Estate Planning for Flow-Through Entities | CPE Course

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Course Details

Course Information

smart_display Format
On-Demand
signal_cellular_alt Difficulty Level
Intermediate
work Practice Area
Tax Preparer

Date & Time

event Date
Wednesday, July 26, 2023
schedule Time
1:00 p.m. ET./10:00 a.m. PT
timer Program Length
110 minutes

Credit Information

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).

$197.00

CPE

ALL

This webinar will offer estate planning strategies for partners and shareholders. Our panel of trust and estate advisers will provide suggestions to minimize taxes and point out tax hazards to avoid for owners of flow-through entities.

Faculty

Matthew E. Rappaport

Vice Managing Partner

Falcon Rappaport & Berkman LLP

Mr. Rappaport chairs FRB’s Taxation and Private Client Groups. He concentrates his practice in Taxation as it relates to Real Estate, Closely Held Businesses, Private Equity Funds, Family Offices and Trusts & Estates. He advises clients regarding tax planning, structuring, and compliance for commercial real estate projects, all stages of the business life cycle, generational wealth transfer, family business succession, and executive compensation. Mr. Rappaport also collaborates with other attorneys, accountants, financial advisors, bankers, and insurance professionals when they encounter matters requiring a threshold level of tax law expertise. He is known for his work on complex deals involving advanced tax considerations, such as Section 1031 Exchanges, the Qualified Opportunity Zone Program, Freeze Partnerships, Private Equity Mergers & Acquisitions, and Qualified Small Business Stock. Mr. Rappaport has served as a trusted advisor for prominent real estate funds, executives of multinational corporations, venture capitalists, successful startup businesses, ultra-high net worth families, and clients seeking creative solutions to seemingly intractable problems requiring tax-focused analysis.

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Andrew L. Gradman

Of Counsel

Falcon Rappaport & Berkman LLP

Mr. Gradman is Of Counsel in FRB’s Taxation Practice Group. He advises clients on a wide range of federal and international tax matters, including deferral and characterization of income; partnership taxation; corporate taxation; and Opportunity Zones. Mr. Gradman frequently represents closely held family businesses, real estate developers, and cannabis clients. He also has extensive experience in estate and gift tax planning.

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Description

Estates with flow-through entities require additional forethought and planning. Partnership interests can be either active or passive, depending on the partner's level of participation. The decedent's level of involvement may have been active; however, after death, the determination could be based on the fiduciary's participation.

Subchapter S corporation stock can only be held by qualifying shareholders. Nonresidents, individual retirement accounts, and foreign trusts, for example, are not qualified. Transfers of S corporation stock to an ineligible shareholder could jeopardize the entity's S-election and subject the owners to unnecessary tax. Fortunately, certain trusts and estates are allowed to hold S corporation stock for a limited period. Eligible trusts may decide to elect to be a QSST, qualified subchapter S trust, or an ESBT, electing small business trust, to hold the stock past this period.

Lifetime transfers and other planning strategies can avoid unanticipated tax consequences for flow-through entities. Avoiding potential tax traps for taxpayers holding business interests is critical for tax advisers working with taxpayers owning partnerships and S corporations.

Listen as our panel of trust and estate experts offers planning strategies for owners of flow-through entities to reduce taxes paid by investors and their heirs.

Outline

Estate planning for flow-through entities: introduction
Partnerships
S corporations
Gifting strategies
Other planning techniques

Benefits

The panel will cover these and other key issues:

When should a trust consider an election to be a QSST?
How the level of participation is determined for an LLC interest held by a trust
Succession planning for pass-through entities
Which shareholders might benefit from gifting their interest in an S corporation?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

Identify estate planning techniques for closely-held businesses
Determine which clients should consider gifting their interest in a partnership or LLC
Decide how long qualifying trusts can hold S corporation stock without endangering its S status
Ascertain the differences between a QSST and an ESBT election

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.