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Death And Taxes: When The Wealthy Unexpectantly Perish

“Let me tell you about the very rich. They are different from you and me.” ~The Rich Boy, by F. Scott Fitzgerald, 1926.

If there is one absolute certainty in life, it is one day all of us will have our last day. The unfortunate reality is that death does not just come calling for the aged and infirm. Every day in the United States thousands of people die from causes that are not natural, such as auto accidents, accidental poisoning (mostly drug and alcohol related), falls, drowning, boating and aircraft accidents, and even animal attacks. Some years ago, not far from this author’s home in Southern California a jogger was killed by a mountain lion. Not long after this incident, another runner was killed by an alligator in Florida. In fact, Florida seems to have more than its share of gruesome unnatural deaths. In 2013, Jeffrey Bush, a 37-year-old resident of Hillsborough County, Florida, was at home in bed, and a giant sink hole swallowed the entire house—with him in it. They never found the body.

Written by David Ellis | Posted in Death And Taxes • Trust & Estate

Introduction –

The purpose of this section is to provide a cursory view of foreign trusts and financial planning, the emphasis of which is asset protection from judgments. The basic taxation regime of a foreign trust can be reviewed in a previous writing, Income Taxation of Foreign Trusts and Beneficiaries, TaxConnections, November 25, 2013.

The focus here is the treatment by the United States taxing authority upon a foreign trust pertaining to the tax consequences subsequent to transfer. The points of relevance are the income tax treatment to the Settlor, beneficiary, and trust and the consequential use of the Read More

Written by William Richards | Posted in Estate Planning Tax • United States