Tax and Estate Planning: Impact of the Anticipatory Assignment of Income Doctrine

The anticipatory assignment of income doctrine applies to a variety of income shifting transactions often implemented as part of an estate plan. Tax counsel and estate planners must ensure that these transactions do not run afoul of the anticipatory assignment of income doctrine.

Generally, a taxpayer cannot avoid tax liability by assigning a right to income to someone else. The anticipatory assignment of income doctrine can result in significant tax implications for transfers involving estates and trusts. Any income shifting strategies must align with the anticipatory assignment of income doctrine and not result in the reconfiguration of the transaction by the IRS to reflect the taxpayer's actual income.

Transactions of property, partnership interests, gifts of appreciated stocks, charitable gifting, and other income and tax shifting strategies must involve a careful analysis of the application of the anticipatory assignment of income doctrine and other tax rules.

Listen as our panel discusses recent cases, applicable tax rules, key issues for gifting stocks and other interests, timing of transactions, and pitfalls to avoid for tax counsel and estate planners.

1. Overview of the anticipatory assignment of income doctrine
2. Challenges for trust and estate planners
3. Income and tax shifting strategies
4. Best practices for tax counsel and pitfalls to avoid

The panel will discuss these and other key issues:

• Application of the anticipatory assignment of income doctrine to various transactions
• Impact on trust and estate planning
• Issues for transfers of partnership interests and gifts of appreciated stocks
• Available income and tax shifting strategies and pitfalls to avoid

Learning Objectives

After completing this course, you will be able to:

• Recognize the income and tax planning implications stemming from the anticipatory assignment of income doctrine
• Understand the key tax provisions when structuring transfers for estate and gift tax purposes
• Understand the potential tax issues for transfers of partnership interests and gifts of appreciated stocks
• Ascertain the available income and tax shifting strategies for trust and estate planning

• 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).