A donor who makes a contribution to charity can take an income tax deduction for the value of the gift. The deduction is available only to taxpayers who itemize their deductions. It is not available if the taxpayer takes the standard deduction. The effect of the charitable deduction is to reduce the donor’s cost of… Read More
Part III of this series on the Pennsylvania inheritance tax deals with the taxation of future interests, the sole use trust election, the family exemption and the early payment discount. The Pennsylvania inheritance tax is an excise tax on the receipt of inherited property by a beneficiary. The rate that applies depends on the beneficiary’s… Read More
You have probably heard that a safe deposit box is “sealed” when the owner dies. This is not true in Pennsylvania. Safe deposit boxes are not sealed. In fact, the box is the safest place for your will, life insurance policies, stock certificates, and other valuables. Far from being sealed, the box is opened, following… Read More
Pennsylvania’s 2013-14 budget passed the legislature and was signed into law by the Governor on July 9, 2013. Tucked away in Section 34 on page 143 of the 165 page Act 52 is a new inheritance tax exemption for qualified family-owned businesses. It states: “A transfer of a qualified family-owned business interest to one or… Read More
James Gandolfini, the actor best known for playing Mafia boss Tony Soprano in the TV show “The Sopranos,” died on June 19, 2013 while on vacation in Italy. He was 51. Gandolfini left a will, but thanks to poor planning and drafting, the IRS will be the biggest beneficiary of his estate. With an estate… Read More
Every one of the 50 states and the District of Columbia have statutes that provide that a will must be in writing. Most of them say it must be signed “at the end”, and many of them require two or three witnesses. Nevada has a ground-breaking statute that permits digital wills, but apparently the software… Read More
The Governor signed a new piece of legislation amending the Probate, Estates and Fiduciaries (PEF) Code on July 1, 2013. See the statute Small Est 50K.pdf. The new statute amends §3101 of the PEF Code allowing a bank, or other financial institution, to pay up to $10,000 directly to a spouse, child, father, mother, sister… Read More
Philadelphia coin dealer Israel Switt died in 1990. In 2003, 13 years after Switt died, his daughter and grandsons drilled open a safe deposit box in Switt’s name and found 10 rare gold coins. The coins were 1933 Saint-Gaudens double eagle $20 gold coins and were valued at approximately $80 million. The coin is named… Read More
Congratulations! You’re having a baby. It’s so exciting, and nerve-wracking, and fun, and OMG how are we going to do this? You’re picking out a crib, wondering which diapers to use, what color should you paint the room. But, there is something more important than all of that. You need to make sure your baby… Read More
Most of the tax increases in the American Tax Relief Act of 2012 (ATRA) were aimed at the wealthiest taxpayers. Unfortunately, the tax increases will hit trusts hard. The Tax Changes First, the Patient Protection and Affordable Care Act (often called “Obamacare”) imposes a 3.8% surtax on net investment income. “Net investment income” generally… Read More