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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Estate Planning

Date & Time
  • event Date

    Tuesday, September 3, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$297.00
CLE
CPE
ALL

This CLE/CPE webinar will prepare estate planning counsel and tax advisers to unravel, understand, and utilize stepped-up basis for income tax purposes. The panel will outline specific techniques for estate tax planning to leverage the advantages of a new basis at death, which often is a step-up in basis.

Faculty

Edwin P. Morrow
Co-Chair, Estate Planning Group
Kelleher + Holland, LLC

Mr. Morrow is currently the Co-Chair of the Estate Planning Group of Kelleher + Holland, LLC, based in North Barrington, Illinois, concentrating on tax, asset protection, business succession and estate planning.  Previously, he was a Wealth Strategist for Huntington and US Bank’s private banking advisory groups.  Other experience includes research and writing of legal memoranda for the U.S. District Court of Portland, Oregon as a law clerk. He has a Master’s Degree in Tax Law (LL.M.) and Business Administration (MBA) and is a co-author of the Tools and Techniques of Estate Planning, a 1000 page resource guide on technical estate planning topics.

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L. Paul Hood
Consultant
Paul Hood Services, LLC

A native of Louisiana (and a double LSU Tiger), Mr. Hood obtained his undergraduate and law degrees from Louisiana State University and an LL.M. in taxation from Georgetown University Law Center before settling down to practice tax and estate planning law in the New Orleans area. He has taught at the University of New Orleans, Northeastern University, The University of Toledo College of Law and Ohio Northern University Pettit College of Law. Mr. Hood has authored or co-authored seven books and over 500 professional articles on estate, charitable and tax planning and business valuation. A frequent contributor to Leimberg Information Services since its inception, he is a highly sought after speaker and consultant because of his innate ability to see through the complexity and explain difficult and even boring subjects in understandable and entertaining language and mince no words in doing so. Mr. Hood is an author, speaker and consultant on tax, estate and charitable planning. He also is a Vice-President with Thompson & Associates, a charitable estate planning firm. Mr. Hood's website is www.paulhoodservices.com.

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Description

As a result of the permanent indexed estate tax applicable exclusion amount, most estates will have no federal estate tax concerns. In addition, income tax rates applicable to trusts have increased and hit the highest marginal rate at a relatively low level of income. Accordingly, advisers should now focus more on the ongoing income tax effects of trusts and maximizing the new basis at the owner's as well as the surviving spouse's death.

Attendees will learn specific strategies to maximize flexibility of bypass and QTIP trusts for optimal income tax results. Many of these strategies can also be incorporated in "upstream" and "downstream" planning.

Estate planning counsel and tax advisers must be able to integrate techniques that avoid estate inclusion for taxable estates, yet cause estate inclusion and avoid discounting for non-taxable estates. Furthermore, tax advisers need to learn how to avoid the "capital gains tax trap" endemic to most trusts, and how to efficiently enable income tax shifting among beneficiaries and appointees. New and innovative uses of QTIPs and formula powers of appointment can achieve superior income tax results without sacrificing estate and asset protection benefits.

Listen as our experienced panel discusses the specific techniques used to preserve a step-up in basis at the death of both the owner and surviving spouse. Learn how to increase income tax savings for your clients given the current reprieve on the estate tax.

Outline

  1. Strategies for intentional inclusion of assets in an estate
  2. Optimal basis increase trusts
  3. Risks and opportunities in GPOAs
  4. Other techniques to lower trust income tax

Benefits

The panel will review these and other key issues:

  • When the intentional inclusion of assets in the estate tax is appropriate
  • Assets that benefit the most from basis increase, and how to address this in powers of appointment
  • Amending or administering LLC/partnerships to achieve the maximum "step-up" in basis
  • Anticipating hidden dangers of "all to QTIP"/portability estate plans
  • Practical solutions to hidden problems of typical disclaimer-based plans
  • Optimal basis increase trusts--using formula testamentary GPOAs and LPOAs and the Delaware Tax Trap
  • Comparing QTIP vs. use of formula general powers of appointment vs. using the Delaware Tax Trap
  • State laws that many bar committees are working to change (or should be) to enable improved trust tax options
  • Trust protector provisions to add GPOAs--dangerous or not?
  • Opportunities for applying or adding OBIT techniques to preexisting irrevocable trusts
  • Techniques other than basis to lower ongoing trust income tax
  • Comparing 678(a) "beneficiary-defective" provisions vs. appointing/distributing income via K-1 per 643 regs
  • How/when ongoing income tax provisions and burdens might be changed (and when not)
  • Income tax shifting with powers of appointment (including to charity)

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Apply techniques to preserve income tax basis step-up
  • Determine when to use freeze and preferred partnerships
  • Identify beneficial estate tax inclusions
  • Recognize appreciated assets and implement 754 elections
  • Ascertain allocation of partnership debt and understand the impact of Section 704

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of estate, gift and trust taxation including various trusts types, the unified credit, and portability.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).