Forestalling Forties Follies

Richard W. Nenno |
Wealth Planning
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Beware of pre-October 22, 1942 general powers of appointment.Are assets subject to a general power of appointment (GPOA) includible in the powerholder’s estate? Generally, yes.However, for trusts established before October 22, 1942, there’s an exception in which the assets subject to the GPOA aren’t necessarily includible in the estate of the powerholder.Practitioners should be aware of this as these trusts wind down.Co-authored with Emily B.

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Opportunities for Saving State Income Taxes on Trusts Expanded with Kaestner Trust Decision

Richard W. Nenno |
Wealth Planning
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U.S. Supreme Court holds presence of resident discretionary beneficiaries does not justify North Carolina income taxation of nonresident trustee in Kaestner Trust. When determining whether a trustee of a nongrantor trust must pay a particular state’s income tax on retained ordinary income and capital gains, practitioners should resist the impulse to consult the governing-law clause in the Will or trust instrument.

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Delaware’s Income Tax Advantage for New York Residents

Jeffrey C. Wolken |
Wealth Planning
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Help minimize your state income tax liability with a personal trust administered in the First State.If you are a New York resident with appreciated assets and would like to potentially avoid paying high state and local taxes on that appreciation, establishing a trust in Delaware may help minimize your New York tax liabilities.You do not need to have a current trust in order to take advantage of this opportunity.

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