In an interesting ruling by the New Jersey Appellate Division in the Matter of Estate of Richard D. Ehrlich, it was determined that a will that was neither dated nor signed could be admitted to probate. Richard Ehrlich, a trust and estates attorney, passed away on Sept. 21, 2009 leaving Todd and Jonathan Ehrlich, and Pamela Venuto, his niece and nephews, as his only next of kin. After his passing, Jonathan discovered a copy of a purported will in a drawer. It was typed on legal paper and included Richard Ehrlich’s name and law office address on each page, although it wasn’t dated or signed. It did include, in decedent’s own handwriting, a notation “Original mailed to Harry Van Sciver 5/20/2000”. The document named Harry Sciver as Executor of purported will. Van Sciver predeceased the decedent and the original of the document was never returned. The purported will stated that Jonathan was to receive a significantly larger portion of the estate than Todd or Pamela. For a complete copy of the case, click here: Estate of Richard D. Ehrlich [Read more…] about Unexecuted Will Admitted to Probate by NJ Superior Court
ESTATE, TRUST, GUARDIANSHIP
Gifts that Catch the IRS’s Attention
A recent publication by the U.S. Government Accountability Office highlights the increasing IRS trend of auditing returns that include items likely to involve an appraiser. A primary focus is on gift and estate returns, which often include such items. IRS technical advisors identified several gifts as being likely to involve an appraiser, including:
• Retirement plans
• Personal residence
• Real estate, improved
• Real Estate partnerships
• Other limited partnerships
• Art
If you are considering gifting your business make sure to have a certified business valuator appraise it. You’ll be happy you did if the IRS should ever come knocking.
Jeffrey Urbach Awarded Certificate of Excellence from NACVA
Congratulations to partner Jeffrey Urbach, who has earned a Certificate of Excellence by the National Association of Certified Valuators and Analysts (NACVA) as the 2011 Instructor of Exceptional Distinction. Jeff, a Certified Valuation Analyst, generously shares his expertise and wisdom as a regular lecturer for NACVA, greatly enriching all those privileged to hear him. Jeff is accredited in Business Valuation. His specialty is the business valuation of medical and dental practices, law offices and other professional practices.
Want to Share Your Lottery Winnings? It Could Result in Gift Tax
Most people fantasize about what they would do if they won a multimillion dollar lottery. Hopefully part of that fantasy is to give back to parents or close relatives who have been there for them. What most people don’t realize is that they can get slapped by the IRS with a considerable gift tax as a result of this generous gesture. In a Tax Court case this is precisely what played out. [Read more…] about Want to Share Your Lottery Winnings? It Could Result in Gift Tax
Discharge of Executor IRS Liabilities
While being the executor or executrix of an estate has its financial advantages, it can carry an enormous liability as well. Suppose Aunt Gertrude dies, leaving behind a $1 million dollar estate. You, the executor, fairly distribute the estate to the beneficiaries. Most people would assume it’s all over at that point. The shocking reality is that if Gertrude had an income or gift tax liability when she died, that liability now rests squarely on your shoulders. As far as the IRS is concerned, the executor or executrix should have kept the funds in the estate until the liabilities were paid off, even if he or she knew nothing about the tax liability at the time of the distribution. The only door they will come knocking on is yours. There is hope however, in the form of three important IRS forms that help alleviate your liability as executor or executrix: [Read more…] about Discharge of Executor IRS Liabilities
Selling Investment Real Estate in New Jersey? Beware of the “Exit Tax”
If you’re a non-resident selling investment real estate in New Jersey, there’s a unique NJ withholding tax you should be aware of. Both residents and non-residents always had to pay income tax on the gain upon the sale of real estate. This tax is required to be withheld for non-residents. The “Exit Tax”, which came into law six years ago, requires the seller to file a GIT/REP form (Gross Income Tax form) in order to record a Deed for the transfer of his property. When a non-resident sells the property, New Jersey will withhold this income tax in the amount of either 8.97 percent of the profit or 2 percent of the total selling price, whichever is higher. Therefore, even if the property is sold at a loss, tax must be withheld to fulfill the two percent requirement. When such a seller eventually files his NJ tax return he is refunded the difference between what was withheld and what was owed. [Read more…] about Selling Investment Real Estate in New Jersey? Beware of the “Exit Tax”