Headlines

June 28, 2024

Hanna R. Dameron, Tracy L. McLaughlin & Kevin Matz, A Closer Look at AI in Family Offices, Wealth Management, June 28, 2024: "Understand the risks to privacy, confidentiality and fiduciary responsibility and do your best to mitigate them."

June 23, 2024

Zach Schonfeld & Ella Lee, Supreme Court opinion season nears climax: 5 major decisions to come, The Hill, June 23, 2024 (Apple News link): "When the [United States Supreme Court] justices return to the bench on Wednesday, they may put [the Chevron doctrine] on its death bed." See Chevron doctrine, Glossary.

June 22, 2024

Debbie Carlson, Deepest Sympathies. You’re Now the Executor of a Will., Barron's, June 22, 2024 (Apple News link) ("Large estates can be complex and may benefit from having a professional co-executor to help you navigate. Even small estates have plenty of paperwork to complete.").

June 20, 2024

Richard Rubin & Ruth Simon, IRS to Reject Billions of Dollars in Covid Employer Tax-Credit Claims, WSJ, June 20, 2024 (Apple News link): "Amid widespread fraud, agency moratorium on processing new requests to remain in place."

June 19, 2024

Tom Taulli, How IRAs Impact Social Security, Kiplinger, June 19, 2024 (Apple News link): "Traditional IRAs impact Social Security in certain cases. Some IRA distributions count as income that could lower your benefits."

May 21, 2024

Paul Mejia & Michael S. Arlein, Playbook for Advising Young High-Net-Worth Entrepreneurs, Wealth Management, May 21, 2024.

May 2, 2024

Charles Lewis Sizemore, The Rule of 72 Is an Easy Way to Assess Your Investments. Are You using It?, Kiplinger, May 22, 2024 (Apple News link).

March 6, 2024

Anna Sulkin Stern, Estate of Hilton Heir Challenges $1.2B Tax Bill, WealthManagement.com, March 6, 2024: "The estate of William Barron Hilton, who was the son and successor of hotelier Conrad Hilton, filed a Tax Court petition last month disputing a $1.16 billion estate tax deficiency, plus interest, stemming from a will contest over bequests Hilton made to the Conrad N. Hilton Foundation and Ducks Unlimited."

February 23, 2024

Jennifer Lewke, News10NBC Investigates: Buried in the wrong spot?, whec.com, Feb. 23, 2024: "Imagine, you buy the burial plots next to your family to ensure you’ll be together for eternity, only to go for a visit one day and find someone else has been buried in your spot. It happened to a couple from Fairport and they’ve been fighting for months for answers. . . . In the handful of similar cases nationally reviewed by News10NBC, most of the time, the body was moved to honor the original contract. But in this case, Jewish traditions may make that too difficult. // It’s not totally uncommon for a plot to be sold and then there’s a boulder or some other issue underground that prevents the body from being buried in it. But typically, in those cases, there is a conversation with the family before burial about where to move their loved one."

January 11, 2024

Josipa Majic Predin, The Rise And Rise Of The Family Office: An Analysis, Forbes, Jan. 11, 2024 (Apple News link): "The rise of family offices has trickled across the entire financial sector, triggering a profound impact on various fronts. Traditional wealth management institutions are confronting heightened competition from family offices, which are not only rivalling them in the pursuit of top-tier investment opportunities but also recruiting top talent from established financial firms."

January 10, 2024

Patrick Donachie, SEC Approves 11 Bitcoin ETFs, wealthmanagement.com, Jan. 10, 2024: "The SEC found that the 11 proposals were consistent with the Exchange Act. Previously in determining whether Grayscale’s ETF passed muster, the commission found it hadn’t established that the Chicago Mercantile Exchange Bitcoin Futures Market 'was a market of significant size' related to spot bitcoin. // 'Based on these circumstances and those discussed more fully in the approval order, I feel the most sustainable path forward is to approve the listing and trading of these spot bitcoin ETP shares,' SEC Chair Gary Gensler said in a statement about the approvals."

Fredrick B. Weber, Live from Heckerling: Modern Estate Administration, wealthmanagement.com, Jan. 10, 2024.

January 9, 2024

Amy Or, Growing Demand For Convertible Bonds Likely To Survive Rate Cuts, Financial Advisor, Jan. 9, 2024: "Investment grade-rated companies and those with lower ratings that finally warmed to convertible bonds in 2023 after years of shunning them are set to keep the relationship going, even as investors grow increasingly convinced that central bank rate cuts are just around the corner."

January 8, 2024

Katelyn Washington, Non-refundable v. Refundable Tax Credits: What's the Difference, Kiplinger, Jan. 8, 2024 (Apple News link).

January 7, 2024

Lori Ioannou, Brokerage Firms Are Pitching Separately Managed Accounts. Here's What to Know., WSJ, Jan. 7, 2024 (Apple News link): This is an excellent article on SMAs that covers their pros/cons, distinguishes them from passive investments (like ETFs and mutual funds), explains who they're for, and shares trends regarding them.

January 5, 2024

Debbie Carlson, You Can Buy Gold Bars at Costco. But Are They Worth It?, WSJ, Jan. 5, 2024 (Apple News link): "The retailer says that its periodic offers sell out quickly. And some say it’s a pretty good deal, all things considered."

January 3, 2024

Joshua Rodriguez, Can you avoid taxes on CD account interest?, CBS News, Jan. 3, 2024 (Apple News link): "You can cut down on the taxes you pay on the interest your CD earns by opening it as part of a tax-advantaged account." Rodriguez discusses opening a CD as part of retirement account, a 529 CD, and an HSA CD.

December 30, 2023

MacKenzie Sigalos, Heroes to zeroes in 12 months: How the two biggest crypto billionaire CEOs proved the critics right, CNBC, Dec. 30, 2023 (Apple News link): "FTX's Sam Bankman-Fried and Binance's Changpeng Zhao went from industry titans to convicted frauds in the span of 12 months."

December 29, 2023

Daniel Bortz, Common Estate Planning Mistakes, Kiplinger, Dec. 29, 2023 (Apple News link).

Marley Jay, Why the 'wealth transfer' from boomers to their heirs won't be as large as expected, NBC News, Dec. 29, 2023 (Apple News link): "Experts say baby boomers will give more than $50 trillion to their heirs. But for many, health care costs will claim the bulk of that wealth."

Nate Raymond, Ex-Trump fixer Michael Cohen says AI created fake cases in court filing, Reuters, Dec. 29, 2023 (Apple News link): "Cohen . . . said in a sworn declaration in federal court in Manhattan that he did not realize the citations generated by Google Bard were fictitious. . . . The case citations were included by an attorney for Cohen in a motion seeking an early end to his supervised release following Cohen's imprisonment for campaign finance violations."

December 28, 2023

Jessica Dickler, A 'significant objection' to 529 college savings plans will go away Jan. 1. 'This is a big deal,' expert says, CNBC, Dec. 28, 2023 (Apple News link): "A provision in Secure 2.0 allows money saved in a 529 college savings plan to be converted into a Roth individual retirement account tax-free after 15 years. // Up until now, the funds had to be used for qualified education expenses. Starting Jan. 1, the savings can also be put toward retirement."

December 18, 2023

Robert W. Wood, Rudy Giuliani can Write Off $148 Million Verdict While Plaintiffs Pay Tax On 100%, Forbes, Dec. 18, 2023 (Apple News link): "Their suit against Giuliani was a defamation case, where the injuries are in the nature of emotional distress, not physical injuries. It sounds like hair-splitting, but recoveries for physical injuries and physical sickness are tax-free, but symptoms of emotional distress are taxed. . . . How about Giuliani’s tax write off? . . . Compensatory settlements by businesses are clearly deductible, and even punitive damages are too."

December 17, 2023

Coryanne Hicks, How Do I Gift Stocks?, Kiplinger, Dec. 17, 2023 (Apple News link).

November 29, 2023

Lori Ioannou, Four Lucrative Tax Deductions That Seniors Often Overlook, WSJ, Nov. 29, 2023 (Apple News link): Discusses the extra standard deduction for "seniors who are age 65 or over or blind and meet certain qualifications," IRA contributions by a spouse, qualified charitable contributions, and the Medicare premium deduction.

November 28, 2023

Andrew Bary, Warren Buffet's Right-Hand Man Charlie Munger Dies at 99, Barron's, Nov. 28, 2023 (Apple News link): Hani: I find the following quote from the article inspirational: "Munger observed that he and Buffett did things differently than the typical corporate executives. // 'We both insist on a lot of time being available almost everyday to just sit and think.' he said. 'That is very uncommon in American business. We read and think.'"

November 27, 2023

Thomas Foley, Beyond the Headlines: How COVID Impacted Commercial Real Estate, WealthManagement.com, Nov. 27, 2023: "To recap, the CRE industry has gone from a pre-pandemic histrionic reaction with lower interest rates, to the pandemic with interest rates dropping to the bottom, rent growth skyrocketing and more transaction volume. And today reflects the opposite: low or rent growth retreating, interest rates increasing, insurance rates rising and values plummeting."

November 24, 2023

Robert W. Wood, Which Trusts Save Taxes, Which Do Not, And Which Are Illegal?, Forbes, Nov. 24, 2023 (Apple News link): Discusses several trusts, including revocable and irrevocable trusts, and a recent grand jury indictment for promoting and selling abusive trusts: "According to the indictment, since 2017, Timothy McPhee of Estes Park, Colorado, and Larry Conner of Frisco, Texas – along with others – promoted and sold an abusive-trust tax shelter to clients nationwide for fees ranging from approximately $25,000 to $50,000."

November 20, 2023

Jeff Stimpson, Your Clients May Not Know About This Capital Gains Tax Break, Nov. 20, 2023: "Section 1202 of the Internal Revenue Code has long allowed taxpayers to exclude the sale of certain qualified small-business stock [of certain C corporations] from federal capital gains taxes, creating a tremendous lure for investing in small businesses."

October 24, 2023

Adam Diederich, Evgeny Madigenko & Kevin Matz, The Corporate Transparency Act Is Coming Soon: Are You Prepared?, Arent Fox Schiff, Oct. 24, 2023.

October 20, 2023

Matthew F. Erskine, Update on the Impending Corporate Transparency Act, WealthManagement.com, Oct. 20, 2023: "Reporting requirements are set to commence on January 1, 2024. Here's how to prepare."

October 18, 2023

Jacob Sheldon, Passing Down a Home in a QPRT, WealthManagement.com, Oct. 18, 2023: Discusses why higher interest rates are better for setting up a QPRT: "As far as tax planning strategies go, QPRTs respond quite well to a spike in interest rates, setting them apart. That’s because federal tax laws rely on the Internal Revenue Code Section 7520 rate (120% of the applicable federal mid-term rate) to calculate the value of the grantor’s retained use of the transferred real estate."

October 16, 2023

Thomas J. Frank Jr., Family, Friends Aren't Always the Best Successor Trustees. Here Are 3 Alternatives., Barron's, Oct. 16, 2023 (Apple News link): Discusses the pros and cons of naming the following as a trustee: Surviving spouse, offspring, friend, business partner, private professional fiduciary, bank trust department, and multifamily office structured as a trust company.

Josh Gerstein, Pras Michael of Fugees seeks new trial, contends former attorney used AI for closing argument, Politico, Oct. 16, 2023: Michael's motion for "prejudicial ineffective assistance of counsel" states that the lawyer, David Kenner, had an "undisclosed financial stake in the AI program and they experimented with it during Michel’s trial so they could issue a press release afterward promoting the program — a clear conflict of interest."

