Redondo Beach Courthouse
117 West Torrance Blvd., Redondo Beach, CA 90277

San Fernando Courthouse
900 Third Street, San Fernando, CA 91340

San Pedro Courthouse
505 South Centre Street, San Pedro, CA 90731

San Pedro Courthouse Annex
638 South Beacon Street, San Pedro, CA 90731

Santa Clarita Courthouse
23747 West Valencia Blvd., Santa Clarita, CA 91355

Santa Monica Courthouse
1725 Main Street, Santa Monica, CA 90401

Stanley Mosk Courthouse
111 North Hill Street, Los Angeles, CA 90012

Stanley Mosk Courthouse
110 North Grand Ave., Los Angeles, CA 90012

Sylmar Juvenile Courthouse (Delinquency)
16350 Filbert Street, Sylmar, CA 91342

Torrance Courthouse
825 Maple Ave., Torrance, CA 90503

Van Nuys Courthouse East
6230 Sylmar Ave., Van Nuys, CA 91401

Van Nuys Courthouse West
14400 Erwin Street Mall, Van Nuys, CA 91401

West Covina Courthouse
1427 West Covina Parkway, West Covina, CA 91790

West Los Angeles Courthouse
1633 Purdue Ave., Los Angeles, CA 90025

Whittier Courthouse
7339 South Painter Ave., Whittier, CA 90602

Want to discuss how to probate a will in California? Call Mitchell A. Port at (310) 559-5259 where you can find out more about death and taxes.

California's probate fees paid to both the probate lawyer and to the estate's executor are set by law. In an earlier blog, I laid out the 4-3-2-1 statutory fee system.

Your California probate attorney probably won't decline being paid the statutory probate fee. But as the executor, you may want to consider waiving the fee. As is the case with any income you earn, the probate fee is subject to income tax. If you are the only beneficiary, then you will inherit the entire estate income tax free; in that case, why pay yourself the taxable fee when you can get all the property tax free?

You may also wish to consider waiving the probate fee if peace among the family is enhanced as a result. Some family members may not appreciate that you get more of the estate than they get even though you will legally earn it.

Have questions about California probate? Want to discuss how to probate a will in California? Call Mitchell A. Port at (310) 559-5259 where you can discuss death and taxes.

About a week ago, USA Today ran an article entitled "5 Myths About Wills, and What You Should Do". These myths apply in California and ought to result in contacting a knowledgeable estate planning attorney about what can be done.

Those myths are:

After I create my will or living trust, I'm all set.

If I die without a will, everything will go to my spouse.

I could be held responsible for a deceased parent's debts.

Estate planning is for rich people.

If I have a will, my estate won't go through probate.

Call attorney Mitchell A. Port with questions about California probate, estate planning, living trusts and any number of other tax planning tools to help you minimize your tax exposure.