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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, February 20, 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 course will provide estate planners with a practical guide to utilizing family limited partnerships (FLPs) in estate planning under current tax law. The panel will discuss the income tax and asset protection benefits of FLPs, detail how to withstand IRS scrutiny of transfers and operations, and address the interplay between estate planners and income tax advisers, particularly concerning planning to obtain a step-up in basis upon death.

Faculty

K. Eli Akhavan
Partner
Grant Herrmann Schwartz & Klinger, LLP

Mr. Akhavan focuses his practice on tax and estate planning for high-net-worth US and non-US clients. He advises domestic and international individuals and families with respect to tax and estate planning for their US assets and beneficiaries. Mr. Akhavan also advises cross-border clients on all aspects of international estate matters, including foreign trusts, pre-immigration and expatriation planning, and on planning for the purchase of US residential and investment real property. He has considerable knowledge of the reporting requirements applicable with respect to foreign financial accounts and assets and with respect to FATCA and its global equivalent, the Common Reporting Standards (CRS). Mr. Akhavan's practice includes advising clients on the formation of private trust companies for purposes of wealth management and privacy.

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Cliff Capdevielle
Director, Trusts and Estates Tax Services
MOBO Law

Mr. Capdevielle helps clients navigate the complex opportunities related to tax planning, business succession planning, and estate planning, and seeks to maximize tax savings and reach their goals.

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Beth S. Cohn
Shareholder
Jaburg & Wilk

Ms. Cohn chairs the firm’s Estate Planning and Business Law Department. As both a Tax Specialist certified by the State Bar of Arizona - Arizona Board of Legal Specialization and a Certified Public Accountant, she has a unique expertise in assisting her clients with their estate planning as well as closely held businesses. She has assisted hundreds of families - including ones with substantial assets - with their estate needs ranging from simple estate plans to complex multi-generational gifting plans. She assists families, closely held businesses owners and individuals by providing succession planning, business planning and estate planning.

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Description

The use of an FLP in estate planning can shelter assets and reduce overall gift and estate taxes. Although the increased estate exemption amount lessens the need to take aggressive valuation discounts on assets transferred into an FLP, the structures retain significant asset protection and income tax savings features.

The general structure of an FLP involves a grantor transferring assets into a partnership, with the grantor serving as a general partner. The general partner then grants limited partnership shares to family members or other potential heirs/beneficiaries.

Estate planners can use FLPs to achieve income tax savings by arbitraging differing income tax rates among limited partner family members. By granting income shares to family members who may be in a lower income tax bracket, the general partner can reduce overall income taxes.

However, under current tax law, there are some complex tax implications in operating FLPs, particularly in determining the availability of Section 199A pass-through deduction to recipients of limited partnership interests under the capital ownership rules of IRC 704(e). Estate planners must grasp a complete understanding of applicable tax rules and recent regulations when funding FLPs through nontaxable transfers and sales, using distributions to shift income tax burdens, and their interplay with other planning tools.

Listen as our experienced panel provides a practical guide to funding and structuring an FLP, as well as operating the FLP to withstand potential IRS scrutiny.

Outline

  1. Using FLPs for asset protection and business continuation/succession planning
  2. Structuring and funding options
  3. Section 199A deduction for FLPs
  4. Income tax minimization opportunities
  5. Using FLPs with trusts and other wealth transfer vehicles

Benefits

The panel will review these and other relevant topics:

  • What are the income tax and asset protection benefits of FLPs?
  • How can you withstand IRS scrutiny in operating an FLP for non-tax reasons under the business purpose rules?
  • Using distributions to shift the income tax burden to limited partner family members with lower marginal income tax rates
  • How does the Section 199A pass-through deduction apply to FLPs?
  • Strategies for funding FLPs through nontaxable transfers and sales

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Ascertain tactics for using FLPs for asset protection and tax planning
  • Recognize key issues and challenges of Section 199A deduction for FLPs
  • Identify income tax minimization opportunities for FLPs in estate planning
  • Understand key tax issues in using FLPs with trusts and other wealth transfer vehicles

  • 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 pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.

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).