Estate Planning and Tax Reform in 2018

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ESTATE PLANNING AND TAX REFORM IN 2018
Estate Planning and Tax Reform in 2018
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Table of Contents
Estate Planning and Tax Reform in 2018........................................................................................3
INTRODUCTION...................................................................................................................................3
2.0 INTERNAL REVENUE CODE SECTION......................................................................................4
3.0 REVENUE RULINGS......................................................................................................................5
4.0 PROCEDURES.................................................................................................................................8
5.0 COURT CASES..............................................................................................................................11
6.0 CONCLUSION................................................................................................................................12
References..............................................................................................................................................13
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Estate Planning and Tax Reform in 2018
INTRODUCTION

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An estate is referred to as the total net worth of a person at any point in a lifetime that can
include his personal assets such as business equity, real estate, intellectual property, bank
accounts and bonds1. Moreover, it is entrepreneurship that continually grows despite the owner’s
death and can be accounted in the form of investments and royalties that gain interest on a rapid
a rate2. Generally, estate planning can be described as a process of creating legal documents that
provide instructions on assets management and allocation during the person's lifetime and after
his death3. It facilitates planning, reduction and elimination of uncertainties over a probate
administration and on maximizing on the value of the estate by other expenditures and taxes.
Majority of the capitalist that choose to invest in estate planning, have an ultimate agenda that is
individually based due to their preference and taste and in most scenarios, the guardians
designate their asset to their beloved children and the incapacitated groups4. The significant
aspects in estate planning include the following: beneficiary designations, powers of the attorney
particularly the medical and the financial strength of the attorney, property ownership with the
mandate of survivorship, trust, will and powers appointment. On the other hand, tax reforms can
be described as the process the internal revenue service’s or any state department that is in
charge of the revenue, interprets the tax codes or the internal revenue codes and to can as be
referred as the treasury regulations which are also the sources of income tax law. These research
paper on estate planning and tax reforms widely emphasizes on the measures the government has
1 Hirsch Adam J, The Code Breakers: How States Are Modifying the Uniform Disclaimer of Property Interests Act,
(University of San Diego, School of law: JSTOR., 2011), 325-375.
2 Perrone Maria, What happens when we die: estate planning of digital assets, (The Catholic University of America,
Columbus School of Law: Heinonline., 2012), 185.
3 Ambrose Peter, What Happened to Planning? Routledge Revivals, (London: Routledge., 2014)
4 Jowsey Ernie, Real Estate Concepts: A Handbook, (London: Routledge., 2014)

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incorporated to regulate on the individuals that decide to invest on estate planning and thus the
reduction in the tax rate has a positive impact on the estate planners.
2.0 INTERNAL REVENUE CODE SECTION
On a higher perspective, tax regulation in the UN is regulated by section 7805 that
provides the secretary of the treasury the authority to make necessary rules and regulations that
enforce the internal revenue codes5.Nevertheless, the regulations are inclusive but not limited to
the Income Tax Regulations that is located in the Code of Federal Regulations and each
provision is organized in a way that will correspond to the internal revenue code sections that are
broadly interpreted in the regulations. Additionally, the secretary of the regulation has the
mandate to promulgate final rules and thus in the process end up enacting the law. The tax
regulation act is composed of these other regulations that include: interpretive regulation,
proposed regulations, and temporary regulations. Similarly, for the proposed regulation to be
activated its testimonies and comments must be received and the final regulation submitted.
Seemingly, the proposed regulations offer guidance for the specific code sections and hence are
very beneficial in providing the taxpayer's liabilities for the given year.
On the other hand, the interpretive regulation may be disowned when if they are opted to
be at variance with the statute. The temporary rules are effective upon the publications by the
federal register and thus may be valid for three years and above from their date of insurance
since the comments and notices may take several months or years to complete the process.
Nonetheless, for the regulations act to be enacted more swiftly there is the need for submitting a
proposed regulation simultaneously as the temporary regulations. Occasionally, the proposed tax
regulation is drafted by the internal revenue services, and the federal Register takes part in
5 McLaughlin Nancy A, Internal Revenue Code Section: National Perpetuity Standards for Federally Subsidized
Conservation Easements, (University of Virginia: JSTOR., 2011),473 - 527