2011

Year-End Tax Planning: Moment of Truth
In "Year-end Tax Planning: Moment of Truth," Northern Trust Tax Consultant Grace Allison reviews the current income and transfer tax landscape and highlights year-end tax planning considerations. Read this paper to learn about particular strategies you may wish to consider.

2010

2011, Eye of the Storm
In "2011, Eye of the Storm," Tax Strategist Grace Allison provides an up-to-date look at what is brewing in the income and transfer tax arenas.

Summary of 2010 Tax Relief Act
The 2010 Tax Relief Act makes important changes to the estate, generation-skipping transfer and gift taxes, as well as to individual and business income taxes. This article highlights some of its key provisions.

Rethinking Wealth Transfer, Part 2: Initial Wealth Transfer Considerations for 2011 and 2012
The Tax Relief Act of 2010, enacted December 17, gives us many more opportunities to achieve our wealth transfer goals in a tax efficient manner. Central to the Act are three generous $5 million exemptions that shield transfers from the three federal transfer taxes, but only through December 31, 2012.

From Generation-Skipping Transfer Tax to Global High Wealth
Northern Trust Tax Strategist Grace Allison discusses potential year-end planning opportunities for trustees and beneficiaries of non-exempt generation-skipping trusts.

Tax News You Can Use: A Closer Look at the 3.8% Surtax
Northern Trust Tax Strategist Grace Allison discusses the details of how the 3.8% income tax surtax will affect individuals, trusts and estates.

Tax News You Can Use: The President's Budget Proposal for Fiscal Year 2011: A High Level Summary
Although Congress is not required to act on the President's proposals, there is no doubt that this 2011 budget will have an important influence on the tax environment in 2010. Your potential considerations include: when to recognize long-term capital gains, whether to accelerate income into 2010, when to establish a GRAT and whether to transfer limited partnership interests.

Tax News You Can Use: Here and Gone?
Congress may recess September 30 for the election campaign, leaving tax law in limbo . . .

Tax News You Can Use: Congress is Now on August Break — What Can We Do While It's Out and What Can We Expect When It Returns
With both houses of Congress in recess until the week of September 13, here are some things you should think about related to GRATs and IRA Charitable Rollovers. There's also an overview of pending income tax adjustments that Congress may address when they reconvene.

Tax News You Can Use: Major Federal Tax Policy Decisions, Many of Great Interest to Our Clients, Remain on Hold in Congress
With only a few short weeks left on the 2010 legislative calendar, Congress has not yet addressed major tax issues. This issue of Tax News You Can Use explores what is at stake.

Tax News You Can Use: Closing GRAT Window and other Developments
In late March, the House of Representatives passed legislation (H.R. 4849) that would have barred short-term grantor retained annuity trusts. Although H.R. 4849 is now moribund, identical GRAT limitation provisions are now included in a new jobs bill just introduced by House Ways and Means Committee Chair Sandy Levin. Anyone considering a short-term GRAT needs to understand that the window of opportunity is now closing... and that the time for action has arrived. Read Tax Strategist Grace Allison's insights for more details.

Tax News You Can Use: As Congress Turns to Taxes ... Five Big Things to Watch For
Congress continues to grapple with a number of difficult tax issues, many affecting affluent taxpayers. Increasingly, the stalemates are as important as the enacted legislation.

Tax News You Can Use: A Torrent of Tax Legislation? Health Care Reform, HIRE Act, Extenders, Jobs Bill
In addition to health care reform, approved by the House on March 21, and the recent Hiring Incentives to Restore Employment (HIRE) Act signed into law on March 18, Congress is considering extenders' legislation and a second jobs bill. Northern Trust Tax Strategist Grace Allison discusses the impact of these changes.

Tax News You Can Use: Transfer Taxes in 2010?
This Tax News You Can Use provides a brief, plain-language summary of exactly how the estate, gift, and generation-skipping tax rules have changed in 2010. These changes may affect your estate plan in ways you never intended. Read further to understand why you need to have your current documents reviewed now by your estate planning attorney.