October 12, 2023

Janet Novack, Social Security Benefits Will Rise 3.2% In 2024, While Top Tax Jumps 5.2%, Forbes, Oct. 12, 2023: "Social Security benefits will increase 3.2% in 2024 . . . raising the average monthly check for a single retired worker to $1,907, up $59 from $1,827 this year, and for a retired couple both receiving benefits to $3,033, up $94 from $2,939 this year, the Social Security Administration said today. That’s a small boost compared to the 8.7% cost-of-living adjustment (COLA) for 2023 (the largest since 1981 . . .) and reflects the damper that’s been put on inflation."

October 11, 2023

Jody R. King & Aimee Fukuchi Bryant, Massachusetts Passes $1B Tax Reform Package, WealthManagement.com, Oct. 11, 2023: "Seven key provisions of the new law explained."

October 6, 2023

Joey Solitro, Yes, You Can Buy Gold At Costco--And Sales Have Now Topped $100M, Kiplinger, Oct. 6, 2023 (Apple News link): "They are available online only with a limit of two per member and are not eligible to be returned or refunded. // Costco ships the gold bars via UPS insured shipping and a signature is required on delivery."

October 3, 2023

Daniel De Visé, Where's the inheritance? Why fewer older Americans are writing wills or estate planning, USA Today, Oct. 3, 2023 (Apple News link): "The downward trend reflects the growing diversity of older America. Seniors are more likely than ever to be Black or Hispanic, and those populations are less likely than non-Hispanic whites to leave a will or receive an inheritance."

Faith E. Pinho, Kevin McCarthy is out as House speaker. Here's what happens next, Los Angeles Times, Oct. 3, 2023 (Apple News link): "McCarthy is the first speaker in U.S. history to be removed by a vote of the chamber. . . . The House of Representatives voted 216 to 210 on Tuesday to oust McCarthy, following a GOP revolt led by Rep. Matt Gaetz (R-Fla.). // Gaetz had said he would try to dethrone McCarthy if the GOP leader worked with Democrats to pass a stopgap government funding bill. The bill was needed to ensure the government could keep operating. . . . [E]ight Republicans joined House Democrats in voting to dump the speaker."

October 2, 2023

Tim Hoefer, Opinion: AOC Redefines the Term 'Rich', WSJ, Oct. 2, 2023 (Apple News link): "Bemoaning 'violent budget cuts' at New York City agencies, Rep. Alexandria Ocasio-Cortez and her ideological allies are calling on the city and state to 'fund resources for all New Yorkers' by raising taxes on the top 5% of New Yorkers. Considering the left’s prior focus on 'the 1%,' this is a major development. // The top 1% of New Yorkers begins just south of $1 million in adjusted gross income. But the top 5% begins a little above $250,000—translating into married couples making $127,000 each."

September 29, 2023

Kate Dore, These are the 3 biggest retirement plan rollover mistakes, expert says. Here's how to avoid penalties, CNBC, Sept. 29, 2023 (Apple News link): "1. Bypassing the once-per-year IRA rollover rule," "2. Missing the 60-day rollover deadline," and "3. Losing eligibility for the 10% penalty exception."

Dominic Pino, The Mother of All Fiscal Cliffs, National review, Sept. 28, 2023 (Apple News link): "We fall off in 2025, and people aren't worried enough."

September 28, 2023

John Rekenthaler, Should You Delay Taking Social Security Benefits?, Morningstar, Sept. 28, 2023 (Apple News link).

September 26, 2023

Kelly Phillips Erb, Two Promoters Charged In Alleged Trust Tax Shelter Fraud Scheme, Forbes, Sept. 26, 2023 (Apple News link): "According to the indictment, [Timothy McPhee of Estes Park, Colorado, and Larry Conner of Frisco, Texas] allegedly instructed clients, most of whom were business owners, to assign their legitimate business income to a sham 'business trust' to make it appear as if the income was no longer owned or controlled by the client. The sham business trust then distributed income to a second sham trust, which distributed its income to a third sham trust. Each trust in the series reported deductions matching or exceeding its income, and the third sham trust purportedly 'donated' any remaining income to a private family foundation, which in turn 'loaned' the funds back to the client’s business or business trust, tax-free. The income and deductions were reported on Forms 1040 and Forms 1041 in a manner that allegedly fraudulently eliminated nearly all taxes owed."

Christine D. Moriarty, Crypto in your retirement investments? 4 principles to remember before you do anything., Market Watch, Sept. 26, 2023 (Apple News link): "Decoding cryptocurrency investing: What to consider before you buy the digital dough."

Nikki McCann Ramirez, Trump Committed Fraud by Lying About Net Worth, Judge Rules, Rolling Stone, Sept. 26, 2023 (Apple News link): "A New York judge ruled on Tuesday that former President Donald Trump, his two adult sons, and several of his associates are liable for fraud. The ruling establishes that Trump overvalued his properties and inflated his net worth over several years, thus deceiving banks, investors, and insurers."

September 25, 2023

Jonathan San Solo, The Impact of Artificial Intelligence on Law, Citrin Cooperman, Sept. 2023.

September 24, 2023

Sarah Brodsky, What Are Tax-Advantaged Accounts?, WSJ, Sept. 24, 2023 (Apple News link).

September 22, 2023

Dawn Chmielewski & Helen Coster, Who is Lachlan Murdoch? What will happen to Fox and News Corp?, Reuters, Sept. 22, 2023 (Apple News link): "Lachlan Murdoch, eldest son of media titan Rupert Murdoch, was named sole chairman of News Corp (NWSA.O) and will continue as chair and chief executive of Fox Corp (FOXA.O), the companies said on Thursday, settling for now the issue of succession in one of the world’s most powerful media empires. // The younger [James] Murdoch will preside over influential news brands such as the Wall Street Journal, Fox News and the Sun – in Australia, the United States and UK – as well as Fox Sports, Fox Entertainment and others."

Laura Saunders, A Tax Break Worth the Hassles, WSJ, Sept. 22, 2023 (Apple News link): "Older Americans can still reap tax breaks from donating to charity, even if they aren’t itemizing deductions. The secret: a ‘qualified charitable distribution’ from a traditional IRA."

Allan Sloan, Social Security's Problem Is Growing. This Plan to Fix It Deserves a Look, WSJ, Sept. 22, 2023 (Apple News link): "A new bipartisan plan to fix Social Security involves indirectly tapping stock markets to help make up shortfalls. Volatility comes with the territory."

Anne Steele & Ashlea Ebeling, The IRS Is Going to Know if You Sold Taylor Swift 'Eras' Tickets, WSJ, Sept. 22, 2023 (Apple News link): "In a big shift, anyone who took in more than $600 a year from reselling tickets could be in for a tax surprise."

September 18, 2023

Sydney Lake, House poor is back: 'the new normal for the foreseeable future', Fortune, Sept. 18, 2023 (Apple News link): "Monthly mortgage payments soar to $3,000 for one-fourth of homeowners. That's a 60% jump in just the two past years."

September 15, 2023

Kate Dore, Here are 3 things to consider before making a Roth conversion to save on future taxes, CNBC, Sept. 15, 2023 (Apple News link): "investors need to weigh the upfront bill, tax brackets and timing."

Danielle Kay, The UAW launches a historic strike against all Big 3 automakers, NPR, Sept. 15, 2023 (Apple News link): "A historic strike at the Detroit Three automakers is now underway. . . . [UAW President Shawn Fain] has repeatedly doubled down on the union's key economic demands – including 40% pay raises he says would be in line with CEO wage increases, the restoration of pension and retiree healthcare and cost of living adjustments. . . . A prolonged strike poses a potential threat to the U.S. economy. In a scenario in which all of the about 150,000 UAW auto union members were to strike for six weeks, the impact on the economy would amount to shaving an estimated 0.2% off fourth-quarter GDP. . . . Ford sources told reporters on Thursday that meeting the UAW's demands in full would completely halt new production due to much higher labor costs. . . . The UAW walkout is the 17th strike in the U.S. involving more than 2,000 workers so far this year, according to data from the Cornell University School of Industrial and Labor Relations."

Liz Weston, How to reduce taxes on your Social Security, Market Watch, Sept. 15, 2023 (Apple News link).

September 14, 2023

Evan T. Beach, Four Reasons You Don't Need a (Revocable) Trust, Kiplinger, Sept. 14, 2023 (Apple News link): "Sometimes a basic will, setting up TOD and POD designations and choosing beneficiaries for retirement accounts, life insurance and annuities will do the trick. . . . (1) Probate avoidance is the only goal. . . . (2) You have straightforward wishes. . . . (3) You're only motivated by tax savings or Medicaid eligibility. . . . (4) You're not great at follow-through."

James Mackintosh, Rising Rates Make Big Companies Even Richer, WSJ, Sept. 14, 2023 (Apple News link): "The amount companies earn from cash in the bank is going up even as interest costs fixed during the pandemic stand still . . . . The Federal Reserve jacked up interest rates to slow the red-hot economy. At some of the biggest and most secure companies, the moves had the opposite of the intended effect, boosting their profits and spending power. // The winners from higher rates were high-quality borrowers, who locked in low interest rates around the pandemic with bonds maturing further in the future than any time this century. Higher rates have little immediate impact on their borrowing costs—only affecting bonds when they are refinanced—while they earn more on their cash piles straight away."

Theo Francis, CEO With $110 Million Pay Package Is Suddenly Out, WSJ, Sept. 14, 2023 (Apple News link): "Just over a year after CS Disco shareholders approved a CEO pay package worth nearly $110 million—one of the biggest of 2022—the company’s co-founder and chief executive, Kiwi Camara, resigned with little explanation. . . . CS Disco shares fell nearly 20% Tuesday following the disclosure. Shares in the company, which provides software used by lawyers, are trading below $8 after going public at $32 in July 2021. . . . CS Disco’s tools, which it describes as powered by artificial intelligence, are designed to help lawyers and law firms with discovery, document-review, case-management and other functions."

September 13, 2023

Laila Maidan & Kathleen Elkins, FIRE Movement: Early retirees discuss limitation, need to resume working, Business Insider, Sept. 13, 2023 (Apple News link).

Elizabeth O'Brien, The Expected Social Security Raise for 2024 Just Got Bigger, Barron's, Sept. 13, 2023 (Apple News link): "Social Security benefits are projected to rise 3.2% for 2024, up slightly from prior estimates [of 3.0% due to] higher consumer-price data through August."

September 11, 2023

Greg Lacurci, Social Security's trust funds are running dry. Here are 4 things to know, CNBC, Sept. 11, 2023 (Apple News link).

Patrick Spauster, A Real Estate Trust Bought Dozens of Brooklyn Brownstones. Now It Wants Out., City Limits, Sept. 11, 2023 (Apple News link): "Experts on real estate investment note that the biggest REITs tend to avoid markets like New York, due to high acquisition costs, high taxes, a stricter regulatory environment, and more tenant-friendly housing laws. Manon Vergerio, a researcher studying REITs, was surprised to hear about a trust operating in the city: 'Maybe they are just clueless?'"

September 10, 2023

Michael Calcagni & Michael J. Borger, Standing of Trust Beneficiaries in Derivative Actions, NYLJ, Sept. 10, 2023.

C. Raymond Radigan & David N. Milner, Why New York Attorneys Should Consider Inter Vivos Trusts in Estate Planning, NYLJ, Sept. 3, 2023: "Sadly, over the years, there have been many developments that have adversely impacted upon the ability to achieve speedy probate. All courts have experienced a significant decline in court personnel. The pandemic contributed to even greater court delays. In some New York counties, the delay in achieving probate in a simple, uncontested proceeding, with all interested parties signing waivers and consents, is taking months. // In a recent uncontested filing, it took six weeks to have a file number assigned and, while, to the court’s credit, preliminary letters were issued at the same time, it has been almost four months since submission of the probate petition and no further communication has been received from the court. We understand that this is not the fault of the court but rather the circumstances under which they are operating."

