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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    Estate Planning

Date & Time
  • event Date

    Tuesday, January 18, 2022

  • 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.

$297.00
CLE
ALL

This CLE webinar will provide trust and estates counsel guidance on applicable rules regarding charitable income tax deductions for trusts and estates. The panel will discuss income tax charitable deductions under Sec. 642(c), charitable remainder interests, split-interest gifts, governing instrument and gross income requirements, and planning and reporting requirements.

Faculty

Amy Dalen
Principal
Parent: Hill, Barth & King LLC

Ms. Dalen is a Principal and the Chair of the Tax Advisory Group at HBK CPAs & Consultants. The Tax Advisory Group is a group of highly specialized professionals who provide tax training to our team members, oversee compliance with tax policies in order to mitigate risk to the firm, and provide tax planning and consulting services for our clients. She pecializes in estate, gift, trust, individual, and nonprofit taxation. Ms. Dalen is skilled at researching complicated tax issues, consulting on complex estate plans, and providing guidance for our clients to ensure they are in compliance with their tax filing responsibilities.

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Sarah N. Gaymon
Associate Director of Tax Services
Berkowitz Pollack Brant

Ms. Gaymon is an Associate Director of Tax Services at Berkowitz Pollack Brant Advisors + CPAs located in the West Palm Beach office, specializing in trusts and estates. Her background includes tax compliance and tax consulting for high net worth individuals, family groups, trusts, estates, and gift tax issues. Ms. Gaymon aids her clients in the year-end planning process as well as assisting with family wealth, succession and estate planning. She also has experience in US planning and compliance related to foreign trusts, foreign estates, and individual foreign tax compliance and residency issues. Ms. Gaymon has completed extensive research in the gift and estate tax area and has contributed to the publication of an international estate and gift tax planning handbook for the DFK group. She was also published in the Naples Daily News Estate Planning Insert for two consecutive years.

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Description

IRC Section 642(c) governs income tax charitable deductions for trusts and estates, which are substantially different from charitable contribution deductions for individuals and corporations under Sec. 170 and Sec. 642(c)(1). Trust and estate attorneys must have a complete understanding of these rules and reporting requirements for claiming charitable deductions and the impact on certain tax and estate planning strategies.

Section 642(c) sets forth unique rules on charitable deductions. There is no adjusted gross income limitation for trusts, and trusts can contribute to foreign charitable organizations. Since trusts can be taxed themselves or as carryout taxable income to beneficiaries, trust and estate attorneys and fiduciaries need to understand these rules to preserve these valuable deductions.

Although deductible on the estate return, specific bequests are considered deductions from the principal and do not generate a tax deduction. However, making charitable bequests with particular assets can generate significant tax savings, which must be appropriately reported to ensure deductibility.

Trusts and estates must adhere to various rules to obtain income tax deductions, such as the governing document and gross income requirements, charitable purpose and eligible donee requirements, and other additional planning and reporting considerations.

Listen as our panel of trust and estate tax experts explains the caveats and considerations for income tax charitable deductions under Sec. 642(c), deduction of the charitable remainder interest, split-interest gifts, governing instrument and gross income requirements, and planning and reporting requirements.

Outline

  1. Governing documents requirements
  2. Internal revenue code requirements for trusts and estates
  3. Reporting obligations and challenges
  4. Recent cases and planning considerations

Benefits

The panel will review these and other critical issues:

  • Charitable deduction rules and requirements
  • Reporting of charitable deductions
  • Distinctions between contributions made from the corpus and those made from income
  • Types of trusts eligible to make deductible donations
  • Specific provisions in trust documents that allow for deductible contributions
  • Differences between allowable individual and trust contributions