All posts by Whitney Sorrell

Living Trust Incentive Provisions

This edition of Whitney’s Tax Files answers a question from a client who asks, “How can I stop my kids from blowing the money after I die?” Well, the statistics show that most people go through their inheritance after about ten months, and most estate plans, the standard forms that you see, they say, “Give my kids all the income every year, and then they can have a third, a third, a third at this age, that age, and the other age.” Essentially, we are not providing any incentive for our children, and so long as our children survive to the next year, they get more money, whether they’re being responsible or not, so there’s a couple things that we can do to protect them from themselves.Continue reading

IRS Notices – What should you do?

Time is not on your side when dealing with the IRS. If you received an IRS Notice, then view this video and call our office at 480-776-6055 today!

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Sorrell Law Firm, PLC 7575 E Redfield Rd # 217, Scottsdale, AZ 85260 (480) 776-6055

IRS News and Tax Updates

Basis Consistency Reporting by Estates – Extension Deadline Approaching!

IRS issues Notice 2016-27, giving estate executors until the end of this month, June 30—to meet a new reporting obligation on estate basis consistency. “The Treasury Department and the IRS have received numerous comments that executors and other persons have not had sufficient time to adopt the systemic changes that would enable the filing of an accurate and complete Form 8971 and Schedule A,” the IRS says. See Notice 2016-27, 2016-15 IRB 362. The IRS stated that it has received many comments that executors, among others, have not had sufficient time to, “adopt the systemic changes that would enable the filing of an accurate and complete Form 8971 and Schedule A.” Therefore, the IRS added, statements required under §6035(a)(1) and §6035(a)(2) to be filed with the IRS or furnished to a beneficiary before June 30, 2016, do not need to be filed with the IRS and furnished to a beneficiary until June 30, 2016.Continue reading

Will or a Trust? What’s the difference?

“What is the difference between a will and a trust, and why would I want a trust and not a will?” A will is a document that says, “Upon my death, here’s what happens to my assets.” It does nothing while you’re alive. So, if you’re alive and you become disabled, the will doesn’t help because it’s not yet effective, and so you need to go to a guardianship or conservatorship type of proceedings, and it’s expensive and not desirable.Continue reading

Sorrell Law Firm, PLC 7575 E Redfield Rd # 217, Scottsdale, AZ 85260 (480) 776-6055

Wills vs. Trusts

Confused about the differences between wills and trusts?  If so, you’re not alone. While it’s always wise to contact experts like us, it’s also important to understand the basics. Here’s a quick and simple reference guide:Continue reading