There are not that many major changes to estate planning laws coming in 2016, but there are a few subtle and evolving changes that clients and planners should be aware about. People need to be aware of the IRS provisions that were made permanent in the Protecting Americans from Tax Hikes (PATH) Act of 2015. One of the most important changes deals with the limitations on tax advantages for spin-off transactions involving a real estate investment trust (REIT). “The new rules say that a REIT spin-off qualifies for tax-free treatment only if, immediately after the distribution, both the distributing and controlled parties to the transaction qualified as REITs.” There have also been changes that will permit tax-payers over the age of 70 ½ to make tax-free charitable donations directly from their IRA accounts under certain conditions specified in the regulations. This article also discusses the changes to the rules dealing with annual gift tax exclusions.
See Tom Nawrocki, Changes to estate planning laws in 2016: what to expect, Life Health Pro, January 22, 2016.
Special thanks to Jim Hillhouse for bringing this article to my attention.
