C&R Blog

 

The Best Free Tax Advice I Have Ever Given

Whenever I meet with a new entrepreneur, I always promise to give them a free piece of tax advice just for coming in to see me.  I tell them, up-front, that this will be the best tax advice they are ever going to get from me.  And, I also bravely promise them that this free tax advice probably will save them tons of money down the road. These new budding entrepreneurs are usually quick to grab a pad and pencil and then lean forward to eagerly await to hear from me the golden gem of free adv ...
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Court Rules Inherited IRA is Exempt From Creditors’ Claims

By Scott K. Tippett

In In re Brandon C. Clark,  Case No.  3:11-cv-00482-bbc, the United States District Court for the Western District of Wisconsin reversed the Bankruptcy Court and held that an IRA a debtor inherited from her mother was exempt from the debtor's creditors. In August 2000 the debtor's mother established an Individual Retirement  Account and named her daughter as the sole beneficiary.  The debtor's mother died a little over a year later.  The debtor established an Inherited IRA account in her ...
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Feder and Fujishima: When It Comes To Life Insurance and Taxes, Dot Your I’s and Cross Your T’s

By Scott K. Tippett

Two recent Tax Court decisions illustrate the danger (and cost) of not paying attention to the details when it comes to life insurance policies and taxes.  In each case the taxpayer failed to dot their i’s and cross their t’s, which created adverse estate tax consequences in one case and adverse income tax consequences in the other. In the first case, Estate of Dwight T. Fujishima  et al v. Commissioner, TC Memo 2012-6, the decedent was the record owner of three life insurance policie ...
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Designation of Client’s Living Trust as Beneficiary of Life Insurance Policy Forfeits Exemption

By Scott K. Tippett

In North Carolina a creditor cannot reach the cash value or death benefit of a debtor’s life insurance policy on his or her own life provided the debtor’s spouse, children, or both are the beneficiaries of the policy. This right is guaranteed under Article X, Section 5 of the North Carolina Constitution and is also found in under the state’s statutory exemption scheme at N.C. Gen. Stat. Sec. 1C-1601(a)(6). Because North Carolina is an opt-out state for bankruptcy purposes, which means a de ...
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