Sumner Redstone v. Comm’r, T.C. Memo. 2015-237 A conflict broke out in the Redstone family in 1971. Patriarch Mickey Redstone and his two sons, Edward and Sumner, were co-owners of the family business, each owning 100 shares. However, when the business was incorporated Mickey put up 48% of the capital, and the boys each contributed…
Author: gstc
Living Trusts
DEAR GARDEN STATE TRUST COMPANY: My parents are retired, living in another state. They have a sizeable investment portfolio and are financially comfortable. However, as they are getting older, they are having trouble keeping up with their paperwork. Last year they were late in making tax payments, very unlike them. I would help them, but…
Taking the Fifth with the IRS
Filing an income tax return is not the act of being a witness against oneself within the meaning of the Fifth Amendment to the U.S. Constitution. Those who file blank tax returns and attempt to invoke the Fifth Amendment as a defense have routinely been penalized for filing frivolous returns. However, recently a taxpayer filed a numerically accurate return…
Choice of trust upon marriage
It’s a truism that every trust is unique, but a recent private letter ruling from the IRS shows just how creative some trust creators have been. Names are redacted from these rulings, so we’ll call the players Grandson and Fiancée. Grandson is the beneficiary of an irrevocable trust, Trust 1, created by his grandfather. Grandson…
Q & A on IRA rollovers
A recent report from the GAO suggests that IRAs are becoming an increasingly important element of retirement security. An estimated 43 million taxpayers have IRAs, worth an estimated $5.2 trillion. Some 42.3 million of these IRAs are worth less than $1 million each, and 800,000 are worth more. 314 taxpayers have IRAs worth $25 million…
Changes in Social Security benefits
Social Security benefits in 2016 will be affected by actions and decisions made in Congress and the U.S. Supreme Court in 2015. In Obergefell v. Hodges the Court held that same-sex couples have a constitutional right to marry in all states. That also means that, if such couples do marry, they have the right to…
Little Known Social Security Benefits Change Coming Soon
By now the reality of the Social Security Administration’s decision to not increase monthly benefits for 2016 is being felt by those seniors receiving benefits. Accompanying this “freeze” of the monthly benefit came an increase of 2.3% in Medicare Part B coverage resulting effectively in a net decrease of one’s Social Security benefit. Unfortunately for…