Taxation Archives - Willow Law Estate Planning Services

Fiduciary Legal Update 2026

2026 Fiduciary Legal Update

Major 2026 updates in fiduciary law for trusts include new Department of Labor (DOL) guidance for ERISA accounts and expanded state-level administrative requirements. Fiduciaries face heightened risks and must navigate new requirements.

Department of Labor (DOL) Proposed Regulations: The DOL issued proposed rules regarding fiduciary duties of prudence when selecting designated investment alternatives. This provides a safe harbor for fiduciaries of participant-directed individual account plans (like 401(k)s) who wish to offer asset allocation funds that include alternative assets (such as real estate, private equity, or digital assets). [LINK]
Estate Administration Changes: California now requires notification to the Director of Child Support Services if an unpaid support obligation is suspected.
- See AB 1521. Notice requirements for estates where Letters are issued on or after January 1, 2026, the personal representative has an expanded duty to notify the Director of Child Support Services if the decedent may have owed unpaid support. [LINK]
- See Probate Code §2020, as amended. [LINK]

Given these shifts, fiduciaries (including trustees, personal representatives, and administrators) are urged to ensure their investment selections are strictly documented.

admin2026-07-14T17:52:16-07:00July 14, 2026|

Estate and Gift Tax 2014

Starting January 1, 2014, the individual lifetime estate and gift tax exemption is $5,340,000, adjusted for inflation from 2013’s $5,250,000 exemption. In addition, the maximum estate/gift tax rate is 40% for an estate and/or gift(s) exceeding the lifetime exemption amount (the same maximum rate as 2013, and increased from the 2012 maximum rate of 35%)

admin2026-08-24T10:27:21-07:00February 3, 2014|

Estate and Gift Tax 2013

After 2 years of “what ifs” and “then whats,” we finally have resolution regarding the estate and gift tax exemptions. As a result of the last minute “Fiscal Cliff” legislation, starting January 1, 2013, the individual lifetime estate and gift tax exemption is $5,250,000, adjusted for inflation from 2012’s $5,120,000 exemption. In addition, the maximum estate/gift tax rate is 40% for an estate and/or gift(s) exceeding the lifetime exemption amount (increased from the 2012 maximum rate of 35%).

Although unrelated to the “Fiscal Cliff” legislation, the annual gift tax exemption is now $14,000 (increased from $13,000 in 2012).

admin2014-02-03T06:20:06-08:00October 31, 2013|

IRS Pronouncements – Community Property Treatment for RDPs and Same-Sex Spouses

The IRS recently has made significant pronouncements with respect to community property treatment for Registered Domestic Partners and same-sex spouses. In summary, the IRS:

stated that community property is now to be reported by both spouses on their federal income tax returns; and
confirmed there is no taxable gift upon creation of community property.

Up to this point, although same-sex RDP’s and same-sex spouses had to report 1/2 of community property earnings on each partner’s/spouse’s state income tax return, the “earning” partner/spouse had to report such individual’s entire earnings on his/her federal income tax return. However, on a moving forward basis, income reporting on the federal and state income tax returns will now be consistent – with 1/2 of the community property earnings being reported on each partner’s/spouse’s income tax return.

Although many practioners believed that creation of community property at the moment it is earned could not be viewed as a taxable

admin2014-02-03T06:22:41-08:00October 31, 2013|

Fiduciary Legal Update 2026

Estate and Gift Tax 2014

Estate and Gift Tax 2013

IRS Pronouncements – Community Property Treatment for RDPs and Same-Sex Spouses

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