Estate and Gift Tax Problems of Principals and Agents Under Durable Powers of Attorney

Tax Notes, Vol. 66, p. 1009, 1995
U of Cincinnati Public Law Research Paper No. 09-43

5 Pages Posted: 31 Jan 2010  

Paul L. Caron

Pepperdine University - School of Law

Date Written: 1995

Abstract

The combination of advances in life expectancies and improvements in medical technologies has made it increasingly important to plan for a client's possible future incapacity. As a result, the use of durable powers of attorney has exploded in recent years. Indeed, estate planners now typically include such powers and living wills as components of a client's estate plan along with traditional wills and trusts. However, the use of durable powers of attorney can create serious estate and gift tax problems for both the principal and the agent. This article discusses these tax problems in light of several recent cases and rulings, and suggests drafting strategies to address these tax concerns.

Keywords: Tax, Estate and Gift Tax, Estate Planning, Principal and Agent, Power of Attorney

JEL Classification: K34,

Suggested Citation

Caron, Paul L., Estate and Gift Tax Problems of Principals and Agents Under Durable Powers of Attorney (1995). Tax Notes, Vol. 66, p. 1009, 1995
U of Cincinnati Public Law Research Paper No. 09-43. Available at SSRN: https://ssrn.com/abstract=1545332

Paul L. Caron (Contact Author)

Pepperdine University - School of Law ( email )

24255 Pacific Coast Highway
Malibu, CA 90263
United States
310.506.7521 (Phone)

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