January 31 Deadline: Tax-Free Distributions from IRA to Qualified Charities: 2010 - 2011
Read answers to frequently asked questions about a special provision that treats distributions made to qualified charities on or prior to January 31, 2011 as if they were made on December 31, 2010. You must provide directions about your distributions to meet the January 31 deadline.

Tax News You Can Use: Rethinking Wealth Transfer, Part I — Immediate Planning Considerations for 2010
Now that we finally have transfer tax legislation, it's time to RETHINK WEALTH TRANSFER.  Part 1 of a three-part series, this piece focuses on unique year-end planning opportunities for 2010.

Year-End Tax Planning: Be Knowlegeable and Nimble (October 2009)
The turmoil and uncertainty in the financial markets over the past two years have caused many individuals and families to reevaluate their financial plans. However, against the backdrop of likely changes in tax law, you may be perplexed as to how to plan effectively. With year-end fast approaching, our advice is to be knowledgeable and nimble.

In "Year-end Tax Planning: Be Knowledgeable and Nimble," Northern Trust Tax Strategist Grace Allison recommends that you and your advisors assess the likely income and transfer tax outcomes, identify the various alternatives and build an up-to-date wealth transfer plan. Read this paper to learn about particular strategies you may wish to consider.

Tax News You Can Use: Repeal on the Horizon
With the House of Representatives already adjourned for the year—and the Senate struggling to pass its health care bill—it appears unlikely that Congress will act before year-end to retain the current estate tax regime for 2010. This paper explores the consequences of Congressional failure to extend the 2009 transfer tax regime.

The New Form 990: Revolution in Progress
A practical guide to new IRS governance initiatives for tax-exempts, and how new information on the forms 990 filed by grant recipients may affect grant-making decisions in 2010 and beyond.

Income Tax Provisions of the American Recovery and Reinvestment Act of 2009
On February 17, 2009, President Obama signed into law the $787 billion American Recovery and Reinvestment Act of 2009 (the “Act”).  Among $301 billion in tax cuts made by the Act are income tax provisions directly affecting individual taxpayers.
Highlights of the major tax law provisions directly affecting individuals are set forth in this Tax News You Can Use.

Race to the Finish
Congress is back in session this week after a Thanksgiving recess and, according to all reports, the House of Representatives is poised to consider permanent extension of the current estate tax regime.

Important Message Regarding 2009 Required Minimum Distributions (RMDs)
On December 23, 2008, the Worker, Retiree and Employer Recovery Act of 2008 was signed into law. The legislation, which waives required minimum distributions for the 2009 tax year from IRAs and employer-sponsored defined contribution retirement plans, is designed to provide investors some relief given the recent market downturn.

The waiver applies to all IRA owners subject to RMD rules, plan participants and beneficiaries of deceased IRA owners. For living IRA owners, if you are age 70½ or older in 2009, your next required RMD is due by December 31, 2010. However, IRA owners who turned 70½ in 2008 must still take their 2008 RMDs by April 1, 2009, to meet 2008 tax year requirements.

We encourage you to speak with your tax advisors to determine whether you should take a distribution when one is not required.

Personal Tax Changes Buried in Housing Act. . . (August, 2008)
On July 30, 2008, President Bush signed into law the Housing and Economic Recovery Act of 2008. The Act includes a wealth of tax provisions, including benefits for multi-family low-income housing, incentives for single family housing and various reforms relating to the taxation of REITs (real estate investment trusts). It also includes a series of revenue raisers scored to offset fully the estimated $15 billion cost of those benefits, incentives and reforms.

The opinions expressed here are those of the authors and do not necessarily reflect those of the Northern Trust Corporation or its subsidiaries. The information has been obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. Any opinions expressed herein are subject to change at any time without notice. Any person relying upon this information shall be solely responsible for the consequences of such reliance.

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