• videocam On-Demand Webinar
  • signal_cellular_alt Intermediate
  • card_travel Estate Planning
  • schedule 90 minutes

Estate Planning for Income Tax Reduction: Strategies for Maximizing New Basis

Leveraging Estate Tax Inclusion, Partnerships, Trusts, and Powers of Appointment

$297.00

This course is $0 with these passes:

CLE
ALL
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About the Course

Introduction

This CLE/CPE webinar will prepare estate planning counsel and tax advisers to unravel, understand, and utilize stepped-up basis for income tax purposes. The panel will outline specific techniques for estate tax planning to leverage the advantages of a new basis at death, which often is a step-up in basis.

Description

As a result of the permanent indexed estate tax applicable exclusion amount, most estates will have no federal estate tax concerns. In addition, income tax rates applicable to trusts have increased and hit the highest marginal rate at a relatively low level of income. Accordingly, advisers should now focus more on the ongoing income tax effects of trusts and maximizing the new basis at the owner's as well as the surviving spouse's death.

Attendees will learn specific strategies to maximize flexibility of bypass and QTIP trusts for optimal income tax results. Many of these strategies can also be incorporated in "upstream" and "downstream" planning.

Estate planning counsel and tax advisers must be able to integrate techniques that avoid estate inclusion for taxable estates, yet cause estate inclusion and avoid discounting for non-taxable estates. Furthermore, tax advisers need to learn how to avoid the "capital gains tax trap" endemic to most trusts, and how to efficiently enable income tax shifting among beneficiaries and appointees. New and innovative uses of QTIPs and formula powers of appointment can achieve superior income tax results without sacrificing estate and asset protection benefits.

Listen as our experienced panel discusses the specific techniques used to preserve a step-up in basis at the death of both the owner and surviving spouse. Learn how to increase income tax savings for your clients given the current reprieve on the estate tax.

Presented By

Andrew J. Kelleher Jr.
Founding Member
Kelleher + Holland, LLC

Mr.  Kelleher, Jr., co-founder of Kelleher + Holland, LLC, had a vision of legal services deeply rooted in high-level client services from the very inception of his career. He believes that nothing replaces old-fashioned hard work. That hard work has been focused on putting the client’s best interests first for 25 years. Mr. Kelleher concentrates his practice in trust and estate law, business law, tax law, and asset protection planning for high-net-worth business owners, executives, and individuals.

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Edwin P. Morrow III
Estate Planning Co-Chair, Estate + Trust Administration Co-Chair
Kelleher + Holland, LLC

Mr. Morrow is currently the Co-Chair of the Estate Planning Group of Kelleher + Holland, LLC, based in North Barrington, Illinois, concentrating on tax, asset protection, business succession and estate planning.  Previously, he was a Wealth Strategist for Huntington and US Bank’s private banking advisory groups.  Other experience includes research and writing of legal memoranda for the U.S. District Court of Portland, Oregon as a law clerk. He has a Master’s Degree in Tax Law (LL.M.) and Business Administration (MBA) and is a co-author of the Tools and Techniques of Estate Planning, a 1000 page resource guide on technical estate planning topics.

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Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

Date + Time

  • event

    Tuesday, September 1, 2026

  • schedule

    1:00 PM ET/10:00 AM PT

I. Strategies for intentional inclusion of assets in an estate

II. Optimal basis increase trusts

III. Risks and opportunities in GPOAs

IV. Other techniques to lower trust income tax

The panel will review these and other key issues:

  • When the intentional inclusion of assets in the estate tax is appropriate
  • Assets that benefit the most from basis increase, and how to address this in powers of appointment
  • Amending or administering LLC/partnerships to achieve the maximum "step-up" in basis
  • Anticipating hidden dangers of "all to QTIP"/portability estate plans
  • Practical solutions to hidden problems of typical disclaimer-based plans
  • Optimal basis increase trusts—using formula testamentary GPOAs and LPOAs and the Delaware Tax Trap
  • Comparing QTIP vs. use of formula general powers of appointment vs. using the Delaware Tax Trap
  • State laws that many bar committees are working to change (or should be) to enable improved trust tax options
  • Trust protector provisions to add GPOAs—dangerous or not?
  • Opportunities for applying or adding OBIT techniques to preexisting irrevocable trusts
  • Techniques other than basis to lower ongoing trust income tax
  • Comparing 678(a) "beneficiary-defective" provisions vs. appointing/distributing income via K-1 per 643 regs
  • How/when ongoing income tax provisions and burdens might be changed (and when not)
  • Income tax shifting with powers of appointment (including to charity)