The Tax Implications of Arbitration

The Tax Implications of Arbitration

Mikel v. Commissioner highlights the consequences of trust disputes

An arbitration clause in a will or trust can have numerous benefits for the grantor, the fiduciary and the beneficiaries. Such a clause would force beneficiaries and fiduciaries to submit disputes to arbitration or to a similar alternative forum, rather than allow such disputes to be resolved through litigation, with its potential costs in time, money and relationships.

Until now, case law and commentary have focused largely on the enforceability of those clauses. But, the Tax Court

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