September 8, 2023

Elizabeth O'Brien, Almost All Workers Should Contribute to Roth Accounts. Here’s Why., Barron's, Sept. 8, 2023 (Apple News link).

September 7, 2023

Imani Moise, Beware of the Credit-Line Increases Banks Are Doling Out, WSJ, Sept. 7, 2023 (Apple News link): "Credit-line increases are becoming more common as companies dole them out to entice customers to spend more, which boosts their revenue. . . . Most people consider credit-line increases a gift, but the option to put more purchases on a card can be tough for many to resist."

September 5, 2023

Amanda Hoover, The End of Airbnb in New York, Wired, Sept. 5, 2023: "Thousands of Airbnbs and other short-term rentals are expected to disappear from rental platforms as New York City begins enforcing tight restrictions."

Amy Legate-Wolfe, Should you start collecting Social Security at 62 or wait? Here are 3 smart reasons to start getting paid ASAP, Money Wise, Sept. 5, 2023 (Apple News link).

September 3, 2023

Robyn A. Friedman, Waiving the Appraisal Gap Can be Both a Bargaining Chip and Big-Time Risk for Home Buyers, WSJ, Sept. 3, 2023 (Apple News link).

September 2, 2023

Anne Tergesen, Roth vs. Traditional 401(k): Where to Put Your Money for Retirement?, WSJ, Sept. 2, 2023 (Apple News link).

September 1, 2023

Mark Hulbert, Can you answer this crucial retirement-planning question? Most people can't., Market Watch, Sept. 1, 2023 (Apple News link): "How can you plan for retirement if you don't know how long it will last? . . . The question focuses on 'life expectancy,' and needless to say answering it correctly is an essential prerequisite to good retirement planning."

Greg Ip, Joe Pinsker, Will Parker, Walden Siew, Jennifer Williams-Alvarez, Veronica Dagher & Telis Demos, Rates Are Up. We're Just Starting to Feel the Heat., WSJ, Sept. 1, 2023 (Apple News link): The "seemingly endless stream of cheap money . . . no longer exists." "Homeowners. Car buyers. Landlords. Big businesses. Here's who stands to lose--and in some surprising cases, win--as interest rates stay high in the years ahead."

August 31, 2023

Kenneth Corbin, A 401(k) Provider Sued the Labor Department Over a Crypto Warning. It Just Lost., Barron's, Aug. 31, 2023 (Apple News link): Reporting on ForUsAll's lawsuit.

Jacob Sonenshine, The Stock Market's Debt Problem Is Hiding in Plain Sight, Barron's, Aug. 31, 2023 (Apple News link): "Elevated interest rates have already cut into earnings . . . . [C]ompanies are also grappling with higher interest expenses on their debt. Firms refinancing any debt have to borrow at significantly higher rates compared with just last year."

August 30, 2023

Brenden Rearick, High-Yield Savings Accounts Are Offering APYs Around 5%. How Long Will It Last?, Money, Aug. 2023 (Apple News link): "High-yield savings accounts are simply savings accounts that offer higher APYs than typical savings options. But why are some banks choosing to offer such favorable rates to clients? The answer has to do with the Federal Reserve’s interest rate hikes and how they affect banks’ borrowing costs. . . . [B]anks must balance between increasing rates to attract more customers and the costs associated with high APY payouts. . . . In sum, experts tend to agree that the pot won’t be getting much sweeter when it comes to APYs on high-yield savings accounts."

August 29, 2023

Jason Fernando, The Power of Compound Interest, Investopedia, Aug. 2023 (Apple News link).

Karen Hube, IRS Pushes Back New Roth 401(k) Catch-Up Rules. What to Know., Barron's, Aug. 29, 2023 (Apple News link): "The Internal Revenue Service delayed the start date of a new rule that will require higher earners' catch-up 401(k) contributions to be made on an after-tax basis into a Roth account, rather than pretax. // Originally scheduled to go into effect next year, the change--made under the Secure Act 2.0 in December last year--has been bumped to 2026."

Paul Kiernan & Alexander Osipovich, Grayscale's Court Win Over SEC Lifts Hopes for Bitcoin ETF Approval, WSJ, Aug. 29, 2023 (Apple News link): "A federal court ruled Tuesday that the Securities and Exchange Commission must reconsider crypto asset manager Grayscale Investments’ application to launch the first bitcoin exchange-traded fund, the latest setback for SEC Chair Gary Gensler’s efforts to regulate the upstart industry. . . . Currently, the only SEC-approved bitcoin ETFs hold futures contracts, which trade on derivatives exchanges regulated by the Commodity Futures Trading Commission."

August 28, 2023

Oliver Darcy, Disney, The New York Times and CNN are among a dozen major media companies blocking access to ChatGPT as they wage a cold war on A.I., CNN Business, Aug. 28, 2023 (Apple News link): "A multitude of leading newsrooms have recently injected code into their websites that blocks OpenAI's web crawler, GPTBot, from scanning their platforms for content. . . . It's not difficult to imagine how A.I. bots integrated into search, apps, and now-ubiquitous smart devices might put many newsrooms out of business, ironically doing so by using the very information they've derived from those newsrooms. Once these outlets are wiped from existence, a void of authoritative sources to train A.I. models would be created, and misinformation could be authoritatively passed along by confused bots feeding off a diet of bad information."

Elizabeth Gravier, New study finds a 13% increase in average retirement savings year over year, up to $98,800, CNBC, Aug. 28, 2023 (Apple News link).

Ashton Jackson, The No. trait you need to be more successful than most, says workplace expert: It's 'the single most important differentiator, CNBC, Aug. 28, 2023 (Apple News link): Confidence. Jackson discusses three ways to build confidence: (1) Stop apologizing unnecessarily, (2) Perfect your speaking skills, and (3) Achieve your goals.

Regina Kiperman, Compel Production of a Will, RK Law, Aug. 28, 2023.

John Rampton, 97% of Americans Qualify – IRS Just Gave You $118,976.24 Tax-Free (How to Collect), Entrepreneur, Aug. 28, 2023 (Apple News link): "Roth IRA contribution limits will finally increase in 2023. . . . This is the first time in over four years that Roth IRA limits have been increased."

August 25, 2023

Richard Rubin & Paul Kiernan, U.S. Tackles Crypto Tax Mess, WSJ, Aug. 25, 2023 (Apple News link): Discusses Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Transactions, Proposed Rule by the IRS, Aug. 2023. "Under Friday’s proposal, crypto brokers such as Coinbase and Kraken would be required to file reports about the gross proceeds of crypto transactions starting in early 2026. The following year, they would be required to start reporting cost basis, but only for assets purchased starting in 2023. The rules don’t change what is taxable, only how it is reported. . . . The proposed rules would also apply to other digital assets such as nonfungible tokens. And they would apply to so-called decentralized finance, or DeFi, platforms, which use software to link crypto buyers and sellers directly rather than routing their orders through an exchange such as Coinbase."

Laura Saunders, Paying Extra for Medicare? See If Your'e Due a Refund, WSJ, Aug. 25, 2023 (Apple News link): "The Medicare surcharge known as Irmaa can be a tough pill to swallow. But here’s a little-known workaround: Older Americans who have been hit by the added cost have a chance to appeal."

August 23, 2023

Richard Eisenberg, 6 ways we're doing inheritances wrong, MarketWatch, Aug. 23, 2023 (Apple News link).

David A. Handler & Alison E. Lothes, Taxpayer Challenges IRS' Aggregation of Two Minority Interests, Wealth Management, Aug. 23, 2023: "In Estate of Epstein v. Commissioner, No. 11534-23 (T.C. 2023), the estate filed a petition challenging a $2.6 million tax deficiency, arguing that the IRS improperly combined limited partner (LP) and general partner (GP) interests when valuing an interest in an apartment complex for estate tax valuation purposes."

Anna Sulkin Stern, Dianne Feinstein's Trust Drama Intestifies, Wealth Management, Aug. 23, 2023: "In a third lawsuit in as many months, Katherine Feinstein, who has limited power of attorney over her mother, Senator Dianne Feinstein, accuses the trustees of a marital trust established by Feinstein’s late husband Richard Blum of elder abuse."

Andrew Welsch, Retirement Tipping Point: Here's When Investors Decide to Rely on Financial Advisors, Barron's, Aug. 23, 2023 (Apple News link): "The closer investors get to retirement, the more reliant many of them become on financial advisors to guide their finances, according to a new report from research firm Cerulli Associates."

August 22, 2023

Adam Hardy, Americans Say They'll Need $5,000 a Month to Retire Comfortably, Money, Aug. 2023 (Apple News link): Hard discusses recent surveys by Schroders and TIAA.

Liz Knueven, Bank accounts rich people use that are available to anyone, Business Insider, Aug. 22, 2023 (Apple News link): (1) "Rich people use Roth IRAs for tax advantages," (2) "Wealthy people take advantage of their employers' 401(k) plans, and (3) "They take advantage of brokerage accounts." "For those who want to retire early or save for a nearer goal than retirement, a brokerage account is the right move."

Avalon Zoppo, Appellate Lawyers Say ChatGPT Can Help in Brief Writing--to a Point, NYLJ, Aug. 22, 2023: "The AI tool can help with style but is not reliable for research, attorneys add."

August 21, 2023

Jeffrey A. Galant, A Reminder That Partnership Tax Status Requires Business Purpose and Profit Sharing, NYLJ, Aug. 21, 2023: "In connection with structuring entities for family-owned businesses or investment activities or other privately held enterprises, the entity, whether a partnership or limited liability company treated as partnership, should play a significant role in the succession process, which in itself would clearly be a valid business purpose."

August 19, 2023

Cheyenne DeVon, The No. 1 best state to retire in the U.S.--it's not Florida, CNBC, Aug. 19, 2023 (Apple News link): "Iowa ranks as this year's No. 1 state to retire, according to a recent Bankrate study. . . . Delaware ranked No. 2 on the list, thanks to its high quality health care and light tax burden." The Bankrate study weighed five factors: (1) Affordability (40%), (2) well-being (25%), (3) health-care quality and cost (20%), (4) weather (10%), and (5) crime (5%).

Ashlea Ebeling, The Moves Wealthy Families Are Making to Skirt Estate Taxes, WSJ, Aug. 19, 2023 (Apple News link): "How dynasty trusts can shield wealth before the Trump tax cuts expire."

Emily Price, AI Art Cannot Be Copyrighted, Judge Rules, PC Mag, Aug. 19, 2023 (Apple News link): "A human has to be involved in a piece of art's creation in order for it to be copyrighted." Price reports about Thaler v. Perlmutter (U.S. District Court for District of Columbia 2023).

Lisa Scherzer, Bonds Are a Great Buy Now. How to Protect Yourself., Barron's, Aug. 19, 2023 (Apple News link).

Susan Tompor, Social Security COLA increase will 'return to reality' in 2024 after jump, predictions say, USA Today, Aug. 19, 2023 (Apple News link): "Retirees likely could be looking at a cost of living adjustment somewhere in the 3% range — less than half of the COLA increase they saw in 2023, according to forecasts by the Senior Citizens League, a nonpartisan advocacy group."

August 18, 2023

Gunjan Banerji, Rising Yields Fatten Americans' Pocketbooks, WSJ, Aug. 18, 2023 (Apple News link): "Higher yields on everything from Treasuries to money-market funds are delivering a windfall to savers. . . . The high rates on offer from many financial institutions, together with the recent decline of interest rates and the home-refinancing wave of 2021, mean that U.S. consumers are better off than they have been in some time. That fact helps to explain why the economy continues to perform months after many economists and investors confidently predicted a 2023 recession, which for now seems to be on hold. . . . The rush to cash marks the shift of a yearslong attitude toward stocks, which seemed to be the best and only place to seek robust returns."

