Notwithstanding Savings Clause, Judicial Reformation Required to Correct Defects in Charitable Remainder Annuity Trust
March 21, 2023
by Ashley L. Gill
A recent tax court case serves as a stern reminder to practitioners that (1) in order for a trust to qualify as a charitable remainder annuity trust (CRAT), the trust’s governing instrument must unambiguously provide for a sum-certain annuity to be paid to the income beneficiaries,[1] and (2) the…
Think Twice Before You End A Trust – Income Tax Consequences of Trust Commutations and "Early Terminations"
February 23, 2023
by David Biscoe Bingham
Despite the Rule Against Perpetuities (which basically says a trust can’t go on forever) being repealed in many states, most trusts, as a practical matter, don’t go on forever. In an ideal scenario, the terms of the trust indicate when the trust is to end and who will receive the assets at that…
Corporate Transparency Act: What Businesses Need to Know
February 3, 2023
by Caroline W. Kelley
In January 2021, Congress enacted the Corporate Transparency Act (CTA) in order to protect the United States financial system from being used for money laundering and/or other illicit activities. Oftentimes when these illegal activities are occurring, the perpetrators, also known as “bad actors,”…
Estate Planning and Cryptocurrency
November 16, 2022
by Jennifer R. Pierce
Digital assets, such as cryptocurrency, are becoming a larger component of investors’ portfolios. More and more people are owning some form of cryptocurrency. Cryptocurrency creates unique challenges for estate planning because (i) there is no personally identifiable information associated with…
Recent State Income Tax Rate Changes for Individuals and Corporations
October 19, 2022
by Ashley Edwards
Despite rising inflation and interest rates, some Arkansas individuals and corporations can look forward to relief when filing their state income tax returns for this year and next year. Such relief will come in the form of reduced state income tax rates and an individual income tax credit. In…