Soften the HEART's Blow

, By Paula M. Jones

Certain expats may be hit with the new exit tax, some donees can face gift tax consequences, and still others may be in the best position to avoid federal estate and gift tax. A guide

By Paula M. Jones

These days, all estate planners must be prepared to attend to the needs of multinational clients. And that means advisors must be familiar with the Heroes Earning Assistance and Relief Tax Act. HEART, as it is known, passed in the summer of 2008 and made important changes to both the federal income tax as well the federal estate and gift tax.

HEART makes it much harder for a U.S. citizen or U.S. resident to leave the United States without incurring an exit tax. The bottom line: There's a new U.S. Code Section 877A that considers property of certain expatriates as having been sold for its full market value on the date before the expatriation occurred.

Sign in to
view the full article

Not a subscriber?

Subscribe & Save
Get immediate access to Trust & Estates online
Subscriber Benefits
Learn more about Trust & Estates magazine, online article access and our free enewsletters.

Wealth Watch E-Letter Subscribe

Fate of Famed Art Collection Unresolved

By David Thayne Leibell, partner in the Stamford, Conn. and New York City offices of Wiggin and Dana LLP

Tennessee Chancery Court temporarily blocks the sale by financially strapped college of a 50 percent interest to a Walmart heiress’ new museum...

The Shifting Sands of the Tax Burden

By John T. Brooks, partner, and Samantha E. Weissbluth, senior counsel, Foley & Lardner LLP, Chicago

A U.S. Court of Appeals ruling underscores the importance of paying attention to the tax implications of selling or transferring property before a testator’s death...

View Past Wealth Watch E-letters...