Prerana Bhat & Indradip Ghosh, Fed done hiking; slim majority of economists say no rate cut through March: Reuters poll, Reuters, Aug. 18, 2023 (Apple News link): "A 90% majority, 99 of 110 economists, polled Aug 14-18 say the Fed will keep the federal funds rate in the 5.25-5.50% range at its September meeting, in line with market pricing. A roughly 80% majority expect no further rate rises this year."

Elizabeth O'Brien, Social Security's 2024 Payout Boost Won't Go Far Enough, Survey Indicates, Barron's, Aug. 10, 2023 (Apple News link): "A 3% raise would increase an average monthly benefit of $1,789 by $53.70. That’s before you factor in any increase in Medicare Part B premiums, which are subtracted from most beneficiaries’ Social Security checks. The Senior Citizens League projects the standard Part B premium for next year will be about $179.80 a month, up from $164.90 this year."

August 17, 2023

Ben Eisen & Gina Herb, Mortgage Rates Hit 7.09%, Highest in More Than 20 Years, WSJ, Aug. 17, 2023 (Apple News link): "Interest rates hit housing hard: Would-be buyers are locked out, and would-be sellers are staying put. . . . The housing market is the part of the economy hit most directly by the Federal Reserve’s high-rate policies. . . . Mortgage rates aren’t directly tied to the central bank’s moves. But they tend to move loosely with the 10-year Treasury yield . . . . Some analysts see ample room for the 10-year yield to keep climbing as markets brace for the possibility that rates aren’t going to decline soon."

Amy Legate-Wolfe, Don't even think about retiring until you have these 3 things paid off — and no, your mortgage isn't one of them, MoneyWise, Aug. 17, 2023 (Apple News link): (1) School loans, (2) personal loans and credit cards, and (3) auto loans. "If $700 goes into a car payment, and $300 to a credit card and more for student loans, suddenly you have far less cash on hand to put toward your retirement nest egg. . . . So why not pay down your mortgage too? . . . It's because there are tax benefits available to you for your mortgage as well. Homeowners can claim a federal and state tax deduction on mortgage and home equity loans that you don’t get with most personal loans and credit cards."

Elizabeth O'Brien, Social Security Benefits Could Shrink in 10 Years. How to Plan., Barron's, Aug. 17, 2023 (Apple News link): "Those in poor health may receive more over their lifetime by claiming earlier, while those in average to good health should consider claiming later, if possible, for a higher lifetime benefit. (Regardless of health status, people with little retirement savings may have no choice but to claim early.)"

Beth Pinsker, My mom had a trust, so why do we still need to go probate to settle her estate?, MarketWatch, Aug. 17, 2023 (Apple News link): "A trust can solve a lot of problems, but settling financial matters that aren’t included in the trust means probate in some form – either a shortened version for estates under a certain threshold set by the state where the person lives, or a full process that can be lengthy and expensive." Pinsker mentions failing to fund a trust, missing beneficiary designations, and late-arriving funds as reasons why probate might be necessary despite having a trust-based estate plan.

Carolyn Said, What Dianne Feinstein's Family feud can teach about the warning signs of elder financial abuse, San Francisco Chronicle, Aug. 17, 2023 (Apple News link).

Mark Schoifet, NYC Kicks Off Plan to Rezone Midtown, Turn Offices to Houses, Bloomberg, Aug. 17, 2023 (Apple News link): "New York, Boston, San Francisco and other major US cities are struggling with the dual challenges of what to do with office buildings emptied by the shift to remote work and an affordable housing crisis that’s driving up rents. . . . City officials conceded that state approval will still be necessary to create a substantial amount of new homes through office-to-residential conversions. Adams called on the state to create a tax incentive for office conversions. The legislature let a tax incentive for constructing affordable housing, known as 421-a, expire last year and have not replaced it."

Anne Tergesen, Stock-Market Rally Makes More 401(k) Savers Millionaires, WSJ, Aug. 17, 2023 (Apple News link).

August 16, 2023

Bobby Allyn, New York Times considers legal action against OpenAI as copyright tensions swirl, NPR, Aug. 16, 2023 (Apple News link): "If, when someone searches online, they are served a paragraph-long answer from an AI tool that relies on reporting from The Times, the need to visit the publisher's site is greatly diminished, said one person involved in the talks."

August 15, 2023

Stephanie Pacheco, ANALYSIS: AI Is Making a Summer Splash in Legal, Bloomberg Law, Aug. 15, 2023: "The legal industry has long been derided as averse to technological change, but the advance of generative artificial intelligence appears to be causing a changing of the tide, based on recent survey data from Bloomberg Law. . . . Sixty percent of attorneys reported this summer that they’ve used generative AI. That’s an almost complete flip from our spring survey, in which 63% of respondents said they had no experience using the technology."

Robert Powell, Your company may want to hold your 401(k) assets when you retire -- and you may want to let them, MarketWatch, Aug. 15, 2023 (Apple News link): "Employers are increasingly keeping their workers' 401(k) assets in-plan after retirement."

John Tamny, Opinion: Why Lawmakers Should Pass the SALT Deduction, WSJ, Aug. 15, 2023 (Apple News link).

August 14, 2023

Lorie Konish, As Social Security marks a milestone, here are 3 things to know about your retirement benefits, CNBC, Aug. 14, 2023 (Apple News link): "Here's how Social Security has changed, and what experts are watching for next."

Elizabeth Gravier, It's time for a midyear financial checkup, here are 3 things you should do now with your money, CNBC, Aug. 15, 2023 (Apple News link): (1) "[R]eassess how much you have in your emergency fund . . . ." (2) Reevaluate your spending. (3) Pay off your debt: "Prioritize paying off the higher-interest debt, like credit card debt, since that is costing you more the longer it goes unpaid."

Tracey Longo, Activist Advisor Recalls Jousting With Elon Must, SEC Over Tweets, Private Wealth, Aug. 14, 2023: "One way to add a layer of regulatory protection in blogs and social posts is to express your views as opinions, rather than facts, and refrain from promising an outcome. Even adding 'I think' before or after statements can be helpful . . . ."

PW Staff, The Ins And Outs Of The '1035 Exchange', Private Wealth, Aug. 14, 2023: Discuses using IRC § 1035, which can allows certain insurance contracts to be exchanged for others without generating taxes.

Jeff Stimpson, Plan Now For 2026 Tax Law Sunset, Advisors Warn, Financial Advisor, Aug. 14, 2023.

Robert W. Wood, Trusts To Avoid California Tax Are Outlawed, Moving Away Still Works, Forbes, Aug. 14, 2023 (Apple News link).

August 13, 2023

Russ Wiles, 'Back at square one': Research shows the folly of cashing out of 401(k) when leaving a job, USA Today, Aug. 13, 2023 (Apple News link).

August 11, 2023

Calloquy, PBC, The Need for Emphasis on Technical Diligence, JDSupra, Aug. 11, 2023: "As the legal profession grapples with these complexities, it becomes increasingly clear that the American Bar Association (ABA) Model Rules of Professional Conduct should be amended to reflect the heightened responsibilities and considerations demanded by the digital age. In this article, we delve into key provisions, opinions, and developments that underscore the urgency of amending the ABA Model Rules, ensuring that legal practitioners can navigate the digital frontier while upholding their ethical obligations."

Laura Saunders, Tackling Retirement's Tricky Tax Questions, WSJ, Aug. 11, 2023 (Apple News link).

Louis Vlahos, Transferee Liability for Estate Tax: The Downside of Being a Beneficiary, JDSupra, Aug. 11, 2023: Discusses U.S. v. James D. Paulson, 68 F.4th 528 U.S. Court of Appeals, Ninth Circuit.

August 10, 2023

Matt Ellis, How to Use AI to Write a Thoughtful Thank-You Note, Grammarly, Aug. 10, 2023.

Medora Lee, Why Americans plan to take Social Security earlier, and even leave retirement money behind, USA Today, Aug. 10, 2023 (Apple News link).

Anne Tergesen, Social Security Benefits Will Go Up Next Year, but Not by a Lot, WSJ, Aug. 10, 2023 (Apple News link): "If inflation rises in line with its recent trend over the next two months, recipients’ monthly checks will rise by about 3% in 2024, according to estimates from analysts and nonprofits. The estimates follow an 8.7% cost-of-living increase in 2023 as inflation soared." • See also Medora Lee, Social Security COLA 2024 estimate didn't increase with CPI report. Seniors still struggle., USA Today, Aug. 10, 2023 (Apple News link).

August 9, 2023

Brett Arends, Ominous news as 401(k) hardship withdrawals rocket, MarketWatch, Aug. 9, 2023 (Apple News link): Explains two ways to access money in a 401(k) "for those in extremis." • See also Madeline Garfinkle, 'Pretty Troubling': New Data Reveals Startling Increase in 401(k) Withdrawals Amidst Economic Uncertainty, Entrepreneur, Aug. 9, 2023 (Apple News link).

Mike Winters, 1 in 5 Americans have inactive 401(k)s worth thousands of dollars--here's how to reclaim yours, CNBC, Aug. 9, 2023 (Apple News link): Explains what to do with a 401(k) after leaving a job.

August 8, 2023

Considerations for Nonprofits in Accepting Crypto Donations, ACTEC Podcast, Aug. 8, 20203.

August 7, 2023

Matt Ellis, The 9 Best Tips for Using AI Prompts for Writing, Grammarly, Aug. 7, 2023.

Matthew Erskine, Planning For Estate That Contain Firearms, Forbes, Aug. 7, 2023 (Apple News link).

Off Plan Property Exchange, The Role of Tenancy by the Entirety in Estate Planning, Wealth Advisor, Aug. 7, 2023.

Russ Alan Prince, The Impact Of SECURE 2.0 On Americans’ Retirement Readiness, Private Wealth, Aug. 7, 2023: Prince interviews "Neal Ringquist . . . executive VP and chief revenue officer of Retirement Clearinghouse LLC, a portability solutions provider collaborating with the private and public sectors to help Americans save more for retirement across their working lives." They discuss to provisions in the SECURE 2.0 Act of 2022 that Ringquist feels will impact retirement savings most: "One is the provision enabling employer-sponsored retirement plans and recordkeepers to offer the auto portability solution for participants who switch jobs. The second is the increase in the limit on 401(k) account balances that can be automatically cashed out by sponsors and recordkeepers and transferred to default IRAs, from $5,000 to $7,000."

August 6, 2023

Sean Stein Smith, 5 Tips For Crypto Taxes When Being Paid In Bitcoin, Forbes, Aug. 6, 2023 (Apple News link): "Tip. Even for taxpayers looking to ditch fiat money, taxes are – for now – only able to paid using them, so cash still has a major use case."

August 5, 2023

David Voreacos & Naomi Jagoda, IRS Visits To Dozen Of Rich Americans Drive Malta Pension Probe, Private Wealth, Aug. 5, 2023: "Promoters had touted the plans as a savvy way to avoid millions of dollars in taxes after the two nations signed a treaty allowing them in 2011. But the IRS later viewed the plans as 'too good to be true' and the nations changed the treaty in 2021."

Catherine E. Shoichet & Parker Leipzig, More Baby Boomers are Living Alone. One Reason Why: 'Gray Divorce', CNN, Aug. 5, 2023 (Wealth Advisor link).

August 4, 2023

Hayley Cuccinello, Six ways America's rich save big on estate taxes, Business Insider, Aug. 4. 2023 (Apple News link).

David Goldfarb, New York's New Power of Attorney Law: An Update, NYSBA, Aug. 4, 2023.

