Probate & Estate Planning

A new federal law requires most legal entities to report specific information about the business and its owners.

Effective January 1, 2024, the federal Corporate Transparency Act (CTA) requires the majority of companies doing business in the U.S. to report to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) specific information about the business entity and the people who have “substantial control” of it.

The CTA is a provision of the Anti-Money Laundering Act, which is part of a federal effort to combat shell corporations, LLCs and other entities that engage in illegal money laundering and other criminal financial activities.
Continue Reading Corporate Transparency Act places new reporting requirements on most business entities

Four Frazer Ryan partners are among

Phoenix

magazine’s “Top Lawyer” selectees for 2023

Featured in the magazine’s September 2023 issue are


David Cohen


(Corporate, Finance, M&A),


John Fitzpatrick


(Wills, Estates, Trusts),


Brandon Keim


(Tax Law), and


Lisa Reilly Payton


(Tax Law).

Selections are the result of a survey of Phoenix-area attorneys in all major practice categories.
Continue Reading "Top Lawyer": Phoenix magazine recognizes four Frazer Ryan attorneys

Twelve Frazer Ryan attorneys are among

The Best Lawyers in America

®

selections for 2024 announced this week, including first-time honoree

Brandon Keim

(Tax Law).

Repeating as honorees are

Jimmy Cool

Scott Erickson,

 

John Fitzpatrick

Doug John,

 

Cathy Knapp

Jonathon Morrison

,

Lisa Reilly Payton

Phil Rupprecht,

 

Jim Ryan,

 and 

T.J. Ryan

.

Afsanieh Rassti

again earned “Ones to Watch” recognition.

Inclusion in

The Best Lawyers in America

and

Best Lawyers ”

Ones to Watch” is based on comprehensive peer-review surveys, which this year totaled more than 16.1 million confidential evaluations nationally by
Continue Reading Best Lawyers® honors 12 Frazer Ryan attorneys

Thirteen Frazer Ryan attorneys are among

The Best Lawyers in America

®

selections for 2024 announced this week, including first-time honoree

Brandon Keim

(Tax Law).

Repeating as honorees are

Jimmy Cool

Scott Erickson,

 

John Fitzpatrick

Doug John,

 

Cathy Knapp

Jonathon Morrison

,

Lisa Reilly Payton

Phil Rupprecht,

 

Jim Ryan,

 

T.J. Ryan

 and of counsel

Chuck Whetstine

.

Afsanieh Rassti

again earned “Ones to Watch” recognition. 
Continue Reading Best Lawyers® honors 13 Frazer Ryan attorneys

  • individual income tax,

  • commercial property tax, and

  • residential rental tax.

The changes helped Arizona crack the top 20 business tax climates for 2023, at #19 nationwide, and move into third place regionally behind Nevada and Utah.

Flat-Rate Income Tax

Under the current law, Arizona taxpayers pay a single flat rate of 2.5%, the lowest top rate of any state with an individual income tax.

In establishing that rate, the Arizona legislature settled a contentious policy and legal debate that began in 2020, when Arizona voters approved Proposition 208, which would have imposed an income surtax of 3.5% on taxpayers earning
Continue Reading Recent changes in Arizona tax law support a business-friendly climate in the Grand Canyon State

The good news: Assets transferred to a revocable or “living” trust continue to receive the step-up.

Step-Up in Basis.

Generally, assets that are part of a person’s gross estate for estate tax purposes receive a step-up in tax basis at the time of the owner’s death, pursuant to Internal Revenue Code Section 1014. The higher basis reduces the taxable gain on the asset when it is sold.

