The estate tax is a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death.
Frequently Asked Questions on Estate Taxes
Find some of the more common questions dealing with basic estate tax issues.
If you give someone money or property during your life, you may be subject to federal gift tax.
2010 Brings Big Changes to the Estate and Gift Tax
Learn about the legislative changes that affect Estate and Gift taxes.
Frequently Asked Questions on Gift Taxes
Find some of the more common questions dealing with gift tax issues as well as some examples of how different types of gifts are treated.
Filing Estate and Gift Tax Returns
Learn when to file estate and gift taxes, where to send your returns, and get contact information if you need help.
What's New - Estate and Gift Tax
Stay up to date with the tax law changes related to estate and gift taxes.
References/Related Topics
Estate and Gift Tax Treaties (International)
Forms and Publications - Estate and Gift Tax
Publication 950, Introduction to Estate and Gift Taxes
]]>To expedite the resolution on accounts in the Large Dollar Unit, please have the following information available when contacting ACS.
• Valid Power of Attorney (Form 2848) covering all tax periods
• Explain in detail why the taxpayer is not able to full pay or borrow to full pay
• Completed Collection Information Statement (Form 433- A, B or F)
• Number of individual’s living in the house hold
• Value of 401K/Retirement
• Copies of delinquent tax returns and /or ASFR returns
• Rental income
• Spouse’s income and source with name/address/phone number
• Three months of current bank statements (all accounts)
• Investment income
• Year make of vehicles, value, equity, balance owed, and monthly payments
• Employer’s information including work number
• Secured loan(s) - amount of loan and remaining balance(s)
• Life insurance policies, (whole or term), any borrowing ability? And/or value of policy
• Profit and Loss statements for self-employed taxpayers
• Three months of current pay stubs for both the taxpayer and the taxpayer’s wife
• Out-of-pocket medical expenses
• Commission statement
• Value of all property and/or available equity
• Substantiation of Court ordered payments
• Substantiation of payments being made
• Pension income and/or Social Security income
For additional help, call a tax attorney. Call Mitchell A. Port at (310) 559-5259.
]]>The Los Angeles Superior Court has issued guidelines on attorney compensation. Here is what it says about extraordinary fees:
CALIFORNIA PROBATE CODE sections 10801, 10811 - Allowance of additional compensation for "extraordinary services . . . in an amount the court determines is just and reasonable."
8.1.1 Sales or mortgages of real or personal property
8.1.2 Contested or litigated claims against the estate
8.1.3 The defense of a will contested after its admission to probate. In a post-probate contest, the estate may be required to pay the cost of defense even if the defense is NOT successful, i.e., Section 10801 expenses and Section 10811 expenses can be awarded against and made payable from the estate so long as the representative's defense was in GOOD FAITH.
8.1.4 The successful defense of a will contested before its admission to probate Although expenses in preprobate contests require a "successful defense", the term is construed broadly. It matters not whether the "success" was by judgment after trial OR BY PRETRIAL SETTLEMENT, or whether the representative fails to "win" on all issues. So long as the defense BENEFITTED the estate -- in the sense of preserving decedent's desires and intentions as expressed in the will -- it is "successful". Compensation payable by estate where contest settled by dismissal with prejudice; immaterial that estate did not prevail on challenge to contestant's standing.
8.1.5 Preparation of estate, inheritance, income, sales or other tax returns or the adjustment, litigation, or payment of any of said taxes
8.1.6 Litigation involving estate property
8.1.7 Carrying on of the decedent's business pursuant to COURT ORDER. If not pursuant to Court order, there is no "guarantee" that extraordinary compensation will be approved; the result will likely turn on the circumstances involved and whether continuing the business was profitable to the estate.
8.1.8 "Other litigation or special services that are necessary for the executor or administrator to prosecute, defend or perform."
8.2 Probate Code section 8547 - Allowance of compensation to an attorney out of estate funds for extraordinary services to a special administrator
8.3 Probate Code section 10953 - Allowance of compensation for the extraordinary service of filing an accounting for the administration of a deceased, incompetent or absconding representative by his attorney, or the attorney of record for the estate, when such an accounting is required
8.4 Probate Code section 11003 - Recovery of compensation and expenses for "bad faith" contest or opposition to contest
8.4.1 If the court determines that a contest to the representative's account was brought "WITHOUT REASONABLE CAUSE AND IN BAD FAITH", the court may award against the contestant the compensation, and costs of the personal representative, as well as other expenses and costs of litigation, including attorney compensation, incurred to defend the account. The amount so awarded is a charge against the contestant's interest in the estate, and the contestant is personally liable for any amount remaining unsatisfied. (Emphasis added)
8.4.2 Conversely, upon determining that the REPRESENTATIVE'S OPPOSITION to a contest was "WITHOUT REASONABLE CAUSE AND IN BAD FAITH", the court may award the CONTESTANT the costs and other expenses, including attorney compensation, incurred to contest the account. The award is a charge against the compensation or other interest of the personal representative in the estate, and the representative is personally liable and on the bond (if any) for any amount that remains unsatisfied.
8.5 Probate Code section 11624 - Costs of preliminary distribution paid by distributee or estate in proportions determined by Court.
8.6 Paralegal Services. The above sections (except sections 11003 and 11624) provide that extraordinary compensation for probate counsel may also include compensation for extraordinary services performed by the attorney's PARALEGAL under the direction and supervision of the attorney. The application for such compensation must set forth the "hours spent and services performed by the paralegal.”