Christiaan Hetzner, Massive backlash over U.S. credit rating downgrade forces Fitch into defense mode: 'The numbers speak for themselves', Fortune, Aug. 4, 2023 (Apple News link).

Laura Saunders, Congress Ended a Tax Break. How That May Help Higher Earners., WSJ, Aug. 4, 2023 (Apple News link).

Ed Zollars, IRS Moves to Add Monetized Installment Sale Transactions to Listed Transactions via Proposed Regulations, Federal Tax Developments, Aug. 4, 2023: Discusses Prop. Reg. § 1.6011-13 -- REG-109348-22, Aug. 4, 2023.

August 3, 2023

David Hollerith, JPMorgan's Dimon: Fitch Downgrade 'Doesn't Really Matter That Much', Wealth Advisor, Aug. 3, 2023.

August 2, 2023

Justin T. Miller, California Says No to NINGs and Don't to DINGs, Wealth Management, Aug. 2, 2023: "They'll be treated as grantor trusts for state income tax purposes."

Charles L. Ratner, Questions Advisors Should Ask About Life Settlement Proposals, Wealth Management, Aug. 2, 2023.

Richard Rubin & Paul Kiernan, Crypto Rules Delay Puts Billions in Tax Revenue at Risk, WSJ, Aug. 2, 2023 (Apple News link).

Penelope Wang, 8 Things You Need to Know About Bonds, AARP Bulletin, Aug. 2023 (Apple News link): "These investments have had a bad run of late, but they still play an important role in retirement accounts." • Hani: I quoted Wang for the definitions of bond and maturity.

August 1, 2023

Robert Ambrogi, BriefCatch Raises A $3.5M Seed Round to Expand Its Legal Editing Software and Add AI-Powered Features, LawSites, Aug. 1, 2023: "BriefCatch 3 includes more than 11,000 legal-specific writing suggestions, and added real-time editing, a rebuilt rules engine, enhanced natural language processing, and other improvements."

Kelly Ernst, Gold IRA mistakes to avoid, CBS News, Aug. 1, 2023 (Apple News link).

Philip J. Kavesh, 5 Commonly Overlooked Uses of Life Insurance, Ultimate Estate Planner, Aug. 1, 2023.

Lorie Konish, Retirement account balances have increased substantially for high-income households. These factors help explain why, CNBC, Aug. 1, 2023 (Apple News link): Reporting about a new report from the Government Accountability Office. "Many of the disparities come down to race and income, according to the report." Other factors that contribute to the disparities: (1) Job tenure, (2) college education, (3) children, (4) asset allocation, (5) withdrawals, (6) divorce, and (7) unemployment.

Ira Wilder, Am I ready to retire? Here are 6 signs that you're ready*, CNBC, Aug. 1, 2023 (Apple News link).

July 31, 2023

Sandra Block, New Rules for Inherited IRAs Could Leave Heirs With a Hefty Tax Bill, Kiplinger, July 31, 2023 (Apple News link).

Khristopher J. Brooks, The best state to retire in isn't Florida, new study finds, CBS News, July 31, 2023 (Apple News link): "Iowa topped Bankrate's list, with Missouri and Nebraska were among the top 10. . . . Coastal states — including Massachusetts, Washington, California, New York and Alaska — are the worst states for retirement, according to Bankrate."

Claire N. Carrabba, The Tax-Saving Potential of Gifts and Sales to Family Trusts, Wealth Management, July 31, 2023: Carrabba discusses the settlement of recent gift tax cases involving the founders of Firehouse Subs -- Robin Sorensen v. Comm’r, Docket Nos. 24797-18 and 20285-19, and Chris Sorensen v. Comm’r, Docket Nos. 24798-18 and 20284-19 -- which involved a defined value provision similar to the one used in Wandry v. Comm’r, T.C. Memo. 2012-88.

Elizabeth Gravier, 3 to 6 months of savings might be 'tried and true wisdom' but this expert has advice if you're living paycheck-to-paycheck, CNBC, July 31, 2023 (Apple News link): Hani: I mentioned this article in How Much Should You Save In Your Emergency Fund?.

Andy Ives, Roth Conversion Confusion -- Taxes Withheld When Under 59 ½, irahelp.com, July 31, 2023.

Beth Pinsker, I’m in my 70s and doing Roth conversions, but I’m not sure I’m doing it right, MarketWatch, July 31, 2023 (Apple News link).

Robert Powell, Reduce Your Tax Bill With These Deduction Strategies, TheStreet, July 31, 2023 (Apple News link): Discusses the standard deduction, itemized deductions, strategies for increasing deductions (such as bunching or lumping), charitable contributions, deductible taxes, and gambling losses.

Jennifer Lea Reed, SEC Charges N.Y. Advisor With Stealing $2.4 Million From Elderly Widower, Financial Advisor, July 31, 2023: "A New York hybrid advisor has been charged by the Securities and Exchange Commission with stealing $2.4 million from an 87-year-old widower after tricking him into signing a document granting her power of attorney. . . . In December 2020, [Clarice Crystal] Saw allegedly suggested the customer execute a healthcare proxy that named her as his healthcare agent, which he agreed to. But the document Saw gave him to sign—written only in English—was actually a power of attorney designating Saw as the customer’s legal agent, the complaint said."

Megan Mostyn-Brown, I'm a Financial Planner: Here's What I Recommend Clients Don't Use Their Emergency Funds On, GO Banking Rakes, July 31, 2023 (Apple News link): Luxury and entertainment, vacations, monthly and anticipated expenses, helping a family member, and some debt.

Heather Taylor, I'm a Financial Planning Expert: 6 Worst Purchases to Make in an Economic Downturn, GO Banking Rates, July 31, 2023 (Apple News link): Kitchen remodel, new car, homes, starting a business, vacation homes, and vacations and trips.

Ed Zollars, IRS Holds That Cryptocurrency Received for Staking is Taxable, Federal Tax Developments, July 31, 2023: Discusses Revenue Ruling 2023-14.

July 30, 2023

Nancy L. Anderson, What To Do With Excess Funds In Your Child's 529 Plan--A Good Problem to Have, Forbes, July 30, 2023 (Apple News link).

Elizabeth Gravier, Here's how much money you should be investing in your 401(k), CNBC, July 30, 2023 (Apple News link): "If you aren't yet in a position to contribute enough to meet your employer's match, and thus not enough to reach the desired 15% savings rate, aim to boost your retirement contributions by 1% to 2% each year."

Liz Weston, How new rules let you roll unused 529 college savings into a retirement plan, San Diego Union-Tribute, July 30, 2023 (Apple News link).

July 29, 2023

Joe Hutchison, California and New York lose $640M of tax revenue to migration, Daily Mail, July 29, 2023 (Apple News link): "The figures published by the IRS and analyzed by MyEListing highlight how blue states with steep taxes are losing citizens for places like Florida with lower taxes."

Ed Zollars, Despite Receiving No Cash, Lapse of Life Insurance Policy Triggers Taxable Income, Current Federal Tax Developments, July 29, 2023: Discusses Doggart v. Commissioner, TC Summary Op. 2023-25, July 27, 2023.

July 28, 2023

Gross Estate vs. Probate Estate, Smart Asset, July 28, 2023.

Robert Powell, Maximizing Tax Credits: Opportunities to Reduce Your Tax Liability, TheStreet, July 28, 2023 (Apple News link).

Eric Rosenberg, Can I Rely On Social Security in Retirement?, Entrepreneur, July 28, 2023 (Apple News link).

July 27, 2023

Ilana Kaplan & Jeff Nelson, Sinéad O'Connor Revealed What She 'Instructed' Her Kids to Do in the Event of Her Death (Exclusive), People, July 27, 2023 (Apple News link): "O'Connor told them they should call her accountant before they call 911. . . . 'If your mother drops dead tomorrow, before you called 911, call my accountant and make sure the record companies don't start releasing my records and not telling you where the money is.'"

Robert Powell, Many who receive Social Security will owe taxes on some of their benefits. Here’s how that works, plus ways to reduce taxable income in retirement., TheStreet, July 27, 2023 (Apple News link).

July 26, 2023

Hayley Cuccinello, How the rich use trusts to take care of pets and pay for cryogenic freezing, Business Insider, July 26, 2023 (Apple News link): "For clients, the value of a purpose trust is reassurance that their wishes will be carried out even if their heirs disagree with them."

Jeff Ernsthausen, How the Ultrawealthy Use Private Foundations to Bank Millions in Tax Deductions While Giving the Public Little in Return, ProPublica, July 26, 2023.

July 25, 2023

Charles L. Ratner & Morgan Scott, Buy-Sell Planning after Connelly, Wealth Management, July 25, 2023: Discusses ‌Connelly v. United States, No. 21-3683 (8th Cr. 2023), and states, "Another case that creates great client service opportunities involving redemption adjustments."

Sen. Ron Wyden, Chairman, Senate Finance Committee, Wyden Unveils Ongoing Investigation Into Private Equity Billionaire Leon Black's Tax Planning and Financial Ties with Jeffrey Epstein, July 25, 2023: "The investigation has uncovered serious tax issues and other concerns with trusts and structures Black executed to avoid over $1 billion in future gift and estate taxes. . . . Part of a broader review of the means by which the ultra-wealthy avoid or evade federal taxes . . . ."

July 24, 2023

Greg Norman, IRS says it will 'end most' unannounced visits to taxpayers' homes by agents, Fox Business, July 24, 2023 (Apple News link): "'Effective immediately, unannounced visits will end except in a few unique circumstances and will be replaced with mailed letters to schedule meetings,' the IRS said in a statement."

Jasmin Suknanan, Why checking your 401(k) balance can derail your retirement planning, CNBC, July 24, 2023 (Apple News link): Checking investments during a downturn or an upswing can cause problems. "While it's natural to want to check in on your 401(k) balance or other investment account balances throughout the year, it's important to make sure you're being thoughtful about why you're checking in."

Dori Zinn, The average retiree spends $4,345 on monthly expenses -- and burns 75% of that on these 4 things. How does your own spending stack up?, Moneywise, July 24, 2023 (Apple News link): (1) Housing, (2) transportation, (3) health care, and (4) food.

July 23, 2023

Ashlea Ebeling, A Retirement Tax Break That Ends the Fear of Outliving Your 401(k), WSJ, July 23, 2023 (Apple News link): "The pros and cons of using your nest egg to buy a special longevity annuity in retirement. . . . Starting this year, Americans can use up to $200,000 of their retirement accounts to purchase qualified longevity annuity contracts, or QLACs. The new contribution limit, set by Congress, is up from $145,000 or 25% of your balance, whichever was lower." Hani: I quoted Ebeling for the definitions of annuity and longevity risk.

July 22, 2023

Emily Lorsch, Here's how much you need to save each month to earn $40,000, $50,000 and $60,000 per year in interest for retirement, CNBC, July 22, 2023 (Apple News link): "It's never too early to start thinking about retirement." The video in this article is worth watching because it gets you thinking about how much you need to save to live off of your retirement savings "without taking a bite out of your principal." • Hani: I quoted Lorsch for her definition of retirement.

July 21, 2023

Kate Dore, This lesser-known 401(k) plan change will soon strip higher earners of a tax break, CNBC, July 21, 2023 (Apple News link): Hani: I updated my definition of catch-up contribution with information I learned from this article.

July 20, 2023

Robert Aufseeser, Proven Techniques to Beat an IRS Tax Audit, Law Office of Robert Aufseeser, July 20, 2023.

July 19, 2023

Stacy M. Brown, The Importance of Estate Planning Highlighted by Aretha Franklin's Battle of Wills, Washington Informer, July 19, 2023: "The estate planning issue has become particularly significant for African Americans, irrespective of their socioeconomic status or fame, as they continue to lag in preparing their estates."

