Estate Planning Nuances of Revocable Trusts After a Grantor's Death: Tax Rules, Reporting Challenges

Estate planning with revocable trusts and their administration often presents significant challenges for fiduciaries and estate planning counsel. Estate planners must comply with state and local law and tax reporting requirements, evaluate tax elections, and consider trust modifications.

The interplay between grantor and nongrantor trust rules upon the grantor's death creates complexities and potential risks for estate planners. Typically, in a revocable trust, a grantor retains the power to revoke and amend the trust. As such, these trusts are subject to (1) IRC Section 676 applicable to grantor trusts; (2) trust property included in the estate under IRC Section 2038; and (3) transfers being considered incomplete gifts under Regs. Sec. 25.2511-2(c).

Estate planners must understand key tax and reporting areas applicable to revocable trusts, recognize the pitfalls to avoid, and implement effective planning upon the grantor's death.

Listen as Cliff A. Capdevielle, Director, Trusts and Estates Tax Services at MOBO Law, provides a thorough and practical guide to the characteristics of grantor trusts, revocation periods, possible tax impacts of post-mortem modifications, and the interplay with fiduciary income tax and Form 706.

1. Revocable trusts after grantor's death: federal and state tax challenges
2. Tax deferral elections and potential pitfalls
3. Trust modification opportunities and risks

The panelist will review these and other key topics:

• Planning with revocable trusts upon a grantor's death
• Characteristics and taxation of revocable trusts
• Tax implications of post-mortem modifications
• Available elections to minimize income tax consequences of estate income

Learning Objectives

After completing this course, you will be able to:

• Ascertain estate and tax planning techniques with revocable trusts upon a grantor's death
• Recognize the characteristics and taxation of revocable trusts
• Understand the tax implications of post-mortem modifications
• Identify available elections to minimize income tax consequences of estate income

• 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 at mid-level within the organization, drafting wills and trust documents, supervising other attorneys or estate planners. Specific knowledge and understanding of revocable trusts and various state rules governing trusts. Familiarity with the Uniform Trust Code, rules and restrictions on revocable trusts.

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.