United States: Trusts

The Treasury Department and IRS have proposed new regulations that would eliminate a burdensome information-return filing requirement for trusts whose only charitable contribution deductions flow through from partnerships or S corporations. The proposed rule addresses practitioner complaints about an obscure filing obligation that applies to trustees who may not even realize they are subject to it, while serving little enforcement purpose for the IRS.

Milbank LLP attorneys examine the implications of New York's pied-à-terre tax for common estate planning structures and situations, analyzing the basic mechanics of the surcharge and discussing key ambiguities in the statute. The article explores potential pitfalls that practitioners should consider when advising clients on property ownership and estate planning in New York.

Washington State's Trust and Estate Dispute Resolution Act (TEDRA) grants courts broad discretion to shift attorneys' fees in trust and estate litigation, potentially exposing fiduciaries to personal liability when their conduct breaches fiduciary duties or unnecessarily prolongs disputes. Understanding the circumstances under which courts may order personal fee awards is essential for trustees, personal representatives, and beneficiaries navigating these complex disputes.

As Treasury scrutinizes aggressive trust stacking strategies that multiply QSBS tax exclusions, venture-backed founders and investors face a critical window to optimize their tax planning. The article examines how this powerful wealth-building tool is evolving and what stakeholders need to consider before potential regulatory changes reshape the landscape.

Estate planning is the process of setting out advance instructions to prepare for your future incapacity or death. Every estate plan is unique because every individual’s family and circumstances are unique.

As personal and financial lives increasingly move online, estate planning must evolve to address digital assets ranging from email accounts and social media profiles to cryptocurrency and cloud-stored business records. Without proper planning, these assets can become inaccessible or lost upon incapacity or death, creating legal, financial, and emotional complications for loved ones and fiduciaries.

Governor Andy Beshear recently signed Senate Bill 50 into law, ushering in one of the most significant updates to Kentucky inheritance and estate administration laws in recent years.

At a Washington tax conference on May 20, Treasury Assistant Secretary for Tax Policy Kenneth Kies reportedly signaled that anti-stacking regulations targeting Code §1202 qualified small business stock (“Q.S.B.S.”) are likely forthcoming.

Washington State has enacted a new 9.9% income tax on individual earnings exceeding $1 million annually, effective January 2028.