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Educational FYIs
These recent developments and case studies address any aspect of the law that touches on estate planning. They offer an interesting perspective and/or warning. The frequency of release varies from month to month and week to week. Our purpose for sharing these Educational FYI's to you is to further enlighten you on the many variables involved in the fine balancing act of proper estate planning.

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Treasury Department Curtails Abusive Use of Life Insurance and Annuity Contracts
The Treasury Department and the IRS issued two Revenue Rulings designed to curtail the abusive use of life insurance and annuity contracts to avoid current taxation on investment earnings.  Life insurance and annuity contracts receive favorable treatment under the Internal Revenue Code, including deferring tax on the investment earnings of those contracts, because they provide life insurance protection or a way to save for retirement.

IRS Issues Notices to Advance Child Tax Credit Recipients
On July 22, 2003, the Internal Revenue Service mailed the first of more than 25 million letters to taxpayers to be followed on July 25 by the first advance payment checks provided under a recent tax law change.  The letters contain the advance payment amount and should be saved with other records that will be needed to complete the 2003 tax returns next year.








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