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<p class="MsoNormal">All,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I’m looking forward to seeing all of you at the Summer Meeting in beautiful Dana Point! The E&G Committee meets on Saturday, June 21 from 2:45 to 5:15 PDT. The meeting promises to be a Basis Adjustment Blockbuster. Among the topics scheduled
are:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 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]>A new twist from new committee member <b>Les Raatz</b> on triggering the Delaware Tax Trap to obtain basis in states that have adopted the Uniform Statutory Rule Against Perpetuities.<o:p></o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 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]>Is a power held by a trust protector to grant a beneficiary a general power the same as a power "held jointly" with the trust protector? A potential Section 2041(b)(1)(C)(iii) "gotcha."
<o:p></o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 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]>Can I get a basis adjustment for assets sold to an "Accidentally Perfect" Intentional Defective Grantor Trust for a note? The 2053 regulations suggest maybe not but the partnership rules suggest maybe so.
<b>Stacey Eastland</b> promises to help us sort this out. <o:p></o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 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]>Some advocate buying low basis assets from your grantor trust so that you can get a step-up in basis in those assets at death.
<b>Jerry Hesch</b> will discuss whether this tool results in gain recognition to the trust upon the grantor's death.
<o:p></o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 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]>Section 1014(b)(6) provides for a new cost basis for the surviving spouse's one-half interest in community property.
<b>Jonathan Blattmachr</b> will discuss whether the adjustment works for a community property decedent when real estate in a non-community property state is involved (and a possible fix for this potential problem).<o:p></o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 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]>Our popular Open Forum Topic this meeting with be: It's All About Basis—What strategies are you considering to help ensure a basis adjustment upon the death of your clients?<o:p></o:p></p>
<p class="MsoNormal">If time permits, we will review some other recent developments on topics of interest.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Here’s a link to the material (they don’t seem to be posted on the App just yet).<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Verdana","sans-serif";color:black;background:white"><a href="http://tinyurl.com/ACTEC-S14-EstGift">http://tinyurl.com/ACTEC-S14-EstGift</a><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Hope to see you there!<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal" style="line-height:90%"><span style="color:black;letter-spacing:-.3pt">Mickey R. Davis<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height:90%"><span style="color:black;letter-spacing:-.3pt">Davis & Willms, PLLC<br>
Fellow, American College of Trust and Estate Counsel<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height:90%"><span style="color:black;letter-spacing:-.3pt">Board Certified - Estate Planning & Probate Law Texas Board of Legal Specialization<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height:90%"><span style="color:black;letter-spacing:-.3pt">3555 Timmons Lane, Suite 1250<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height:90%"><span style="color:black;letter-spacing:-.3pt">Houston, Texas 77027<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height:90%"><span style="color:black;letter-spacing:-.3pt">(281) 786-4502 voice<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height:90%"><span style="color:black;letter-spacing:-.3pt">(281) 742-2600 fax<br>
</span><a href="mailto:mickey@daviswillms.com"><span style="color:black;letter-spacing:-.3pt">mickey@daviswillms.com</span></a> |
<a href="http://www.daviswillms.com/"><span style="color:black;letter-spacing:-.3pt">www.daviswillms.com</span></a><span style="color:black;letter-spacing:-.3pt"><o:p></o:p></span></p>
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