Page 18 THE MALDEN ADVOCATE–Friday, August 4, 2023 James D. Picardi Of Malden. The IRS REVENUE RULING 2023-2 T he Internal Revenue Service in March of this year confirmed that the assets of an irrevocable grantor trust that are not included in the grantor’s gross taxable estate do not receive the step up in cost basis upon the grantor’s death pursuant to Internal Revenue Code (IRC) Section 1014(a)(1). The types of irrevocable trusts that are the subject matter of this revenue ruling are irrevocable gifting trusts where the grantor of the trust is gifting assets out of his or her estate in order to avoid having those assets includible in his or her gross taxable estate for estate tax purposes. For larger estates, such a technique may well be a good strategy as once your estate is taxable for federal estate tax purposes, the federal estate taxes are significant. Although the federal estate tax exemption is currently $12.9million for taxpayers dying in 2023, it is slated to drop down back to $6million in 2026, failing legislation to extend the estate tax provisions currently in place. When assets are transferred to such a Trust, a completed gift has occurred for gift tax purposes. If the grantor retains powers pursuant to IRC Sections 671-678, the grantor will be treated as the owner for “income tax” purposes. However, with an irrevocable gifting trust, the assets held in such a trust are not afforded the step up in cost basis. This means that the assets held in trust upon the grantor’s death will not receive a new cost basis equal to the fair market value at the time of death. The grantor’s original cost basis of the assets will be passed along to the beneficiaries of the trust. This ruling confirms that you cannot have your cake and eat it too when it comes to these irrevocable gifting trusts. The assets in the trust must be includable in the grantor/decedent’s estate for estate tax purposes in order to gain the valuable step up in cost basis. This ruling does not affect the typical Medicaid irrevocable trusts which are designed to achieve grantor-type trust status for income tax purposes and to provide for the inclusion of highly appreciated assets, such as stocks and real estate, in the grantor’s taxable estate. Provisions included in these trusts are designed to prevent a completed gift from occurring when assets are transferred to the trust. It may very well be that no federal estate tax will be paid or no Massachusetts estate tax will be paid, but if the trust assets are included in the taxable estate, the step up in basis will be achieved. The Massachusetts state legislature will hopefully increase the estate tax exemption to $2million. It is currently $1million. It would be great if the legislature adopted estate tax portability thereby providing a married couple with a total estate tax exemption of $4million. Upon the death of the first spouse, everything could pass to the surviving spouse estate tax free based upon the unlimited marital deduction. Upon the surviving spouse’s subsequent death, he or she would then be entitled to the deceased spouse’s $2million exemption plus his or her own $2million exemption, for a total of $4million. You would see less taxpayers leave Massachusetts for a more tax-friendly state. Joseph D. Cataldo is an estate planning/elder law attorney, Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a master’s degree in taxation. REAL ESTATE TRANSACTIONS BUYER1 GAUTHIER, WILLIAM F NAIR, ANJALI TRAN, LINH K VALLE, JOSE Y YUAN, ZILONG BUYER2 BESHIRI, MICHAEL L MALDONADO, STEPHANIE YUAN, ZITING SELLER1 2 GRANITE STREET LLC 220 LEBANON STREET LLC WONG, MEELYNN SELLER2 WONG, SIE T TZU-MIN AND FUMEI KAO LT KAO, FUMEI SEYMOUR H SIDMAN RET SIDMAN, ALAN L Copyrighted material previously published in Banker & Tradesman/The Commercial Record, a weekly trade newspaper. It is reprinted with permission from the publisher, The Warren Group. For a searchable database of real estate transactions and property information visit: www.thewarrengroup.com. ADDRESS 2 GRANITE ST 220 LEBANON ST #2 20-30 DANIELS ST #214 47 CEDAR ST 54 RICH ST CITY MALDEN MALDEN MALDEN MALDEN MALDEN DATE 07.14.23 07.12.23 07.11.23 07.12.23 07.12.23 PRICE 1587500 760000 395000 900000 730000 Picardi family would regrettably like to announce that our beloved husband and father, James, has been brought home to God after a brief illness and second stroke. Born in Malden to his mother Constance and father, Rosario. Brother to Richard and the late Stephen. After meeting during their high school years, he became the loving, supportive husband to Karen (Meuse) for 48 years. During those years they spent many happy times of celebrations, holidays, day trips, and vacations. He was also the most amazing, caring father and supporter to Lisa Marie, her companion Jamil and Michelle Elizabeth (Cunningham) and her husband Steve. He devoted all his time and love into raising them well into their adult years. All until he had the #1, love of his life, granddaughter Aubrey Elizabeth that came into his life in 2014. OBITUARIES He spent most of his days fixing things around the house and cleaning the yard. He was a devoted Catholic. He volunteered his time every Saturday to Sacred Heart Parish at 4pm to help with collections. His love for Dunkin' and his family is what he ran on. His last 6 years of life had been residing at The Courtyard Nursing Care Center in Medford after a brain tumor and stroke diagnosis. He fought through; infections, two rounds of the Corona virus, heart attack, pneumonia, and several illnesses during that time. All through whatever came his way, he had the loving compassion of the staff that treated him and our family like family. We will be forever in their debt. James will be deeply missed by all and live in our hearts forever. Visiting hours were held from the A. J. Spadafora Funeral Home, Malden on Monday July 31st. Funeral from at the funeral home on Tuesday August 1st followed by a Mass of Christian Burial celebrating James’ life in Saint Joseph’s Church, Malden. Interment was in Forest Dale Cemetery, Malden. In lieu of flowers donations in James’ memory may be made to Tufts Medical Center-Michael Neely Neuroscience Center giving.tuftsmedicalcenter.org or Courtyard Nursing Care Center, Resident Council Fund, 200 Governors Ave., Medford, MA 02155 Robert (Jack) Maguire Of Malden passed away peacefully on July 20th 2023 at the age of 93. Loving son of the late John J. and Constance E. (Barratt) Maguire. Loving husband of 49 years to the late Marie (Costanza). Loving father to Michael and his wife Cheryl of Hampstead NH, Judith Maguire of Malden, and the late John Maguire. Loving "Papa" to Nicole Maguire Palmisano of Malden, Kelly McGonigal of Danvers, Mike Maguire of Danvers, Tabitha Maguire of NH, John Maguire of NH. Great grandfather of Joey Adams, Marissa Adams, Bobby McGonigal, Teagan McGonigal, NichoOBITUARIES| SEE PAGE 20
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