Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

Were their annual exclusions from 1990 to 2002 (?) when the

Customer Question
Were their annual exclusions from...
Were their annual exclusions from 1990 to 2002 (?) when the # ***** $11,000? I ask this pertaining to Crummey Exclusions for gifts to an ILIT (insurance trust). Client had a ILIT going back to 1990 but never got Crummey notices signed. TY DG
JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: What CPA will help? Yours? Many CPA's don't know what a Crummey notice is
JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and then connect you two.
Submitted: 1 year ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 26 minutes by:
6/30/2016
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,875
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi,

...

There were no specific exclusions during that time period, or any other, for crummey notices.

...

Depending on the funding frequency, however, several variations have emerged.

...

The MOST AGGRESSIVE : I have seen CA attorneys draft and send a letter that gives notice, upon the first funding, requiring a certified reply that the client understands that they have the right upon any future premiums, and once annually in addition, but then not send future notices.

...

Not a best practice, in my opinion.

...

Where something similar IS seen is when there is a single premium involved.

....

Bot***** *****ne?

...

The inherent disadvantage of relying upon the use of instructions in the instrument of transfer to create Crummey powers is that these instructions must be provided each time a gift is made to the trust and cannot be provided after the gift is made.

...

Further, if the instructions are not sufficiently specific with regard to who is to possess the withdrawal power or fails to address other material terms of the withdrawal right (such as the amount), the IRS may not accept the external instructions as sufficient to create a present interest.

...

SO the letter serves as a second layer.

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

But for them to succeed in qualifying gifts for the annual exclusion, the rules must be followed carefully.

...

But the rules speak only to "reasonabletime and opportunity" and "prompt notice"

...

That is, the beneficiaries must receive prompt notice that a gift has been made and be given reasonable time and opportunity to request a withdrawal.

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

As I look back to your question, I now wonder if you are simply asking about the AMOUNT OF the annual exclusion;

...

If that's the case here are the amounts.

...

$10,000, for years 1987 to 2001 (moved from 3,000 to 10,000 - 1986 to 1987)

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

Were premiums paid for each of those years (also, what state)?

...

Let me know

...

lane

...

...

I have a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, on three continents, since 1986.

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

Questions?

Ask Your Own Tax Question
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,875
12,875 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
What are the rules for a utma account. California. Can i pay
what are the rules for a utma account JA: Because laws vary from place to place, can you tell me what state this is in? Customer: california JA: Has anything been filed or reported? Customer: no JA: A… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
736 satisfied customers
I have an IRA account and the beneficiary on the account is
I have an IRA account and the beneficiary on the account is a Trust that I set up. So if I die, the IRA money goes into the Trust. I would like to know how that IRA money is taxed if I die. My total e… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Form 886-A Deductible Home Mortgage Interest Taxpayer has
Form 886-A Deductible Home Mortgage Interest Taxpayer has $1,000,000 in Grandfathered debt. Line 9 Form 886-A - is this line amount after deducting the garandfathered debt… read more
Lane
Lane
JD, CFP, MBA, CRPS
12,875 satisfied customers
I would like to start a non profit (tax exempt). I am
I would like to start a non profit (tax exempt). I am located in Idaho. The main reason for the non profit will be to help people in need, like the poor and needy with humanitarian services and produc… read more
taxmanrog
taxmanrog
Master\u0027s Degree
699 satisfied customers
What are tax implications when docating small IRS to state
What are tax implications when docating small IRS to state university … read more
Lane
Lane
JD, CFP, MBA, CRPS
12,875 satisfied customers
My brother in-law is a non US citizen, non-resident. He
Second opinion] My brother in-law is a non US citizen, non-resident. He would like to gift my wife and adult children $100K each. He would like to use money he has invested in the US. Would he have to… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
736 satisfied customers
My brother in-law is a non US citizen, non-resident. He
My brother in-law is a non US citizen, non-resident. He would like to gift my wife and adult children $100K each. He would like to use money he has invested in the US. Would he have to file a gift (fo… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,483 satisfied customers
I run a non-profit that lost its status due to not filing
I run a non-profit that lost its status due to not filing 990. We are still in business. Can I sell the business since it is not technically a non-profit now and the new owner operate under a new non-… read more
Lane
Lane
JD, CFP, MBA, CRPS
12,875 satisfied customers
I'm the treasurer of a non-profit with 501c3 status. I took
Hi, I'm the treasurer of a non-profit with 501c3 status. I took over the responsibilities in February and with our year ending in June I had to prepare the tax returns. While doing so I notice a lack … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
I am treasurer for a non-profit corporation. Is there a
I am treasurer for a non-profit corporation. Is there a percentage of income from rental income that could threaten non-profit status? … read more
abci168
abci168
Principal
27 satisfied customers
I am a beneficiary on my deceased wife's IRA's accounts. She
I am a beneficiary on my deceased wife's IRA's accounts. She passed in 2010 and they are still in her name. I turned 70 this year but she would only be 66 if living today. Does the 5 year rule apply f… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
In Ohio is a non profit charity required to give a budget to
In Ohio is a non profit charity required to give a budget to its members at the annual meeting … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,483 satisfied customers
What are the federal and Oregon state taxes on profit of
What are the federal and Oregon state taxes on profit of sale of my home. My wife and I are age 81 and 77 respectively. I expect the profit will be about $400,000. … read more
abci168
abci168
Principal
27 satisfied customers
Can the IRS levy against personal checking account if you
Can the IRS levy against personal checking account if you own a corporation that owes taxes … read more
Lane
Lane
JD, CFP, MBA, CRPS
12,875 satisfied customers
Do you have knowledge on tax laws regarding non profit
Do you have knowledge on tax laws regarding non profit donations and so forth? … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
736 satisfied customers
Rules on Rollovers (Return of a non-taxed IRA Distribution).
Rules on Rollovers (Return of a non-taxed IRA Distribution). Over 70-1/2 years old) … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I am filing form 1023-EZ for a newly formed non-profit
I am filing form 1023-EZ for a newly formed non-profit corporation and would like to make sure I am doing it correctly. It seems fairly straight forward but I have a couple of questions. … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
736 satisfied customers
Do you all answer non-profit tax questions? we are a non
we are a non profit and a vendor has offered to pay a bill for us. Is that a tax deductible donation? … read more
Lane
Lane
JD, CFP, MBA, CRPS
12,875 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x