Griffin Bridgers, Interest on Pecuniary Devises: Mountain Out of a Molehill?, State of Estates, July 19, 2023.

Jodi Furr Colton, Big Changes to Florida's Alimony Law, Wealth Management, July 19, 2023.

July 18, 2023

Jon Healey, Here's something you don't often hear from the IRS: Don't pay your taxes (yet), Los Angeles Times, July 18, 2023 (Apple News link): Discusses "the ball of confusion" that the IRS is causing for many Californians in disaster-stricken counties.

Elizabeth O'Brien, Inherited IRs Just Got New Rules. What You Need to Know., Barron's, July 18, 2023 (Apple News link).

Brian Kidder, The Great Wealth Migration: The Flow of High-Income Earners Across States, MyEListing, July 18, 2023.

Jacqueline Sergeant, IRS Says Crackdown On Wealthy Tax Evaders Is 'Just The Start', Financial Advisor, July 18, 2023: "The Internal Revenue Service said funding it received from the Inflation Reduction Act has allowed the agency to 'dramatically improve' services to taxpayers and aided in its goal to continue to ensure that wealthy individuals pay their taxes."

July 17, 2023

Patrick Donachie, Oklahoma Becomes 40th State to Adopt Best Interest Annuity Rules, Wealth Management, July 17, 2023: "The state became the latest to finalize regulation or legislation based on the standard set by the National Association of Insurance Commissioners to align annuity rules with Reg BI."

Andrew Keshner, Did you inherit an IRA? IRS offers some breathing room on how much you can withdraw this year, MarketWatch, July 17, 2023 (Apple News link): "IRS waives the penalty if heirs do not take a 2023 requirement minimum distribution for an IRA inherited 2020, or later."

Alessandra Malito, Your retiree health benefits might not be as secure as you think, MarketWatch, July 17, 2023 (Apple News link): "Employers have no legal obligation to maintain these benefits."

July 16, 2023

James Brumley, 6 Things You Definitely Shouldn't Do While Planning for Retirement, Motley Fool, July 16, 2023.

Kathleen Elkins, How one millionaire uses a health savings account HSA to build wealth, Business Insider, July 16, 2023 (Apple News link).

Bruce Helmer & Peg Webb, Wealth Column: Proactive tax strategies, Brained Dispatch, July 16, 2023: "The lower tax rates authorized under the Tax Cuts and Jobs Act of 2017 are scheduled to sunset at the end of 2025."

Ann Tergesen, High-Earning Retirement Savers Are Losing Some of Their 401(k) Tax Break, WSJ, July 16, 2023 (Apple News link): "Catch-up contributions will have to be done after taxes for those who make more than $145,000."

July 15, 2023

Debbie Carlson, A Will Can Split a Family. How to Avoid the Hurt., Barron's, July 15, 2023 (Apple News link): "Parents often dread talking about their estate plans with children, but it can avoid misunderstandings."

John M. Goralka, Why Are the Notes Found in Aretha Franklin's Couch a Valid Will?, Wealth Advisor, July 21, 2023.

Beth Pinsker, I'm 68 and want to eventually convert my whole 401(k) to Roth. Will I have to wait five years to touch it?, MarketWatch, July 15, 2023 (Apple News link): "The five-year rules for Roth accounts can make some tricky accounting for conversions."

July 14, 2023

Paul Caron, Weekly SSRN Tax Article Review and Roundup: Saito Reviews Wallace's A Democratic Perspective On Tax Law, TaxProf Blog, July 14, 2023: "In tax, we talk about efficiency often as the first among equals in triad of principles that also include equity, and administrability. Frequently too, our concepts of equity and administrability focus a lot on economics costs and benefits and distribution tables. But too often we do not talk about the concepts of democracy and how the tax system can foster or hamper it. In his article, A Democratic Perspective on Tax Law, Clint Wallace turns our attention on both the existing writings on democracy and tax and adds that for tax policy, there should be an analysis on the basis of democratic ideals that we use to judge these policies."

Hayley Cuccinello, How the ultra-rich use trusts to shield the family fortunte from lawsuits, Business Insider, July 14, 2023 (Apple News link).

Ashlea Ebeling, IRS Delays New Payout Rules for Inherited Retirement Accounts Again, WSJ, July 14 2023 (Apple News link): "Inheritors subject to a new 10-year payout window don't have to take required minimum distributions for 2023."

July 13, 2023

Griffin Bridgers, Undue Influence and No-Contest Clauses: A Bad Combination?, State of Estates, July 13, 2023.

Eliza Collins, Tortoise Estate Planning--One Chore of Having a Pet That Lives 100 Years, WSJ, July 13, 2023 (Apple News link).

Lucia Capital Group, Want to "Mega-Fund" Your Roth IRA?, luciacap.com, July 13, 2023: Video and transcript.

July 12, 2023

Diane Kennedy, How Annual Meetings Can Put Money in Your Pocket, US Tax Aid, July 12, 2023.

Russo Law Group, P.C., 10 Tax Tips for a Deceased Loved One's Final Form 1040, vsjrussolaw.com, July 12, 2023.

July 11, 2023

Andrea Salcedo, Will found in Aretha Franklin's couch is valid, jury says, Washington Post, July 11, 2023 (Apple News link).

Ed White, Jury decides 2014 document found in Aretha Franklin's couch is a valid will, AP, July 11, 2023.

July 10, 2023

Kate Dore, Trying to choose Pretax vs. Roth 401(k)? Why it's tricker than you think, experts say, CNBC, July 10, 2023.

Jeff Stimpson, Should Wealthy Clients Delay Taking Social Security?, Private Wealth, July 10, 2023.

July 9, 2023

Christopher Carlozzi, Opinion: Are Massachusetts lawmakers serious about competing?, Boston Herald, July 9, 2023: "It seems evident that Governor Maura Healey recognizes Massachusetts is at an inflection point and must act to prevent a mass exodus of residents from leaving the Commonwealth and heading to lower-cost states. . . . Gov. Healey proposed raising the exemption for the onerous estate tax to $3 million, but the House and Senate lowered it to $2 million. Therefore, instead of being worst among the handful of states that still levy an estate tax, Massachusetts will be third worst – take that Oregon and Rhode Island!"

Ashlea Ebeling, How to Leave Grandkids Your Retirement Savings -- and Not a Huge Tax Bill, WSJ, July 9, 2023 (Apple News link): "The new rules for inherited IRAs might warrant a rewrite of your estate plan."

July 8, 2023

Mark Kenney Gen X Shoukd Prepare Now for the Great Wealth Transfer, Kiplinger, July 8, 2023: "As the Baby Boomer generation ages, it’s more important than ever that Gen Xers talk to their family and understand how their wealth situation could change."

July 7, 2023

Allison Bell, California Replaces a Trust Investment Law, Think Advisor, July 7, 2023: California adopts the Uniform Income and Principal Act.

July 6, 2023

How to Use GrammarlyGo Prompts to Help With All Your Writing Tasks, Grammarly, July 6, 2023.

Cara Tabachnick, Florida lawyer arrested for allegedly killing his father, who accused him of stealing from family trust, CBS News, July 6, 2023 (Apple News link): "The victim's name wasn't released in police reports or court records, as the family invoked Marsy's Law, which limits identity disclosure. However, police records identified the victim's occupation as an attorney and the date of birth was the same as Paul Labiner, according to other public records."

What is tax advisory?, Thomson Reuters, July 6, 2023.

July 5, 2023

Tilly Armstrong, IRS quietly changes rule on how your children's inheritance is taxed - here's what you need to know to avoid a shock bill, DailyMail.com, July 5, 2023: Armstrong reviews Rev. Rul. 2032-2. • Hani: This article is confusing. Armstrong writes, "Prior to the new instruction, it was unclear what the tax policies were around assets passing to beneficiaries through an irrevocable trust." This statement is true, but shows that the title is misleading. Nevertheless, Rev. Rul. 2023-2 is important, which makes this article noteworthy.

Joyce Blay, Slides: Study Ranks Best States For Financial Advisors, Financial Advisor, July 5, 2023: New York is #1.

Lindsay N. Graves, IRS Quietly Changed the Rules on Your Children's Inheritance, Kiplinger, July 5, 2023.

Tracey Longo, Schwab Says Advisors Who Define 'Ideal Client' Attrack 45% More Assets, Financial Advisor, July 5, 2023: "One critical tool that successful advisors create is ideal client personas, which represent the attributes and demographics of their most profitable clients, who in turn find the most value in the firm’s services . . . ."

Lia Mitchell, Usage of Trusts in 401(k)s Continues to Grow, Morningstar, Q2 2023 (Apple News link): "The incorporation of collective investment trusts, or CITs, into plan lineups is not a new trend, but the types of plans growing their adoption appears to be. . . . [T]he subtle difference in the most recent year’s data is that there has been a slight uptick in the usage of CITs outside of the largest plans."

Fred Hubler, If You Own Investment Property This Article Could Change Your Life, Forbes, July 5, 2023: "For many real estate investors, 1031 real estate exchanges are an attractive option for deferring taxes when selling investment properties. However, there is another option that can provide even more flexibility and tax benefits: the Delaware Statutory Trust (DST)."

July 3, 2023

Bryan Camp, Lesson From The Tax Court: Freedom, Taxes, And Hobbies, TaxProf Blog, July 3, 2023: "Three recent cases on Hobby Loss rules teach us about the responsibility of paying taxes to support our freedoms: you cannot lower your taxes by deducting the costs of your personal hobby. The basic lesson is the importance of record-keeping. That means more than keeping proper records. It means properly using the records in a business-like manner. In contrast, having “meticulous” records may just rescue a taxpayer who erroneously mashes up their hobby with a legitimate business activity on the same Schedule." • Hani: I'm particularly fond of one of the freedoms Camp mentions, "Freedom to write blog posts."

July 2, 2023

Tom King, Tailor Your Taxes for Retirement, StateCollege.com, July 2, 2023: King discusses post-retirement taxable income. One strategy he discusses: "One way to balance an increased tax burden [from required minimum distributions] is with a qualified charitable distribution (QCD). After 70 1/2, you can donate up to $100,000 a year to an eligible charity directly from your traditional IRA – and you won’t have to pay any taxes on it. QCDs can also be a way to meet your RMD, with the caveat that you can’t then itemize the donation as a charitable deduction on your return."

Bethan Moorcraft, This California lawyer warns that you should 'never leave anything' to your kids when you die -- says it will lead to serious financial woes. Here's why and what you should do instead, Moneywise, July 2, 2023 (Apple News link): "[Y]ou can save your loved ones from serious financial (and legal) woes by creating a living trust and making them beneficiaries, says Brittany Cohen, an estate planning and asset protection lawyer."

Nicholas J. Toman, To Create a Happy Retirement, Start With the Three P's, Kiplinger, July 2, 2023: "What's your financial 'philosophy' for your golden years? Is your retirement 'planning' specific to you? What's your 'process' to design your dream retirement?"

Christopher Yugo, Estate Planning: Should I share the plan?, nwitimes.com, July 2, 2023: Yugo would share a power of attorney and health care proxy, but not the rest of the plan because "estate plans are usually revocable and amendable." Yugo's general recommendation: "[K]eep the estate plan private but let the family know that there is a plan and where it can be found. . . . Whatever you decide to do with the plan, don't hide it. Remember that the plan should be kept safe but accessible."

July 1, 2023

Top Real Estate Tax Strategies: How Landlords Can Maximize Their Profits, Off Plan Property Exchange, July 1, 2023: Briefly describes several strategies: "By taking advantage of depreciation, deducting mortgage interest and operating expenses, using a 1031 exchange, taking the pass-through deduction, and structuring their investments as a real estate professional, landlords can significantly reduce their tax liability and boost their profits."

