Laura A. Zwicker

Chair, Private Client Services Group
Fax 310-553-0687

Wealthy tax return filer? Silver lining graces challenging IRS season

January 24, 2022Media Mention
Financial Planning

Laura Zwicker, chair of the Private Client Services Group, shared her knowledge with Financial Planning regarding gift tax returns, which are typically filed by affluent individuals. Such returns are filed by taxpayers when the gifts exceed $15,000.


“We’re moving forward under traditional planning that works under current law and that we think will work."

"The early version of the bill prompted some advisors to tweak clients’ trusts by weaving in escape hatches and disclaimer provisions to unwind a gift or transaction if the law changed and taxes increased," Zwicker said.

"It’s only five pages long. But the gift tax return is notoriously complicated, requiring details on whether gifts are 'generation skipping' — made to grandchildren — and documents proving valuations and discounts involving assets contributed to trusts. Not correctly reporting a gift, which is easy to overlook, could leave it open to being hit with the 40% generation-skipping transfer tax," Zwicker said.

With those clauses, "we can stop any negative capital gains event” should the earlier version get reintroduced, she added.

"The appointed person has to be someone that the beneficiary knows and trusts and is ideally a non-family member," Zwicker added. Because, she said, “you’re giving them super powers, god-like powers” over your wealth.

Read the full article here.