OREGON ESTATE TAX PLANNING WITH GIFTS – BE CAREFUL

Oregon’s estate tax only applies to the decedent’s wealth on the date of death. ORS 118.010. And Oregon has no gift tax. Thus, if assets are given away before death, by even one day, the tax is zero. But gifts can backfire. Here’s why. Continue reading

ACCIDENTAL US CITIZENS

Children born outside of the US who have at least one US citizen parent may be surprised to learn that they are US citzens — and have always been required to file US tax returns, FBAR forms and Form 8938. (They may qualify for FBAR penalty relief under the procedures outlined in IRS release IR-2012-65.) Continue reading

SLATs (Spousal Lifetime Access Trusts)

In general, “SLAT” refers to a trust created during a spouse’s lifetime for the benefit of the other spouse. (For simplicity, I will assume the husband is the party creating the SLAT, and the wife is the beneficiary.) The SLAT usually continues for the rest of the wife’s life. Only the husband’s assets are used to fund the trust, and the wife is given no powers (such as a general power of appointment) that would cause the SLAT assets to be included in her estate at her death. No marital deduction is claimed.

Advantages of a SLAT:
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EDUARDO SAVERIN AND DENISE RICH — EXAMPLES OF US “EXIT TAX” ON RENOUNCING US CITIZENSHIP

You can leave the US, but it will cost you……

In a prior post I described the US exit tax on US persons who renounce their citizenship or green card status and move overseas.  Two recent examples are Eduardo Saverin (co-founder of Facebook) and Denise Rich (songwriter and husband of a billionaire commodities trader).  A recent CNN article describes the exit tax on Ms. Rich.
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