Paul Caron, Stephen Miller Sends Threatening Letter to 200 Law Schools: I'll Sue If You Consider Race in Applications, TaxProf Blog, July 1, 2023.

Selwyn Duke, Soak the Rich? Or Should Wealth-tax Advocates Soak Their Heads?, The New American, July 1, 2023: "[E]ver since Norway's Labor Party won power in 2021 and kept its promise to increase the nation's wealth tax, the Scandinavian country's rich have been leaving -- taking tens of billions of dollars with them. . . . [T]he Tax Foundation wrote in January, 'In a coordinated effort, lawmakers in seven states that collectively house about 60 percent of the nation's wealth -- California, Connecticut, Hawaii, Illinois, Maryland, New York, and Washington -- are introducing wealth tax legislation . . . .'"

Liza Horvath, An alternative to conservators, Monterey Herald, July 1, 2023: Horvath discusses California's Assembly Bill No. 1663, which California passed on January 1, 2023: "On Jan. 1, California adopted Assembly Bill No. 1663 which makes reforms to probate and conservatorship law and offer a less-restrictive alternative by way of 'Protective Proceedings.' . . . Supported Decision Making can be an informal arrangement, such as your son helping you continue to make sound decisions or can be memorialized in a written SDM agreement. . . . There appear to be some shortcomings in the legislation which need to be worked out like should the SDM be compensated; are third parties, such as doctors or banks, required to accept the decision maker’s decision; and the big one, is the decision maker held to a fiduciary standard?"

Steven J. Oshins, Why Do Nevada and Delaware Get Most of the ING Trust Business?, Ultimate Estate Planner, July 1, 2023: This post is an excellent primer on INGs and explains why NINGs (Nevada), DINGs (Delaware), and WINGs (Wyoming) are popular jurisdictions for INGs -- marketing! Oshins believes that Nevada and South Dakota are the most favorable jurisdictions for INGs.

June 30, 2023

Daniel Han, ‌New Jersey Gov. Phil Murphy signs $54 billion budget along with 'StayNJ', Politico, July 1, 2023: "Key to the budget negotiations was the creation of the new senior real estate tax credit program, called StayNJ. The plan provides tax credits worth half a senior’s property tax bill up to $6,500 for incomes up to $500,000. Benefits for the program don’t end until January 2026." • Derek Hall, N.J.'s record $54B state budget signed by Murphy after rushed process stirred controversy, msn.com, June 30, 2023.

Greg Stohr, Supreme Court Throws Out Biden's Student-Loan Relief Plan, Financial Advisor, June 30, 2023: "The justices, voting 6-3 along ideological lines, sided with six Republican-led states that sued to challenge the program . . . . Writing for the court, Chief Justice John Roberts said the administration was 'seizing the power of the legislature' by trying to cancel more than $400 billion of student debt [over 30 years]. . . . The case is Biden v. Nebraska, 22-506."

June 29, 2023

Victoria Zhuang, 5 estate planning tips for LGBTQ+ clients, Financial Planning, June 29, 2023: (1) "Plan around healthcare and caregiving;" (2) "Different states, different rules;" (3) Married vs. unmarried, children vs. no children;" (4) "Pay attention to guardianship and publicity rights;" and (5) "Vet allies to carry out estate plans."

June 28, 2023

Quentin Fottrell, 'We've never seen this before': Millionaires are doing something unusal to preserve their wealth -- and you can do the same, MarketWatch, June 28, 2023 (Apple News link): "Falling stock prices, rising interest rates, an uncertain economic outlook and the constant drumbeat of recession have led high-net-worth individuals (HNWI) to change their investing habits: they’re keeping their money in cash and cash equivalents at the highest rate in more than a decade."

Tim Maxwell, Reverse mortgage vs. cash-out refinance: Which is better?, CBS News, June 28, 2023 (Apple News link): "While both a reverse mortgage and a cash-out refinance allow you tap into your home equity for cash, they feature different sets of benefits for homeowners."

Kamaron McNair, Take 3 steps to protect your assets if you're LGBTQ, say experts: This is 'our first recommendation to every couple', CNBC, June 28, 2023 (Apple News link): "A record 520 anti-LGBTQ bills have been introduced in state legislatures in 2023, according to the Human Rights Campaign. . . . Same-sex marriage might be federally legal in the U.S. now, but that could change in the future. That means married or not, couples should take steps to ensure their last wishes are honored . . . ."

Laura Morris, Are Oral Instructions for Real Estate Transfers Enforceable in Probate Court?, JD Supra, June 28, 2023: "No, it is not enforceable according to In re Estate of Finney, Docket No 361305 (Mich Ct App June 15, 2023) (unpublished). . . . While most oral agreements are enforceable, the statute of frauds requires agreements regarding real estate to be in writing. MCL 566.106." • Hani: I updated the definition of Statute of Frauds to include this headline as an example.

Associated Press, In planning for life, it's important to plan for death, Journal Record, June 28, 2023: "Costs [for an estate planning attorney] can range from around $200 to $350 per hour, or $1,000 to $2,000 for a flat-rate estate package, depending on your location and the experience level of your lawyer."

Jesse Rifkin, AI Disclosure Act would require all AI content to say: "DISCLAIMER: this output has been generated by artificial intelligence", GovTrack Insider, June 28, 2023: "It was introduced in the House on June 5, as H.R. 3831, by Rep. Ritchie Torres (D-NY15)." Rifkin's opening paragraph is humorous, but it captures our time: "If this bill becomes law, millions of high schoolers would have to start writing their own term papers." • The bill might have prevented the debacle of the "ChatGPT Lawyers," who filed a legal brief in court with made-up cases and citations and were sanctioned by a federal judge.

June 27, 2023

QSBS Planning and Potential Pitfalls, ACTEC Podcast, June 27, 2023.

Rob Burgess, Wealth.com Debuts 'Ester,' An AI-Powered Legal Assistant For Advisors, WealthManagement.com, June 27, 2023: "The proprietary model can read and restate documents and hold both short and long-term memories of previous client actions."

Veronica Dagher, Nobody Wants to Buy a Fixer-Upper Right Now, WSJ, June 27, 2023 (Apple News link): "They want to buy a house. They just don't want to hire a contractor. . . . The drop in demand for unrenovated homes is mostly driven by high mortgage rates . . . the rates for home loans and construction loans have both increased, on top of high property prices." • See the definition of turnkey property.

David McMillin, What is a loan-to-value ratio?, Bankrate, June 27, 2023 (Apple News link).

Joe Patrice, Lexis Unveils New Agreement Analysis Tool, Above the Law, June 27, 2023. • In addition to timely news about a new Lexis tool, Patrice's post is worth reading because of the comments on legal drafting: "As a fresh-faced summer associate, I remember one of my firm's senior transactional partners telling the assembled class that practicing law isn't like anything we'd done before. 'Plagiarism is your friend!' he declared. It hit the ears of overachieving students like a lead pipe. No one had ever spoken warmly of the p-word before. But fora global corporate practice sitting on an internal database of prior mega deals, he wanted the team to understand that we weren't meant to reinvent the wheel, were meant to draw upon the firm's amassed wisdom."

James Royal, What is financial planning? Learn how to get started, Bankrate, June 27, 2023 (Apple News link): Reviews financial planning issues: budgeting, debt reduction, retirement planning, wealth management, tax planning, insurance planning, and estate planning.

June 26, 2023

Kevin Brodehl, "Equitable Buyout" as a Remedy for LLC Wrongdoing, JD Supra, June 26, 2023: This post reviewed a California Second Appellate District case, Reliant Life Shares, LLC v. Cooper. "This is the [author's] first encounter with the concept of an equitable LLC buyout . . . . Under the holding of the Reliant Life Shares opinion, a trial court has authority to order an 'equitable buyout' of an LLC member as a remedy for the other members' wrongdoing," writes Brodehl.

Matthew Medsger, Massachusetts Lawmakers Discuss Tax Cut, Budget Deficit, Governing, June 26, 2023: "The House and Senate have both approved bills to cut taxes by over $575 million, though their proposals go about the cuts in different ways. The House’s slightly larger plan came alongside their fiscal 2024 budget. The Senate’s is a standalone piece of legislation." • See Alison Kuznitz, Long road to tax relief win legislative negotiations, Sentinel & Enterprise, June 26, 2023; Mathew Medsger, Tax talks begin in Mass. for second summer with billions potentially needed elsewhere, Hastings Tribune, June 26, 2023.

Sara Merken, New York lawyers sanctioned for using fake ChatGPT cases in legal brief, Reuters, June 26, 2023 (Apple News link): "U.S. District Judge P. Kevin Castel in Manhattan ordered lawyers Steven Schwartz, Peter LoDuca and their law firm Levidow, Levidow & Oberman to pay a $5,000 fine in total. . . . The judge wrote in Thursday's sanctions order that there is nothing 'inherently improper' in lawyers using AI 'for assistance,' but he said lawyer ethics rules 'impose a gatekeeping role on attorneys to ensure the accuracy of their filings.'"

David G. Savage, Supreme Court will decide whether Congress can tax wealth, Los Angeles Times, June 26, 2023 (Apple News link): "Conservative Supreme Court will weigh in on whether Congress can tax so-called unrealized gains from foreign companies." • The 9th Circuit case at issue is Moore v. United States, 36 F.4th 930 (9th Cir. 2022), which "upheld part of the 2017 bill passed by the Republican-controlled Congress which imposed a one-time tax on Americans who owned shares in foreign corporations that gained in value."

David Wilson, Harry Markowitz, Father Of Modern Portfolio Theory, Dies at 95, Financial Advisor, June 26, 2023: He was "a Nobel Prize-winning economist who redefined money management by showing that diversification could reduce investment risk while maximizing returns . . . ." He :died on June 22 of pneumonia and sepsis at a hospital in San Diego . . . ." He introduced modern portfolio theory "in 1952 in an article published by the Journal of Finance. He broke with traditional investment analysis by focusing on combinations of assets, rather than individual securities."

Alisa Wolfson, Fiduciary vs. financial adviser: What's the difference, MarketWatch, June 26, 2023: "A fiduciary is someone who puts their clients’ interests ahead of their own, and a financial adviser is someone who provides financial services that run the gamut from budgeting and planning to managing investments. Some financial advisers are fiduciaries but not all are."

June 25, 2023

Bob Carlson, Which Is Best For Your Estate Plan: A Will Or Trust?, Forbes, June 25, 2023 (Apple News link). "Either a will or trust can be the foundation of your estate plan," explains Carlson. "They're not exclusive." He explains the pros and cons of probate and of revocable living trusts. "Every estate should have a will and is likely to have at least one trust," he recommends. • Carlson also states, "If it's a trust, it's usually a revocable living trust." While this is true, Hani thinks that middle class Americans should consider Medicaid qualifying trusts, which are irrevocable trusts, since they avoid probate and can help people qualify for Medicaid to cover their long-term care needs.

June 23, 2023

Joel Rosenblatt & Teresa Xie, Doomed Submersible's Waivers Aren't Enough To Ward Off Lawsuits, Financial Advisor, June 23, 2023: "While the waivers signed by passengers generally shield a company in cases of negligence, they’re less likely to hold up if there’s 'gross negligence,' defined as wanton or reckless conduct affecting the life of another."

Laura Saunders, The 'You-Make-a-Lot-of-Money Tax' Hits More Americans, WSJ, June 23, 2023 (Apple News link): "The net investment income tax is coming due for millions more taxpayers than a decade ago. That's no accident. . . . Now more people are owing it, thanks to inflation and higher yields on bank accounts and bonds. . . . When lawmakers enacted it to help fund the Obamacare health-coverage expansion, they chose not to adjust the $200,000/$250,000 thresholds for inflation to collect more tax." • This article is an excellent primer on the NIIT.

