Tag Archives: DU

Dual-status Taxpayer

Dual-status Taxpayer

Dual-status Taxpayer means:
an alien who is both a nonresident alien and a resident alien during the same tax year.

Description and Definition of Dual-Status Taxpayer

An alien who is a resident part of the tax year and a non-resident the other part of the tax year.

Resources

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Further Reading

Dual Resident

Dual Resident

Dual Resident means:
a taxpayer who is a resident of two countries. Most U.S. tax treaties with other countries contain a “tiebreaker” provision that determines the country of residence of a person who is a resident of both countries.

U.S. and other Developed Countries International Tax Meaning

Person or company resident in two or more countries under the law of those countries, because the two countries adopt different definitions of residence.

Duty

Duty

Duty may have one of the following meanings, depending the context of the term:

1. a tax imposed on the importation, exportation, or consumption of goods.

2. an obligation of a fiduciary or other person in a responsible position.

U.S. and other Developed Countries International Tax Meaning

Customs duties (sometimes called a tariff) levied on imported products.

See Customs in the American encyclopedia and Customs in the Worldwide encyclopedia.

See Tariff in the United States Encyclopedia and Tariff in the Worldwide Encyclopedia.

Durable Powers of Attorney

Durable Powers of Attorney

By Andrew H. Hook, Esq. Oast & Hook, P.C., Virginia Beach and Portsmouth, VA

Durable powers of attorney (DPAs) are extremely complex, powerful, and flexible legal instruments that create significant legal authority, duties, and obligations. The scope of the power of attorney, as well as its provisions, should be tailored to the needs and situation of the client and should reflect a knowledge of applicable local law.

Those who use form DPAs ignore significant differences among individual clients. While there are basic similarities among clients, everyone’s circumstances differ to some degree. Some client issues may require more oversight than others. Attorneys should make sure the provisions in a DPA are appropriate for each individual client’s circumstances. his is especially important in today’s society with ever-changing family dynamics. More and more families are breaking up, as evidenced by soaring divorce rates. The power and authority granted by DPAs particularly need to address these different family dynamics. Essentially, attorneys should spend the same time and effort in counseling clients about, and drafting, DPAs as they spend on wills and trusts.

Why do attorneys treat DPAs as forms? Estate Planning and Elder Law have become very competitive fields. Many attorneys believe that the client has an expectation that a DPA is an inexpensive, simple form. Therefore, the attorney can spend little time customizing and preparing a DPA. Estate Planning and Elder Law for many attorneys have become volume practices. To service the increased volume of work, the time spent in counseling clients and customizing documents has been reduced.

An effective Estate Planning or Elder Law practice requires a strong attorney-client relationship. This relationship requires that attorneys take the time to understand their clients’ needs and objectives, to discuss with their clients the options available to accomplish their objectives, and to involve the clients in the decision making. If attorneys do not take this time and add value to the process, they will be replaced by software packages, do-it-yourself form books and non-attorney providers. In fact, in conducting an internet search using the term “durable power of attorney,” over one million websites pop up with at least seven on the first page of results offering forms for sale for as little as around $25. If the attorney-client relationship is replaced by these easily accessible, generic form DPAs, the client and the attorney will suffer.

How do you provide the services necessary for a professionally prepared DPA within the constraints of a competitive marketplace? The answer is by developing a system that will permit the attorney to determine the client’s needs, to educate the client concerning the options available, to draft a customized document that addresses the client’s specific needs, concerns, and problems, and then to assist the client in implementing the plan in an efficient amount of time.

For more information, in the Tax Management Portfolios, see Hook, 859 T.M., Durable Powers of Attorney

Durable Power of Attorney

Durable Power of Attorney

Durable Power of Attorney means: a power of attorney that remains in effect even if the principal becomes incompetent.

Uniform Power of Attorney Act Developed to Address Problem Areas Associated With Durable Powers of Attorney

By Andrew H. Hook, Esq. Oast & Hook, P.C., Virginia Beach and Portsmouth, VA

There has been a recent explosion in the use of durable powers of attorney (DPAs) and resulting litigation. State courts are beginning to realize the need for guideposts to govern the fiduciary responsibilities of an agent so that agents can operate efficiently on behalf of the principal under a DPA, and also so that the principal is protected from abuse of the power and unnecessary court interventions and government intrusions are prevented.1

States have responded by revising their DPA statutes to address perceived problem areas. As the laws concerning DPAs continue to develop and evolve, the clear trend is the movement of DPAs from the common law toward statutory law. This trend is made evident by the promulgation of the Uniform Power of Attorney Act (UPOAA) by The National Conference of Commissioners on Uniform State Laws. The UPOAA is basically a set of default rules that preserves a principal’s freedom to choose both the extent of an agent’s authority and the principles to govern the agent’s conduct.2 Where the UPOAA does not address an issue, the common law rules of Agency apply.3 In addition, the UPOAA facilitates the drafting of DPAs and increases the likelihood of acceptance by third parties. As states continue to adopt the UPOAA, there is hope that laws regarding DPAs will become more uniform in order to encourage greater portability and acceptance of DPAs.

As a result of the explosion in the use of DPAs, attorneys will frequently be asked to assist clients in implementing DPAs. Additionally, attorneys will be asked to assist agents in exercising the authority granted by DPAs, represent third parties to whom DPAs have been presented for acceptance, and represent interested parties who are concerned about the use of a DPA and whether the named agent is abusing his or her authority. Therefore, the representation of agents and others concerning the use of DPAs will be a growth area in the practice of law.

For more information, in the Tax Management Portfolios, see Hook, 859 T.M., Durable Powers of Attorney, and in Tax Practice Series, see ¶6350, Estate Planning.

1 Russ v. Russ, 2007 WI 83 (Wis. 7/3/2007).

2 UPOAA §121.

3 Id.