July 2014 Firm News and Events

Firm Events

Please save the date for these upcoming programs sponsored by The Law Office of Lewis J. Saret or at which Lewis Saret is presenting:

  •  Material Participation of Trusts and Estates, Wednesday, July 16, 2014, 8-9.30 am,Tysons Corner, VA
  • Material Participation of Trusts and Estates, Thursday, July 17, 2014, 8-9.30 am, Bethesda, MD
  • Passing the Buck: How to Teach Your Kids to be Money Smart, Saturday, July 19, 2-4 pm, University Club, Washington, DC
  • Probate 101: What Every Personal Representative Should Know, Wednesday, July 23, 12-1 pm, Law Office of Lewis J. Saret, Washington, DC

For more information or to RSVP, please contact Allaya Lloyd at lloyd.saret@gmail.com.


Firm News

  • June 2013-Allaya Lloyd joined the Law Office of Lewis J. Saret as a full-time paralegal.
  • September 2013-Lewis Saret presented on Estate Planning for Married Couples After ATRA at a Councilor, Buchanan & Mitchell, P.C. Financial Services Luncheon.
  • November 2013-Lewis Saret co-presented with Michael Grace on 3.8% Net Investment Income Tax planning for a National Business Institute webcast.
  • January 2014-In a continuing trend, Lewis Saret was named to the Washington, DC Super Lawyers and The Best Lawyers in America 2014 list for the Estate Planning and Probate practice area.
  • January 2014-Lewis Saret was also selected as a Martindale-Hubbell Washington, DC AV Preeminent lawyer for 2014.
  • June 2014-Lewis Saret was re-appointed Chair of the ABA Tax Section Fiduciary Income Tax Committee.
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Income Tax Alert: Tax Court Rules That Trust Qualifies For Passive Activity Exception

On March 27, 2014, the U.S. Tax Court issued its decision for the case of Frank Aragona Trust et al. v. Commissioner, 142 T.C. No. 9, No. 15392-11 (2014). The Court held that the Frank Aragona Trust (“the Trust”) qualified for the Internal Revenue Code (“IRC”) Sec. 469(c)(7) passive activity exception. The Tax Court found that a trust is capable of performing personal services through its individual trustees and that the Trust materially participated in real property trades or business. It concluded that the Trust’s rental activities were consequently not passive.

In light of the recent imposition of the 3.8 % Net Investment Income Tax (NIIT), this ruling is especially important because any income derived from trade or activities in which a trust or estate materially participates would not be subject the NIIT. Continue reading

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Estate Tax Alert: Maryland and D.C. To Raise Estate Tax Exemption

Some Things Change.

On May 15, 2014, Governor Martin O’Malley signed H.B. 739, which provides for the gradual increase of Maryland’s state estate tax exemption. The House passed the bill on March 7 with the Senate passing the measure on March 20. Continue reading

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Ascertainable Standards And Trust Distributions: What You Should Know

Almost all estate plans include a trust of some kind, and most clients want to know what limits are placed on how much of the trust’s assets a beneficiary can have access to. Often, their questions revolve around knowing how much and when can a trustee distribute trust assets to a beneficiary. More often than not, these decisions are based on criteria called ascertainable standards. Continue reading

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DC Probate Administration: An Introduction

What is Probate?

The first few months after a loved one, family member or friend passes away can often be bewildering and confusing for those who are left behind. Besides the emotional aspect of the death, many practical questions arise at this time, such as who pays for the funeral expenses, what happens to the decedent’s assets and who handles any of the legal matters that invariably occur at this time. Many of the answers to these and other questions work themselves out through the process most commonly known as probate or estate administration.

At its simplest, the probate process is the legal process that takes place after someone’s death. During the process, the decedent’s assets are located, his/her debts paid, and his/her remaining property distributed to its new owners. This process takes a minimum of eight months, but typically lasts for a year or longer. The person who is in charge of handling these issues is called the personal representative. The articles in this series are intended to assist a personal representative of a decedent’s estate (i.e., the decedent’s assets) subject to probate in the District of Columbia Superior Court. Continue reading

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Code Sec. 1411 Material Participation by Trusts & Estates (Part 1) – Current Status and Planning

Lewis Saret authored the following column, published in CCH Taxes – The Tax Magazine, The Estate Planner: Code Sec. 1411 Material Participation by Trusts & Estates (Part 1) – Current Status and Plannning.

“This column, the first of a two-part column, concludes a series of interrelated columns dealing with the Code Sec. 1411, 3.8-percent net investment income tax (NIIT). This column deals with material participation of trusts and estates and recaps various planning suggestions that have been made to mitigate the NIIT.”

The full column may be downloaded by clicking the following link: Material Participation of Trusts & Estates Part 1 Continue reading

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Defining Net Investment Income Under The Final 3.8-Percent Investment Tax Regulations

Lewis Saret recently posted a new article on his Forbes blog, which offers a detailed look at the Final NIIT Regulations provisions that define net investment income. Read the post here

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Calculating Undistributed Net Investment Income For Trusts and Estates

Lewis Saret recently posted an article on his Forbes blog, which discusses how the Final NIIT Regs determine the undistributed net investment income of trusts and estates. Read the post here.

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Charitable Remainder Trusts And The Final Net Investment Income Tax Regulations

Lewis Saret recently posted a new article on his Forbes blog, which discusses the Final Net Investment Income Tax Regulations’ treatment and classification of net investment income for charitable remainder trusts. Read the post here.

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Applying The Final Net Investment Income Tax Regulations To ESBTs

Lewis Saret recently posted a new article on his Forbes blog, which discusses the application of the Net Investment Income Tax Final Regulations to Electing Small Business Trusts (ESBTs). Read the article here.

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