8.6.1 It is doubtful that the Legislature intended to equate "legal secretary" work with work performed by a "paralegal" (the Legislature expressly chose the term "paralegal" rather than "legal secretary.") Thus, to justify payment for paralegal services, counsel should set forth IN DETAIL, the paralegal's EXPERIENCE AND CREDENTIALS.
8.6.2 The amount requested for the extraordinary services of the attorney and paralegal COMBINED must not exceed the amount that would be appropriate if the attorney had provided the services WITHOUT paralegal assistance.
]]>You may find it difficult to proceed without an attorney familiar with California Probate law. Only a licensed attorney can give legal advice. If you do not understand any information or if you have trouble filling out any of the forms located here, see an attorney for help.
Self help topics include the following:
Probate Guardianship/Conservatorship Information SheetConservatorship
Guardianship
Transfer Of Small Estates Without Probate
Glossary of Probate Terms
Probate Forms Packets
Creditor's Claims
Estate Planning
Links To Other Probate Self-Help Web Sites
Call a qualified probate attorney for help. Call Mitchell A. Port at 310.559.5259.
]]>For tax debts larger than $25,000, speak with a qualified tax attorney about your options. Call Mitchell A. Port at (310) 559-5259.
]]>In all cases where bond is not waived in the will, or the proposed personal representative resides out-of-state, and a waiver of bond is being requested, the petitioner must submit a declaration which states:
(1) the number of unsecured creditors of the estate and the estimated estate liability to such creditors;
(2) whether the estate is solvent;
(3) all estimated tax liabilities, if any;
(4) the amount of any known contingent liabilities; and,
(5) the due diligence performed to ascertain the above information.
]]>You have a taxable estate
You have minor children and want to provide for distributions to them at intervals or for specific purposes
You have a beneficiary who is disabled
Your children have drug or alcohol problems and need a trust that will take that into consideration
You want to benefit a charity
You own a business and want to provide for someone to take over the business after your death
You own real estate in more than one state
You are in a second marriage with children of other relationships
You have substantial assets in 401(k)s or IRAs
You want to have someone you can call when you have questions or want to make changes in your documents
Contact an experienced California lawyer to get advice on your estate planning needs. Call Mitchell A. Port at 310.559.5259 to minimize the impact of death and taxes.
]]>While a safe deposit box or a home safe is probably the most secure place to keep any documents where you can be assured that they are protected from theft, fire, damage, tampering or loss, I recommend leaving them in a more accessible place.
A power of attorney is used during your incapacity and if the person who has been given power by you cannot get into your safe deposit box or home safe because they either don’t have a bank key or combination to a lock, those documents won’t be too helpful in your time of need.
Don’t be too concerned about your will, living trust or power of attorney being stolen: who wants those documents anyway? They cannot be used if you are alive and well. At the moment you die, just pre-arrange with your executor or trustee of your living trust to be sure he or she knows where your originals are so they can get to them before anyone else. As for the possibility of losing them in a fire, simply get another original set from the lawyer who wrote the documents if they are burned or destroyed.
]]>This blog was listed in the "101 Top Tax Policy Blogs" featured in Masters in Accounting.
]]>Changing Your Business Structure
Need additional help? Call an attorney experienced in business transactions; call Mitchell A. Port at (310) 559-5259.
]]>Have you received a notice? Call a tax attorney about solutions to your tax problem. Call Mitchell A. Port at (310) 559-5259.
]]>Redesigned notices are now being sent to us as taxpayers. Don't panic: instead, call a tax attorney. Call (310) 559-5259.
The redesigned notices cover these topics:
Filing Requirements. You may no longer need to pay the Alternative Minimum Tax.
Filing Requirements. You may no longer need to file Form 941 and Form 940.
Filing Requirements. You may no longer owe excise tax.
]]>Steinbrenner’s death Tuesday came during a year-long gap in the estate tax, the first in its history. As a result, the government does not collect billions of dollars in annual estate tax revenue. For those who inherit wealth, getting it tax-free is fantastic. A probate may still be required if any of the property was in California.
“If you’re wealthy, it’s a good year to die.” Forbes magazine has estimated Steinbrenner’s estate at $1.1 billion. The federal estate tax in 2009 was 45 percent, with the $3.5 million per-person exemption. If he had died last year, his estate could have faced federal estate taxes of almost $500 million, depending on how the estate was structured.
Remember, in California, just because you don’t owe the IRS any estate tax, your estate may still go through probate before your heirs can receive their inheritance. Moreover, the estate tax will likely come back. Call a qualified estate planning attorney to discuss avoiding probate and minimizing estate tax with a living trust. Call Mitchell A. Port at (310) 559-5259.
]]>You can obtain a credit report on someone who has died by writing to the three big credit bureaus: Experian, Equifax and Trans Union. Give those bureaus information about the death with the decedent's full name, address, social security number and date of death. Include a copy of the death certificate and give your name and explain your relationship to the decedent. Ask for the decedent's most current copy of the credit report and that a notice such as "Deceased - Do not Issue Credit" be included in the public record. Be sure to request that any suspicious activity be reported to you. Send the letter certified mail.
If I can help with the death of someone in California, call me. I handle probate and trust administration and can assist with the legal process of administering a will or a trust or the probate of an individual without a will.
For more help, call probate attorney Mitchell A. Port at 310.559.5259.
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