Example:

In 1990, Michael bought a Babe Ruth baseball card for $100,000. By early 2020, its value had grown to $400,000. If he had sold it then, he would have owed taxes on
Continue Reading IRS: Assets conveyed to an irrevocable grantor trust are not eligible for step-up in basis

The legal landscape is ever-evolving, with laws being amended to address the changing needs of society. One such significant amendment in Arizona is SB1291, which has made significant changes to Title 14, governing matters related to decedents, missing persons, protected persons, minors, and incapacitated persons.  The changes take effect on October 30, 2023.  This discussion aims to provide an in-depth analysis of these changes, with specific cross-references to the provisions of Title 14 impacted by SB1291.
Chapter 1. General Provisions, Definitions and Probate Jurisdiction of Courts
 Section 14-1102: Purposes; rule of construction
– Changes: SB1291 clarifies and expands the
Continue Reading 2023 Major Amendments to Arizona Probate Code

We are pleased to announce the addition of Dan Otsuki as an associate attorney. Dan was born in Littleton, Colorado and grew up in a combination of Colorado and Florida.

Dan attended the University of Puget Sound in Tacoma, Washington for undergrad, before attending the University of Minnesota Law School. While in law school, Dan served as a staffer and, eventually, an editor of the Minnesota Law Review and did clinical work with the Minnesota Innocence Project.

Before coming to Berk Law Group, Dan practiced in estate planning law where his focus was keeping his clients and their loved ones
Continue Reading Welcome Associate Attorney Dan Otsuki

The Internal Revenue Service has extended for 2023 a waiver of required minimum distributions (RMDs) that the IRS provided for tax years 2021 and 2022.

The RMD waiver for 2023 is explained in

IRS Notice 2023-54

.

The earlier waivers were discussed in our October 17, 2022, article,

IRS Announces RMD Waivers for Some Beneficiaries of an Inherited IRA

, which explained that RMDs were waived for beneficiaries of an individual retirement account (IRA) in cases where the account holder:

  • died on or after January 1, 2020, and

  • had already attained his or her required beginning date (currently age 73).


Continue Reading IRS announces 2023 RMD waivers for some beneficiaries of an inherited IRA

The IRS has announced relief for individuals who turned 72 in 2023 and received, between January 1, 2023, and July 31, 2023, distributions that were mistakenly categorized as “required minimum distributions” (RMDs).

The announcement is contained in

IRS Notice 2023-54

.

Under the relief, if you reached (or will reach) age 72 in 2023 and received, prior to August 1, 2023, a distribution of what you thought was an RMD, the 60-day deadline for rollovers back to the IRA or qualified plan has been extended until September 30, 2023.

In addition, if you received another distribution from an IRA within
Continue Reading IRS announces RMD relief for individuals attaining age 72 in 2023

Residential real estate continues to be a significant asset in most estates we plan.  It also continues to cause considerable issues with estates and trusts we administer.  Whether caused by poor financial planning, poor estate planning or poor execution, the result is always the same – increased family discord, frustration and expense during administration after death.   The solution is to get good advice tailored to your personal circumstances.   Consider the remainder of this article a variety pack of issues related to residential real estate, including fraud, co-ownership, financing and titling issues.
Combating Fraud.
Maricopa County recently released its free service
Continue Reading Residential Real Estate

Estate Planning Update
July 2023

  • 2023 Annual Gift Tax Exclusion: increased to $17,000 per donor, per donee.
  • 2023 Gift and Estate Tax Exemption: increased to $12,920,000 per donor through 2025, see #6, an increase of $860,000.
  • Marital Deduction for Transfers to U.S. Spouse: remains unlimited.
  • 2023 Generation Skipping Tax Exclusion: increased to $12,920,000 per donor through 2025, see #6.
  • Top rate for Federal Estate, Gift and Generation Skipping Taxes: 40%.
  • National Topics: The current Gift and Estate Tax Exemption is doubled to get to the amounts set forth above and the question remains, will the doubling be (a) extended beyond

  • Continue Reading July 2023 Estate Planning Update

    If you are the successor trustee or a beneficiary of an irrevocable trust, you should be aware of some important reporting provisions contained in the Arizona Trust Code.

    If you are the successor trustee or a beneficiary of an irrevocable trust, you should be aware of some important reporting provisions contained in the Arizona Trust Code.

    The most common type of trust in a typical estate plan is a “living” or revocable trust, which is usually controlled by the grantor or “trustmaker” (i.e., the person or couple who created the trust) and can be changed at any time during their
    Continue Reading Irrevocable trusts in Arizona: Trustee reporting and notification requirements