June 22, 2023

Benjamin Weiser, ChatGPT Lawyers Are Ordered to Consider Seeking Forgiveness, NY Times, June 22, 2023: "A Manhattan judge [P. Kevin Castel of Federal District Court] on Thursday imposed a $5,000 fine on two lawyers [Steven A. Schwartz and Peter LoDuca] who gave him a legal brief full of made-up cases and citations, all generated by the artificial intelligence program ChatGPT. . . . In the suit, their client, Roberto Mata, sought to hold the airline Avianca responsible for an injury he says he sustained when a metal serving cart hit his knee during an August 2019 flight from El Salvador to New York." The lawyers' firm, Levidow, Levidow & Oberman "disagreed with Judge Caste's finding that anyone at the firm acted in bad faith. . . . '[W]e made a good faith mistake in failing to believe that a piece of technology could be making up cases out of whole cloth . . . ." • Hani: The law firm's comment is dismally disappointing. The lawyers either didn't read the brief that ChatGPT produced before signing it their names on it and submitting it on behalf of a client, or they read it and didn't realize that cases were made up because they don't know their area of law. Neither of these possibilities are justifiable. In this case, humans are at fault and the new "piece of technology" is being used as the scapegoat.

June 21, 2023

Thomas W. Abendroth, Portability and Second Marriages, wealthmanagement.com, June 21, 2023: "Despite its advantages, portability isn't always recommended."

Tracey Longo, Is The SEC Engaging In RIA Regulatory Overkill?, Financial Advisor, June 21, 2023: "It’s time for the Securities and Exchange Commission to take a step back and 'holistically consider the practical ramifications' of more than a dozen new rules and proposals it has issued since SEC Chairman Gary Gensler was sworn in, said attorneys for the Investment Adviser Association in a letter to the agency late Monday." • Related news: In a June 12, 2023 article, Adrian Johnstone uses Australia's debacle to warn about unwanted and unforeseen ramifications of regulations.

June 14, 2023

Joseph T. Ferlita & Nicholas G. Moneta, The Gallo Exemption: What It Is and Why You Should Know About It, NYLJ, June 14, 2023: "While the scope of the Gallo exemption is narrow, some of those trusts to which it applies are still in existence. The practitioner should realize that certain modifications of a Gallo exempt trust, including, for example, modifications via a decanting or court proceeding, could inadvertently trigger a GST tax."

June 12, 2023

Ellen P. Aprill, Section 501(C)(3) Charitable Purpose Meets Administrative Law, Loyola Law School, June 12, 2023 (SSRN link).

Hayley Cuccinello, Six ways America's rich save big on estate taxes, Business Insider, June 12, 2023 (Apple News link).

Adrian Johnstone, A Cautionary Tale From Down Under: Are You Ready For Tighter Regulation?, Financial Advisor, June 12, 2023. • Johnston explains how unintended consequences from well-intended regulations caused the financial advisor workforce to shrink by 43% in the last five years in Australia. The article cautions Americans: "Whether you'll heed that warning [from Australia] is entirely in your hands."

June 8, 2023

David Foster, Historical Conceptions of the Express Trust, c 1600-1900 in Simone Degeling, Jessica Hudson & Irit Samet (eds.), Philosophical Foundations of the Law of Trusts, Oxford University Press, Forthcoming, posted June 8, 2023 (SSRN link): "Increasingly the trust came to be conceived as attaching not merely to the trustee’s conscience, but to the trust property itself. This shift in emphasis from ‘confidence’ to ‘property’ had a number of consequences for the creation, administration and enforceability of trusts, but also encouraged a reconceptualization of the trust in explicitly proprietary terms. . . . There followed the famous debates in the school of analytical jurisprudence which, by the early twentieth century, had produced a raft of essays explaining the nature of the beneficiary’s right as either ‘in rem’ or ‘in personam’ in nature. Since then, this language has seeped into the collective legal conscious and has become the orthodox way to describe equitable rights."

Sara Merken, Another US judge says lawyers must disclose AI use, Reuters, June 8, 2023: "Judge Stephen Vaden's order is at least the second example of a U.S. federal judge asking lawyers with cases before them to certify that they took specific precautions if using novel AI technologies such as OpenAI's ChatGPT, Google Bard or Microsoft's Bing."

Libin Zhang, Four Tax Questions for ChatGPT and Other Language Models, 179 Tax Notes Federal 969 (2023) (SSRN link): "The current iterations of language models have some room for improvement before they are useful to tax professionals. It may take several more years before language models can supersede junior tax associates in performing tax research, even if they are cheaper and more responsive."

May 10, 2023

Nicole Friedman, The New Home Buyer's Quandary: Nobody's Selling, WSJ, May 10, 2023 (Apple News link): "Many are read to move but don't want to lose the low-rate mortgages they locked in a few years ago, crimping the supply of homes and keeping prices high."

May 7, 2023

Hayley Cuccinello, How the wealthy can give homes to their kids and save on estate taxes, Business Insider, May 7, 2023 (Apple News link): Discusses a qualified personal residence trust (QPRT).

May 6, 2023

Video: Buffet on estate planning: I don't sign a will until my children read it and give suggestions, CNBC, May 6, 2023 (Apple News link).

April 26, 2023

Sara Merken, Legal AI race draws more investors as law firms line up, Reuters, April 26, 2023: "With more and more lawyers at major law firms using fast-advancing generative artificial intelligence tools, legal AI startup Harvey said Wednesday that it raised $21 million in fresh investor cash."

April 13, 2023

Cole Schotz, IRS Issues Revenue Ruling Holding that Assets Held in an Irrevocable Grantor Do Not Receive a Step-Up in Basis at Death, JD Supra, April 13, 2023: This post discusses Rev. Rul. 2023-02. It concludes, "There has been some debate on this particular issue in recent years. It is the author’s opinion, however, that most practitioners already were treating assets held in an irrevocable grantor trust as not receiving a step-up in income tax basis upon the grantor’s death, which is consistent with the new Revenue Ruling provides."

March 30, 2023

Griffin Bridgers, Step-Up in Basis for Assets in a Grantor Trust: The Mystery is Solved?, State of Estates, March 30, 2023: Discusses Rev. Rul. 2023-2. • See Hani Sarji, Resources on Rev. Rul. 2023-2.

John Rampton, Retirement and Estate Planning for Broke Individuals, Entrepreneur, March 30, 2023 (Apple News link).

March 29, 2023

Wendy Hoey Sheinberg & Stella Lellos, Accounting for Digital Assets in Your Estate Plan, Rivkin Radler LLP, March 29, 2023: Hani updated the definition of directed trust by adding a quote from this article.

March 13, 2023

Beth Pinsker, You may have overpaid your Social Security taxes thanks to the Great Resignation, MarketWatch, March 13, 2023 (Apple News link): "If you had multiple jobs and crossed over the income threshold, you might have paid excess taxes that you can get back on your return. . . . When you have multiple jobs, each employer only knows what they've paid you, not your total added together."

February 15, 2023

Rachel Hartman, How to Roll Over Funds From a 529 College Savings Plan to a Roth IRA, U.S. News, Feb. 15, 2023.

Kelly Phillips Erb, You Can Roll Your 529 Plan To A Roth IRA Beginning In 2024, Forbes, Feb. 15, 2023 (Apple News link).

January 30, 2023

Don Griswold & Michael Mazerov, States Should Follow New York's Lead and Shut Down Tax-Avoiding "ING Trusts", Center on Budget and Policy Priorities, Jan. 30, 2023.

December 13, 2022

Chris Carosa, How A Laddered Bond Portfolio Can Mitigate Reinvestment Risk, Forbes, Dec. 13, 2022 (Apple News link).

December 6, 2022

Jonah Valdez, Another woman accuses late music executive Ahmet Ertegun of sexual assault, Los Angeles Times, Dec. 6, 2022 (Apple News link): "[Dorothy] Carvello filed a lawsuit Monday in New York state court against Ertegun‘s estate and Atlantic Records, which is owned by Warner Music Group, for battery, forcible touching, sexual abuse, criminal and civil conspiracy and intentional and negligent infliction of emotional distress."

November 28, 2022

Ethan Millman, Atlantic Records, Estate of Ahmet Ertegun Sued Over Sexual Assault claims, RollingStone, Nov. 28, 2022 (Apple News link): The plaintiff sued the estate under the Adult Survivors Act in 2012 on allegations that date back nearly 40 years even though the decedent died in 2006. "[Jan] Roeg’s case is the first high-profile lawsuit to hit the music industry following the enactment of New York’s Adult Survivors Act. The act, which took effect last week, established a one-year period in which survivors could bring forward lawsuits regarding sexual misconduct that would have otherwise gone beyond the statute of limitations."

Jonah Valdez, Nearly 16 years after his death, Atlantic Records CEO Ahmet Ertegun accused of assault, Los Angeles Times, Nov. 28, 2022 (Apple News link): "Jan Roeg says late music executive Ahmet Ertegun sexually assaulted her several times starting in the 1980s and alleges Atlantic Records covered it up."

November 1, 2022

Telis Demos, Why Mortgage Rates Are So Darn High, WSJ, Nov. 1, 2022 (Apple News link): "Interest rates are rising all over the place, but mortgage rates have gone up especially quickly. The list of whom to blame is long." One reason Demos gives is this: "The Fed this year, as part of its plan to shrink its balance sheet, has stopped purchases of agency mortgage-backed securities. Those are packages of mortgage loans issued by government-sponsored enterprises such as Freddie and Fannie Mae."

October 18, 2022

Ashlea Ebeling, IRS Raises Estate-Tax Threshold to $12.92 Million for 2023, WSJ, Oct. 18, 2022 (Apple News link): "Wealthiest Americans can shield more assets from estate tax after IRS inflation adjustments."

September 22, 2022

Nicole Friedman, After Years of Low Mortgage Rates, Home Sellers Are Scarce, WSJ, Sept. 22, 2022 (Apple News link): "Homeowners wearing the ‘golden handcuffs’ of low mortgage costs are reluctant to sell their homes now that rates are much higher."

August 9, 2022

Amena Saad, Backdoor Roth IRA: Understanding the loophole that gives high-income earners the tax benefits of a Roth IRA, Business Insider, Aug. 9, 2022: "Backdoor Roth IRAs are really just a conversion, not a special type of retirement account."

July 14, 2022

Ashlea Ebeling, IRS Gives Wealthy Families More Time to Shelter Assets from Estate Tax, WSJ, July 14, 2022 (Apple News link): Ebeling reports about the deadline a surviving spouse has to file Form 706 to make a portability election. "Under prior rules, a surviving spouse had up to 15 months to file the return. The application window was extended to two years in 2017 and then to five years last week because so many families were missing the deadline. . . . The new IRS five-year rule applies to estates not required to file an estate tax return for any reason other than to choose portability, in other words, a nontaxable estate. The deceased must have been a U.S. citizen or resident, be survived by a spouse, and have died after 2010."

June 4, 2021

Laura Saunders, The Huge Tax Break for Home Sellers: What to Know About the $500,000 Exemption, WSJ, June 4, 2021 (Apple News link).

October 16, 2020

Liz Knueven & Stephanie Hallett, A survey of 10,000 millionaires found most built wealth slowly over time using a basic tool many Americans overlook, Business Insider, Oct. 16, 2020: "A survey of 10,000 millionaires conducted by Ramsey Solutions found that eight out of 10 millionaires have a 401(k) account. . . . The survey also found that most millionaires didn't inherit their wealth or get it overnight. Rather, the majority built it slowly over time."