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<p class="MsoNormal">All,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">We’re getting ready for some great discussions in Philadelphia.
<b>If you have a topic you’d like to discuss, or hear discussed, please let me know ASAP.</b><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">In the meantime, I’m asking a few of our newly formed subcommittees to take on some recent developments and to prepare a brief report. In particular:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b>Gifts and Disclaimers Subcommittee</b> (led by Clary Redd): I’m hoping you can tell us about the recent CCM indicating that binding arbitration and in terrorem clauses may make a transfer ineligible for the annual exclusion. See a discussion
here:<o:p></o:p></p>
<p class="MsoNormal"><a href="http://estgift.forumotion.com/t6-new-lisi-piece-on-annual-exclusion-with-interrorem-and-binding-arbitration-clause">http://estgift.forumotion.com/t6-new-lisi-piece-on-annual-exclusion-with-interrorem-and-binding-arbitration-clause</a>
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b>706/709 Reporting Subcommittee</b> (no leader yet): Would love to hear about the recent Knappe and Liftin cases denying reasonable cause penalty abatement for taxpayers that obtained erroneous tax advice from their advisors: More here:<o:p></o:p></p>
<p class="MsoNormal"><a href="http://estgift.forumotion.com/t3-erroneous-advice-not-reasonable-cause">http://estgift.forumotion.com/t3-erroneous-advice-not-reasonable-cause</a>
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b>FLPs/LLCs/Valuation</b> (led by Jerry Levine): Could we hear comments on TAM 201317010, where the IRS again refuses to follow the Mattie K. Carter Trust case on material participation by a trustee? This is an income tax (and now 3.8%
Medicaid Tax) issue, but I think it is important for planning purposes. A Forum discussion is here:<o:p></o:p></p>
<p class="MsoNormal"><a href="http://estgift.forumotion.com/t5-tam-201317010-material-participation-by-a-trust-to-avoid-38-tax-on-business-income-from-partnerships-or-s-corps">http://estgift.forumotion.com/t5-tam-201317010-material-participation-by-a-trust-to-avoid-38-tax-on-business-income-from-partnerships-or-s-corps</a>
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:black">In addition to the above, I’m asking all members to put on your thinking caps and be ready to join in an open discussion on the following topic.
<b>We want to hear YOUR ideas</b>:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><b>Should all-to-QTIP-Trust or all-to-<i>Clayton-</i>Trust be the new starting point for estate planning clients who may not have taxable estates?</b><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Finally, I would love to have volunteers on the following:<o:p></o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l1 level1 lfo1"><![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>Five new "DING Trust" rulings (PLRs 201310002– 201310006)<o:p></o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l1 level1 lfo1"><![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>Like-kind exchange of a second-to-die for a new first-to-die life insurance policy (PLR 201304003)<o:p></o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l1 level1 lfo1"><![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>Late GST allocations under 9100 relief provisions vs. the proposed late allocation regulations (PLR 201313003)<o:p></o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l1 level1 lfo1"><![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>Denial of a charitable deductions - strict interpretation of the substantiation rules (<i>Villareale v. Commissioner</i>, T.C. Memo 2013-74)<o:p></o:p></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black">Please let me know if you’d like to volunteer, or if you have other thoughts.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black">If you haven’t joined a subcommittee yet, but would like to, please let me know. Here is a list of current subcommittees:<o:p></o:p></span></p>
<p class="MsoNormal">GST<o:p></o:p></p>
<p class="MsoNormal">Chpt 14/SCINs/Sales to IDITs/Private Annuities<o:p></o:p></p>
<p class="MsoNormal">Marital Deduction <o:p></o:p></p>
<p class="MsoNormal">Debts and Admin Exp <o:p></o:p></p>
<p class="MsoNormal">FLPs and FLLCs/ Valuation<o:p></o:p></p>
<p class="MsoNormal">Portability<o:p></o:p></p>
<p class="MsoNormal">706/709 Reporting, Audits, Pymts, Deferral, Penalties<o:p></o:p></p>
<p class="MsoNormal">Gifts and Disclaimers<o:p></o:p></p>
<p class="MsoNormal">Legislation/Proposals Regulations/Guidance <o:p></o:p></p>
<p class="MsoNormal">State Death Taxes<o:p></o:p></p>
<p class="MsoNormal">Life Insurance<o:p></o:p></p>
<p class="MsoNormal">Decanting<o:p></o:p></p>
<p class="MsoNormal">String Statutes<o:p></o:p></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black">Hope to see you in Philly!<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black">Mickey R. Davis<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black">Davis & Willms, PLLC<br>
3555 Timmons Lane, Suite 1250<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black">Houston, Texas 77027<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black">(281) 786-4502 voice<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black">(281) 742-2600 fax<br>
</span><a href="mailto:mickey@daviswillms.com"><span style="color:blue">mickey@daviswillms.com</span></a><span style="color:black"><br>
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