June, 2011 | The Beliveau Law Group - Attorneys at Law

What are my rights for my mom estate? She passed away and there are 10 other slibing beside myself.

Additional Information: What are my right since my mother pass away and there are 10 other siblings involved concerning our mother house and any money that she may have left behind after her final expense has been taking care of? ATTORNEY ANSWER: First, you need to determine which assets will need to be probated. Any assets which were owned by your mother jointly with another person or had a beneficiary designation on them will pass directly

Board of Assessors of Bridgewater vs. Bridgewater State University Foundation judgment rendered

Board of Assessor of Bridgewater vs. Bridgewater State University Foundation, No. 10-P-593, June 7, 2011, Ruling issued by Margaret L. Cross-Beliveau, Esq., LL.M. The Massachusetts Supreme Court slip opinion was issued today in the Board of Assessor of Bridgewater vs. Bridgewater State University Foundation overturning the Appellate Tax Board’s decision to grant a tax exemption. The Appellate Tax Board concluded that the Bridgewater State University Foundation (foundation) was entitled to the exemption because the foundation allowed

If a living person has a life estate for a house can they sell the house?

Additional Information: A man now only holds a life estate for the house he lives in and signed the deed over to his 2 daughters. Can he sell the house and avoid the capital gain fees because he has lived there for 2+ years out of the past 5 years. Or do his daughters have to sell the house and property and pay the capital gain? ATTORNEY ANSWER: Currently the father owns a life estate and

Ascertainable Standard Explained

Additional Information: According to an irrevocable trust, as a income beneficiary, I am allowed access to the principal of my trust share trust only under certain ascertainable standards–h/e/m/s. Also, the “trustee’s determination shall be conclusive. The trustee “shall” take into consideration my “income or capital resources from any source.” Does this mean that if I have a large amount of resources outside the trust that it will be hard for me to access the principal, if

Center on Budget and Policy Priorities issues a Report entitled New Estate Tax Rules Should Expire After 2012

The Center on Budget and Policy Priorities’ report espouses the position that the estate tax rules should be let to expire after 2012. Among the reasons list are that (1) the 2009 rules were more than generous since less that one quarter of one percent of the estates incurred and an estate tax and (2) with the step-up in basis a substantial amount of income would go untaxed as there would no longer be a capital

Penalties imposed for misclassifying employees as independent contractors

As reported in RIA Tax Newsstand: Employers that misclassify employees as nonemployees or independent contractors will face substantial financial penalties as the result of not withholding income tax, failing to withhold and pay employment taxes, and failing to file the correct reports and returns with the IRS, Social Security Administration (SSA), and state government agencies. The IRS penalty for unintentionally failing to withhold federal income tax is 1.5% of the wages paid. This assessment is

IRS raises threshold for imposing tax liens

The IRS recently announced that it will adjust its use of tax liens to collect back taxes. A federal tax lien gives the IRS a claim on a delinquent taxpayer’s property for unpaid taxes. This change means the IRS won’t use a tax lien unless at least $10,000 in back taxes is owed; the previous threshold had been $5,000. In addition, the IRS says it will “withdraw” more tax liens once the back taxes have been

“Tax Freedom Day” came later in 2011

“Tax Freedom Day” fell on April 12 in 2011, three days later than in 2010. According to the Tax Foundation, all the money earned by taxpayers in the first 102 days of 2011 will go to pay their federal, state, and local taxes. Another statistic from the Tax Foundation: If the government were to collect enough taxes to fund all spending for 2011 (with no deficit), Tax Freedom Day would be May 23, 2011. That’s 41

Tax tips for your vacation home

Planning to rent out your vacation getaway? When it comes to taking advantage of the tax benefits, timing is an important factor. Here are two points to remember. The fourteen-day-or-ten-percent test. The IRS applies this test to determine if you use your vacation home as a personal residence. If you stay in the home more than 14 days or 10% of the total days it’s rented in a calendar year (whichever is greater), the general rule

Tax breaks can help when disaster strikes

Recent events here and abroad are reminders that disasters can occur at any time – often with staggering human and financial costs. If you’re an unlucky victim of a disaster, you may receive help from insurance and federal disaster aid. But the tax code also offers some relief. You may be able to take an itemized deduction for part of your loss. In tax terms, it’s a “casualty loss,” and it can also apply to events

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Beliveau Law Group

June 2011