Monthly Archives: April 2016

April 27, 2016

Personal and Family Lending: New Federal and Colorado Regulations

by Desta K. Asfaw

There have been a number of recent changes to the mortgage lending laws.   Under current law in Colorado, certain private loans secured by residential real estate may be subject to compliance with strict licensing and other requirements.   Failure to comply could potentially result in misdemeanor charges and/or fines.

These new obstacles stem from provisions of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (“SAFE Act”), the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), and the Colorado Mortgage Loan Originator Licensing and Mortgage Company Registration Act (“CMLO Act”).

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April 25, 2016

Is Any Family at Risk for Competency Disputes?

by Matthew Skotak

Casey Kasem (famed American Top 40 DJ), Tom Benson (owner of the NBA’s Pelicans and NFL’s Saints), and Sumner Redstone (controlling shareholder of Viacom and CBS) have much in common: wealth, prestige, and status. Though many may envy their fortune and fame, they may not envy their other common thread; competency disputes.

When Casey Kasem’s health deteriorated from Parkinson’s disease, an ugly court battle ensued between his children and his wife, which did not end until he died. A challenge to Tom Benson’s competency arose after he decided to vest controlling interest in the Saints and Pelicans with his wife, and lock-out his other heirs from those teams. Similarly, Sumner Redstone’s competency was challenged by his longtime companion, Manuela Herzer, after she was removed as his health care agent and was kicked out of his California mansion. These conflicts are public and recognizable, however, thousands of similar anonymous disputes occur every day across the country involving ordinary families.

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April 11, 2016

New Reporting Required of Estate Fiduciaries by IRS

by Margot S. Edwards

Executors of estates required to file a Form 706 Estate Tax Return, and filing such return after July 31, 2015, must comply with two new reporting requirements. These requirements are set forth in Section 6035 of the Internal Revenue Code (the “Code”), and corresponding proposed regulations. The new reporting obligations are designed to ensure that the initial basis in property distributed to an estate beneficiary is equal to the value of such property for estate tax purposes, and to provide for ongoing consistency of basis. These obligations include both (1) filing form 8971 with the IRS, and (2) providing a statement to certain beneficiaries with information about the value of estate assets received by those beneficiaries.

Who Must File

The term “executor” as used in Section 6035 incorporates the estate tax definition set forth in Section 2203 of the Code. As a result, for purposes of identifying who must complete these filings, the term includes, for example, the trustee of a fully funded revocable trust.

The proposed regulations clarify that an executor filing a form 706 that is not required, but which is filed to elect portability or to make GST elections, is not required to fulfill these reporting obligations. Read more >>