In July 2024, Pennsylvania Governor Josh Shapiro signed the Pennsylvania Directed Trust Act, Senate Bill 1231 (now part of Act No. 64 of 2024, sponsored by Senator Lisa Baker), into law, making Pennsylvania the 20th state to...more
In Revenue Procedure 2021-45 (RP-2021-45 (irs.gov)), the Internal Revenue Service announced annual inflation-adjusted tax rates for 2022, including provisions concerning estate and gift taxes.
Beginning in 2022, the...more
Last week, the House Ways and Means Committee released proposed legislation affecting numerous transfer and income tax provisions of the Code. These changes, if enacted, will have a significant impact on estate planning and...more
9/23/2021
/ Congressional Committees ,
Estate Planning ,
Estate Tax ,
Gift Tax ,
Grantor Retained Annuity Trusts (GRATs) ,
Grantor Trusts ,
Internal Revenue Code (IRC) ,
Irrevocable Life Insurance Trusts ,
Proposed Legislation ,
Section 199A ,
Tax Planning
In its April 26, 2019 Opinion in the matter of Melmark, Inc. v. Schutt, et al., the Pennsylvania Supreme Court held that Pennsylvania’s filial support statute applies to a support claim by a Pennsylvania healthcare provider...more
2019 Key Pennsylvania Figures -
Pennsylvania Inheritance Tax Rates:
Transfers between spouses - 0% (jointly held property between spouses is not subject to tax).
Transfers from child 21 or under to parent -...more
Do You Know Your Assets?
Have you identified and valued your assets?
If not, consider:
..Do you own any investment property that is subject to a “buy/sell” agreement with one or more persons?
..Do you hold any...more
IRS Issues Proposed Temporary Clawback Regulations: Large gifts made under Tax Cut and Jobs Act won’t be clawed back when increased exclusions sunsets in 2025.
The 2017 Tax Cut and Jobs Act doubled an individual’s...more
By Order dated August 31, 2018, the Supreme Court of Pennsylvania adopted new Rule 501 of the Pennsylvania Rules of Judicial Administration, amending 204 Pa. Code § 207.3, effective immediately.
Rule 501 creates an...more
Substantial changes and new concepts were worked into the Act for business income, both of corporations and individuals.
Corporate Tax Rate Reduced: The maximum corporate tax rate is 21%, down from 35%.
...more
The Internal Revenue Service and the Treasury Department released an updated Priority Guidance Plan outlining the regulatory projects that have become necessary in light of the passage of the 2017 Tax Cuts and Jobs Act (the...more
The following includes the more notable income tax changes for individual taxpayers, and unless otherwise noted, the changes are effective for tax years 2018 through 2025.
...more
Exemption Amount Doubled: A simple but powerful change was made to the Federal Estate and Gift Tax: Starting in 2018, the amount that an individual can transfer free from estate tax (the "exclusion amount") increased from a...more
The IRS announced that the Unified Credit for Estates and Annual Exclusion for Gifts will be higher in 2018.
Unified Credit Against Estate Tax.
For an estate of any decedent dying in calendar year 2018, the basic...more
Managed Long Term Supports and Services -
Pennsylvania is undertaking several major changes to the organization and delivery of certain Medicaid (Medical Assistance) benefits in Pennsylvania through Community Health...more
The DOL has finalized regulations extending the applicability date from April 10 to June 9, 2017, for the new “Fiduciary Rule,” which defines who is a fiduciary under ERISA and the tax code. The new regulations will be...more
Pennsylvania officially launches its PA ABLE Savings Program on April 3, 2017. A PA ABLE account gives individuals with qualified disabilities (Eligible Individuals), and their families and friends, a tax-free way to save for...more
On December 14, 2016, President Obama signed the Special Needs Trust Fairness Act into law amended federal law to enable disabled individuals to establish their own first-party payback Special Needs Trusts under 42 U.S.C. §...more
As originally referenced in a January 2015 blog post (Link to post), the Pennsylvania ABLE Act was enacted in April to provide people with disabilities and their families with a way to plan for a financially secure future...more
In its Tibble v. Edison International decision the United State Supreme Court confirmed that the scope of an ERISA fiduciary’s duty of prudence continues after initial investments are made and imposes an ongoing duty to...more
On December 19, 2014, President Obama signed the Stephen Beck, Jr., Achieving a Better Life Experience (ABLE) Act of 2014 into law. The ABLE Act amended Section 529 of the IRC to enable the creation of state-specific tax free...more
The Pennsylvania Commonwealth Court’s recent decision in the matter of Sams v. Department of Public Welfare may significantly affect the structured settlement industry, and the settlement of lawsuits on behalf of certain...more