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Subject:  Re: re post above estate tax avoidence Date:  11/19/2009  1:47 AM
Author:  vkg Number:  107717 of 127519

Any other view there? Is the attorney liable for allowing it to happen?

If the lawyer assists with fraud or illegal activity, then the lawyer would have liability. A lawyer can not prevent a client from ignoring their advice. There are limits to privilege.

The objective is get the asset transferred before death to avoid inheritnce tax and avoid paying capital gains taxes as well. I know is it wrong and risky even for someone with patriotic limitations. Total estate oproior to this woul be ~ 1.4 million.

Speculating on how the house of cards will collapse is not useful. Anyone in the family could cause this to unravel. Anyone knowing about the tax evasion could report it to the IRS to collect the bounty.

1.) The first million of an estate is not taxed.
2.) The cost basis is stepped up on date of death.

A proper estate plan can minimize income and estate taxes without committing tax fraud. It maybe possible to structure an installment sale tied with annual gifts. As highly appreciated property, a partial donation would reduce income and estate taxes. There are options which are legal and minimize both his and the grandchilds taxes and liability.

Deeds are public documents. It isn't just the IRS that is of concern.

How much income does "A" have? If it mostly Social Security, $24,000 a year would result in limited income tax while preserving the cost basis for the grandchild.
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