D|J|P Saves Client More than $400,000 in Estate Taxes



Congratulations to F. McKay Johnson and K. Ray Johnson of D|J|P for this recent victory for the Firm’s client. Both attorneys practice in the Lehi office.

Private Letter Ruling

April 2017: Durham Jones & Pinegar represented the joint estates of a married couple to save more than $400,000 in estate taxes.  Several years ago, the wife’s estate left over $5 million in unused death tax exemption amount.  However, prior advisors failed to file an Estate Tax Return for her estate.  Without that return filed before the usual deadline, the Husband’s estate lost its chance to use of all her unused tax benefits.  So, instead of $0 death taxes due, his estate faced over $400,000 in taxes due.

D|J|P was engaged shortly after the husband’s death, and quickly identified this issue and a way to fix it.  D|J|P recommended private letter ruling to obtain an extension and eliminate the taxes.  The formal process of requesting a private letter ruling from the IRS can take up to six months.  D|J|P was successful in obtaining a favorable ruling in just 40 days.  This expedited response allowed the Husband’s estate to reduce its liability to zero before reaching its payment deadline.

McKay Johnson is a shareholder and member of the Firm’s Estate Planning section.  Prior to joining Durham Jones & Pinegar, Mr. Johnson was a director and principal at Hill Johnson & Schmutz, LC in Provo, Utah. His practice focuses on advanced estate and tax planning, asset preservation, business formations and operations, charitable giving, and business succession.

K. Ray Johnson is an associate attorney and member of the firm’s Estate Planning Section. His practice focuses on wills and trusts, family business formations, estate administration and tax planning. Mr. Johnson has unique training in estate plans for families who need to ensure the protection of loved ones with special needs. Mr. Johnson is the author UtahCod.com, a cartoonist’s guide to Utah Law.


Tax