Katherine Dorval

Katherine Dorval Writes “Amending The IRS’s Anti-Clawback Provision On Gifting” for Financial Advisor

The U.S. Treasury Department is on the verge of making changes to a taxpayer-friendly regulation regarding federal estate taxes. The amendment is intended to fix loopholes in a 2019 regulation, which is sometimes referred to as the “anti-clawback regulation.” This lucrative law temporarily doubled the value of the estate and gift tax exemption, but the IRS recognized opportunities for abuse, which is why it is proposing an amendment. Katherine Dorval discusses the regulation, the temporary increase and the anticipated changes in Financial Advisor. Here is an excerpt:

The amendment provides some clarity regarding gifts that are not truly gifts, because the donor retains some benefit or control over the so-called “gift.” The goal of the amendment is to bar such artificial gifts from benefiting from the anti-clawback regulation. It is now clear that taxpayers cannot use tricks such as giving the gift of a promissory note (worth $12.06 million) to lock in the high exemption and leaving it unpaid until death. They are not actually giving anything away until they die, and therefore the promissory note will be part of their taxable estate and bound by the estate tax exemption amount existing when they die.

Continue reading the full article “Amending The IRS’s Anti-Clawback Provision On Gifting” on the Financial Advisor website.

Categorized: Estates, Gifting

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Katherine R. Dorval

Katie Dorval is an established estate planning attorney who helps individuals, couples and families, both in Massachusetts and Rhode Island, with estate, trust, business succession planning and other complex estate and administration needs.

Katie’s expertise includes traditional estate planning documents such as wills and trusts, but she also routinely advises clients regarding asset protection, real estate holding entities, limited liability companies, family limited partnerships and shareholder buy-out agreements.

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About the Authors

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LinkedIn

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Katherine R. Dorval

Katie Dorval is an established estate planning attorney who helps individuals, couples and families, both in Massachusetts and Rhode Island, with estate, trust, business succession planning and other complex estate and administration needs.

Katie’s expertise includes traditional estate planning documents such as wills and trusts, but she also routinely advises clients regarding asset protection, real estate holding entities, limited liability companies, family limited partnerships and shareholder buy-out agreements.

Stay Connected
LinkedIn

More Posts by Author ›

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